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Re: Banners Broker HYIP ponzi scam
Originally Posted by
AshKen1
Am confused by point 1 above. My mate told me that the traffic packs are a monthly commitment forever and that once you buy them, you can't cancel them (That's how you build your business allegedly). Every time I see him, he's buying more and more of the blooming things!
Can you explain a bit more about how the cancelling works please?
Yes, I was under the impression there are severe penalties if you don't keep up your TP purchases?
"if they are giving the Banners Broker Mastercard,Banners Broker must be a real company." -BB member.
"A toyota means 1 thing. Extrenal revenue. That is proof."-BB member
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Re: Banners Broker HYIP ponzi scam
Originally Posted by
noname999
Yes, I was under the impression there are severe penalties if you don't keep up your TP purchases?
Not too severe.
You just won't be allowed to buy a traffic pack for another 6 months.
Jason
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Re: Banners Broker HYIP ponzi scam
Originally Posted by
Poyol
Not too severe.
You just won't be allowed to buy a traffic pack for another 6 months.
Jason
And what is the thinking behind this penalty. Not the real thinking but rather the one BB claim?
"if they are giving the Banners Broker Mastercard,Banners Broker must be a real company." -BB member.
"A toyota means 1 thing. Extrenal revenue. That is proof."-BB member
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Re: Banners Broker HYIP ponzi scam
Originally Posted by
noname999
And what is the thinking behind this penalty. Not the real thinking but rather the one BB claim?
There isn't any; I don't think!
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Re: Banners Broker HYIP ponzi scam
Originally Posted by
Poyol
There isn't any; I don't think!
The BB thinking is that when you buy traffic you are given 50,000 bonus hits as well. That is what they take and claw back if you cancel a traffic pack.
Effectively they are forcing you to buy the monthly committment. It reduces the profitability of the 'business' and encourages you to refer people into the scheme.
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Re: Banners Broker HYIP ponzi scam
Someone has PM'ed me and asked me to provide my tax/ accounting discussion as if Banners Broker were a real business and why affiliates should be thinking of this. I have provided a couple of excellent examples on talking BS however, they are no consigned to be hidden away from the general public!!
So, here goes, I will try again.
In the UK tax is payable on profits of a business. Accounts are prepared using UK GAAP (Generally Accepting Accounting Principles). This most notably includes something called the accruals basis, which effectively looks at the timing of income and expenses.
The reason this is important is that most affiliates without accountants are looking at the basis on which they pay as being the money they withdraw, less the money they pay in as being the basis for profit. This simply not true.
Imagine a newagent shop buying and selling chocolate bars -
- initially purchases 100 bars at £1 each, therefore a purchase cost of £100. the intention is to sell them for £2 each.
- During the period they sell 60 bars at £2 each
- For ever 1 they second one they sell they buy another bar, therefore 30 bars at £1 each.
On a straightforward cash basis they have
Sales of £120
Purchases of £130
Effectively therefore showing a loss of £10 and you have minus £10 in your bank account.
However - the key issue here is stock. HMRC would expect you to include a valuation of stock. REgardles of being unsold it is an asset of the business and therefore an increase to you profit. Therefore your p&l would look like
Sales £120
less - Opening stock £nil
Purchase (£130)
Plus Closing stock £70 (70 bars, valued at lower of cost or net realisable (sellable) value)
Profit - £60
The £60 is what you pay your tax on.
Clearly there are other overheads and costs involved but this is the basic crux of the issue - stock. Every panel that is purchased should be valued at its cost, whether it has capped or not.
If you substitute the above:
Sales = capped panels
Purchases = Panel purchases
Just because you do not have the cash in your pocket does not make it taxable.
Several accountants and also affiliates that have been in business have posted these opinions and are in agreement with my thoughts. It is just the supposed experts that seem to dismiss this. To be honest Soozi and Jamie never post on this issue, probably because they know this would be an instant turn off!
One food for comfort though, is that if the 'business' collapsed or was exposed as a fraud you can write of those costs and losses in your next tax return.
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Re: Banners Broker HYIP ponzi scam
Originally Posted by
noname999
And what is the thinking behind this penalty. Not the real thinking but rather the one BB claim?
There isn't any. It's not a real 'penalty'. It's just a scare tactic. They can't afford anyone not buying them.
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