Careers-Employment
Beware of the 6.5 Million GBP Homework Scam
Many people looking for an extra income can fall foul of home working scams these can range from stuffing envelopes to making products from home. The reason the schemes work so well is that most people want to earn money for doing virtually nothing, which is just not going to happen. Time and effort needs to put in to any type of work to achieve results and earn good money.
In the UK in 1994 two people set up a home working business offering home workers the chance to produce products for them at home. They charged ?40 for the homework kit that consisted of all the materials to get started together with the instructions. Free materials would be sent ongoing providing the products came up to their standard. They had samples available for the home workers to see the standards required and offered the home workers a refund if they returned the materials unused to them within 14 days. It all sounds excellent with being able in 1994 to earn ?5.95 per item produced.
What the home worker does not realise is that the companies offering this type of work use a percentage system. Let me explain.
1. A percentage of people do not continue:
If a homework company receives 100 orders for homework kits @ ?40 that is ?4000. Approximately 30% of the people that apply either put it to the back of the cupboard and say I will do it tomorrow or attempt it and understand that they are not entitled to a refund because they have used materials or say I will send it back unused tomorrow which doesn?t happen. The Company pockets ?1200 for doing nothing!
2. Many people attempt the work even though they know they are not skilled enough:
Human nature is to have a go even though they know they will find it difficult to do and just give up. They send it back asking for a refund but are not entitled to one because they have used materials.
3. Some people will produce the items:
There are some people that will do a reasonable job on the first attempt but need to improve their work. This will be checked and rejected, but more materials will be supplied free of charge for them to continue. Some will give up at this point, some will continue.
4. Some people will produce the items up to standard:
Some home workers will complete the work up to the required standard and will be paid in full with more materials being sent to them to continue. These products purchased will be used as samples and the rest sold on for a profit.
5. People failing:
95% of people will fail with only 5% being paid. This particular Company made ?6.5 million from 1994 to 1998 and was well documented in the National Press and on National T.V in the UK.
So beware of stuffing envelopes and produce goods at home including packing work.
Shaun Smith has been involved in the homework market for over 12 years and good eye for spotting the scams.
http://www.sweetmoneypublications.com
Shaun Smith
Tags: work, home, earn, extra, money, work from home, extra cash, make money from homeSimilar articles
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