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Well you know what… If I actually DID think that, then yes, I WOULD be crazy. What I DO think, though, is that you need to learn the difference between having a JOB and owning your own business, whether it be brick & mortar, or home based (online or off). And before you even get it in your head FORGET about “pyramid schemes”! The fact that someone works from home or gets rewarded for building a team DOES NOT automatically mean it’s a “pyramid scheme”… Hell, if you want to get technical, EVERYTHING is a pyramid. There’s ALWAYS someone at the top and someone at the bottom. Even the Grocery store is a “pyramid”, with the cashiers, stockers, and cart people being on the bottom and the owner of the store being on top.
From Wikipedia “A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public. Pyramid schemes are a form of fraud.” Need more on that? Look it up.
Got it? Good. Enough about that.
What I want to explain to you today is the difference between being an “employee” and being “the employer” (business owner). Just because you got hired by some manager, it doesn’t make him the employer, he was more than likely hired by the Business Owner, to hire & train you. The Business Owner is the Employer, whether she does the actual hiring or not.
As an “employee”, you get hired, at no expense to you (except for schooling you may have taken before getting hired and maybe some job worthy clothes to wear, and the gas to get to work or maybe some equipment if you’re doing something like medical transcription), to do a job presented to you by the employer, during the hours presented to you by the employer, at the wage presented to you by the employer, on the days presented to you by the employer. (Tiresome isn’t it?) You do not pay for the supplies to stock the store, you do not pay rent on the building, you do not pay for the utilities. You don’t pay for insurance, office furniture, display shelving, cookware, plates, forks, toilet paper, paper towels, etc. All of these bills go to the employer, who also pays your wage or commission. At any point in time the employer can decide that she does not like your performance and can fire you, or lay you off if times are hard. You are in THEIR hands.
As an “Employer” (Business Owner) you are the one that incurs all the expenses. You pay the rent on your building. You pay the utilities. You pay the business insurance. You stock the store with products, shelving, equipment, the office with furniture, the restaurant with tables, chairs and food, etc. You pay your employees’ wages. You are responsible for every aspect of your business. If successful, the rewards are great and well worth it. Your success is in YOUR hands.
The same goes for owning a “Home Business”. You may not have a brick & mortal storefront or office, but you still have expenses. Starting a brick & mortar business can cost thousands, tens of thousands of dollars… maybe more depending on your business. Starting a Home Business, in most cases, costs money as well. Typically far less, but there are still expenses. There’s usually a “Start Up Kit” or “Membership Fee”. Some companies have annual membership fees, some have monthly, some don’t. Heck, you can’t even SHOP at Sam’s Club without paying a membership fee EVERY YEAR and Sam’s doesn’t pay you to shop there or tell your friends!
Home Businesses have all different “maintenance” requirements. For example, the health & wellness company that I’m partnered with requires that I purchase $45-$70 worth of product every month to use in my home. I paid $30 to start my business, and pay $15 annually on my anniversary. (Sam’s Club charges you full price… I think it’s $40 now?… every year to keep shopping) In return I get a huge discount on all their products, and I get commissions off of purchases made by any customer that I introduce to the store. I don’t take orders, I don’t collect payments or deliver products. I just tell them about the store, and they shop with the company, and the company rewards me for giving them new business. The monthly requirement isn’t a big deal because I was already buying the same types of products at my grocery store every month anyways. I just switched stores for better products at better prices. I usually need MORE than the requirement anyways!
Other companies have yearly quotas. For example the hair accessory company that I’m partnered with requires that I purchase a quota of about $30 worth of product, per year. All of my sales to customers count towards my quota. This company gives us the option of purchasing paper catalogs and a FREE online store front as well. You can also do home shows or fairs that allow non-homemade items… you would have to have inventory for either show, and you would most likely have to pay a “rental’ fee for your booth or table at the fair. These are optional business expenses that a Business Owner incurs. An employee (someone with a “job”), would not incur these expenses.
Some companies just have a website fee. Others require a monthly purchase of ANY size. Then there are companies with just a start up fee and companies that are completely free to start and maintain.
And lastly, there are the companies that don’t exist, until YOU start them. Like if you made hairbows for parots and started your very own business called “Hairbows For Parrots”. Whether you sell your product online or off, you’re going to have expenses. You need materials to make your hairbows and maybe a few parrots for modeling… cages, food, vitamins, toys…heck, if you’ve got a good parrot he might want a wage too! Then you need to create a website, or have someone do it for you, either way, that’s an expense. Then you may need to pay for advertising your product. And don’t forget pictures, you’ll need a good quality camera or a photographer. There’s another expense for you.
Owning your own businesses does take money and as you can see… I’m not crazy, and I don’t expect you to pay me to give you a job. I’m not giving you a job, and neither is anyone else with a home business like I have (UNLESS they are hiring you to do a specific task for them and paying you a wage to do so). We offer an opportunity for you to “Be Your Own Boss” by becoming an “Independent Contractor” (“Consultant”, “Marketing Executive”, “Sales Rep”, etc.) I just happen to offer a variety of different options! Besides, you’re not even paying us, you pay the company, and the company thanks us for sharing by giving us a monetary percentage of the sale and discounts on our own purchases.
I don’t know about you, but I see it as a win/win situation. I work for myself and didn’t have to take out a second mortgage to do it!
And if NONE of this makes any sense to you, you’re probably better off staying an employee with a regular job.
I’ll let you in on a little secret though…. parrots don’t have hair… so that’s probably a scam. 😉
In the beginning of this article I told you to “forget about ‘pyramid schemes'”. Now I want you to remember that they DO exist and to use common sense when looking at companies to start a business with. Always do your research. If there’s NO product or NO service be extra careful, because that is “usually” a formula for disaster…for YOU.
I highly recommend “googling” the company and reading at least the first 3 pages worth of information that shows up in the search results. Check out Scam.com or some of the many “work at home” forums that are available and read everything you can find. (Keeping in mind that people have a bad habit of claiming that a company is a scam if THEY failed to succeed… usually there is nothing wrong with the company, they just failed to put in any effort and are sore about it) While the BBB (Better Business Bureau) and the DSA (Direct Selling Association) are also good places to look, keep in mind that not all “perfectly safe” companies are listed there. A new company won’t show up for about a year, and some companies don’t show up at all… not because they are bad or good, but because no one provided any information for them to report on. Or simply because the company hasn’t applied for membership yet. Use them as one of your many references only. The more research you do, the less likely you are to become one of the “sore losers”.
Disclosure:Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, Fairy Busy Mommy only recommends products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Disclosure of Material Connection: Some of the links in the post above are "affiliate links." This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission's 16 CFR, Part 255: "Guides Concerning the Use of Endorsements and Testimonials in Advertising."