So You Want to Work from Home?

How to Scout for Scams and Find Profitable Work

I am a new mom and my little girl is going to be 8 months soon. My husband and I don't have a lot of money and have figured it out that if I go back to work that I will just be working to pay for childcare. I am really stressing out about this. I have been trying to find some at home jobs but all the ones that I find on the internet look a little too good to be true. Do you have any suggestions?

Many stay-at-home parents are searching for a way to contribute some income to the family budget without resorting to putting their tots into childcare. There are three main types of work-at-home businesses. And then there are the scams. Let’s talk about them first!

If you see a “Work at home! Make $3000 a week” ad, or ads that promotes stuffing envelopes, assembling crafts, computer work at home or medical billing ads, they’re likely scams. You’ll be out your cash, and all you’ll have to show for it will be useless, badly photocopied documents about how you can place ads and scam people into sending you the same money you yourself were scammed into sending. If you’re not sure the ad you’re considering is a scam, send the information to a few friends you trust and ask them your opinion, or spend some time on Google checking it out. The more vague the ad about the actual work involved, the more likely it’s a scam.

When most women think about wanting to work from home, they envision finding a job similar to what they could do in an office, but simply working from home. Still on the company payroll, still with benefits. This might include jobs such as data entry for a medical office or insurance company or working as a call centre agent for a travel agency. However, the reality is that jobs like these are extremely rare, and are usually snapped up by traditional employees at the company offering them, or discovered through word of mouth.

The second and third work-from-home businesses require investment and risk, as you are essentially your own boss. The two businesses are starting your own business from home, or signing up with a direct sales company. I currently do both!

Being a Mom Entrepreneur
If you choose to start your own traditional business, you’ll likely turn something you likely once did as a job into a service company from home. This might include bookkeeping, freelance editing, operating a mobile nail salon or pet sitting. My home-based business is writing for corporate clients, newspapers and magazines, which is a spin-off from the corporate communications jobs I held prior to having kids.

Check out your favourite bookstore online to see books available on starting a home based business in the area of your interest, or for a general overview, read The Entrepreneurial Mom's Guide to Running Your Own Business Yummy Mummy Kathryn Bechthold. Keep in mind that unless your work can be completed solely during naptime and after bedtime (including client calls or visits), you may still require childcare on occasion.

Direct Marketing Home-Based Businesses (aka Home Parties) For every mom who makes big bucks selling products like Tupperware, Mary Kay, there are many, many more who sell to a few friends and family members and no one else. It’s relatively easy to host the first few parties when your friends want to support your new venture, but more difficult to convince strangers to host parties and buy the products you’re hawking. You’ll need to get comfortable with sales techniques, hosting home parties, and lose all inhibitions about making cold calls or approaching strangers.

Choose a product that’s a good fit for you, and for which you feel there is a real and growing demand. It may be difficult to get your network of twenty-something friends to agree to host a skin care party, but a pole dancing party may have them lining up in droves to book for stagettes and birthdays, and telling everyone they know. Before signing up, ask your friends and family what they think of their products and pricing, and if they think it would be a good fit for you. Ask them to be brutally honest and listen with an open mind to their feedback.

Compare the start up costs against what you could reasonably expect to earn. If the start up kit costs $150 but the consultant you’re signing up with admits you’ll actually have to invest another $1,500 to do well, do the math. If you earn 25% of total party sales, you’ll have to sell $6,600 just to break even on your investment. How many parties will that take? Will your kit need replenishing or supplementing? Are there sales minimums you have to meet even if you head out on long summer holidays, or your kids are sick for weeks on end? Who pays for the catalogues and order forms you’ll need again and again?

I don’t want to sound negative about direct sales – in fact, I’m a leader in a direct sales company, and it’s been profitable for me. However, it’s not for everyone. If the consultant you’re talking to puts on the pressure, tells you it’s “so easy,” or is evasive about giving you a realistic idea of your income and your expenses, keep looking.

So to recap – scams are plentiful but not hard to recognise; finding a legitimate work at home position for a company is hard to find but not impossible, and starting your own company or joining a direct sales company is simple but not easy and not guaranteed to be profitable either. In the end, there’s no easy answer to what opportunity will be right for you. Just be sure to take your time deciding and don’t jump into anything, especially if you’re handing over your credit card.
 

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Sarah Deveau’s first memory of saving up to buy something she really, really wanted was at age five, when she saved her allowance and birthday money for six months to buy a mini waterbed for her Cabbage Patch doll. She’s been in love with money every since; making it, spending it, and saving it too.

The author of two personal finance books, Money Smart Mom: Financially Fit Parenting, and Sink or Swim: Get Your Degree Without Drowning in Debt, Sarah’s work has also appeared in Today’s Parent magazine, the Calgary Herald, and other newspapers and magazines across Canada.

Shortly after her first daughter was born, Sarah opened her own business, an award-winning children’s consignment boutique in Airdrie, Alberta. But once daughters two and three came along, she closed her store to invest in a lakeside farmhouse on 40 acres in rural Nova Scotia. Sarah and her high school sweetheart husband plan to move east within the next ten years and semi-retire before the kids hit high school, made possible by the everyday money decisions they’re making now. Whatever your financial goals, be it a vacation home, college savings for the kids, or getting out of debt and stop cringing at credit card statements, this blog is for you.

Follow Sarah on Twitter at @SarahDeveau