What is a hobby demo?

[debbiecarol]

I may be starting up an old thread but I am curious about being a hobby demo for SU. What are the rules and what do you need to do? I contacted a demo of a distant friend throught the SU site just yesterday but as of yet no response.

[STAMPINGODDESS]

Debbie:

Being a hobby demonstrator seems to mean different things to different people. The two most popular "definations" seem to be...

1. Someone who signs up and diew not intent to hold workshops or classes. She will be making the quarterly minimums herself or wioth the help of a few family members and friends.

2. Someone who signs up and intends to hold a few workshops, classes, or clubs, a quarter. She does not intend this venture to become a true business for her.

Stampin' Up!. however makes no distinctions. All demonstrators must sell $300 per quarter to stay active. In addition, all demonstrators receive the same support, monthly Stampin' Success magazine, access to the SY website, 20% instant income, etc. Obviosuly like any other direct selling company, the more you sell, and if you choose to recruit, the more you will earn.

Hope this answers your questions. If any have any more, feel free to PM me, or any other demonstrator you may know.

[stampwithdiane]

What Colleen said!

There is also a distinction made by the IRS. I'm not an accountant and you would have to get professional advice on this, but from what I understand a business demonstrator can offset the losses on her business against her gains on her income tax.

However, if the losses are greater than the gains for several years (I believe 3) then the IRS starts to look at the demo as a hobbyist, not a business, so the losses deducted can no longer exceed the gains. So a true hobby demo who is just buying for herself and not selling to anyone at a profit would not be able to take a business deduction for the purchase of her sets. Of course, if you just sign up for the discount, taking tax deductions is probably not an issue anyway.

And again, you would have to run all this by your tax advisor, which I definitley am not.