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Beware dodgy summer work opportunities
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The article “Applicant Beware: Multilevel marketing
companies offer less-than-predictable income” by Monica Price
in your April 22 edition was a welcome piece given some of the
summer job promotions I have seen lately. While I complement Monica
Price and The Arbiter for Monica’s excellent article I think
it is unfortunate that advertisements for these jobs appear
regularly in the classified section. At the Career Center we try
very hard to screen these out from our job listings for students on
Bronco Jobs. Ironically, I was on the second draft of my own piece
related to this topic when I saw the article. I am submitting it
below because I believe it provides some important further
information on this important issue.
Too often I 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. If 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,
e.g. 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 assistance in this
process.
Rapp is Associate Vice President for Student Affairs and
Director of the Boise State University Career Center. He has been
assisting Boise State Students in finding employment for 34
years.
Richard “Dick” Rapp
Special to The Arbiter