Some time ago I wrote a review about Arise Virtual Solutions. Be sure to check it out, otherwise you won't really see the value of this article. Arise is a virtual call center that use work at home seekers for customer service, technical support or sale calls. It's one of the top virtual call centers that tends to be recommended by many websites and companies. However like any company there are pros and cons working with this company. So it's not all sweet.
Most work at home companies don't hire you as an employee. Instead you're considered an independent contractor. Arise works in the same way, EXCEPT you're required to be incorporated to work with this company. Depending on where you live, getting incorporated can cost a lot of money. Then you also have to consider the other start up costs associated with working with Arise such as the need of background check, relatively new computer, wired internet connection, landline, the training fee they charge and whatever else I've missed.
All these start up fees are a lot to take on without knowing if you're definitely going to land some work after all this. With that in mind, I discovered that there is a legal loophole that you can use to get around the incorporation fee. That can be a huge savings depending on how much it costs to get incorporated in your state and is usually the biggest hurdle for people. To avoid this fee, all you have to do is work under someone who is already incorporated and works with Arise. These folks are usally known as IBO (Independent Business Owner or in the past Super VSCs). I'll list a few later in this article. But before you go that route let me cover the pros and cons that some IBOs may not discuss with you. It's not a knock on them but I doubt that many discuss the bad side of joining under them.
There are definitely some pluses for working under an existing Arise IBO (Independent Business Owner).
– The obvious one, is why you're reading the article. You don't have to dish out the incorporation fee! Again this could save as little as $100 or up to several hundred dollars depending on your state and who's doing the incorporation (i.e. Accountant, Lawyer, etc.)
– Some IBOs offer discounts and vouchers or to repay training costs. This is huge because that can help you save a lot of money that you would have to suck up on your own.
– You learning the ropes from someone that has experience. This is valuable because they can guide you through all the ins and outs of Arise that you may not be privy to, until you're thrown into the fire. That can make a huge difference in your experience with this company. Because you'll probably avoid a lot of mistakes that others make on their own. I don't know about you, I'd rather learn from the mistakes of others than be the dumb ass that goes through it myself.
Here's the stuff they may fail to mention to you. Sorry, but my loyal subscribers know how I am. It's better to give you the full picture so you can make an informed decision.
– The costs associated with getting incorporated & the other expenses you incur to get your business started up is usually a tax write off. So you miss a lot of the full benefit of this write off when you're not incoporated. Furthermore you are taxed as an individual rather than a business. This ususally means you end up paying way more than someone like the IBO who was smart enough (and could afford) to be incorporated. Trust me, as someone that worked as an independent contractor for many years "un-incorporated" I always ended up screwed in terms of taxes. So although you might save initially, you'll pay later and many years down the line until you do become incorporated.
– Speaking of paying, you'll usually have to pay a fee or 10-20% of your earnings to the IBO who you're under once you start earning money. You didn't think they were doing this out of the kindness of their heart, did you? With that said, a lot of people prefer this arrangememt because they only make money when you do. So there is a great incentive to help you succeed. Obviously this is great! But on the flip side if they're taking 10%-20% of your income indefinitely or even for a short time frame, you're losing the tax benefit of being an incorporated entity. Over the long run you're probably leaving a lot of money on the table. You're still making it but it's less when you consider these factors. I could be wrong though. Enter disclaimer here: Consult your tax professional as I'm not qualified to give you tax advice. These are just my observations which could be totally wrong. I'm not infallable. But it's something you should think about and discuss with a trained professional. =)
IBO Shady Tactics To Watch For!
– Updated: Parasite IBOs. Now we've already established that going through an IBO is going to cost you something. Usually it's not as much as the expense of getting incorporated. What you pay is worked out UPFRONT with you before you get in an arrangement with an IBO. But apparently some IBOs are like mosquitoes and literally sucking money you earn without your knowledge. Shout out to Melissa Adams for shedding light on this tactic. You can read about it in her own words here. Obviously not every IBOs engage in this type of behavior. But it's something to watch out for.
IBOs To Consider
Hopefully you have a more balanced view of the pros and cons of working for Arise without being incorporated. I think it all depends on your situation to determine what path you follow. Eitherway if you like the idea of working under an established IBO. Please consider the ones we've listed below.
TheWorkAtHomeSolutions.com (My personal recommendation)
Absolute Virtual Services, LLC
I'm sure others will chime in below with their information and pitch as to why you should join under them. That's fine since this what this article is about. But like car insurance, I would suggest shopping around to find the best deal. You want to work with an EXPERIENCED & SUCCESSFUL IBO that provides you benefits for working with them. The incentives they provide maybe be things such as taking a lower cut of your checks, one on one support, vouchers, rebates and anything else that will help you succeed with Arise. I would also suggest working with IBOs that are transparent and will provide you with the actual invoice that Arise provides them. This way you can be sure you're not being jerked out of your true per hour rate as some IBOs will skim off the top and you won't know any better unless you've seen the actual invoice that Arise provides.
In addition to transparency, I would also suggest looking for an IBO that keeps it REAL! There is nothing worst than being recruited by people that just paint a one sided, sweet picture of a company when they know damn well there are some bad things that you'll soon discover. So be sure to ask the IBO what has been some bad experiences they have encountered working for the company and how they have helped folks under them overcome these situations. If the IBO claims that everything has always been perfect, I'd be skeptical and see how other IBOs answer that question. Go with whoever makes you feel comfortable and provides the best benefits.
Don't feel pressured or hurried. And finally if you just aren't too keen jumping through hoops to work for Arise Virtual Solutions, you can always work with their competitors such as Alpine Access or VIP Desk. There are also other customer service opportunities here, and at Odesk & Elance.com So you have options. Arise is a great and legitimate company but it's not the only player in town.
I hope this helps. Please feel free to chime in below with any additional insight as an IBO or someone looking to work for Arise. Just keep in mind what I said folks. Shop around and watch out for the one sided recruitment pitches. I'm sure some folks won't be happy I suggested this. But I'm about making sure you go to any opportunity with your eyes wide open so you can make an informed decision that is balanced as it can be. Good luck.
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62 thoughts on “How To Work For Arise Virtual Solutions Without Incorporating!”
Hello everyone! My name is Kimberly
I am very interested in joining with arise/IBO BUT I have read up on several opportunities & I can’t find one that fits me. I have read several “great” comments about Melissa Adams & when I read of her opportunities, they’re all WAY more involved than I want to be. I don’t want to have to sell anything, I don’t want to have a quota etc. I’d like to just spend a few hours each day returning e mails, or phone calls etc. my question is: is there anything out there like this? Does Melissa have an opportunity like this.
I just need to make a little extra money each month, I don’t need nor want a full on major multitasking job every evening. Especially if it’s going to cost me in fees to the IBO everything I can make per month.
What Arise is doing is illegal and a misclassification of employees. They have been sued multiple times and lost. Whether it’s called a “business opportunity” or “independent contractor,” a company cannot expect people to work and not pay them using the excuse that they are an “independent contractor.” They are illegally taking advantage of the independent contractor classification in order to avoid paying employment taxes, state income tax, unemployment insurance, health benefits, etc. They save MILLIONS by exploiting low income, desperate workers (usually stay at home moms with kids) and continue to get away with it to this day as Congress has yet to pass several laws which have been in process for years. Here is a summary of a recent, high profile case:
On January 9, 2013, customer service and technical support service workers servicing AT&T and Apple settled their class action IC misclassification lawsuit with their staffing company, Arise Virtual Solutions, for $1.25 million. On that date, a federal district court in California granted preliminary approval of a class action settlement alleging that the staffing company misclassified over 200 of its service providers as independent contractors instead of employees.
The original lawsuit had sought damages against Arise, AT&T, and Apple for unpaid overtime, failure to reimburse workers for required business expenses, and failure to provide meal periods and rest periods under state law. After considerable motions and the filing of new complaints only against Arise, the parties settled. The $1.25 million settlement is subject to a fairness hearing scheduled before the court in May 2013. Perry v. Arise Virtual Solutions, No. C 11-01488 YGR (Jan. 9, 2013) (N.D. Cal.).
The settlement was reached after extensive discovery was taken including depositions and the exchange of over 81,000 pages of documents in response to over 300 document requests. AT&T and Apple are not parties to the settlement. Arise denied any wrongdoing in the settlement papers.
This case is one of a number of “class action” type cases filed against Arise for worker misclassification.
Thanks for sharing the insight.
If i start out as an agent and later want to become an ibo do i have to recertify for the client i am servicing ? Or how does that work?
I currently work as a csp with a company and I am just unsure what they are taking for fees because i have direct deposit. I recently went to their website to see if i could review my check but their site is ver generic. I recently just started working with them so i was unsure how to chose a good ibo i had no one to ask if going with this company was a good idea. I contacted them stating i need all payroll related imformation and i need a copy of all checks earned. If i find out they are doing something shady how do I move to another IBO or become my own IBO better yet report them?
Hello guys. I am currently a CSR with Arise. I have been partnered with them for almost a year. This is my first work at home job, but I believe that I have an amazing IBO. I have serviced 3 clients thus far. Yes you pay fees to IBO and yes you pay for training and some can be as long as a month, non paid. You are an independent contractor so you will be responsible for those costs. I will tell you that I am looking forward to my tax write offs. Not only the obvious, but your light bill, your computer,internet, your training and so forth. I look at the fees like this, if you were working 9 to 5 job you would pay transportation, clothing, time away from home, daycare etc. These expenses are way more than what I pay to my IBO. My long term goal is to become an IBO, but for now I love it. The hours depend on the peak and off peak, but I have never had a problem getting hours. Some clients are 24hr, which are my favorites. I know people who are making a killing because they have the flexibility to work as many hrs as they can handle. I have children and other responsibilities so it limits how many hrs I can service. We have an awesome support system. Oh and back to the training, every client is different, I have had clients who training was only a week and had one that was 6 weeks. The cost of training varies, you have to find one that fits your budget. There are some that I would love to service but at the time I cannot afford that training, so I may chose another . There are always new opportunities coming up so you have choices.
You cannot say that about a regular job. Hope I helped answer some questions for you.
Thanks for sharing your experience and advice Latisha!
Would you mind sharing the name of the IBO you work for? I would like to ask them to accept me under them.
Also, can you say who your favorite client to work for is please. I would like to start with them.
I appreciate your your time with this, and look forward to your response.
I would like to become a IBO, can someone tell me how can I start the process? Thanks!
I am happy I found an open discussion on Arise… Since the majority are being honest on their experience with Arise, I have a question.
Now, after reading reviews, I am aware that a lot of people disagree with the costs involved to partner with Arise… But, like the majority of you, I too said “They probably misunderstood that this is a business opportunity and not an employment opportunity”.
In moving on, I decided to focus on a possible rewarding side to this business opportunity with Arise to see why other IBOs or CSPs chose to stay. So, I thought to myself, perhaps after all this required investment I will be able to work a real flexible schedule with the clients I chose to service. I mean, I was told I can work as much or as little as I want, and of course I have to remember the clients minimal hourly requirements.
Now, the question is, After completing and passing a client opportunity course, Will I find myself competing or chasing hours?
Because I would think, after spending nearly $700 or more on startup cost for this opportunity, there should be guaranteed work or hours to make money… Especially the fees that are being deducted for revenue period, and the taxes we have to pay for being an independent contractor.
So, with anyone who has experience with Arise, are there challenges where you had to compete or chase hours to work? or have you spend days or weeks with no hours available to work?
I will greatly appreciate it if you guys could respond with honesty, Please
Since this isn’t a job and you’re basically running a business I don’t think there is any guaranteed work or hours. If that’s what you’re looking for you’re probably better off with a job. There are a lot of people that invest in a business and don’t have any returns on their investments. It’s the risk of running a business. So I would assume this is the case here. But hopefully another Arise rep can speak on it. Or you can contact any of the other people that have left comments.
I wanted to know if im in training, can I switch to become and IBO? I do have my LLC, but Im signed with and IBO right now, but I was told I can switch anytime…and How can I find out how much I get paid if I were to switch to become and IBO?
Hi Dorothy I’m not an expert on thijgs related to Arise but it may be helpful to talk with partner support at Arise for an answer to that question.
Thanks again for this article, I’ve been doing my research and everything you posted about the Pros and Cons is so true. After doing some research for my self I’ve decided to become my own IBO/CSP, for me it makes more sense because I don’t plan on hiring anyone and just want to work for myself so I’ll know exactly how much I’m being paid vs. wondering if I’m making less than what I could make. Also I will save on service fees, taxes and in my state it doesn’t cost much to incorporate compared to paying service fees in the long run. I don’t think there’s anything wrong with starting with an IBO to get experience but as you and others have said do your research first ask questions and give yourself time to make sure ( don let anyone pressure you), if the person your planning to work under gives you the run around and doesn’t answer your questions that’s a clear sign of what you should do. “RUN far away from them.”
Lastly, if you work under an IBO they will have to make money off of you some how, that’s just the nature of a business in general even if you work for a brick and mortar company but I agree with what you mentioned if the IBO or any business for that matter isn’t clear about what fees they charge or how much/how they are paying you after their cut of course then again “RUN AWAY.”
Ok I’ll step off my soapbox now. Thanks again for this article. Awesome BTW.
Thanks for giving us your experience and thoughts about Arise and the best way to approach it. I think you provide some solid advice and options for people that are considering this company. Sorry for the delay in approving your comment. But it’s the weekend and even I need to get away from the computer. lol
No problem I thought I said something rude or wrong, didn’t want it to spend like I was dissing and IBOs. 🙂
Nah, you were good. If you want to read rude comments directed towards me feel free to read my Nerium International Review. There are some great rude comments there. lol
Do IBOs make the same hourly pay as CSPs servicing the same client?
I have no idea. You might want to ask an existing IBO.
Thanks, hopefully more people will chime and reply.
Good morning everyone! Happy 4th of July! I was searching the internet on how to become a IBO and this article popped up. I am a CSP with Arise right now and Melissa Adams is my IBO. I would just like to say I highly recommend agents to signup with Arise. They are a very legitimate company and like with some jobs you’re going to pay for somethings when you first get hired. Whether if it’s for your uniforms, background check, or basically something. Arise charges $14.95 for a background check(if it haven’t gone up over the past few years) but that’s a awesome price compared to what some of these other company’s charge. As far as Melissa Adams. She has been very open and honest with me since day one. She keeps me updated with upcoming opportunities and offers vouchers when available. I understand sometimes IBO’s get overloaded with work, home, and other personal affairs but if you will be patient I assure you Melissa will respond back when she’s available. As for me, I love offering customer service assistance and my goal in the near future is to establish my own customer service business one day. In the meanwhile, I’ll continue offering my services thru Arise working under Melissa. Thanks for your services to me Melissa! Have a great day!
ok I am a start up IBO, I havent started yet, but I am still analyzing my structure and I may do a flat rate…BUT as a day job I am an IT contractor…and my company pays me whatever per hr, yet the company makes whatever amt higher than my hourly wage..SO why is it unethical or shady for a company to pay 11.00 an hr to the employees and they make 15.00 an hr?
I would not recommend Arise, the problem is that not only do you have to become incorporated, you also have to pay for the opportunities which after training which you are not paid and is mandatory you sit as longs as 2 to 4 weeks at a time; you may not get accepted. So not only do you lose out making money, you also lose out on the funds you paid to obtain the client.
Thanks for sharing your experience and feedback.
Hi Melissa, can you e-mail me a sample contract that you use between yourself and the CSP. I believe in being totally upfront and honest. I like how your standard fee works.. I may use that myself. Troberts@crownedeaglecorp.com
Great article Eddy! The comments from fellow IBO are very informative and have shed light on many practices that I was not aware of. As an IBO I take pride in being honest and up front with everyone that I speak to. The percentage options works out best for us because we are earning fees based on what the CSP earns. IBO put in a lot of work with the issues we sometimes face dealing with Arise and some of the clients. We are well worth the fees charged. Even if just for the guidance alone because coming into this situation blind will give you a headache. Thank you again for this great article and to all of you that have commented.
You’re welcome and thanks for chiming in!
I have a lot to say about Arise. It is Ironic i found this article. I am disabled and have been looking for a work at home job. I was put in touch with a woman with disabled workers who told me she would help me with the up front costs to start with Arise. One class into it she backed out than got upset when I said it was a scam. I might want to add she backed out and asked me to pay for it myself. The entire situation left me depressed and with bad view of the entire company. If I had an extra 500 just laying around I would put myself thru a tech class and get a job outside the home.
Sorry to hear that rep backed out on you, that wasn’t very professional. But there are always two sides to the story. So it would be interesting to hear what happened on her end. 😉
I wouldn’t judge the whole company based on one bad experience with a rep. That’s like hating all cashiers and supermarkets because one was rude to you. So keep that in mind. Like any situation there are good and bad people. Don’t just lump them all together. You’ll miss out on some great people and companies by doing this.
In any event, we have disabled work at home section here: https://www.workathomenoscams.com/2008/01/23/work-at-home-for-disabled/ that you should check out and it doesn’t cost you a dime and specifically designed for folks with disabilities that want to earn money at home. We also a provided link to our jobs page in the article above. They feature more jobs that don’t cost you a dime. As long as you’re willing to read and take action, you have other options right here on this site. Arise isn’t necessarily for everyone.
I too have to be transparent, cause the CSPs and IBOs are training in the same classes, however, my hate tactic is when other CSPs and IBO recruit my CSPs for an extra dollar. I feel that’s not right. I have advertised and recruited these CSPs and to be snatched from under me. That’s not right. You have to be transparent in that regards cause CSPs will talk and find out eventually. Just be honest, do your part and everyone can make some decent money. My IBO personally does a percentage cause of the recruiting and maintenance cost. So many IBOs are under cutting everyone by being so competitive and cut throat. There are so many people who are out of a job right now and everyone can contribute to the economy by being honest and working together not against. I am not saying this is the time to now take advantage of the job market but we can all be millionaires by taking 1.00 from a million people instead of taking a million dollars from one person. Ok I am off the soap box.
Well said Kim!
Melissa, I have definitely seen/heard of #1 quite a few times… even with IBOs paying more than $8.50 but here is how I explain it to my CSPs. Prior to the pay structure today on the mentioned client, there was no base rate. Most CSPs would make $9-15+/hr depending on metrics and call volume. If an IBO guarantees $10/hr, that means they are losing money on poor performing CSPs and they are making BANK on great performing CSPs. I don’t disagree with their pay structure, it’s their business and if their CSPs are happy, let them be it BUT it’s not the way I would be able to run my IBO. Making $3-4/hr off of a great performing CSP just doesn’t sit right with me AND losing money on ANY CSP doesn’t sit right either.
I’ll add something else I’ve seen/heard of before though and I call it invoice skimming. The IBO gets the invoice from Arise, takes off some of the minutes that the CSP worked, the take away some money for those minutes, and then they give the invoice to the CSP. There is virtually nothing the CSP can do about this. If you go to Arise and ask to compare it to the Scorecard, they’ll most likely tell you the reporting isn’t 100% guaranteed. I’ve heard of a specific IBO doing this from multiple CSPs who WERE under them at one point. Just sneaky!
Thanks for chiming in Shaun.
Shaun! You got it! Invoice Skimming is exactly what I was referring to in tactic #2. It’s just down right wrong. I tell my CSP’s how to get view their own hours, minutes and calls in Avaya. I tell them how to get the information and everyone is happy. Bottom line IBO’s like ours who are honest and reliable are the ones to deal with. I can’t believe the shady tactics of some and it’s never a business practice that I’ll ever do. It’s just downright wrong. CSP’s please do your homework and pick a great IBO like Work at Home Solutions or Shaun Spoland. We rock! 🙂
Would you be interested in helping me get started? My email address is firstname.lastname@example.org.
Hi Eddy, Great article, I am an IBO but I am also a CSP, in the beginning I was one of those IBO, that attempted to assist some of the CSP, by payings for classes, etc. Had them sign contracts and yes I took a higher percentage out but each month the percentage went down. In the contract, it only required for them to work with me for a certain amount of time because hey this is a business you have to make the fees paid out back and of course time put it but I have had other IBO,some listed here actively solicit other CSPs, telling them to switch and to break the contract with me, so I had to result to no longer assisting with fees because of the shady practices of IBOs (some have commented on here) , which is irritating because they were not willing to invest with the csp but want to rip them away from the other companies after the other company has invested.
Thanks for sharing your experience. Sorry to hear some other IBOs tried poaching your CSPs. I don’t think it’s a good practice. But I also believe if you’re offering the best options it will be hard for folks to take away anyone from you. Like you said, this is a business and that means competition. Sometimes the competition doesn’t play fair. But as long as you continue to the right thing, you still win and make money.
Are you currently still working as an IBO/CSP? If so would you mind contacting me? I would like to ask you some questions.
Thanks for the article. I have actually been servicing ATT for a couple of months now and LOVE IT!!! I am a stay at home mother of 4 and don’t want to leave my home. Yes I am an IBO but have yet to hire anyone due to now knowing when and how to do it but before I became an IBO I had some contact me with the 10% fee plus the fee Arise charges. That is bologna especially since they do not tell you how much you are getting paid. Thanks again for the article!
You’re welcome Shawny! Glad to hear you’re doing well with Arise. AT&T could be a good or bad client. lol Are you dealing with iPhone customers like me who are annoyed with the crappy 3g internet service? lol If so I want to apologize for those of us who call you and are snippy. =)
But seriously, I’m glad you’re doing well with this company!
Hello I am looking for an IBO to work under. Who would you suggest??
I listed my recommendations in the article.
The IBO that I run gives you the PDF document that Arise gives us. The pay is also in your statement of work that YOU have access to on your own Arise Portal. Every CSP should know exactly what they are making especially when you can view your own SOW at any time. To have an IBO take $1 or $2 from you each payroll is really neglect on the CSP’s part. It’s spelled out for you in that document by going to My Info/VSC Management/Existing Corporations then click on the little piece of paper. The SOW and pay information is not a secret from anyone.
Melissa, we send the SOW right to the CSP as soon as it’s signed. As I’ve heard in one of the townhalls that Arise had… if you don’t tell your CSPs, they will find out in another manner. It’s easy enough to find out what we get paid just by talking to other CSPs who you can meet in class, in forums, on Facebook, etc. It’s less drama down the road for me if I give them their SOW up front and give them my fees up front. Sure, I may not get every CSP I talk to because of my honesty but that’s business. I can’t please everyone. 🙂
Actually CSPs do not have access to the real SOW. Only whatever your IBO gives you. The one online does not have $ amounts. I guess I am one of the ones cheated by an IBO, I realize now that in addition to me covering all my expenses and fees, she keeps 20% although she will not admit it and she will not show me original invoice. That might not be as hard to swallow if it weren’t for the fact that she does nothing for me. I had to learn about waivers on my own and how important to document everything with Arise. EVen though she would make more money if she had guided me on how to do waivers etc, she doesn’t seem to care. 20% for nothing is pretty good. Oh and like you said eventually the truth comes out, I have had other CSPs email me the SOW so I do know that she takes 20%.
Thanks for sharing Karen. It’s really unfortunate to hear how some of these IBOs behave.
Thanks for providing some additional information about your group. The fact that you actually tell the CSPs what Arise is actually paying is very important. And I can appreciate that you’re upfront about the dollar amount that will be taken per hour. This is definitely the type of transparency folks need to consider when working with an IBO.
If I may make some comments, I am an IBO who doesn’t pay for training. What I find deceiving is IBO’s who claim to pay upfront costs but only charge $50 a month. Well the published discount and IBO with 30+ IBO’s is $12. So these IBO’s are trying to tell me they only making $34 a month and they are going to pay upwards of $400 to recruit a CSP. They are willing to make nothing on a CSP for 10-12 months, this makes no business sense at all. I think there is a pattern in advertising fees from the IBO’s to be deceiving and though legal is unprofessional and unfair to other IBO’s and the CSP’s. Another pet peeve of mine is that most IBO’s should know that the average CSP is only working part time and the minimum SOW hours for what ever reason and they claim that IBO’s who take a percentage are gouging and/or dishonest. We have 135 servicing CSP’s we averaged $417 per CSP lat invoice.If I was charging a flat rate the only CSP’s benefiting would be the few working full time, however 75% of my CSP’s who only work the minimum SOW hours would be over paying and on a whole I would make considerably more each month as an IBO principle. And in my opinion do CSP’s really want a IBO who makes the same no matter how well or bad you do or o they want someone who vested in your success with Arise. Because how the process is laid out by Arise there is an easy pattern to deceive and take advantage of those who are in the trenches doing to work. And actually need this to work because there are no other options out there in this economy. If the CSP’s are not happy it creates churn, and no one is happy not the CSP, not the IBO, the clients, nor Arise. Another thing to tell you is the greed I see, I offer true W-2 positions, yes the CSP makes less due to the Sate & Federal taxes required to have a W-2 employee. We had a CSP move from an unnamed IBO who promised W-2 status and lied and made them an 1099. The CSP moved to us and when we compared the compensation the former IBO paid the CSP was getting as a 1099. They were taking upwards of 35% blindly, this maybe isolated. We figure 6%-10% and employee costs were 13% and she ended up making more money with us as an employee than a 1099. And 1099 sub-contractors are suppose to make more than employees. Well that’s true if the IBO were not screwing her. But the great thing is everyone can run there business the way they see fit as long as they follow the law and Arise MSA. Even a dash of vinegar spoils the milk for everyone!
but that is just my opinion.
Thanks for chiming in! Your opinion was insightful and I think a lot of folks reading this article will get a lot out of it.
Seems to me there are things Arise should be doing to stop some of these shady antics by certain IBOs.
I’m pressed that you can offer a w-2 arrangement. Even if folks make less, I think a lot would prefer this so they don’t have to worry about paying taxes quarterly on their own. Please feel free to provide your website address so folks can discover how to work with you.
Thanks again for chiming in. It’s great having some upfront IBOs chiming in and shedding light on some things folks need to avoid! Even I’m learning a lot! So thanks!
I have total transparency with my IBO. I’ll tell you that I do make $41 per month per CSP and I’m quite happy with that income that I’ve chosen to make per CSP. My fee is $59 minus my $15.50 per month Arise fees and minus my $2.50 per month payroll fee. I make $41 for all the hard work I do each month but it works for me and it works out well for the CSP’s. Yes, I do work 18 hour days but I wouldn’t charge a penny more for my services. I don’t pay for training classes though, give monthly bonus incentives, we don’t hold raffles, give out football tickets, etc. We are completely honest, I do however agree with your statement about certain IBO’s out there claiming to have low monthly flat fees then offering the world to CSP’s. There is something to be said for IBO’s like that. Obviously there is something going on there.
Scott… you are correct on so many levels. As an IBO, your reply says a lot of what I have said all along. I’m not saying that every IBO that offers to pay up front costs are a “scam” BUT for a majority of those IBOs, I’m going to say there is more going on that they aren’t telling their CSPs about. I’ve paid up front fees twice total since running my IBO. One time it worked out, the other time I got burned BADLY. I sometimes refund my CSPs for a portion of their certification course after they have completed class and have started servicing. That way they are getting something bad and I know that they’ll actually service. As I tell CSPs looking for IBOs, if it sounds too good to be true, it probably is. I know CSPs don’t like seeing the word “fee” especially when they don’t understand the full concept of being an IBO, but it’s just a part of the business. No fee equals no money… and I’m pretty sure there aren’t many IBOs out there who want to run their business and NOT make money. Scott, I think your bluntness and your honesty is a great insight into the life of an IBO.
Another IBO to look into is Live A Life http://www.LiveALifeLLC.com. 🙂
Why? What’s the benefit of working with this IBO? Give folks a reason why they should pick this IBO over another? Just saying…
Live A Life, LLC tells you exactly what Arise pays them. Since all IBO’s take a % or something for “Business Expenses” we want to let our agents know how much Arise is actually paying the IBO. When you work with Live A Life, LLC, instead of them taking a % of your pay, they take $1 an hour for EVERYONE. If you work for 20 hours, $20 will be deducted from the pay. There are MANY IBO’s out there that tell you they take 10-20%, but they do not tell you what Arise is paying them so there really is no way of you knowing if you are getting paid the right amount.
WOW! Thanks for sharing this! I would have never known about this. Tactic number 1 sounds very shady. I could see it being a legitimate situation if the IBO and CSP both agree to the arrangement. But if the poor CSP is unaware of this, it’s just a bad look.
I wonder why Arise doesn’t have something in place to stop this. Thanks for sharing this!
I wish you would share the other tactic in a public forum so we can all learn from it. But this one tactic is a great start.
Feel free to email me about the company that is listed in the article that is engaging in this practice:
I’d like the opportunity to contact the company regarding this and see what they have to say for themselves. It’s not to say I don’t trust you. But I’ve been in this business long enough to know there is always two sides to every story. So I would like to hear the other side without turning this article into a mud slinging event.
Either way I really appreciate the insight. You’ve probably helped a lot of people avoid a very shady situation.
I figure she wants to share other tactic in private so CSP snacther. I feel like this throwing a rock and hiding your hand. Come on lets be 100%.
Great article Eddy! I’ve been with Arise for over four years now and would be more than happy to share my experience with anyone out there who is interested. I know a lot about the IBO’s and the good, the bad and the ugly about most of them. The major Con is definately having to pay an IBO 10%-20% of what you earn. That’s crazy. I operate an IBO and we have a flat $59 monthly fee for our services and provide outstanding personal support to those looking to take this journey. I couldn’t see charging somebody who is working hard for their money a $100-$300 per month fee. There are other tricks IBO’s use to get a Customer Service Professionals earnings that I could share with you. This isn’t a solicitation for my IBO but an offer to educate you about Arise, the process and deciding if you should incorporate yourself or work with an IBO. There are advantaged to both. If you are considering working with Arise contact me for a no obligation phone call. I’d be happy to share my experience as well as what to look for in an IBO without pushing my IBO on anyone. We have 86 agents servicing right now and they earn anywhere from $400 per month to $2200 per month. So, this is something you can do from home and not get totally taken advantage of IF you choose the right IBO with good leadership skills. I like to inform those who are considering doing this and make sure they know everything they need to know! http://www.theworkathomesolutions.com or find us on Facebook https://www.facebook.com/workathomesolutions
Hey Melissa, Thanks for the kind words. It’s nice to meet a rep that is more than willing to provide the pros and cons. I would love to hear about the other tricks you mentioned. It would definitely help me in terms of sharing what to watch out for.
So feel free to post them here. so we can all learn.
Thanks again for chiming in. Hopefully some folks will take you up on your offer.
Thanks for the article Eddy! You made it clear and plain, much like I do when recruiting agents to work under my IBO. I am very transparent and tell potential agents everything, not just bits and pieces. I to have a flat fee per paycheck and don’t take percentages. We built our business on being fair with agents and they appreciate us as much as we appreciate them!
You’re welcome. Glad you can appreciate the honesty of the article. It’s always nice to meet reps that are transparent and up front with their recruits about the good and bad. Thanks for chiming in.
The two tactics I’ve seen IBO’s use are these:
1. Paying a CSP (Client Support Professional) less than what they are actually earning. Say for example a CSP chooses AT&T. There are IBO’s out there who take on CSP’s and tell them that AT&T pays a flat $8.50 per hour. Well, a person wanting to work from home with no commute would think this was a decent wage as it’s higher than minimum wage, etc. In reality AT&T pays more like $11-$15 per hour. The IBO makes their money by the difference in the hourly pay that the CSP is actually getting vs. what the IBO is paying the CSP. There is one IBO listed in on your recommendation that does this. Many unsuspecting CSP’s don’t know that they could be earning A LOT more money.
2. The second tactic is very unethical and I’d hate to post it here in the open as not to make accusations on anyone but CSP’s have come to my IBO and have been a victim of this 2nd tactic. If you or anyone else would like information on send me a private message.
I really would be more than happy to inform anyone who is currently with Arise or thinking about joining Arise so they can make an educated decision. Arise is a great opportunity!