On: The MLM Epidemic in 13 Maps

[badrequest]

Simple, if you receive income that is a royalty from the sale of products you sold to the person who ultimately sold them, it's taxed at 100%.

[imadethis → badrequest]

So no more wholesalers? No more commission for sales reps selling through partners?

[mysterypie → badrequest]

If that were the law, then the MLM's simple workaround would be to pay you a recruiting fee based on the success of the people you recruit. If the people you recruit sell a lot, you get a bigger fee because you did a better job at recruiting.

I imagine it'll be tough to craft a law to target MLMs because if it's too broad it'll hit many kinds of legitimate business and if too narrow they'll creatively bypass the rules.

[sarchertech → mysterypie]

The IRS deals with people trying to exploit loopholes like that all the time. The law isn't a programming language.

[solotronics → badrequest]

The companies that make routers sell their products to us this way, through VARs.

[bdcravens → solotronics]

Reselling isn't nefarious; network marketing is.