INTRODUCTION
Welcome
to THE HOMEWORKING BOOK - a definitive guide to success in
home-based
employment.
It
is a sad but true fact that the vast majority of those who investigate
homeworking
opportunities actually lose money before drifting back into
conventional
forms of working or resigning themselves to unemployment.
Very
few are successful in finding what they start out looking for.
However,
more and more people are now working successfully from home.
Increasing
rent and rates combined with the current economic
downturn
make city centre offices or even out -of -town factories a far
from
attractive proposition when compared to employing people like you
to
work in their own premises. Also, of course, overheads from liability
insurance
to subsidised cups of coffee are to be saved.
From
the point of view of the homeworker, things seem even better.
'commuting'
is now just a case of going upstairs to the spare bedroom.
And
to many people the independence makes it all worhtwhile - very few
companies
actually specify when you should work: just how many hours
per
week. Some will even pay you 'per piece' or per item you produce.
Homeworking,
of course, is not for everybody though. If you enjoy being
with
people and leading a very busy social life you may find yourself
being
cut off from the outside world. It is important that the homeworker
maintains
outside interests so as to avoid becoming a virtual recluse in
his
or her own home.
If
you were happy with your present job, I would advise you to stay in it.
However,
to be reading this you are obviously either unhappy with your
employment,
without employment, or for some reason tied to your home
(perhaps
because of children or an elderly relative).
1.
WHAT SORT OF HOMEWORKING ARE YOU LOOKING FOR?
This
is the first question you must ask yourself, and it is very important.
As
I say in all the advertising literature I write, anyone can be a
homeworker
- you need no skills, qualifications or training.
However,
that's not to say if you have one of these, you are not at an
advantage.
And everyone has some sort of skill - you included.
Executives
in the advertising business have something called a 'Unique
Selling
Proposition' - or U.S.P. for short. This is the main selling point
of
the product or service being offered - 'unique' because it is
exclusive
- something that the competitors are unable to offer.
You
as a homeworker need to start up finding YOUR U.S.P Something which
will
make an employer choose YOU and not someone else.
Every
person is different - we have all had some sort of training or
experience
which not everybody else has had. Maybe
you picked this up
from
reading a book, or perhaps it was passed on to you by a friend or a
member
f your family. Or quite possibly, it is
the training you received
from
the course you went on when you left school or the knowledge passed
onto
you by a previous employer.
Anyone
can address envelopes - so basically you have very little chance
of
finding work in this field. However, if
a company wants an experienced
wood
craftsman, a competent embroiderer or even a computer operator,
they
have to look a bit further. It is
important that you identify your
U.S.P.
and use it to offer employers what your competitors can't.
At
this point, I must point out the value of simple computer literacy.
Very
few homeworkers have any experience of using computers, but those
that
do are already very successful. If you
haven't used a computer
before,
you should think very seriously about going on a course for a
few
days - chances are your local council runs one which is either free
or
very heavily subsidised.
I'm
no expert on computers - but I'm writing this one. It's very simple
just
to get to know the basics. And it's no
good using that time honoured
excuse
"I'm too old to learn" - I know of pensioners who have been very
successful
in learning to use computers.
Once
you've learned to use a computer, you can 'telecommute'. In other
words
you can work entirely from home, but link up with your employer's
computer
over your ordinary telephone line. In
the middle of the night,
when
telephone calls are at their cheapest on specialised 'midnight lines',
your
employer will ring up and silently put your next day's work into your
terminal. It's that simple.
Computing
is a very useful skill if you intend to work from home. But if
it's
a skill you don't have, and having seriously thought about it you
have
decided against leaning, don't lose heart....the rest of this book
is
dedicated to you.
Before
you read on, make a list of YOUR U.S.P.s Don't put it off until
later,
do it now.
2. HOW TO AVOID RIP-OFFS AND CONS
Before
we proceed to look at the subject of finding employers, I feel it
is
important that you learn how NOT to find employers!
As
I said at the beginning, most people who enter the homework field lose
money. That's because of the hundreds of cons,
rip-offs and scams which
plague
our business.
The
first myth to dispel is that of 'envelope addressing'. How many people
ring
up to ask if I can tell them where to get envelope addressing work.....
The
answer is nowhere. Envelope addressing work DOES NOT EXIST!! Computers
can
do this simple task in a fraction of the time and at a far lesser cost.
How
many items of junk mail do you get which are hand addresses (not
including
those rom one-man 'opportunity publishers'- and you can be sure
they
don't pay anyone to address envelopes!)?
Back
in the fifties, sixties and early seventies, a few companies did
offer
envelope addressing work (very poorly paid, by the way). I suppose
this
is where the public obtained its stereotypical image of the
housewife
sitting at home with a huge pile of manila envelopes and a biro.
However,
since the war, we have had something much more common on the
homeworking
scene - the envelope addressing rip-offs.
Schemes vary
from
proprietor to proprietor. Most are
one-person or husband and wife
businesses,
but they might have any number of addresses. We know of one
man
who used at least fifteen names and addresses at once, no doubt
catching
some of the more gullible people more than once.
Basically,
the conman attracts his victim with a circular in the morning
post
proclaiming "WE PAY YOU $1 PER ENVELOPE - GUARANTEED!" or some
other
totally incredible claim. (25p per envelope also seems to be a
common
figure). A few don't actually quote figures, but offer you a
"worthwhile
spare time income addressing envelopes from home".
Of
course, everyone thinks that this is the opportunity they have been
waiting
for. Due to the strictly limited number of places available,
they
rush off to the post-box immediately with their $15 or $20 'deposits'
At
the worst they get nothing in return, or at the best they are asked to
promote
the same scheme to get more people to part with $15 or $20 deposits.
Of
course, as the 'local agent' it's your door they come knocking at when
they
get ripped off. Another common variation is to ask participants for
a
further payment of $20 or so in order to start - in return for this $20
they
receive a 'report with reproduction rights'. Avoid these
schemes
- the only one getting rich is the organiser (and they have
been
facing some pretty hefty fines in recent months).
Another
scheme to steer well clear of is chain letters. Not to be confused
with
multi-level marketing, which is studied in another chapter, chain
letters
have no 'head office' address or commencement date as the law
says
they should have.
The
most common is the Edward L.Green chain letter. Edward is a
fictionary
character invented by a mail order dealer in North America,
but
nonetheless he claims to have devised a simple yet legal scheme to
make
millions.
All
you do is send $5 to each of four names on a list. If you're lucky
you
might get a piece of paper back in return for your fiver. Then you
remove
the name and address at position number one, replace it with that
at
number two, move three to two etc., and put your name and address at
number
four.
The
money you spend on printing and mailing the Edward L. Green letters
will
probably be entirely wasted. About 99% of people you mail to will
have
seen the scheme before (we have received ten in a week before now!)
and
will probably bin it. They might even report you to the trading
standards,
in which case you could face prosecution!
A
less common chain letter, but slightly more workable, is known as either
'Money
Network' or 'Money Unlimited'. It promises you £100,000 for a
£10
investment (believe that and you'll believe anything!) and carries
a
false testimony from an American lawyer called Philip R Brown. Philip's
English
isn't all it might be, and his reasons for not giving his address
(couldn't
cope with all the enquiries he would get) would have him
struck
off the register.
As
a general guide, if you get something that offers you fantastic
earnings
- $1 per envelope or $100,000 in return for a tenner, or
whatever
- file it in the bin. Genuine homework employers don't need
to
advertise by sending out junk mail because they only have one or
two
vacancies to fill.
3. EMPLOYED OR SELF-EMPLOYED
Whilst
to all intents and purposes you might be doing a job for an
employer,
albeit in your own home, the chances are the employer will
want
you to class yourself as 'self employed'.
The
advantages for the company are that they don't need to operate a
'pay
as you earn' scheme, they do not need such comprehensive insurance,
and
they do not have to pay pension contributions etc.
All
you need to do to become self employed is to notify your local
Inland
Revenue office and the Department of Social Security. This will
mean
that if you exceed your personal allowance you will have to pay
your
own income tax (which can come as a nasty shock at the end of the
year
if you've spent all your earnings!).
Of
course, you will also have to keep your own accounts. Right at the
beginning
you should open a new bank account and use it t pay for all your
supplies
and to cash cheques sent to you by your employer. A big advantage
of
being self employed is that you can claim as 'tax deductible' anything
you
spend which is remotely connected to your work.
This
means that you do not have to pay tax on money coming in as long as
it
is spent on legitimate expenses. For example, if your employer pays you
$6,000
per year, but you spend $2,000 a year on supplies to help you with
your
work, you'll only actually be liable for tax on $4,000. Take your
personal
allowance off that and you tax bill will be very small.
A
free booklet 'Starting a Business' is available from the Inland Revenue
(this
includes the form which you should return to them to let them know
of
your new business), and your local library will have books on
book-keeping
and accounts. Tax matters for the average homeworker
should
be relatively simple as you will only be dealing with a few
businesses/people.
However, if it gets too complicated for you do not
hesitate
to employ an accountant or a qualified book-keeper (the latter
being
cheaper and probably quite satisfactory).
The
other 'tax' you will have to pay is National Insurance. This will be
a
lot more than what you might have paid in a previous job because there
is
no employer's contribution. You pay the lot. Unless your activities are
earning
you very little indeed, you will have to pay ordinary Class II
contributions
of around $5 per week. Leaflets are available from the DSS.
Should
your income rise above quite a high level, you will also be liable
for
Class IV national insurance contributions, which are earnings related.
The
DSS or IR can fill you in on the details.
However,
there is still another problem to be overcome by you and your
employer
- and that is, proving that you really are self employed.
Whether
you can class yourself as self employed (and remember that it is
in
your interests to do so - it will make you much more employable)
depends
on several things.
Firstly,
you should decide how much you charge, rather than the company
deciding
how much to pay you. Simply negotiate a wage with your employer,
and
rather than them calculating how much to pay you each week or month,
you
work it out and provide them with a bill.
It
is also a good idea to use your own equipment rather than that provided
by
a firm. A self employed person usually provides his own tools - and
also
supplies such as paper and postage stamps.
Finally,
of course, you will be working in your own home. This should
help
to prove that you will be self employed.
4. WORKING FOR MORE THAN ONE EMPLOYER
No-one
quite knows where to draw the line between homeworking and a home
based
business. If you are working for more than one employer, then
really
you are running a business. However, some businesses involve a
lot
more risk than others - and you would actually be starting a very
low
risk business.
Let
us take, as an example, Mrs Smith. Mrs Smith used to work as a
secretary
for a large local business. However, she has had to give
up
her job to look after her young children. She intends to go back
to
work later, and does not want to lose touch with the world of work
while
she is away. She decides to look for a homework opportunity in
which
she can make use of her typing skills.
However,
very few companies have need of a full time, or even part time,
secretary
to work from home on a permanent basis. After all, a secretary
working
from home is a bit of a disadvantage. For a start they still
need
to answer their 'phone.
However,
Mrs Smith does have a very effective way to find typing work
to
do at home - a few ads in the local paper could get her 'business'
up
and running very quickly. These will be very inexpensive and say
something
along the lines of "Typing service. Fast and accurate. Very
reasonable
rates. Anything undertaken from a letter to a book. Details
ring
Mrs Smith 863668." Mrs Smith cannot expect an overwhelming response,
but
she might gain two or three small jobs. Perhaps from a home based
business
which cannot afford its own secretary, or from a local small
business
which just cannot cope with all their work. The important thing
is
that, as long as Mrs Smith's service is all it claims to be, they
will
almost certainly come back with more business. After just a few
ads
Mrs Smith will gain enough regular clients to stop advertising and
still
have plenty of work. So, in effect, she will be a homeworker.
Of
course not everyone can offer a typing service, but I a sure that if
you
think about your U.S.P. you will be able to work out an equivalent
way
to obtain homework. For example, you might even put in an ad that
reads
"Reliable, trustworthy person requires assembly work to do at home.
Anything
considered". You are sure to get a few replies.
Working
for more than one employer will make your book-keeping a bit
more
complicated, but it's well worth it. For a start, you will be
obviously
self employed so you will not need to prove that you are.
And,
of course, you can earn a lot more money in this way. Also, you
are
less likely to become bored because you will have plenty of variety
in
your work.
5.
FINDING HOMEWORK
Once
you have found one or two suitable opportunities you will be well
on
your way to success. So finding the right vacancy is really the most
important
thing you will ever do in your homeworking career.
There are two ways to go about
this.......
1)
CANVASSING
Having
found your U.S.P. and decided exactly what sort of work you want
to
do, you can write, telephone or call on businesses in your area who
could
be interested in your services. For example, if you have decided
to
offer a leaflet distributing service, you could send a copy of the
letter
reproduced on the next page. This was written just recently by
the
Homework Association's Advice Service for a man in Plymouth who
wanted
to work from home distributing leaflets.
You
are free to reproduce this letter if you wish - perhaps leaflet
distributing
was not something you had thought of before. I am sure
that
with a little imagination though, it could be adapted to suit any
job.
It's worth remembering that this letter was written and typed free
for
the member concerned - just one of the many things that the Homework
Association
Service could do for you if you decided to join (see
membership
form at the back of this book).
This
leaflet distributing letter was sent to a number of different
firms
in the Plymouth area who were offering goods or services 'of
interest
to every householder' (things like Double Glazing, Roofing,
Building,
Outdoor Coating, Bus service operators etc.). It was then
followed
up with a quick telephone call to the person concerned with
promoting
that company. Nothing could be simpler. On the telephone
our
member simply introduced himself, referred them to the letter he
had
sent to them, and asked if they were interested.
The
telephone call could also have been made BEFORE sending out the
letter,
as it is well proven that if people know a letter is due and
look
out for it, they are likely to pay more attention to it.
If,
however, you were offering something like a knitting service,
then
probably the most effective way of selling your produce would
be
to call on a few small shops in your area which specialise in
selling
knitted jumpers etc. Don't worry about the 'selling angle'
and
don't try to make out you're more than you are - i.e don't pretend
you
represent a large factory! Just say that you are a homeworker
offering
high quality hand-knitted garments, show them a sample of
your
work, ask if they would take it for a month or two on a sale
or
return basis - and about 90% will say YES!
YOUR
NAME LEAFLET DISTRIBUTOR
73 Your Street
Anyplace
Anytown
TO2 2HX
Tel:(0201
893163)
Can
you spare a couple of minutes of your time for me to tell you how
to
increase your profits?
With
the vast increases in direct mailing costs (post goes up another
2p
soon), more and more firms are turning to door-to-door distribution
of
leaflets. Leaflet distributing could particularly help your firm
because
the product you are selling appeals to nearly everybody!
Remember
that effective leaflets need only be A6 size, and they are
therefore
very cheap to produce. Your printer will be able to quote
you,
or I can arrange printing. You might even like to copy your own
leaflets
on an ordinary photocopier.
I
know that door-to-door leaflet distribution really can be very
effective,
and the wonderful thing is - it's so cheap. You can hardly
afford
NOT to risk just a few pounds on a trial drop! Printing could
cost
you as little as $5 to $7 per 1,000, and then I can distribute
them
for as little as $10 per 1,000, which is much cheaper than larger
companies.
We
are small enough to take a personal interest in all our customers'
particular
needs (for example, we can target specific areas or type of
housing
- up-market areas or council estates).
At
the same time, we are a well organised company. As soon as we receive
your
leaflets they will be distributed without delay - we guarantee it.
A
list of the streets where distribution took place will be provided
free
of charge.
So,
as you will see if you think about it for just a few minutes, YOUR
COMPANY
NEEDS THE SERVICES OF A GOOD LEAFLET DISTRIBUTOR!
Don't
delay any longer - you could be losing out. Call me right now on
0201
893163 to discuss your requirements further. We can handle any
quantity
from 1,000 upwards - and remember, since the costs are so low
you
risk very little. Give it a go!
Yours
sincerely,
YOUR
NAME
2) WAITING FOR THE RIGHT OPPORTUNITY
Depending
on the work you want to do, you might have a long wait!
However,
if you are reasonably flexible and prepared to give anything
a
try, you would be surprised how easy it actually is to find homework
jobs.
Don't
look in mail order magazines - your chances are far better locally.
Costs
of postage are now so high that not many companies can afford to
work
by post. Exceptions are companies which work on a very small profit,
like
companies selling stamps to collectors. For this particular type of
work,
it might pay you to look at a specialist stamp magazine - if no-one
is
actually advertising for homeworkers, refer to part one o this chapter
and
send out a few letters.
Local
papers very often carry outwork vacancies, and you can be reasonably
sure,
although not 100% that the paper will have checked out the advertiser
and
made sure it is not a con. However, if the opportunity is with a
local
company, it is much more likely to be genuine.
Generally,
the companies which employ homeworkers are small, newish
businesses.
There are literally hundreds of success stories about
people
who set up in their spare bedrooms five or ten years ago, took
on
homeworkers and have now made themselves a fortune. Remember that
if
a company has a factory, it probably won't need homeworkers - if it's
run
from a spare bedroom but runs a business involving manufacturing,
it
definitely does need homeworkers. Again, trace a few companies and
refer
to section one of this chapter.
I
regularly read the 'Situations Vacant' column in the local free
newspapers
to keep myself up-to-date on the homeworking scene. Probably
the
vacancies most commonly advertised involve sewing - such as finishing
off
garments made on a machine. Opportunities for craft work, market
research
or calling on people to collect orders rom catalogues already
placed
are also quite common.
I
suggest you also keep an eye on the 'Sits Vac' - and if you see
anything
that could interest you, call in on them or give them a ring.
6. HOMEWORK AVAILABLE NATIONWIDE
Although
a local vacancy is always the best, for one reason or another
you
may choose to try and obtain work from a national company which
operates
by post. If this is the case, then your U.S.P. will be less
important.
The
main disadvantage of these opportunities, apart from the postage
costs,
are that a larger investment is usually required. Very few
companies,
genuine ones included, will let you start without a deposit
of
between £5 and £30. This usually covers a training book or course
to
show you how to do the work, and use of an advice service if you
have
any questions.
Some
people take in the printed word better than others. However,
most
people will learn by experience, and this going to cost the
company
quite a bit of money in telling you how and where to improve
your
work, and perhaps returning it to you for re-doing.
What
the deposit generally does not include is materials. This applies
particularly
to craft work, the most common opportunity of this type.
A
further investment will be required, either locally or by mail order,
to
get the materials you need to start.
1)CRAFTWORK
By
far the most popular type of homework carried out by post, although,
of
course, the work does tend to be very fragile, so packing for the
post
is extremely important.
Usually
you will start off with a mould, which makes life very simple
for
you. Basically all you have to do is pour in the appropriate
substance
(such as soft clay, cement, coldcasting liquid, or even lead)
and
then leave it to set for a while before removing it.
The
mould is usually made from rubber or plaster of Paris. Rubber is,
of
course, much easier to post. Plaster of Paris moulds are, however,
easier
to make on your own at home. Although of course you cannot copy
other
people's crafts, you might be able to find some interestingly
shaped
item which could be used to make a mould for something. One
idea
is to use food moulds - for example moulds designed for chocolate
or
jelly, but you may be able to adapt them for some other substance
to
create an unusual ornament or container.
Although
craftwork opportunities may be operated by post, there is
also
a good local market in most areas, at places such as craft fairs
and
charity shops. Sitting behind a table taking the money for your
own
goods could make quite an enjoyable day out - and it always pays
to
take something to work on while you are there so that people can
watch
you at work, making them much more likely to buy! But if this
doesn't
sound like you, try approaching a few craft and charity shops,
or
even galleries, who may well be keen to sell your work on a commission
basis.
It
is worth pointing out that your local library will have numerous
books
on craftwork that you can borrow, and free instructions are
often
available from the suppliers of materials and mould manufacturers.
2)
TELEPHONE ANSWERING
Another
popular type of homework that can be carried out anywhere in
the
country. All you need is a home telephone or two. Your employers
will
be either large companies with nationwide advertising campaigns
or
small businesspeople who cannot be in all the time to answer the
'phone.
About
60% of telephones in Britain are currently connected to British
Telecom's
digital exchanges, which allow access to a wide range of
additional
services - in particular, call diversion.
When
the small businessman goes out or the company closes its office
for
the evening, it can simply dial a few figures and then all incoming
calls
will be re-directed to your number. You simply take the messages
(usually
just a name and 'phone number or address) and then later on
your
employer will 'phone in to collect them.
Of
course, if you are only working for one company, you can charge them
extra
and answer the calls in their company name. But unless you are
receiving
a very high volume of calls, they could not possibly pay you
anything
like a full wage.
For
this reason it is best if you can work for ten or twenty different
employers,
who will each pay you anything between £10 and $50 per month,
depending
on the amount of work you are doing for them. This way you
could
earn quite a reasonable income.
One
major disadvantage of telephone answering is that you really are
housebound
unless, for example, you arrange for an answering machine
to
be switched on outside office hours. For this reason it could be
good
for a couple of people sharing a job - perhaps you and your spouse
or
next door neighbour. They can be in when you are out!
Another
opportunity that could easily be worked alongside telephone
answering,
although it is commission based, is finance broking. Although
the
government is planning new clampdowns on offers of easy credit,
loans
will always be in demand and there will always be companies keen
to
offer them.
All
you do is place a few ads in the local paper offering loans. You
do
not need a consumer credit licence to do this provided you are acting
as
an agent for a company which is licensed. These ads need not cost you
a
lot of money.
Then
you simple take calls from those interested, ask them a few
questions
over the 'phone the answer to which you fill in on a
pre-printed
form, and then you post off the form to the company
concerned.
If the loan is arranged you will receive quite a substantial
commission
- maybe a few hundred pounds. However, you should realise
that
the majority of loan applications are turned down.
3)
COMMISSION MAILING
Further
information on this subject can be found in the chapter on
mail
order. Commission mailing is the nearest you will get to addressing
envelopes
at home - it's somewhere between that and starting your own
mail
order business.
Basically,
a company will send you either free, or for a small charge,
a
batch of 'commission circulars'. These are simply printed
advertisements
offering goods by mail order - but there is no address
to
order from. You write, print or rubber stamp your own name and
address
in the space provided.
You
then buy stamps, envelopes and names and addresses if they have
not
been supplied to you by the company, and send off the circulars.
Any
orders come back to you - you then deduct your commission - normally
50%
of the sale price - and forward the order, together with the
remaining
money, to the company who sent you the circulars. You need
do
no more - it is the company's job to send whatever the customer
ordered
direct.
Of
course, quite large investments in postage are required, and just
because
commission circulars are free, it doesn't mean that they are
good.
Ones that you have to pay for generally get a much better response.
Before
embarking on a commission mailing scheme it is absolutely vital
that
you seek professional advice from someone experienced in the mail
order
trade, and you should also find out where the names and addresses
come
from - if they are people who purchased a tent by mail order ten
years
ago, you can be sure that they are very unlikely to be interested
in
your offer (most commission circulars offer business, homework,
or
money-making opportunities).
Incidentally,
although we say it ourselves, we have two of the best
commission
mailing opportunities around. One is The Homework Association
(see
back of this book) where you earn $3 commission for every new
member
who joins through you, and another is selling this actual book
to
other people interested in earning extra money from home. The company
who
sold you this copy will be able to provide you with further
information
on receipt of a stamped addressed envelope.
7. MULTI-LEVEL MARKETING
Multi-level
marketing or MLM for short, is catching on so fast in
Britain
that we thought it sensible to dedicate a special chapter
to
it. The aim of this chapter is to explain to you, clearly and
simply,
the basics of MLM, the potential, and the problems.
MLM
is in fact, closely related to the pyramid selling which received
such
bad publicity in the seventies and was eventually made illegal.
The
difference is in the sums of money involved. In pyramid selling
schemes,
participants were forced to invest thousands of pounds in
buying
useless items which they would be very unlikely to sell again.
People
did make money - a lot of money - from pyramid selling, but
only
at the expense of the others who joined below them. Pyramid
selling
simply did not work.
The
laws regarding what a MLM programme can and cannot do are very
strict,
and have just been tightened up still further. No longer are
your
sponsors (your sponsor is the person who introduced you to the
scheme)
allowed to sell you more of the product than you can reasonably
expect
to sell in a certain period.
In
fact, with most schemes, you obtain the order from your customer,
and
then you buy the goods from the company in order to supply your
customer.
And it is illegal for the company to ask you for more than
£50
when you join the scheme (some companies ask for £10 or less - or
even
offer free membership)
Most
companies will insist that to remain classified as an 'active
distributor',
you must purchase a certain value of goods each month.
You
can either use these goods yourself or sell them on if you wish.
However,
if you are selling goods you are, of course, just acting as
a
distributor for the company. There i nothing multi-level about it.
This
is where the multi-level aspect comes in. Depending on the marketing
plan
of the company you join, you may find it perfectly possible to
earn
money in multi-level marketing without selling a thing.
MLM
is based on 'levels'-hence its name. When you recruit other
people
to join the scheme - when you sponsor them, that is - they
are
in your first level. And they are in your sponsor's second level.
LOOK
AT THIS EXAMPLE
-------------MR A------------
| |
-------MRS B------- -------MR C--------
| | | |
MR
D MS E MRS F MR G
This
diagram sows a very simple network. Imagine you are either Mrs B
or
Mr C
Mr
A is your sponsor, because he recruited you into the programme. You
are
in his FIRST LEVEL.
You
have recruited the two people below you in the family tree. You are
their
sponsor. They are in YOUR first level. But they are one level
further
down from you in Mr A's group, so they are in Mr A's SECOND LEVEL
A
group like this is called a downline. B,C,D,E,F and G are all in Mr A's
downline.
The
commission structure varies from company to company of course, but
let's
assume that a commission of $1 per member is paid on level 1, and
a
commission of $3 per member on level 2.
In
this case Mr A will earn $2 for level 1 and $12 for level 2.
Not
much you may say. But of course, with some companies Mr A might
have
had 10 people in his first level, and he might have been paid $1
per
member down to is fifth level. Now work out his earnings, assuming
that
everyone who joins recruits ten members.......
Level 1
$1 x 10 = $10
Level 2
$1 x 100 = $100
Level 3
$1 x 1,000 = $1,000
Level 4
$1 x 10,000 = $10,000
Level 5
$1 x 100,000 = $100,000
TOTAL EARNINGS - $111,110
Of
course, it very rarely works like this. If I were using this example
to
promote a particular company, it would be regarded as very misleading
and
highly illegal. I am simply giving you this illustration so that
you
can see that MLM does have a great deal of potential.
Up
until recently, organisations such as the Department of Trade and
Industry,
and local Trading Standards Departments, were very much biased
against
MLM. This resulted in a lot of bad publicity.
However,
much better MLM schemes are now in existence, and MLM as a
marketing
method has gained a lot of credibility in this country over
the
past few years. There has also been a great deal of favourable
publicity
in the press as people really are achieving incomes of up
to $35,000
per month from MLM.
Our
verdict is this. There is nothing wrong with MLM as a business
concept.
Certainly it works for some people, and it could work for you.
However,
there are two points to remember.
First
of all, to be outstandingly successful in MLM, you do have to be
outstandingly
successful as selling. You don't have to be a
professional
- you just have to be one of those people who have a
natural
ability to sell things to other people.
The
other thing to remember is that companies vary very widely indeed.
You
should decide on one or two companies and then stick with it for
a
while. Whatever you do, don't pull out after a few months because
you
haven't made any money. MLM is not a get-rich scheme, and you may
have
to wait at least a year before you are earning very much at all.
Hard
work and dedication are required.
Before
getting involved in any MLM scheme, we recommend that you
take
as much advice as you can from people who know about MLM. But
if
you're keen to give it a try, don't allow yourself to be put off
by
someone who doesn't know anything about it, but thinks they do!
8. YOUR OWN MAIL ORDER BUSINESS
A
large percentage of those who start off looking for homework,
actually
become involved in the mail order circle, so any homework
seeker
should know something about the field of home based mail order.
Mail
order appeals to many homeworkers, as it is a business which
can
be run entirely from home, and it is a business which needs very
little
starting capital.
Sometimes
homework can be difficult to find - but anyone can start a
mail
order business.... or so we think!
Homeworkers
invariably become involved in the selling of business
opportunity
information (guides and manuals like this one, postal
MLM
schemes, books with reproduction rights, etc.). Without doubt,
there
is a great demand for such information and an absolutely fantastic
profit
potential - but there is also a great deal of competition.
It
has been estimated that there are around 6,000 home based mail
order
dealers - or opportunity seekers - in the UK. There are
therefore
5,999 businesses competing with yours! And very often they
will
be selling the same goods as you are!
Of
course, there are hundreds of guides about home-based mail order,
and
this is not intended to be one of them. If you are seriously
interested
in mail order you should invest in a few of the better
ones,
or you might like to take advantage of a special FREE BONUS
OFFER
which we are making available to all readers of this book!
(Further
details later). The purpose of this chapter is simply to
whet
your appetite.
There
are three secrets to mail order success. If you follow these,
you
are unlikely to go wrong, although of course you will learn a lot
more
by experience than you can ever learn from reading a book.
1) PRESENTATION
Presentation
is of the utmost importance in mail order. The only thing
that
your potential customers have got to judge you by is your literature.
This
will either impress them or put them off immediately.
The
first rule of business is to look bigger than you are. A nicely
printed
letterhead, preferably in colour on high quality paper, will
give
your business a good image. It is important to impress your
suppliers
are well as your customers, even though you're not trying
to
sell them anything. Who knows, they might buy from you in the future!
One
thing which will not impress is a letter scrawled on a sheet of
paper
from a lined notepad, with a rubber stamped address or one of
those
little sticky labels at the top. That's fine for a personal
letter,
but not for business correspondence.
Something
else which will impress will be a telephone number. If you
don't
have one, then try to get one included on your letterhead.
Perhaps
pay a neighbour a little to take messages for you, or make
use
of the services offered by local
telephone answering bureau.
I
say local, because if you live in Yorkshire and have a 'phone number
in
London, people will instantly recognise it a an answering bureau.
This
rule about presentation applies equally to your sales literature.
You
can have an A4 sheet fully typeset for $10 - $15, or typed out for
$2
- $3. If you do a direct mailshot, include a TYPED covering letter
and
a TYPESET sales circular - if possible, a reply envelope too!
2) SELL GOOD QUALITY GOODS
Repeat
business is very important in mail order. If you have a satisfied
customer,
there is a very good chance that they will buy something else
from
you in the future. If you just sell them a load of rubbish, they
will
tell everybody else and you will lose customers. Certainly there
will
be no repeat business, and you might even get a visit from the
Trading
Standards.
3. USE DISPLAY ADVERTISING
Classified
(lineage ads where you pay per word) are alright if the
publication
is on sale at newsagents nationwide, but they are generally
useless
in the smaller circulation mail order magazines. You will be
much
better off to invest in a full page ad (around £20). As long as
your
sales literature is reasonable, you are much less likely to lose
money
this way. And it's a lot less work.
AN
EXTRA RULE --- KEEP THESE RULES!!!
Whatever
you do, don't think that you can improve presentation or
quality
once your business is established. If you break these rules
now,
people will remember.
_______________________________________________
Launchpad
Mail Order are making a special offer to all readers of this
book.
You can have a FREE copy of 'Your Own Successful Home Publishing
Business'.
Simply
write your name and address on a piece of paper and send it, with
four
first class stamps to cover postage and packing to:
Launchpad Home Publishing Book Offer
Freepost
TRURO
Cornwall
TR3 7BR
_______________________________________________
Of
course, this section would not be complete without a bit of
information
on finding a product you can sell.
Probably
the easiest way - the route taken by most newcomers to the
mail
order scene - is to buy a manual or guide which comes with full
reproduction
rights. Basically, this means that you pay a premium
price
when you buy the guide (usually in the $20 to $50 region) in
return
for the rights to reproduce copies whenever you wish. There
are
no longer any copyright restrictions preventing you from printing
copies
of that particular book. The complete reproduction rights package
also
comes with a sales circular which you can print with your own name.
When
an order arrives you simply take your master copy down to a high
street
print shop, or use the photocopier at work, to have a copy made
up.
You then send this copy to your customer.
By
the way, most self-publishing packages allow you also to sell on the
rights
- so you can sell at premium prices also to other people interested
in
self-publishing. This can be a very lucrative sideline - but you must
remember
that the more people who have reproduction rights to the package,
the
more competition there is against your business.
Another
way you can obtain a product cheaply is by becoming a commission
agent.
This is fully explained earlier in this book.
However,
by far the best way to get a product to sell is to produce it
yourself.
This isn't quite as stupid as it sounds.
Absolutely
anyone is perfectly capable of writing a short guide on a
subject
they know well, and as I said when discussing U.S.P.s in Chapter
One,
everyone has some kind of individual experience to draw on.
For
example, if you have previously acted as an agent for one of the
big
mail order catalogue houses, you could easily write ten pages about
your
experiences and how you obtained your customers. You could have
copies
made for about 25p each, even in a small quantity, and many people
would
be more than willing to pay you $3 - $5 for their copies. And this
way,
you would be the only person offering it. There would be no
competition
whatsoever. Pay a few pounds to have a decent circular
typeset
and published in a few mail order magazines and you could be
well
on your way to becoming a mail order success.
No
doubt you can think of your own examples of a guide you could write.
For
even bigger profits, why not consider offering it with reproduction
rights.
For a ten page guide you could charge other small publishers
around
$15 per time, and you should be able to sell ten a week, which
is
not bad income considering how little work is involved.
Why
not start right now! The publishers of this guide (see page 3) would
be
very pleased to consider buying the reproduction rights to anything
you
offer, which could get you of to a good start within the week.
9. THE PSYCHOLOGY OF SUCCESS
Every
successful person becomes successful by having a positive and
optimistic
attitude to life. Nowhere is this more important than in
the
field of earning money at home.
If
you have chosen to work for an employer, to impress that employer
and
to be successful you have to be enthusiastic about the work you
are
doing.
British
Industry is plagued by employees who feel no sense of loyalty
to
their employers. They spend about half their working hours taking
tea
breaks, and outside their working hours they moan about work. Some
even
go so far as stealing from their employers.
As
a homeworker, you are essentially self employed, which means you
have
to be hard working. At home you must discipline yourself to work
regular
hours and you must make every effort to keep your work to a
high
standard. Don't just do the least possible work to get your money.
It
is important to impress the person who is paying you - and if they
see
that you are keen and hard working, then they are almost certain
to
give you more work or increase your pay. They will, as the advertising
leaflet
in this book says, beg you to carry on working for them!
Ideally,
I would say don't take any job unless you're sure you are
going
to enjoy it. Don't just take it 'because it's a job'. However,
I
do realise that this may not always be possible - sometimes people
may
need the money urgently, in which case they have to be happy with
any
homework vacancy they can find. If that is the case, try to make
it
just a temporary job until you can find something more suitable.
The
more independence you have decided to take, the more important it
is
to have a positive attitude. When someone starts off a business
thinking
it is doomed to failure, then it almost certainly is doomed to
failure.
If
you are one of those people who always moans about the bad things in
life
(the weather, the poll tax, the mortgage, the way society is going...)
then
it is important that you make a concentrated effort to look on the
good
side of things.
Everybody
has a goal of some sort in life - perhaps a car, a big house,
more
holidays in the sun, something to do in retirement, etc. This is a
goal
which you must set out to achieve, and it is important that when
thinking
about your goals you should be specific - not just a car, but
the
particular make and model.
It
may take you some time, but you should sincerely believe that you
will
one day achieve your goals. Your new career in homeworking is just
the
beginning.
A
winner will always be thinking positive things - planning for the
future
and taking pleasure from previous successes. A loser, on the
other
hand, never thinks of success - he will be able to remember his
failures,
but views any success as a stroke of luck.
10. A FINAL WORD
Well
done. You've started out on your new career - your road to
homeworking
success. Soon you should be doing interesting, regular
work
from the comfort of your own home. I hope that this book has
helped
you by explaining the basics of homeworking to you.
Now
you will never be ripped off by an envelope addressing scheme or
a
chain letter. You will understand the basic principles of multi-level
marketing
and be able to apply this knowledge to evaluate any company
literature
you might receive. And, most importantly, you know exactly
how
to go about finding the homework opportunity most suited to you.
However,
no book could ever tell you every single thing you wanted to
know,
so we are extending our free advice service to all readers of this
book.
If
you have any questions, simple write, enclosing three first class
stamps
to:
ADVICE
DESK
THE
HOMEWORK ASSOCIATION
HOME
BUSINESS CENTRE
PERRANARWORTHAL
TRURO
TR3
7NR
It
just remains for me to wish you success in all your enterprises!!
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