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In Reply to: Primerica: Why it's just anyother Multi-Tier Marketing Scam posted by Sean Levi on January 25, 2002 at 12:36:19:
I know this is a little late but here it is anyway...
Remember Amway, the huge corporate entity, which many have claimed to have saved America from brink of economic destruction. Amway turned out to be a pyramid scheme and people went to jail and were audited by governments due to the faulty advice given by Amway recruiters. A close family friend was audited for $18000 for all the expenses that she had submitted. Similar to World Financial Group, Primerica, Noni Juice, etc. these network marketing groups tell their associates that they run their "own business". Since it is their own business they can claim their expenses. Most of the time, the groups that recruit these individuals are not aware of tax laws and the changes that are made every few years. These laws regulate how much a person can claim for business expenses.
If one of these network-marketing groups gives you any tax advice, research to see if their information is accurate and correct (this information can be found on most government websites). If the information isn't correct it may be a good indication that these recruiters really have no idea what they are talking about.
Another little tidbit of information people should know about financial network marketing is that most people who give financial advice have to have a special accreditation from a certified institute (for example most financial planners have a CFA). The network-marketing groups that claim to have certified financial planners mislead most people. When they claim that they are certified they usually are but the certification is in selling insurance not financial planning.
Please note that any of the above information is of the authors opinion and is not meant to deter people from affiliating with any of the expressed companies. These companies may in fact be legitimate companies.
Please remember to do some research to ensure that you are fully aware of any consequences that can arise from inaccurate information.
GL June 8th, 2006. Copyright