In the course of either promoting my business or describing to others what I do as a professional networker, I find that many individuals have little understanding about how the industry of network marketing, or multi-level marketing (MLM), actually works.
For those who have some exposure to the industry either directly or indirectly, perception tends to fall on one of two opposite ends of the spectrum: they either know someone who is making more money than seems rationally feasible/legal, or they know someone who has racked up a garage full of product and never made a dime from their business. In reality, there are people in each category, as well as a significant, nondescript middle-class segment which comprises the “full-time” established networkers that earn, on average, nearly twice the national median annual household income (at least for those affiliated with my corporate partner).
If only I had been properly approached with the concept of network marketing while I was an undergraduate student, I may have reconsidered my choice of profession at an earlier age. After all, the average full-time compensation of network marketers cited above is far greater than that of electrical engineers, even while EEs command among the highest salaries of new graduates with either Bachelor’s or Master’s degrees. Of course, compensation is not the sole determining factor in selecting a career, but it was a significant consideration for a pragmatic student such as myself (and a widely touted selling point for the curriculum by faculty in the EE department).
One of my favorite subjects on which I lecture in a business class which I teach to holistic health practitioners is an overview to taxes, or as I title the lecture, “Playing with Taxes.” Specifically, I provide an overview of the benefits of our tax system which rewards entrepreneurs, even those utilizing the most simple form of business, a sole proprietorship.
The savings in personal income tax are particularly profound when a portion of one’s home also functions as a place business, since the overhead of having a roof over one’s head is an expense which all must incur anyway, and having a means to legitimately convert a portion of these living/operating costs as deductible business expenses can really add up to significant tax savings.
There are a number of different industries and business models which may be reasonably run from home, especially in today’s age of ubiquitous e-commerce and efficient delivery systems. A few of the benefits in running a business from home include:
- Little to no overhead cost
- Zero travel/commute time to one’s home office
- Increased time flexibility
- Ability to employ children tax-free up to the standard deduction amount
- Reduction of personal tax liability through migrating a percentage of personal expenses to legitimate business deductions
The latter is an extremely valuable benefit of which many are unaware and is available to all home-business entrepreneurs. The key requirement is having a sufficient system of recordkeeping (tax journal) which must be maintained regularly in the course of running one’s home business. One of my favorite authors and speakers on the subject is Sandy Botkin of the Tax Reduction Institute.
So, how does one select an appropriate business model, particularly if one is only looking to run his or her business part-time? Continue reading
This site is offered to empower and support entrepreneurs who desire to create their best lives through sound, sustainable business and marketing practices, primarily within the industry of network marketing. It is intended to serve as a forum for networking, to cultivate an environment of collective learning, and ultimately to foster an esprit de corps among fellow professionals who are either considering, or who already have chosen, to participate in this industry.
As with any undertaking of value, this industry is not unique from others in the sense that a learning curve is involved with acquiring new skills. This aspect is accompanied by its own set of challenges, frustrations, and hard work––just as with any other endeavor which yields great rewards. The resulting financial, interpersonal, and self-development benefits which are achieved through this process, however, are second to none.
May you experience prosperity in all aspects of your life as you encourage others to share in the same.