5 Reasons why Stuffing Envelopes are Scams
Envelope stuffing is one of the most common yet most often propagated scams in the world. The claim is that you can earn between $500 to $3,000 stuffing envelopes. If that sounds too good to be true, that’s because it is.
Why is this a scam? Here are the main reasons.
#1: Why Wouldn’t They Hire Someone for Minimum Wage?
Stuffing envelopes doesn’t require any skill. You don’t need to have a degree to do it. All you need to have are a pair of hands. In that case, why doesn’t the company hire someone for minimum wage to do it?
Even if this job were legitimate, you can’t reasonably expect to earn more than minimum wage. At $8 an hour, you’d have to work 200 hours, 50 hours a week to earn $1,600 a month. The math simply doesn’t add up.
If you could earn more than $8 an hour, say $25 or more an hour as many advertisements claim, why wouldn’t the company just hire someone for $8 an hour and collect the difference? The reason: It’s a scam.
#2: There Are Machines That Can Do 1,300 Envelopes an Hour
It’s true that there are envelopes that need to be stuffed. Direct mail marketers, mass mailers and corporate mailers all need to be mailed out en mass. These envelopes need postage stamps, they need addresses written and they need letters stuffed.
However, this isn’t generally done by hand. After all, why pay someone to do it by hand when it can be done by a machine? A professional grade envelope stuffing machine can do over 1,300 envelopes in one hour.
Sure, the machine costs a lot of money to purchase. However, once they’ve been purchased, they cost nothing but electricity to run. They’re also available for rent.
So why would a company hire someone to stuff envelopes by hand? When you multiply the cost savings by thousands, tens of thousands or even millions of envelopes, it makes absolutely no sense to hire a real person. The simple truth is, there is no such thing as a real “make money from home stuffing envelopes” scheme.
#3: Check the Better Business Bureau
The Better Business Bureau is one of the most prominent business complaint reporting agencies in the world. Whenever someone has a negative experience with a company and believes the company acted in an unethical way, they can file a report with the BBB.
The BBB keeps records of all reports filed. They also do their own investigations and give the companies they’re reporting on a grade. This grade represents how honest and trustworthy the company is in their business dealings.
If you’re not sure whether or not you’re dealing with a scam, all you need to do is head over to the BBB’s website. Type in the name of the company you’re considering working with. Chances are, you’ll find report after report of people who’ve been scammed by the same company.
What if you’re working with a relatively new company? This is very common, as these companies often shut down and start new ones to “erase” their bad karma. In this case, you won’t be able to research that company in particular. However, you can still research other “stuff envelopes from home” companies and make your decision about the business model in general.
There are just about zero companies that operate this business model in a respectable manner. They’re all just different forms of the same scam, designed to get people to pay money to a business opportunity that doesn’t really exist.
#4: The FTC Says “No”
The Federal Trade Commission is the United States’ consumer watchdog. Their job is to create legislation that protects the American public. They’re also responsible for enforcing various consumer protection laws.
In 2008, the FTC won a precedent setting lawsuit against several of these envelope stuffing companies. One of them was ordered to pay over $1.2 million in damages. The FTC commission that had to approve the filing of the lawsuit voted 4-0 that the law was indeed being violated.
In other words, the government body whose sole purpose is to protect consumers has come out and said, in no uncertain terms, that this is a scam. Furthermore, the courts themselves ruled in favor of the FTC, saying that the propagators of this scam had indeed violated the law and had to pay.
Don’t fall for the scam – Even the US government, which only acts when it’s really sure, has stepped in and said “no.”
#5: What Job Requires an Upfront Payment?
Think back to all the jobs you’ve had in your life. How many of them required an upfront payment for you to get started? The answer: Zero.
The truth is, a legitimate employee makes money on their employee’s time. For example, McDonalds might make $40 an hour per employee, but only pay the employees $10 an hour. The managers, the owners and the McDonalds franchise itself collect the difference in pay.
Employees are by nature producing more value for the company than they are paid. If employees weren’t worth more than they were paid, they’d be fired.
That’s why it never makes sense for a company to make an employee pay to work there. After all, if the employee is going to be generating an additional source of income for you, any upfront costs should be covered, right?
That’s why stores like McDonalds, Starbucks, Burger King and so on always provide uniforms and any other gear for free. They make money on their employees, so they can afford to pay upfront for any costs.
Envelope stuffing companies are different. They aren’t a real company. They’re not trying to make money in the long run. They can’t recoup their costs, because they don’t have a real business model. Instead, you are the business model.
That’s why you’re required to pay upfront to work with them. This upfront payment is money that you’ll never see again. Remember: A real company doesn’t make employees pay to work there. Almost all of them will cover those costs, as they know they’ll make more money from the employee in the future.
If This is a Scam, What’s the Alternative?
Does that mean it’s impossible to make money from home? Of course not. This particular business opportunity might be a scam, but that doesn’t mean there aren’t legitimate ways to make money from home.
One of the top ways to make money from home is to use the internet. One of the top opportunities online is “Project Payday,” a very unique and very effective method of getting paid online. In fact, project payday offers a $100 guarantee that you’ll make money.
Remember how envelope stuffing scams almost always have a very bad BBB rating? Project Payday is just the opposite. It has an “A” rating, which is very rare for business opportunities. In most cases, even great systems get bad ratings, because anyone who can’t make it work goes online to complain.
Project Payday’s “A” rating means that it’s so effective that even people who’re haphazardly putting in the effort have seen results. The independent researchers at the BBB have also put in the time to research the company and gave them a clean bill of health.
With Project Payday, you can work from the comfort of your own home and set your own schedule. The earning potential is between $44 an hour to $154 an hour, depending on how quickly you learn and get yourself setup.
In order to really test out how effective Project Payday is, a study team put 14 test students with zero previous experience to the test. The study group found that on average, the students earned between $200 to $2,500 in less than 30 days. Pay varied according to how much time and effort participants put in.
Here’s the kicker: 13 out of 14 of the participants made money. Only one person, who didn’t truly participate in the system didn’t make money. If he did participate even a little however, he would have been eligible for the $100 guarantee and would have gotten paid anyway, even if the system didn’t produce results for him.
How does the system work you might ask? All over the internet, there are special offers. These offers might give away phones, iTunes cards, gadgets or sometimes even cash. The Project Payday system essentially “games” this system. It allows you to find these special offers all over the internet, then use the special Project Payday system to win rewards in smart ways.
It’s virtually riskless. Either the program works for you and you gain a brand new, lucrative source of income, or you cancel the program and get $100 just for trying it. That might sound too good to be true, but remember: The authenticity of the company is verified independently by the BBB.
Don’t fall for the envelope stuffing scheme. Instead, try out Project Payday’s unique, intelligent and highly effective method of making money from your own home.Work from Home Stuffing Envelopes - 5 Reasons Not to Join,