I sometimes see employment
opportunities that could be classified as "get-rich-quick
schemes". Though some occur throughout the year, many are
summer job opportunities. Announcements are posted on campus
proclaiming opportunities for students to earn $15,000, $20,000, or even
more in a summer. Promoters of these positions do so with the zeal
of an old time revival preacher. I have even heard of planting
people in the audience to agree with everything said and create a
climate supportive of the promotion. No mention is made that many,
if not most students, who sign on for these ventures net less income
than a minimum wage hourly position would have provided. And, in
some cases, we hear of students who actually have a net loss after they
compute expenses.
The positions are totally commission
based with most, if not all, expenses born by the student worker.
In some cases a major portion of the commission isn’t paid until well
after the summer. Occasionally the student even has to invest up
front in a " demonstration kit," initial inventory or some
other start-up costs. Too late the student may discover that among
the obscure clauses in the work contract are provisions that result in a
major reduction or even loss of commissions. It is not uncommon to
have provisions to reduce commissions for missing work or training
meetings even though the sale was made. Rarely are any expenses
covered even when originally promised nor are any benefits provided.
Do some people actually make the huge
sums claimed by the promoter? Yes, there will be a few -
especially the recruiters and the owner/manager of the business. It’s
a little bit like playing the lottery. There are winners, but most
people come up with little or nothing.
If you are highly motivated and
comfortable working on a commission basis there are opportunities to
make more than many hourly positions pay. But, like many important
financial decisions you will make in your life it is wise to make sure
you have done the research and that you fully understand the contract
before you sign on.
Ask lots of questions. Make sure
you completely understand what expenses you will have and how you will
be paid.
-
How is the commission determined and
what conditions apply that may change how much you
receive?
-
When will you receive your commission
- weekly, monthly, reduced payments with a balance to be paid
later?
-
Who are you really working for?
-
Will training be provided?
-
What expenses will you have and will
you be reimbursed?
-
Will you be asked to work
unreasonable hours?
-
Will you be sent to unsafe
neighborhoods?
-
Will you be expected to make
exaggerated claims to the customers knowing that you won’t be
around when they learn the truth?
-
Is the product or service you are
representing really a fair value to the customer?
Legitimate employers have nothing to hide
and, in fact, want to make certain that both parties are very clear on
the employment relationship. I f the employer is reluctant to answer any
of your questions or vague or obviously misleading answers to your
questions this should raise your suspicions about the opportunity.
I’m especially intrigued that some of these organizations need to hire
students from Boise to sell door-to-door several hundred or even several
thousand miles from here. If the job is so good, why aren’t
there local college students who would do it who would not need to cover
travel and living expenses away from home?
Will you be hired as an independent
contractor? If so and you get arrested for not having the proper
transient workers license you can be fined or jailed. Don’t
count on receiving any help from your so-called employers. If you
are injured on the job you will probably not be covered by Workers
Compensation benefits.
How long has this business
been around? Can you check references? Useful references
include students who have worked for them in the past (not just the ones
at the recruiting meeting helping to recruit) but consider also their
banker, the Better Business Bureau in the community where you will be
working and the one from where they are headquartered. Does the
company have an address and phone number you can document? An
address that’s just a P.O. box or a dorm room is a "red
flag". A Hotmail, Yahoo or other free email account address
is another "red flag" that this isn’t really an established
business and you may have trouble tracking them down for your commission
later. Established businesses typically have their own
".com" address, i.e. (rapp@legitbusiness.com).
There is no guarantee that any job is going to be a
positive, financially rewarding experience; however, those that promise
unusually high rewards are more likely to be grossly overstated.
Before committing yourself do your research. Check with one of the
professionals at the Career Center if you need assistance in this process.
by Richard Rapp,
retired Associate Vice President for Student Affairs and Director of the
Boise State University Career Center.
