I want to throw this blog into my mix-up of online business learning blogs.
Simply because I have seen a shift of people that would like to learn how to get a job to where they can work from home or are actually looking for ways of making money while working from home.
What a lot of people just don’t understand is that there is a HUGE difference between the two and there are many situations that fall in between those two distinct differences a well.
Hi, Calvin here!
Today I am going to try to set the record straight for many people on the broad statement of working from home and what it can or does consist of.
Now, finding work from home can mean a couple of completely different things even though all offer the luxury of working from your own home.
First, we have the “working a job from home” category. This is the least glamorous of all the home from home situations, but at the same time it is the safest of all the different situations
Yes while working from home this does present much more freedom for the worker: it also has created a slight confusion for many.
Working from home for an employer in most cases still requires you to clock in and out just now instead of commuting to a business or office located outside the home, you are logging into a website on your computer (or one provided by the company) that will serve as the same as a time clock to keep track of your hours worked for paycheck purposes.
Now most employers do not allow the freedom of logging in when every you feel like working and logging out if you want to leave early; despite what many people have become to think.
Actually, most employers are much stricter on time restraints for remote workers (another name for working a job from your home).
Such as logging in late in the morning or logging in late coming back from breaks or lunch; or logging out early at the beginning of your scheduled breaks or lunch, or logging out early at the end of your shift or workday.
This is because most remote jobs are conducted in customer service departments in companies and if you log out early for your break; and someone else located across the country logs in late coming back from their break; there could be a gap of unanswered customer service calls.
And unfortunately, that will make your employer look bad and create an unpleasant response to your early logging out and the other persons logging in late.
That is the number one complaint that I hear from remote workers (another name for working a job from your home).
Another complaint I commonly hear is that most employers require you to get certain internet service levels (even though most employers will reimburse the costs) which will require you to get an account with an ISP (Internet Service Provider) in your name and it’s your responsibility to make sure that the bill gets paid on time and on a monthly basis. If not it could cost you your job!
Now most employers do not allow the freedom of logging in when every you feel like working and logging out if you want to leave early; despite what many people have become to believe.
Equally important, this situation mostly exists only in contract agreement employment situations such as managerial positions were you are remotely running a sales team of independent contract workers (all under separate contracts as well) most of these private contractors work as sales or consultant agents of some sort.
They normally are paid on a commission basis, not an hourly wage, and fall under (in the United States at least) an income tax reporting forms called an IRS 1099-MISC and not a W-2 as in working a job for an employer from home (or remotely).
Speaking of the private contractor above, I mentioned the main difference between this style of job and actually working directly for an employer is the freedom in most situations that is allowed for logging in and out whenever you feel up to it.
And another important difference is the way wages are reported to the IRS as mentioned before the use of an IRS 1099-MISC (no FITW, SITW or FICA payroll taxes are deducted).
The other form used is an IRS W-2 (where the employer deducts all the applicable payroll taxes) can be used in most private contractor situations and is dependent on how both parties (employer and private contractor) what the payment agreement to be conducted.
However there is a downside to having this freedom, employers are still strict: not on your time logged in and out as with hourly employees working directly for them.
Equally important, they will carefully and very closely monitor your performances and services you are providing to them, for the cost they are paying you for those performances and services.
So you can work when you want but if you don’t do what others are completing, and are charging the employer the same fee that you are charging them, then you could easily lose your contract if you’re not careful.
So the freedoms of time in most of these style situations are in fact double-edged sword freedoms.
It offers the luxury of logging in and out whenever you (the worker) feels like it, but at the same time, your performances are even more closely monitored then an hourly employee would be, to assure that your contract is reasonable from the employers’ point of view and not the workers.
The final situation that I will be discussing here today, and there are others that will fall into a hybrid combination of the three main categories, but these three are the simplest to explain all the major differences in the style of remote workers, private contractors, and business owners.
Business owners fall into two different categories independent and private and we’ll get to them here in a second.
I just want to point out first that there are plenty of other situations that could apply to make money online from home categories but most are far too complicated to try to explain here right now.
Furthermore, the independent business owner is a legal contract derived agreement between the two companies or businesses.
It requires a simple contract that will include a simple agreement of you will do this for this amount of money, many times these agreements are called distributorship agreements or even affiliate program agreements.
Here’s a link to Amazon’s Affiliate Agreement so you can see an example of a complicated agreement. The affiliate program agreement can also be agreed upon with a private business owner as well.
Of course dependent on the agreement and the nature of the two businesses this agreement could become very complicated and have multiple pages of stipulations of different scenarios that could arise from this agreement, could require a lawyer from both parties to understand and comprehend the different scenarios.
However, it will still boil down to the basic agreement: you do this for me (buy these products from me at this cost) and do this for this amount (and resale them for this amount keeping the difference as payment for advertising and distributing the products) as in a distributorship agreement.
In many of these style agreements one party sales to the other party at bulk rates to reduce the cost, then the second party sales the products at wholesale to make a profit.
These owners can be from a national brand tire company stores, a locally owned grocery store, to the Avon lady, the guy next store selling Amway, or the fellow down the street, selling Herbalife products out of his garage.
This type of owner still enjoys the freedom of being a business owner, but they have allowed the mother companies to determine some of the allowable business practices in selling the products involved whereas the private business owner has complete freedom as to what they sell and how they go about selling it.
The main difference between an independent business owner and a private business owner is the private business owner can do business with anyone they sole desire to.
Whereas the independent business owner is bound by a contract which stipulates what conduct can or cannot be conducted within the independent business owner’s actions.
However the private business owner can also be involved in distributorships and affiliate program agreements, most do not and will not sign a contract restraining the method that they can or cannot conduct to create an income for their businesses.
In other words, a private business owner can buy oranges from you at $1 per orange and sale them to your neighbor for $2 each and make a dollar profit and will not sign an agreement of any sort that will restrict their actions otherwise.
Sometimes the business owner will comply like an independent business owner by signing an affiliate program agreement: like an affiliate marketer.
Which you can read my review of this platform that teaches you how to build and operate an affiliate marketing business for yourself where you learn how to make money online from home
Affiliate marketers will sign such contracts to allow them to sell certain products for certain companies that they enter an agreement with and could have over 10 to 20 such agreements or as few as one program agreement for each product they sell.
Were as an independent business owner normally only sings one such agreement and is offered many products that they can only sell within a certain designed business model or format for the company that they signed the agreement with.
The private business owner has much more freedoms to do their daily business any way that they choose to do this is the most common business owners that are out there in the world today.
They can be any business owner from the guy selling newspapers to the public at the corner convenience store to the lady that sells the bundles of newspapers to the guy that sells them at the corner store, or the printing company that sells them to the lady in bundles of multiple newspapers at a reduced price.
The biggest advantage to being either type of business owner is that it has many tax breaks for private homeowners that use part of their homes to conduct business in, and many other benefits that are far too many and way too complicated to get into in this article at this time.
But those additional benefits is why so many people have been trying to start home businesses because it can reduce the costs of both operating a home owned business while at the same time be helping with home ownership costs by sharing them with the business they conduct from within the home.
Now that I have covered the three main types of at home workers I will go back and start going into much more details of each types in separate blogs and will provide the links throughout this blog so that you can get the full details of each if you truly are interested and looking to start your own home based business or working for an employer that actually hires remote workers to do tasks at home for them.
If you need help with something or have a question please feel free to leave a comment below or contact me privately at my email address, and I will be more than happy to address the issue.
Or by chance, you would like to leave some relevant information as content that you feel may enhance this website/page, by all means, feel free to leave those comments below as well.
Additionally, I would like to thank you for visiting my website today and reading this blog to the end, it proves to me that I am on the right track and providing people with the best information that I have gathered over the years and in recent research is helpful to many