Why are MLMs/ Network Marketing 'businesses' a scam?

[Spongebobette]

This is the 44th thread in a long series about the dangers of network marketing/ MLMs such as Forever Living, Ariix, NuSkin, Arbonne, Younique, Valentus, TS Life, and MANY MANY more!
Posts here will give examples of the lies told by 'top bots' who portray luxury lifestyles in order to lure in new victims and of the other techniques and brainwashing used by MLMs
Over 90% of people who join an MLM end up LOSING money. Always bear that in mind when considering paying money to join!

From what I understand, a director's loan is not a problem if the company can pay the taxes due on its profits, as you can pay a dividend after tax to wipe it out.

The problems arise when the company owes taxes and does not pay them off. The loan then becomes taxable.

So a bot that has treated their company's income as 'free money' (i.e. not paid themselves a wage and the associated income tax, or paid corporation tax and then issued a dividend) can easily find him/herself facing a large delayed tax bill.

Given that the mindset that is encouraged is to spend and flash the successful lifestyle as things will continue growing exponentially, it is not surprising bots get caught out.

It would go against the instant gratification easy money image to give the bots any sound financial advice - it may discourage them from joining and make them pay closer attention to the realities of the biz once they do (e.g. not to confuse turnover with profit...).

I think if the money is paid from the US company via a US bank account then they could be caught out with a US tax liability. I wouldn’t want to mess up when it comes to the IRS.

Directors loans from close companies aren’t that straight forward and you can get into a bit of a mess. If you write it off, it’s treated as a dividend on the date it was paid, so will hit your tax return. In any event, when you take a loan over a certain amount (used to be £5k but I haven’t looked at it for a while), you have to pay s419 tax equal to 25% within a certain amount of time (poss 3 months). You can’t just use your company bank account as a cash machine. Off to look at some accounts of who I think it is...!

One thing I don’t understand on one particular bot’s company accounts is that there is a note for a pension liability which was utilised in the year. But the actual figure isn’t shown on the balance sheet, and you wouldn’t have a pension liability accounted for in that way (at least not in a “normal”company).

As far as the authorities view it, the box was probably ticked by the submission alone.

I really really don't like the 'hardness' coming through on Uber's most recent post. It really shows her colours and why on earth anyone would comment for fear of being dragged into spending a shed load of money on a C9 before Xmas.
In the old days there would have been masses of likes and comments.

I wonder how many of them will be flogging the C9 in the new year? Then again before Easter, then before the summer holidays and rinse and repeat before Christmas...and for what it is worth NONE of them look any different.

I did think that the pics from the “success” day showed a lot of very average (uk 16ish) sized women. So much much for their magic shakes. 🙄

I see a former Real Housewife of Cheshire has joined NuSkin. I’m surprised really as she and her husband must be multi-millionaires so wtf she’s doing flogging crappy makeup I’ll never know. I bet NuSkin are delighted though.

She’s got a lot of fangirls although there are several people pointedly asking her about the animal testing policy on her Insta.

Clues if you don’t know who she is: She’s blonde, used to be a ‘waitress’, married to a footballer (natch), and she will never be invited to Warford Hall ever again

My thoughts exactly SSDGM and after -stalking- following some TS Life Bots. Obviously the mint choc chip shake is about as useful as a mint choc chip fireman..

Is it SF? Janice?

Messiah just endlessly talks himself and TS Shite up. Everything is always about to happen... his FB is a relentless cycle of hype - nothing - hype - nothing - hype - nothing. Right now, they are all “dead chrysalis” (sic) preparing to “morph” into butterflies.

There’s only so long you can keep people up in that state of hysteria. People don’t like endless over-promising.

Wig’s broken heart post has gone. Looks like all is back to normal in Ponzi paradise.

It was around this time last year that Wig'n'Sleaze were trumpeting that they had taken '12 flights' in the previous year, and that this was just the preliminary for this year, which was to see them jet-setting around the globe?

warning: ther's a new Forever Living campaign starting in the new year called #beresolute and they'll be flogging C9s like there's no tomorrow.

Bots who attended the Success Day were encouraged to buy some C9s there and then to stock up in preparation

Success days and other such events are always used to offload stock on captive bots. Loads of pressure to 'buy now', as uplines are present an encouraging them to.

I don't mind being resolute :)
I will resolve NOT to drink aloe gunk :) :)

Yawn has posted about how she was badly trolled/bullied online in 2016. Does anyone know the background to that.

Lipbot has gone missing off FB - maybe because of her recent posts about the spa day that went wrongs and she was trying to get compensation/freebies out of the venue by giving them bad publicity? Some of the comments on her post were attacking her rather than the venue.

Apart from the episode where Yawn felt that having someone comment "yawn" on one of her dreary 'home improvement' posts was such bullying that the person should be hounded out of their job, I recall an episode where she explained that she couldn't attend one of her minion's weddings because her hair-straighteners weren't working (instead, she went shopping for expensive new ones, which she immediately plastered over FB to show off her purchasing power).
Some people suggested that this was not particularly good behaviour, leading to the usual accusations of 'bullying' by 'haters'...

I think she also uses “cyber bullying” to refer to the era here on this thread when she had a different nickname.

I wasn’t around then, so I don’t know how near or far from genuine bullying it was. She has definitely made the most of her self-defined cyber-bullies status: she used it as the reason why she didn’t get a cheque this year, she’s used it in a multitude of business-related, mindset-based FB posts, she refers to it whenever she needs positive reinforcement and I think she claimed that she’d been asked to give a speech about it at a school?

@ArbunneHun - I believe the one relating to being asked to give a talk at her kids' school about dealing with bullying was the "yawn" episode.

Fresh from whipping her minions into a flaming torch & pitchfork frenzy about the offending post, she announced that the dignified way she had dealt with the 'bullying' had inspired the school's leadership to invite her to give a talk on the issue.

All the more remarkable is that this all happened over a weekend...

Broke's new coffee delays death, apparently.

Would that be a medical claim?

Oh, here we go with him. What an absolute pillock that man is.

Regarding Yawn's bullying...if anyone were to go back to 19/04/13 on her FB you may see a post where she shows 3 photos about an accident and how the 'power of aloe' has miraculously re-grown her scarred skin.

Then after the bullying incident she posts the exact same 3 photos citing how her cyber bullies are picking on her for drawing on her eyebrows, wearing heavy make up and using filters on her pictures when she actually does that for her own confidence.

I hope you are reading this my dear, as I wish to echo your sentiments. I have also been bullied. And my family still love me...because I'm not a fake, lying manipulator hawking snake oil to vulnerable people.