Checks Payable To Cash Is An Amway Tax Evasion Trick

Whenever we attended an Amway meeting held in an auditorium where a Diamond was speaking we had to cough up ten bucks apiece. A mere price to pay for the knowledge and wisdom we were going to learn from them.

Yeah right. LOL! Rip off! Rip off!

Amway is the only company I’ve ever worked for that makes its employees pay for training. And I use the word “training” lightly. All the Diamonds did was gush about their wonderful materialistic lives and then show the board plan. They managed to get it done in half the time it took our sack of shit Platinum to show the board plan. And we’re paying to listen to this shit? You bastards all the say the same thing! Besides we get to listen to the board plan for “free” 2 or 3 times a week whenever the sack of shit Platinum holds a living room meeting at some victim’s house.

Usually Platinums were in charge of selling tickets at the door and they’d accept cash but they wanted checks payable to Cash. You’d also have to write in the name of your Platinum in the memo line in case the check bounced the Diamond would know whose ass to ride for the infraction.

They’d tell the ambots it was better to pay by check instead of cash because that way they’d have the cancelled check as a record to use as a business deduction on their taxes.

Hunh? Are you kidding me? Why don’t those assholes handling the door proceeds issue receipts? That’s how legitimate businesses operate. They issue receipts! That’s how you “might” have a tax deduction if you are actually running a legitimate business instead of participating in a pyramid scheme. A check payable to cash is zippo! No proof of nothing! Anyone can go to a bank with their check payable to cash and well, get cash. Probably not too many people know that checks payable to cash are not always accepted by financial institutions because their legality is kind of a grey area. Checks are supposed to be made payable to a person (or business). The check is then deposited into a bank account, the name on the check and the bank account its being deposited into must match or the bank employee will ask questions why you’re depositing a check payable to someone else into your account and probably reject it if there’s no good answer. You could have stolen that check! If you stick a check payable to cash into the bank machine it will almost always be rejected because the bank staff can’t question you about it. A person stands a better chance if they go inside to a teller and explain why they have a check payable to cash drawn on someone else’s bank account. Oh gee I stole it! This is because anyone who gets their hands on a check payable to cash can cash it because its not payable to an actual person. Checks payable to cash can be legitimate and simply a case of the check writer being unaware they shouldn’t be doing this just in case the check gets stolen or goes missing. The reason checks payable to cash may be rejected is due to the suspicion of possible fraudulent activity.

Hmm. Checks payable to cash. Possibility of fraud. Amway. Kind of all fits why the cult leaders want checks payable to cash.

But the real reason why at these functions where Diamonds show up to speak a few times a month insist the check is payable to cash is its tax evasion. The check is not made out to the person. Can’t prove who cashed it or more importantly who kept the cash afterwards.

The cult leaders also want checks payable to cash because multiple people may be splitting the proceeds. First off the rental of the auditorium must be paid so someone probably an Emerald or Platinum takes care of that. The rest of the checks are earmarked for the Diamond speaker as payment for showing up to bestow wisdom on the masses. More than likely someone below them on the pyramid who can be a scapegoat in case of an audit does the dirty work of cashing all the checks payable to cash and then handing over a stack of Benjamin Franklins to the Diamond.

There would be at least 400 ambots in attendance to listen to the Diamond bullshitter at meetings I attended so do the math on how much a Diamond can earn for 3 or 4 hours of scamming his cult followers. I can’t imagine it costs more than a few hundred bucks to rent a school’s auditorium or theater on a weeknight. If it was already going to be empty at least the school earns a few bucks. I bet some dumb ass Platinum is given the honor and privilege of researching every high school and theater within a hundred mile radius and find the one that’s cheapest to rent. Maybe a few of those checks payable to cash are given to him as a bonus if he can find a freebie rental.....

 

 

Part 2 Getting Prospected By An Amway Ambot

Continued. A reader shares his story about how Amway scammers follow a script and how Amway Ambots are tax evaders.



Monday night I went to this meeting. I told the upline that I didn’t think that I would be able to get enough people to buy Amway products. No one that I know does extensive online shopping, they all prefer to go to a physical store, and I can’t imagine anyone spending $68 for Vitamin C when they can get twice as much for 10% of the price at Walgreens. I told him that I didn’t have enough time right now to devote to Amway, and that the idea that the only way to make money was to recruit more people concerned me. Oversaturation maybe?

My favorite part was when I brought up taxes. The upline kept talking about how all the travel could be deducted as a business expense, so I asked how reporting income for tax purposes works.
Him: “Well, it’s more of a hobby, so we don’t need to pay taxes on income.”
Me: “So how can you deduct travel as a business expense, if it’s not a business?”
Him: “It is a business, you own your own business.”
Me: “But you said it was a hobby, then a business.”
Him: “You can’t really understand how it works until you’re operating your own business.”
Riiiiight. I’d rather not get audited for screwing with my taxes like that, or find out that you’re lying and screwing me over.

Anyway, I was the third or fourth person that night that he tried to sell on the idea, and the only one that asked any questions or wanted to research the idea. Everyone else signed up immediately and dropped $165 without even knowing what they had to do. Complete idiots! I told the guy that I wanted to look at my schedule and look into Amway more and see if I thought it would be good for me. Essentially, I just wanted him off my ass for the night, I had stuff to do and he just kept pushing.

So at the end of the meeting, he sent me on my way under the assumption that I would be returning the next week overflowing with excitement about Amway and would sign up. He also gave me some of the XS stuff (one sip was gross enough for me) and a cd to listen to (Eric Thomas is far more motivational).

The next meeting was supposed to be last night, and I told the guy that had tried to recruit me (he only contacted me about 5 times to see when I could meet, I do have a life outside of constantly checking my phone) to tell the upline that I was too busy to be at the meeting and felt that I was too busy to “open my own business” (I love how they pass off Amway as their business, it’s not their own at all) and didn’t have time for Amway. Haven’t heard from anyone in over 24 hours, so they’ve either given up on me, or are planning a new way to make me understand that I do have time for Amway.

As a side note: one of the new recruits asked the upline if he was a millionaire, after the upline told us that it was so easy to become a millionaire in a few years. He told her that he wasn’t one yet, but was guaranteed to be by the time he is 30. First of all, this actually could be possible, because he spends his entire life recruiting people for downline and to buy his products, he might actually make some money, but only because he deceives everyone he knows for his own benefit (he forced his mom to buy Amway product), but he won’t make a million in the next 8 years, only way to do that is to have a REAL job or own a REAL business. Second, no income is ever guaranteed, things happen, there is no way to guarantee money will be there outside of a CD or savings bond. Maybe these Amway fellows need some personal finance classes. Finally, when she asked to see some numbers, he wouldn’t show her anything, which would logically tell someone that the numbers he says are false. Sad thing is, she still paid $165 and signed up for Amway.

 

 

Part 1 Getting Prospected By An Amway Ambot

A reader shares his story about how Ambots follow the Amway script. Thank you!



About a month ago I was informed by one of my Facebook friends (a guy that went to my high school, goes to college with me, we’ve never been super close, but he’s a trustworthy guy) that he had been introduced to:

“...a business opportunity I recently came across. I am working with some successful entrepreneurs to expand business. I can’t say anything for sure but I wanted to for sure put it out there and see if your open to looking at different income ventures.”

That was the message I was sent. I was very skeptical, especially as he was working with people that I had never met, although again, I do trust him and have known him for a while, which eased my fears a bit. Yesterday, I was convinced to be a part of a three-way phone call with him and his “senior business adviser” (to be read as: upline!) and the details were exceedingly vague. “I’m working on building a group of partnerships... It’s very hard to explain over the phone... it’s very possible to make thousands a month.” The thing that worried me the most was the fact that I was told “don’t talk about this to your family or friends yet, you aren’t informed enough and will lose credibility that you could use to build your business in the future.”

Everything about the call threw up red flags, so I decided to do my research. I managed to find the Facebook profile of the upline guy, and soon realized that this was all Amway. I hadn’t really heard of Amway in the past (and was even more skeptical about the fact that it was obvious what business it was, but he made no mention of it in the call), so I spent most of last night doing some research. This is scary! You would think that people would learn to look into the background of what they’re getting into before they commit and try to rope others in. Another person I know has been caught up in this, and still appears to be in the delusional stage of thinking success is still possible. No one seems to realize that the market is exceedingly over-saturated and will keep growing.

Anyway, at the end of the call, they convinced me to attend a meeting on campus tonight, which I will still go to, just to listen to see how much BS is being spewed, and how similar it really is to what I’ve read. However, I will not being buying into this scam, when no room for new success exists. I would like to not burn any bridges with the people I know over this, but they seem to be very gung-ho about selling this idea. I’m going to ask a few questions regarding MLMs, the taxes from this, how many people I’ll need downline to make a profit, etc. and can’t wait to hear the answers. I expect the peer pressure to be very large, but I’m going to fight it completely. It’s just sad how these people use their language and speaking skills (the guy on the phone yesterday kept trying to relate to me personally, it was a great tactic) to completely brainwash others into believing everything they say.



Stay tuned. What happened at the Scamway meeting?
P.S. We all know it followed the old Amway scripture!