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.
The Solution!
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.
The Pros
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.
The Cons
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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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.
Please advise
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?
Hi,
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!
Hi 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.
Thank you,
Susan M.
Hello All,
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
Barbara,
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.
Nina
Hey Nina,
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?
Thanks
I have no idea. You might want to ask an existing IBO.