Spam economy
2002-02-20 @ 11:11:31
Spam economy
result of last spamrun (five days, in euros)
[office costs, taxes and other costs not included]
result
64 orders x avg 2.5 tin x 8 euro per tin 1.280 1.280
costs
1 month bullet proof hosting 125
250.000 credits open proxies mailing 25
160 tins x 2,95 per tin 472
10 orders x 5,50 no postage charged 55
160 tins x 0,50 wrapping fee for housemate 80 -757
result
result (profit) 523
The only reason to start spamming is money. That is S. Pammer's motive too. The timing of his last spamrun is not only based on the commercially viable date; another reason is that his housemates are on vacation. That decreases the annoyance of annoying phone calls.

Sending the last series of spamruns took five days. S. Pammer thinks that this spam has been sent to 200,000 to 250,000 addresses; the other 400,000 turned out to not work. The address base used consisted of circa 52 files containing 10,000 addresses each, retrieved from the Van der Wal CD, supplemented by the working addresses destilled from previous runs. Of that supplement, only 1o% works this time. Based on my own calculations, he has sent 272,455 spams in five days time.

The body of the spam contains a link to linkcounter.be. This allows S. Pammer to make a proper estimate of the number of times that the spam mail has actually been looked at (people opening it in their e-mail program). The last day of his spam run created 26.000 link counts op. 488 people actually visited the spamvertized site, and 20 to 30 ordered. This particular run dis not give rise to many complaints by e-mail; however, more and more nasty telephone calls result.

Most orders seem to have been made on impulse: they are done during or immediately after the spam run. The maximum amount of orders per run is circa 30. The competing spammer, from whom S. Pammer copied the idea and who sells a similar product, has previously stated that he could haul in circa 40 orders per 5000 spam mails; based on the current evidence, that seems pretty far-fetched.

Customers can pay their bill in two ways. They can either put money directly into S. Pammer's bank account or pay cash on delivery. Only a few people prefer the latter method (probably because that costs another 9.50 euros extra). Of all customers who order ater a run, five to ten percent pay cash on delivery. Returning customers or customers who have found the web site through other means, usually pay via the bank. Of those who order via the site and select direct payment, a fourth apparently have second thoughts: they never pay. Customers who order five tins at once do not have to pay postage fee. On average, customers order two or three tins at a time.

The tins of meat are bought at a Dutch importer, who in turn buys them from a Belgium importer who buys them in the former Sovjet Union. The Dutch importer charges 2,31 euro per tin, excluding VAT and postage. Postage depends on the size of his order. Generally, S. Pammer pays 2.95 euro per tin, all costs included. His house mate helps him to pack orders, at the price of 50 cents per tin.

S. Pammer pays tax, too. Currently, he is awaiting the proper forms.

When he stops his spamming activities, he has 600 tins in stock. He expects to sell them in the near future, mostly to old customers. His current stock is the main reason why he does not want to remove his web site, although he will abstain from spamvertizing it in the future.

His estimated net profit after five months and 25 days of spamruns is between 2,000 and 3,000 euros. I guess the profit in fact is much lower considering the profit calculated (see table) - a "profit" without calculating many hours of labour.

Buy a bullet proof hosting or bullet proof server,and start this business now!
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bullet proof server
2002-01-23 @ 16:19:05
What is a bullet proof server? bullet proof server?

Since millenium approached, a new form of marketing is exercised, known as "Email Advertising". However, not many email users would like to receive spam mails. From then arose a team called "Anti's" , which tries to pull down the webpage of "Email Advertisers". Not only that, literally, the server is bulletproof server or bullet proof server. It never gets shut down and it keeps the server alive from heavy spams or anti's. The price is a bit costly but imagine how many sales can be made through these bullet proof servers - hundreds and even thousands of sales. Bullet proof server (Bulletproof server) keeps the economic market run flawlessly, in the form of new advertising called, "Email Advertising".
Offshore Web Hosting An Introduction
2002-01-15 @ 16:44:20
Rolf Müller Talks About Offshore Web Hosting ~ What it is, how to use, why you want to
By Rolf Müller

This article should not be construed to be a recommendation to evade taxation, as that is not the message. This artice is meant to convey the methods of structuring legitimate offshore eCommerce in such a way so that taxes are limited to personal income and so that corporate profits can enjoy the benefits of a preferable tax jurisdiction for online eCommerce. Readers are advised to consult the appropriate authorities in their individual nations to determine the laws of their nation. No one knows the laws of every nation, we do not pretend to. This article is not intended to be legal advice. Period. The nature of the information in all of our articles is intended to provide accurate and authoritative information in regard to the subject matter covered but because the legality of the information presented differs from nation to nation we make no claims as to the legality of the information presented - For clarification we request that you please read our < Disclaimer > before reading this article.

Rolf Müller - Rolf Müller is a free lance writer with a good understanding of offshore matters. Rolf Müller - Was born in Kiel, Germany. An active libertarian he moved to the USA in 1998 and left one year later. He now lives in Latin America and sends articles to EscapeArtist.com on offshore matters - The opinions of Rolf Müller do not necessarily reflect the opinions of EscapeArtist.com nor does EscapeArtist.com accept responsibility for the opinions of Rolf Müller ~

Joe manufactures computer chips in Costa Rica. His company is in a Costa Rican free trade zone and he has preferential tax treatment. In the USA, Joe was making one third of what he makes in Costa Rica due to the higher wages he had to pay in the USA. In addition to making a bigger profit in Costa Rica Joe gets to keep everything he earns because his company is an offshore company, just like the Fortune Five Hundreds.
Bill lives in Denver, Colorado and writes software. Bill makes his money from his website. Bill sells his software over the internet and it sells well. Bill is tried of paying out 40% of his hard-earned money in taxes. He has heard about going offshore, but cannot see how it applies to him, he earns his money in the USA; even though most of his customers are in Europe, his company is in Denver. He would like to send some money to a tax haven and open an offshore brokerage account, so that he could at least build a nest egg for the future, something saved for the future beyond the eyes of Big Brother and beyond the reach of monetary predators. He is aware that if he sends money overseas he is supposed to report the fact of doing so. Bill doesn't know what to do. If he can't send money overseas, he will always be at the mercy of a crumbling system. Quite frankly, he doesn't like the mood in America, he feels his government is lying to him and he would like to figure a way to break loose, but not at the cost of losing everything.

The basic difference between Joe and Bill is the jurisdiction in which they do business. Joe manufactures computer chips in a free trade zone, which was created through legislation to attract investors, that 'no tax' zone is his legal jurisdiction. Bill lives in a jurisdiction which does everything it can to enslave and trap investors, and then proceeds to levy usurious taxation on the enslaved.

What If Bill Could Move His Business To Panama Without Moving From His Easy chair?
Bill makes his money from his website, and his website is hosted at a local Denver, Colorado ISP. Bill uses a downtown Denver bank for merchant services, so that he can bill his customers over the internet. The government of the country in which Bill lives, (USA) has absolute access to Bill's ISP, and to Bill's bank account. Bill lives in a country that does not respect privacy.

If Bill had his website in Panama, and if Bill used a Private Panamanian or Caribbean Bank Account for his banking and merchant services, then no government agency could enter Bill's ISP, nor Bill's bank. In Panama the law protects banking privacy with banking secrecy laws, and the law protects websites with internet privacy laws.

The Cat Is Out Of The Bag!

Further, if Bill incorporated in Panama, Bill would be doing the entire thing legally. There is no essential difference between a Fortune Five Hundred Company and Bill when it comes to the advantages of strategically locating one's business jurisdiction. Up until now the smaller player was simply locked out of the club. The internet changes all that, allowing anyone, to make a living from anywhere.

Example: Bill forms a International Business Corporation in the British Virgin Islands, (Bill doesn't have to travel to the BVI to do that, he can do it over the internet.) Bill places his website in Panama at the new private high speed facility, (See resources) and he uses a bank in Switzerland to do his banking and merchant services. The company Bill forms, we'll call RealSmartt Software Inc. (a factitious name.)

Who gets taxed? Who does the taxing?

He is not earning his income in the British Virgin Islands, so the BVI won't tax him. He is not earning money from Panamanians, so Panama won't tax him, and he is not earning money in Switzerland, so Switzerland won't tax him. Because Bill is an American citizen the USA can tax Bill the moment he takes any of the money from the corporation as personal income. If he takes less than $80,000 per year as personal income current law allows Bill to take that money tax free. He must file his taxes and ask for the expatriate deduction. If Bill's name is on the board of directors of the Corporation it is important for Bill to know that the IRS requests that the ownership of a foreign IBC by an American is to be reported to the IRS. There is a check box on the standard 1040 income tax form which can be checked to indicate the ownership of a foreign IBC. The IRS is happy when Americans check that box as they have no other way to know about the existence of an offshore corporation that has been set up properly.

To understand more about offshore IBC's and differing ways to use them see, "Zero Taxes for Expats" in this issue and also "Offshore Corporations: Dismantling The Hype" –

To understand more about offshore IBC's and differing ways to use them see, "Zero Taxes for Expats" in this issue and also "Offshore Corporations: Dismantling The Hype" - Also, don't forget to read our Disclaimer. - - If you are silly enough to assume that we don't make mistakes you should read our disclaimer twice. To assume that we don't make mistakes is to assume that we are omnipotent, which I can assure you we are not.

Bill would legally owe taxes on any personal income he took out of the company, but the system for determining how much he can take out and how much he would owe is as convoluted as the IRS Tax Code. But before we start trying to worry about who wants a slice of our cake, let's add more frosting.
Your Corporation Can Have An Offshore Brokerage Account, Own Offshore Real Estate & A Lot More

Yes, your International Business Company (IBC) can have its own offshore brokerage account, in the name of the corporation, own real estate anywhere in the world, in the name of the corporation and allow you countless additional benefits. How would it work?

An International Business Corporation is viewed as an entity. If Bill used a Panamanian IBC he would enjoy the following benefits:
Bill's tax base would look like this:

Panama is a 100% Tax Haven: Non-resident Panamanian International Business Corporations (IBC's) and Private Interest Foundations do not pay tax to Panama on any of their income (as indicated below), nor do they have any reporting requirements to the Panamanian government.

Bill's Tax Base In Panama Would Look Like This

. No tax reporting requirements.
· No income tax.
· No capital gains tax.
· No interest income tax.
· No sales tax.
· No tax on issuance of corporate shares.
· No tax to shareholders.
· No stock sale or transfer tax.

. No capital stock tax.
· No property tax.
· No estate tax.
· No gift tax.
· No stamp tax.
· No succession tax.
. No inventory tax.
. Easy to set up.

What is crucial to understand is that this also applies to anything owned by the IBC, including real estate, a Panamanian brokerage account, a website, a boat, or you name it. (See "Earn Up To $80,000 Abroad Tax Free - Keep The Rest in an IBC" in this issue.)

Further, Bill can live anywhere in the world and make use of this favorable business structure. If Bill lives in France, (for example,) Bill can enjoy an apartment in Paris, a farm house in the south of France or a beach house on the Riviera, all held in the name of his IBC. The reason Bill can live where he wants to live is because Bill's company is a virtual company that exists in a virtual tax haven. If Bill was like Joe, Bill could relocate his manufacturing company to the new superport free trade zone in Panama and operate tax free. More about this in another chapter in this section entitled, Explaining The FTZ - An Introduction -
More Perks

In addition, Bill can declare himself a consultant to his IBC, set himself up an expense account, have the IBC issue him a debit card with which he can access funds from the IBC corporate account to use for minding the affairs of the Company.

Because the debit card is a corporate issued debit card, issued to RealSmartt Software Inc., it is not registered to Bill, but to the company, which provides greater privacy for Bill. So Bill enjoys the same privacy, protection and favorable tax benefits as Joe, even though Bill's company is wherever Bill is. Joe has his operation in Costa Rica, Bill has his business in cyber-space and enjoys the benefits of having a virtual company in a virtual tax haven.

The company's earnings from the offshore brokerage account remains entirely tax free.

Q: Does your current government have the right to freely enter your web hosting company and gain access to your website?
A: Of course, especially if you live in the USA. If your website isn't private, then your business is open to the scrutiny of every monetary predator who wants to access your database.

Q: Does the Panamanian Government have access to anything belonging to RealSmartt Software Inc.?

A: Panama has never rolled over on anyone. It is the one tax haven that has never allowed access to its banks, nor ever violated its own secrecy laws. That is why you are hearing so much about Panama these days. The answer is that as soon as you put your website in Panama you will have website and eCommerce privacy.

Q: Does your current government have the right to freely enter your bank and gain access to your banking records?
A: Of course, especially if you live in the USA. If your bank isn't private, then your business is open to the scrutiny of every monetary predator who wants access to your money. (And you'd better believe it happens every day.)

Panamanian Domains

Panamanian domains: there are a lot of them, perhaps exactly the name you want. Why aren't they being advertised? The government of Panama gave the domains and the profit from the domains to the University. The system for purchasing the domains more or less requires that you apply in person and they are slightly more expensive than standard domains. We believe that Panama domains may become the domains for offshore eCommerce. Our new web hosting company will soon have them available for online order.