Making Money From Home: Straight Talk on Direct Sales and Multi-Level Marketing (from Woman's Day)

Start a Direct Selling Business
Learn how to supplement your income through home parties and consultations
By Mary Hunt Posted March 16, 2011 from Woman's Day;

.Looking to make a little extra cash while raising a family? Always dreamed of owning your own business? Recently retired and want to add to your nest egg? If any of these sound like you, the solution could be starting your own direct-selling business—you know, with a company such as The Pampered Chef or Silpada Designs, in which you sell goods through home parties and one-on-one consultations. Direct selling has become big business: In 2009, the 16.1 million direct-sales representatives working in the U.S. generated more than $28.3 billion in revenue, according to the Direct Selling Association (DSA), a national trade group.

The pros: You’ll be your own boss, work flexible hours that fit your schedule, meet new people, sell what interests you and make money doing it.

The cons: Despite what recruiters might promise, you probably won’t have customers beating down your door, especially in the beginning. You’ll become familiar with rejection, because not everyone you approach will become a paying customer, and while some direct sellers do indeed earn six-figure incomes, for most sellers the income probably won’t replace a full-time career. The DSA reports that the median income for direct sellers is currently about $2,400 per year.

Given that, supplement is the key word here. If you’re looking to make extra money to augment your income, read on to learn more and get the party started.

Party Fact: Passion sells. Experienced direct-sales consultants will tell you that to be successful, you need to choose a product or service in which you really believe, one you use yourself. When you’re excited about something, that excitement is contagious, and it leads to higher sales. If you’re not passionate about the product, your results will be mediocre at best. So before you plunge in, choose your product wisely. For a list of reputable direct-sales companies and what they sell, go to
http://www.womansday.com/Articles/Lifestyle/9-Ways-to-Make-Money-at-Home.html

Party Fact: It doesn’t take as much money as you might think. Gone are the days of shelling out a lot of money to invest in a garage full of inventory. These days, startup costs for most direct-sales companies are modest: A startup kit (training materials, samples and actual products) typically costs less than $100. Once you’ve started to set up parties and generate sales, your costs will—depending on the company—probably be limited to replenishing order forms and catalogs.

However, you’ll also incur the cost of running your home office. A direct seller is considered an independent contractor—completely in charge of sales, marketing and customer service. You’ll pay for your own expenses such as office supplies, postage, Internet access and insurance. Not to mention taxes. (Tip: Since you won’t have an employer taking money out of your paycheck every month, consider paying quarterly estimated income taxes. Paying taxes four times a year is a lot easier to stomach than paying one lump sum on tax day.)


Party Fact: There are two basic selling techniques. When you think of direct selling, you probably think of home parties or “shows” in which consultants display the products they’re selling at parties they host in their own homes or in rented spaces. But consultants can also ask friends, relatives or other acquaintances to host a one-hour (give or take) party in their homes. The consultant comes to the party, shows off her products and takes orders; the hostess receives free products for having the party. The more people the hostess invites, the more opportunity she’ll have to increase sales, which means even more free products.

Consultants can also sell their goods one-on-one, meaning they might invite a friend over to look at the products, or set up appointments with just one person at a time. While one-on-one sales do give you time to really focus on one person’s needs, volume is how you’re going to make more money.


Party Fact: You’ve got to get out there. Being a consultant means getting out and selling your wares. You cannot be timid and shy. Before you start, get all the training the company has available. Many companies offer online training and skill-building programs as well as training DVDs that come with the startup kit to help you learn how to approach people and sell effectively. New consultants will also be teamed with an existing, experienced consultant who will lead you through online classes, webinars (online seminars) and training manuals.

To get your bearings, ask your consultant mentor if you can attend several parties as her guest. Watch how people interact and respond. Take mental notes and don’t be afraid to ask questions later. Within a week or two you should be ready to begin booking parties on your own.

What you’ll need from the start is a network of friends and family members to help build your client base. But friends and family only go so far— to make money, you’re going to have to attract clients you don’t know. To do this, weave your passion for your business and the products you sell into your normal course of life. If you sell jewelry, for example, you may find that wearing the products wherever you go is the best marketing tool. As people comment, don’t simply say thank you. Be ready to tell them about the company and suggest that an easy way they can get what you’re wearing for free is by hosting a party. If you sell cookware, be sure to use it when you bring food to the PTA meeting or church potluck. If someone notices it, strike up a conversation and talk about the company.


Party Fact: There are two ways to earn money. Whether it’s jewelry, cookware, kitchen tools, makeup, scrapbook supplies or other directsales products, you earn a commission on everything you sell. The DSA reports that, on average, a direct seller earns 10 to 50 percent commission, depending on the company. So, let’s say that as you get started, you sell $600 worth of products in a month and your commission is 30 percent. You’ll earn $180 ($600 x 30%).

But as a consultant, you’re not only selling the company’s products, you may also attempt to recruit other people to become consultants under you—which makes you their manager. When this happens you get commissions on their sales, which is known as multilevel marketing or MLM. So if you find 10 people to become part of your team, and each of them sells $600 in products that month, your 10 percent commission on those sales will be $600.

To take it a step further: If you earn $180 per month on your own sales, and another $600 per month as commission from your recruits’ sales, you’ll bring in $780 per month, or approximately $9,360 per year. (Of course, sales will vary from month to month.) Keep in mind that most sellers work fewer than 10 hours a week, according to the DSA, but the more you put into the business, the more you’re likely to get out of it.

One more thing: Direct-selling companies also offer appealing incentives such as bonuses, cash prizes, cars and trips to encourage consultants to sell and recruit more. So you could make even more through incentives.

Party Fact: You can get out if you don’t like it. Before you sign up, consider what will happen if you decide direct selling isn’t for you. At the very least, go with a company that will buy back your unsold inventory. Companies that are members of the DSA (most of the big ones are) are required to buy back unsold marketable products and sales aids (like catalogs and order forms) purchased within the prior 12 months, for at least 90 percent of the price you paid for them. Some companies will refund your startup kit, but don’t expect a refund for the expenses for setting up your home office.


3 Direct Selling Success Stories

Stacy Itzel
38, Arnold, Maryland
Independent Consultant, The Pampered Chef ( PamperedChef.com)

I became a Pampered Chef consultant in 2005 because I needed to pay off our credit-card debt. We were struggling on my husband’s paycheck, and I was desperate to find something that would provide the flexibility I needed to home-school our four kids (ages 11, 9, 4 and 2 at the time) and work just one night a week.

I started holding Pampered Chef “cooking shows” once a week. Customers buy kitchen-related products, and I earn commissions of 20 to 27 percent on my sales. I earned back the starter kit cost of $155 at my first show. My income steadily increased as I got the hang of the business. In the first six months I earned enough to completely pay off our credit-card debt.

While most new consultants can expect to earn around $850 to $1,000 a month if they hold two cooking shows a week, after five years I’m averaging more than $5,000 a month, holding an average of eight shows each month, working about 30 hours a week. The biggest lesson I’ve learned is to never assume anything. I’ve been so surprised by who says yes to purchasing products and hosting shows. If I only approached people I assumed would say yes, I’d miss many opportunities.

Debi Feinman
45, Virginia Beach, Virginia
Independent Consultant, Silpada Designs ( Silpada.com)

In 2007, when my homebuilder husband told me that I needed to find a way to help get us through the recession, I knew it couldn’t be a regular 9-to-5 job. I’d been a stayat- home mom for 12 years and still needed to provide the parental support my kids, ages 8 and 11, were used to. So I joined Silpada Designs, a company that sells sterling silver jewelry, belts and watches.

In 90 days, hosting three parties a month, I made back my initial investment (a $199 certification fee plus the upfront purchase of jewelry to wear and show), earned $3,500 in free jewelry and made a small profit. Three years later, my business pays the mortgage occasionally and also makes it possible for us to enjoy extras like travel and skiing.

Most Silpada Consultants, who hold an average of two home parties a week, work 24 to 32 hours a month and earn 30 percent of retail sales. The average takehome pay for one party is $285.

While making extra money has been nice, I’ve also learned that I’m good at running a business. I love to come up with ways to improve my customer service— I always return phone calls quickly and follow up with customers, and I’ve found that simple thankyou notes are my secret to repeat business and building a network.


Amie Austin
35, San Clemente, California
Heritage Makers Personal Publishing Consultant ( HeritageMakers.com)

Four years ago, when my children were 1 and 4, I wanted to spend more time with them, so I went from being a full-time elementary school teacher in one of the highest-paying districts in the country to teaching half-time. I made up the income by becoming a consultant with Heritage Makers, a company that allows clients to make their own professionally bound “storybooks,” digital scrapbooks, cards, canvases, posters and photo gifts. The startup ranges from $50 to $150.

At that time, I worked 6 to 8 hours a week from home, doing online webinars, one-on-one demos and one weekly evening workshop. The average workshop sales range from $350 to $500, and result in a $100 to $125 commission. One-on-one appointments pay an average of $60 for new consultants and $80 for experienced consultants.

When I started out I was earning an average of $500 a month. But in June 2010, my home business was doing so well—earning me $2,000 to $3,000 a month—that I took a leave of absence from teaching to stay home, and upped my Heritage Makers hours to about 15 to 20 per week.

Mary Hunt is a contributing editor at Woman’s Day and founder of the financial website DebtProofLiving.com.

Part Time Work In Retirement (AARP)

5 More Great Part-time Jobs for Retirees
Blogging, coaching or teaching provide opportunities for income with flexible schedules

by: Kerry Hannon | from: AARP | March 2, 2011

Just recently, relatively few retirees took on part-time jobs. Today, the majority of retirees are working as a way to stay engaged, support a lifestyle or both.

For Jose and Jill Ferrer, ages 61 and 56, respectively, it's the whole ball of wax. When they retired from telecommunications careers that spanned nearly three decades at AT&T, they sold their townhouse in Randolph, N.J., for about $360,000 and hit the road.

Since 2005, they've traveled full time from Oregon to New Mexico to Florida and points in between at the wheel of their 40-foot Country Coach Allure motor home (paid for with cash). A Harley-Davidson Heritage Softail motorcycle, a Saturn car and two bikes are along for the ride.


"We're living a lifestyle that enables us to move around as we choose," says Jill. "We usually take our time — spending at least a few days and more likely a week or more in an area. We fully intend to get to all of the national parks."

The couple planned carefully for their retirement. They lived off one of their $100,000-a-year salaries for about five years before retiring and saving the other one. They contributed the maximum to their 401(k) plans and rolled them over into individual retirement accounts once they retired. And they expect to start taking Social Security when they're eligible. "We're hopeful that we have saved enough to last us in a retirement that includes frugal living and part-time work," Jill explains.

For the road warrior couple, that part-time work is a website and blog dedicated to the RV Lifestyle. "We were seeking something we could do on the road to make some extra income. We created Your RV Lifestyle as a site where we could share tips, lessons learned and travel experiences," she says.

And it has worked. With both a laptop and a desktop in the motor home, they use a wireless data plan with an air card for Internet access. On average, they try to do something on the site every day: a blog, a new page or an updated page.

The payoff: They earn a small commission on products sold through the product-affiliate programs related to the RV lifestyle, such as Good Sam RV club, FMCA, RV books/DVDs and so on, that are promoted on the site. They also get a cut when visitors click on Google Adsense ads displayed on the relevant pages.

"For now, as we balance various aspects of our life, we are happy to earn a little extra money — about $700 a month — from the site," Jill says. "And we know the potential is there to grow our website business further."

Whatever your reason for wanting to keep earning income, it doesn't mean you're locked into the daily treadmill. Opting to work a slimmed down number of hours a week gives you plenty of room to travel, enjoy your hobbies, spend time with friends and more.

Here are five great part-time jobs to consider. Pay ranges, which will vary based on factors such as experience and geography, are derived from data from the U.S. Department of Labor.

1. Blogger

The nitty-gritty: Most bloggers are making very little per month. Little wonder. There's lots of competition out there for eyeballs. An estimated 126 million blogs were up and running on the Internet in 2009, the most recent figure available, according to Pingdom.com, which tracks Internet growth. It is possible, though, to break through. An income stream comes from steadily building a following through referrals and generating income from the ads on your page. You can also make money by selling merchandise directly — from books to T-shirts. Developing traffic flow (and money) to your blog is time-consuming. You can't just come up with a few pithy posts on a whim every so often and expect visitors to show up with any consistency. It takes discipline. Use Facebook and Twitter to get the word out.

The hours: Flexible. It's tough to measure how long it takes someone to write a post of around 800 words. It might take three or four hours. The real money-hungry bloggers log in full-time schedules of 40 hours or more a week managing their blogs. While that's heavy duty, you should plan to blog at least three times a week. You also need to keep tabs on the business side — managing display ads and product sales adds up to a few hours a week.

Median pay range: The majority of bloggers make less than $100 a month from their sites. Some bloggers produce more than one blog, which antes up income. There are bloggers who pull in more than $100,000, but they're the exception. Google AdSense, Amazon's affiliate program and Chitika are three income streams to check out. How much income they produce varies by blog. The key is to try out a few.

Qualifications: At the heart of it — passion, a micro-niche that you really know something about, decent writing skills and the commitment to keep feeding your site with fresh content. A successful blog is built on subject matter that's valuable to people interested in the precise topic. Computer skills are a must and knowing how to post photos and YouTube clips is helpful. You have an edge if you know how to use keywords and other online links to lure people to your website via search engine results such as Google, Bing and Yahoo. If you're interested, start with ProBlogger.net. File this under labor of love.



2. Athletic Coach/Umpire/Referee

The nitty-gritty: This one's for the kid in all of us. Check into a coach, referee, umpire or scorekeeper post in high school programs, or various youth and amateur leagues. Stress and plenty of time standing go with the territory. And for outdoor sports, prepare for the elements. Travel is usually part of the job, but it's probably a scoot across town. If you're blowing a whistle, you better brace yourself for the possibility of verbal strip downs (parental ire).

The hours: These fluctuate widely by sport and organization. Coaches can figure three hours or so for late afternoons, five days a week; plus weekend days in season. Umpires, referees and scorekeepers usually work two to three hours per game. Figure on once a week for two or three games in an afternoon or evening.

Median pay range: For a coaching position at a school, $3,000 to $5,000 per season is possible. Umpires and referees can make $30 to $50 per game. Independent leagues or private travel teams might pay $50 to $75 per game.

Qualifications: You need to be good with children, possess moderate physical fitness and have an overall knowledge of the game. Specific education, training and licensing requirements for coaches and officials vary greatly by the level and type of sport. Some entry-level positions for coaches require only experience gleaned as a participant in the sport. Umpires and referees usually are required to attend a training course and pass a test. You can gain experience by volunteering for intramural, community and recreational league competitions. If you have a hankering to umpire, check out your local umpire association. For American Legion (high school age), you will need to contact your local division and attend a certifying clinic. There are one-day refresher classes and full courses with several sessions, plus an exam. Some leagues require that certification be renewed periodically. Estimated Cost: $50 application, plus $7.50 for a rule book, $5 for a flipping coin. You may need to pass a background check and applicable drug tests. Additional resources: National Association of Sports Officials and State Association Referees. Look to your local high schools, parks departments, recreational and church leagues, and soccer clubs for openings. Ask if they offer a club-certified referee or umpire class. For soccer, you might need FIFA certification.




3. Teacher's Aide

The nitty-gritty: Kid-central. This post can take some nerves of steel and patience, but the rewards are plentiful. It can be frustrating for some aides to have to defer to the guidance of the teacher in charge, so you need to have a good rapport and working relationship. The teacher needs to respect and value what you bring to the classroom. If not, it's a bust. Be prepared for some grunt work — clerical duties such as grading papers, recording grades, setting up equipment, entering computer data. One of the best aspects is one-on-one tutoring for a student who needs special help, or has a disability that requires individual attention. These are bonding moments of giving back that are worth more than a paycheck. While some of the school day is spent standing, walking or kneeling, most of it is sitting while working with students. Teacher assistants also supervise students in the cafeteria, school yard and hallways, or on field trips.

The hours: Three to five days a week, six to seven hours per day during the traditional school year (eight to nine months). Summer school hours may be available in some districts.

Median full-time pay range: Annual wage: $15,870 to $35,350.

Qualifications: On-the-job training combined with a high school diploma. Some states or school districts may require additional education beyond high school. A college degree, related coursework in child development and previous experience helping special education students can open up job opportunities. Self-starters who can multitask and work independently are highly valued. Fluency in a second language, especially Spanish, is in demand. Many schools require previous experience in working with children and a valid driver's license. Most require you to pass a background check. For more information, go to American Federation of Teachers, National Education Association, and National Resource Center for Paraprofessionals.

The promise: Gold Stars.




4. Tour Jobs

The nitty-gritty: Imagine steering a group of curious tourists around historical monuments in Washington, D.C., on a sunny, cherry blossom-bright day in April. That's particularly true if you're a history buff and have a knack for storytelling and showmanship. You need to have a mind for remembering dates and historical facts. You also must interact easily with everyone — from excitable school kids on a field trip to seniors hailing from all over the globe. Tour guide jobs pop up in various places that attract visitors. You might lead visitors through points of historical or local interest, pretzel factories, wineries, breweries and more, doling out tidbits of information in a narrative format. The downside is that it can be hard on the feet and the vocal cords, and the patter can become stifling rote. Your job is to dig down for a fresh and energetic performance each round. Many of these jobs are walking tours, although you may land one where you drive a vehicle, or go with a group on a park shuttle or monorail system. Depending on the assignment, you might have to stand up to eight hours per day or walk and climb stairs. Plus, you'll need to be sharp-eyed to visually monitor guests to ensure compliance with security and safety rules. Less demanding openings, such as ticket-takers, program sellers or cashiers, are also generally available.

The hours: Varying schedules including days, evenings and weekends. It might be difficult to receive time off around peak tourist times, such as holidays and school vacations.

Median pay range: Hourly wage: $7.72 to $18.87.

Qualifications: Tour guides often receive on-the-job training from employers. The academic background required for a position varies according to the venue. Best skill: The ability to hang on to historical facts, dates and anecdotes and relate that information to visitors in a compelling way. Some cities require licensing, and applicants may have to pass a written exam covering factual knowledge of specific locations and city history. Some community colleges offer short-term courses in tour and travel-related occupations. Certified Tour Professional (CTP) certification is offered through the National Tour Association.

Your hidden gem: Knowing where George Washington really slept.


5. Convention Center Jobs

The nitty-gritty: Convention centers in major cities can be wellsprings for a wide range of part-time jobs with various skill requirements. The panoply of shows rolls in and rolls out. Set 'em up and tear 'em down. Each week, the venues play host to various industry events from exotic food to car and boat shows, as well as concerts and even sports competitions. The demand for workers is a moving target — the perfect scenario if you're looking for the occasional paycheck. Some part-time jobs include nurse, parking lot attendant, parking lot cashier, set-up worker/cleaner, usher and information booth attendant. Many of these jobs have little to no physical labor. There are also food service opportunities for banquets and special dining events. The center's kitchen facility often hires line cooks and servers on an as-needed basis. In some towns, outside vendors will lease space inside a convention center and staff-up for each event. These positions can range from being a barista for a coffee stand to working at a concession stand. Sign on with one of these businesses, and the vendor will call and ask your availability depending on weekly needs.

The hours: The work schedules are irregular and no minimum number of hours is guaranteed. Work is typically available on all days of the year, including holidays. Evening and night hours may be required depending on the job.

Median pay range: Typically $10 to $20 an hour.

Qualifications: This is showtime. It's all about the customer, so people skills matter. Working knowledge of the event industry — including trade shows, conventions, consumer shows, concerts, athletic events and meetings — is a plus for some positions. Pre-employment drug screening and background checks are common. Many convention centers outsource their personnel management to companies that specialize in doing this for large convention and event centers, and hire locals to come in and do specific jobs for individual events. You might stop by at an event and ask booth operators about future openings. Your local convention, sports and entertainment agency should be able to provide employment information. Other job hunting sources: Tap into Convention.net or event management companies such as SMG World, a firm that manages convention centers, exhibition halls and trade centers, arenas, stadiums, performing arts centers, theaters and specific-use venues such as equestrian centers.


Kerry Hannon is a contributing editor for U.S. News & World Report and the author of What's Next? Follow Your Passion and Find Your Dream Job.

Work from Home that's Not a Scam (WSJ)

CAREERS MAY 6, 2009 Negotiating the Freelance Economy
Article
By SARAH E. NEEDLEMAN

In April 2008, Rebecca Haden lost her job when the small store she managed went out of business. A year later, she's working as many as 40 hours a week and earning much more than she did before -- even though she still doesn't have a job. Her formula? Freelancing her Web skills.

Ms. Haden, of Fayetteville, Ark., is among a growing number of professionals who are making ends meet by working on a project-by-project contract basis. Even as permanent- and temp-job opportunities are shrinking, the amount of contract work to be found on freelance-jobs sites is expanding. What's more, it's moving beyond computer-programming and graphic-design gigs for small employers to include listings from larger companies and assignments in fields such as accounting, law, engineering and sales.

Between January and March, employers posted 70,500 of these work-for-hire positions on Elance.com and 43,000 on Odesk.com, which represents increases of 35% and 105%, respectively, from the same period in 2008. Sologig.com, which lists remote and on-site freelance jobs, says its average monthly postings have more than doubled to around 13,500 per month in the past year. In March, there were 750 jobs listed on VirtualAssistants.com, versus 400 in March 2008.

Rebecca Haden has landed a steady supply of project-based work, in part by using freelance-job site Odesk.
At the same time, the number of U.S. workers employed by temporary-help-services firms in March fell 27% to 1.8 million from the same month in 2008, according to the Labor Department.

As the recession takes hold, more employers are using freelance workers to avoid the expenses associated with hiring permanent staff, says Fabio Rosati, chief executive officer of Mountain View, Calif.-based Elance. "The power of online work is that it's immediate, cost-effective and flexible," he says.

Indeed, freelance workers are often cheaper and more flexible than temp workers, whose jobs, though short-term, tend to be full-time, subject to temp-agency fees, and bound by agency restrictions, such as limits on the permanent hiring of temps.

Mr-SEO.com, an online marketing firm with eight employees, began using freelance help a year ago to handle tasks in Web-site development, administrative services and copywriting. The five-year-old Seattle-based company hired 17 freelancers through Odesk.com for projects that lasted as little as a few days or as long as eight months and counting. "It gives us the flexibility to expand our work force depending on client demand," says Greg Gaskill, the company's president.

Like many workers who turn to freelance positions, Ms. Haden, a 51-year-old mother of four, didn't plan to take on piecemeal work after her layoff. At first, she approached a local Internet company about a permanent job doing Web optimization -- a technique for boosting a site's search-engine rankings. It was a skill she had learned while overseeing her former employer's online store and blog. The firm wasn't hiring, but it offered her a short freelance assignment. She accepted.

Ms. Haden, who holds a master's degree in linguistics, wrote about the experience for a popular blog on Web optimization. "People started approaching me with work pretty soon after that," she says.

'I Just Do the Fun Stuff'
One gig she landed introduced her to Odesk, which, like some other contract-job sites, can monitor freelancers' work. Since then, Ms. Haden says she's landed a steady supply of Web-optimization assignments through Odesk, as well as through her personal Web site and blog. Most months, she earns more than double her previous income. Ms. Haden says the work has been fulfilling, and she has put her permanent-job search on hold indefinitely. "I get to pick and choose what I do now," she says. "And I just do the fun stuff."

Family Money
Take This Dream and Crunch It

Many other laid-off professionals appear to be taking up freelancing, either as a new career or as a way to weather the downturn. Freelance-job sites say membership among individuals, which is free in many cases, has risen sharply. For example, Guru.com has nearly 878,000 freelance members today, up from around 760,000 a year ago.

Freelance-job sites also say they're seeing more midsize and large employers posting assignments, and the jobs have expanded into more business functions, such as finance, manufacturing and law. For example, roughly 1,700 new jobs were added to the sales and marketing category on Elance in March, a 50% increase from a year ago. That's led to new types of contract workers, too.

Last month, Lynn Welch became one of those new freelancers when she began a 96-hour home-based consulting stint for Axsys Technologies Inc., a large, publicly traded manufacturer of infrared technologies based in Rocky Hill, Conn. She was laid off in March from a senior marketing position at a midsize technology firm and says her Axsys contract is one of four freelance assignments she's landed either through networking or Guru. She's so far earned roughly $10,000 from freelance gigs in online marketing.

Pitfalls of Contract Work
Despite her successes, Ms. Welch, who is 40 and lives in a Washington, D.C., suburb, says she still deals with some of the pitfalls that come with contract work. For example, she says she once spent several hours researching and explaining how she'd handle a potential project, but didn't get the gig. "Some [employers] want to pick your brain and have no intention of paying you," she says. Now Ms. Welch is more cautious about sharing information with employers before a contract is signed. "If they're asking for a lot of details, that's a warning sign," she says.

Sites like Odesk, Guru and Elance guarantee payment after jobs are completed in return for commissions of about 6% to 10% of freelancers' fees. But many other sites hold individuals fully responsible for billing clients and collecting payments.

There are other downsides to freelancing, from the lack of health coverage and paid time off to the need to make your own retirement contributions. Striking out on your own also requires regularly searching for and vetting potential new assignments, while ensuring that you complete on time the ones you've already secured. Furthermore, you may need to invest in equipment such as computer software and a business phone line.

Carving Out a Niche
Should you decide to take up contract work, there are ways to help ensure the process goes smoothly. First, make sure to be very specific about your skills and expertise when you fill out a profile on a freelance job site, says Kate Lister, author of "Undress for Success: The Naked Truth About Making Money at Home." Doing so will help you stand out from the competition. "You want to carve out a niche," she says.

To figure out how much to charge for your work, research the rates that experienced freelancers demand for similar services, suggests Ms. Lister. The information can usually be found in members' profiles on freelance job sites. "Look at their portfolios and ask yourself, could I produce that level of work? Could I do much better than that?" she says. After settling on a figure, Ms. Lister suggests starting out at a slightly lower rate to build a track record.

Another option is to offer to work for just a few hours at first to prove yourself, suggests Gower Idrees, founder of RareBrain Capital LP, a consulting firm specializing in high-growth businesses in The Woodlands, Texas. Since early 2007, Mr. Idrees has hired about 1,500 freelancers from Guru -- including former big-company executives, many as consultants. "I've used them in every way possible," he says.

Mr. Idrees recommends discussing potential projects with hiring managers over the phone whenever possible, rather than using email, in order to build trust and negotiate a fair pay rate. That way, a potential freelancer "can educate [the company] on what the challenges really are," he explains. Sometimes, he says, employers aren't aware just how many hours a project will require.

Write to Sarah E. Needleman at sarah.needleman@wsj.com



Printed in The Wall Street Journal, page D1

From WSJ - Work at Home, Reputable Websites

WORK & FAMILY By SUE SHELLENBARGER
Nice Work If You Can Get It: Web Sites for At-Home Jobs
As gasoline prices soar and joblessness mounts, the nonstop stream of email I get from readers wanting to work from home is rising, too. Also multiplying are the online scam artists who seek to profit on that desire.
So like the ancient philosopher Diogenes searching for an honest man, I set out looking for a few honest Web sites that actually help people find real, paying home-based work. I selected only sites with a track record and users I could interview. Help in my search came from Tory Johnson, founder of WomenforHire.com1, an employment Web site, and co-author of a forthcoming book on working from home; and Peter Weddle of Weddles.com2, a researcher, consultant and author on recruiting and online employment.
YOUR QUESTIONS ANSWERED
3
Sue Shellenbarger answers readers' questions4 about work-at-home opportunities on the Web and U.S. states that plan to post child-care inspection complaints and reports online.
A word of caution: Although at-home opportunities are increasing, most are only for part-time, low-paid work without benefits; some people who use these Web sites make as little as $5,000 a year. Many work very hard at tasks most people would find difficult, such as telemarketing. Competition for at-home work is keen; prepare to wait months to get a client, project or assignment. That said, here are some options:
If you have professional skills and experience, and are prepared to slug it out for clients in the global marketplace, a free-lance site may be for you. Elance.com5 and oDesk.com6 each link clients with about 90,000 skilled free-lancers apiece, roughly half of whom are in the U.S. The sites post client feedback and publish results of optional professional-skills tests free-lancers can choose to take through the site. The sites also serve as secure intermediaries for clients' payments, in return for commissions of about 4% to 10% of free-lancers' fees. Information-technology workers, such as programmers and Web developers, are the sites' biggest market, but they're fast expanding into graphic design, writing, engineering, translation, marketing, accounting, administrative and legal services.
HOMEWORK

For information on finding trustworthy at-home work opportunities:
• bbbonline.org7 and click on "For Consumers."
• WomenForHire.com8, offers resources and ideas on working from home.
• FTC.gov9, type "work at home scam" in search box.
One exceptional success story comes from Arron Washington, 24 years old, a Hinesville, Ga., programmer who dropped out of college after realizing he could make as much as $60,000 a year on oDesk.com. "The offers just kept pouring in," he says.
If you like providing customer service, selling stuff by phone or in some cases making cold calls, companies that outsource call-center services for retailers, infomercial vendors and other clients are expanding use of at-home agents. Workers are typically paid by the hour, by the call or by the minute spent talking, plus incentives; most make a total of about $8 to $17 an hour.
West Corp. (west.com10), with 15,000 home agents, is undergoing "rapid expansion," says Dan Hicks, a senior vice president. LiveOps.com11, which claims to have 20,000 home agents working at least a few hours a week, plans to bring on several thousand more this year, says Jon Temple, president, world-wide operations. Arise.com12, with 8,000 home-business owners as agents, plans to add 4,000 more by year end, says Angie Selden, chief executive. AlpineAccess.com13, with 7,500 home agents, will hire 2,500 more people by December, says CEO Christopher Carrington. Executives at Convergys.com14, with 1,000 home agents, and VIPDesk.com15, with 300, also say they're expanding. WorkingSolutions.com16 claims 4,000 active agents and plans to hire as many as 600 more by December. In a new twist, a few of these companies, including West, are making home agents permanent employees with access to group benefits. Convergys and Alpine Access subsidize the benefits.
If you like the idea of being a "virtual assistant" -- a jack-of-all-trades who performs online many of the same services as an administrative aide in a brick-and-mortar office -- TeamDoubleClick.com17 offers links to clients. Pay is typically $10 to $20 an hour for taking calls, booking events or travel or other tasks. But entry barriers are high; some 80% of the site's 300 to 500 weekly applicants fail mandatory entry tests on typing, computer and phone skills. And only 10% of the site's 49,000 VAs are working, says co-founder Gayle Buske.
Other sites serve as job boards. Sologig.com18 says a sizable minority of the 8,000 screened free-lance opportunities it has posted can be done from anywhere. A smaller site, VirtualAssistants.com19, offers access to screened postings for $14.95 a month. And tJobs.com20 and teleworkrecruiting.com21 also charge a fee for access to screened work-at-home postings, which they collect from employers or elsewhere on the Web.
Write to Sue Shellenbarger at sue.shellenbarger@wsj.com22

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