Some companies abuse their workers by having them work off the clock and not pay overtime. Often these employees are in the lowest wage bracket. You can read more here How companies rip off poor employees — and get away with it | AP News
Mondays through Fridays I worked full-time during the day. For additonal income I took on a part-time position working at Wal-Mart approximately 20 hours a week nights and weekends.
Eventually Walmart cut my hours from 20 hours a week to 9 hours a week. When I asked them about this, they said I would have to open up my availability to them in order to get more hours.
I told them my contract states that I was hired as a part-time employee for nights and weekends only. In order to open up my availability I would have to quit my full-time job where I earn more money.
Low skill level employees are easily replaceable. They are easily replacable because there is no special training, certifications, or degree to qualify for these positions. It is cheaper for them to take advantage of the employees and risk a fine. This is the ugly truth about what you are paid.
First, consider the arguments on both sides
- Increasing the minimum wage to a livable wage,
- will boost morale,
- inspire workers
- increase loyalty
- more earned income would mean more money to spend.
Those that are against a minimum wage increase tell us that wage increases will:
- hurt a business’s bottom line
- hire less people
- or be forced to increase the price of products or services.
My solution can be found on https://prosperityclub.com/the-differences-between-global-poverty-and-u-s-poverty/#more-301 under the minimum wage portion of that blog.
Climbing the Corporate Ladder
In order to climb the corporate ladder you will need the skills, training or degree required to get you there. However, that isn't enough, you also need to know the people that can help move you up that ladder. It requires a lot of networking with the right people.
According to Top resume career advice most positions available with big companies hire people through networking and referrals. It goes back to the saying “it isn’t what you know, but who you know”. If you come from a well-connected family, that is more than half the battle.
In 2016 research from LinkedIn ( landing a job is really about who you know)showed that 70% of those hired had a connection at the place they worked. At bigger more well-known companies that number jumps to 95%.
This is the ugly truth about what you are paid and climbing the corporate ladder.
Competition
The higher you climb the corporate ladder, the harder it becomes to advance. You will run up against more and more competition. This is where corporate culture comes into play. Those in positions of power will advance employees that fit within the C-executive culture.
Business insider wrote an article about the top 10 professions that psychopaths seek (November 2018). Number one was CEO. This would include anyone in the C-executive positions.
Others on the list were clergy, surgeons, civil servants, police officers, salespeople, and not surprisingly lawyers. It doesn’t mean everyone in these positions is a psychopath or sociopath. I was a salesperson for years and I am not a psychopath or sociopath. It was important for me to only sold products I truly believed in and was in the best interest of the people.
If you wish to climb the corporate ladder, will you fit into that culture? What are your morals and values? Do your morals and values match those at the top.
The odds of making it to the top of a corporation?
According to Southern Utah University you have a 1 in 135,000 chance of becoming a CEO of a major corporation or similar odds in any executive position.
Breaking that down into a percentage looks like this: 1/135,000 or in simple terms, 1 divided by 135,000. This amounts to 0.0000074074. However, we still have to multiply by 100 making it 0.00074074 or .000741%. That means 99.999259% will never make it to the top.
Those with a financial background have the greatest odds of getting into those positions.
Fortunately, most people do not have the desire to climb the corporate ladder. Most people want good pay with good benefits and the ability to have a good work life balance and retire comfortably.
What it Takes to Own Your Own Business
The Success Rate of Owning Your Own Business?
Fundera's blog in November 2020 shows: “20% of small businesses fail in their first year, 30% fail in their second year, and 50% of small businesses fail after five years in business. Finally, after 10 years 70% fail
Here is what that looks like for 100 start-up businesses.
If we have 100 businesses and 20% fail, their first year, that means 80 of these businesses are still in business.
In the third year 30% of those businesses fail. 30% of 80 is 24, 80-24 = 56. There are 56 businesses remaining.
After 5 years 50% of the 56 businesses failed leaving 28 businesses still running.
Finally, 70% of businesses fail after 10 years. 70% of 28 businesses still open is 8.4. Since we can’t keep a quarter of a business open, we will be generous and say 9 businesses are still open in 10 years.
That means (9/100*100 = 9%) of businesses succeed or a 91% failure rate. However, you have a much better chance of succeeding in your own business than you do climbing the corporate ladder.
Fundera also includes a positive outlook for businesses. What Percentage of Small Businesses Fail? (fundera.com)
How to Become freelancer or Independent Contractor
What is an Independent Contractor? The Pros and Cons.
Independent contractors sell their skills to other companies. They can be freelancers or sales people.
The success rate is between less than 1% to as much as 20% depending on the industry. On average it is about 3%. These aren’t good odds. That’s a 97% failure rate.
For more about the success rate of a sales person, click here
Insurance Agents
If you want to become an insurance agent, you need to know that there is a 90% failure rate.
Insurance companies work like miniature MLM’s. If you work for a big insurance company and you are a top performer, they will eventually want you to open your own branch and recruit other agents which you will get a percentage of commissions on.
You also need to be aware that they use the same tactics MLMs. MLM’s have now been federally regulated and cannot promote the sky is the limit potential. Insurance agencies can still sell the dream of high income. Insurance companies aren’t regulated likeMLM’s.
Some insurance companies will tell you that you can become a 6-figure earner your first year. The truth is that it will take you about 7 years before you will see a 6-figure income.
Interview the insurance company:
- Training - how often and how long
- Who will you be trained by
- What kind of support will you get
- What kind of marketing materials do you have access to
- Buying leads - are you required to purchase leads and how much and how often (I personally do not like or buy leads).
- What software or CRM do they use. Do you have access and what is the fee per month or do you have to purchase your own.
- What is the commission structure. If you’re new and being trained what percentage of the commission gets split. You may be offered 100% commission or more. However, if you are being trained your name and the trainers name are both on the policy and that commission gets split. 100% commission means nothing because each insurance product and carrier pays differently, and your split may only be 25%.
Upside of Being an Independent Contractor
- No boss
- Lots of autonomy working your own hours
- Taking off work whenever you want without having to ask.
- The more you sell, the more money you make.
Taxes are more complicated. There are more forms to fill out and the social security/self-employment tax is higher. With a job the company pays half of your social security, but when you are self-employed or an independent contractor, you are responsible for the entire amount of self-employment tax which is the same as social security tax.
There is no guaranteed pay. If you don’t make a sale, you don’t get paid. There is no such thing as a paid vacation. If you want health insurance, retirement, or other benefits then it is 100% on you.
Real estate agents have a 87% failure rate.
What Are the Pros and Cons of MLM and who Succeeds
MLM’s are they a business or a Pyramid Scheme?
The MLM business is the business that everyone loves to hate, often called pyramid schemes.
What is a pyramid scheme? It is an illegal pyramid where the investors on the bottom of the pyramid are financially funding the few at the top with no real product or services. The money made is through recruitment or investors, not real products, or services. Charles Ponzi became famous for his investment scheme. He paid off old investors with new investors’ money.
MLM’s are selling real products or real services and can move up the pyramid through the sale of these goods or services earning more money.
MLM Statistics, Disadvantages, Advantages, and Costs
Fundera by Nerd wallet has a detailed article about all the statistics that you can can find here: MLM success statistics
This link Disadvantages of an MLM has a list of advantages and disadvantages of MLM’s. It is quite accurate with the exception of high initial startup costs. If you have to purchase tangible products for resale then this could apply. It would less likley apply, if you are not selling tangible products like insurance.
Some insurance companies, might require you to purchase leads which lines the pockets of those at the top.
I have heard new insurance agents spending thousands on leads they were required to buy from their company putting them into debt.
If an MLM sells insurance or insurance like products, it has the same success rate as the insurance industry.The failure rate for those in MLM’s is anywhere from 97%-99.5%.
If you are inrterested in an MLM, don't think if you join a new innovative MLM you will have a better chance of succeeding. Also, don't believe if you a recruited by someone at the top you will get better training. Those at the top got there because they worked hard at recuiting hundreds or thousands of people. Most of them have no time for you, unless you are showing potential then they will step in and work with you. If you aren't showing any potential and you reach out for help they will advise you. Very few will actually work with you and train you, they are to busy traveling with the company and giving motivationl speeches at the MLM's conventions.
If you want to succeed at an MLM, you need to have a lot of discipline and work hard. Some MLM's have really good training programs especially those in the insruance industry. Go to the trainings or listen to the recordings if you have a full-time job.
The Path to Making More Money
As you noticed the highest paying careers or opportunities also have the highest failure rate. It was not meant to discourage; it was meant to show you the reality. Too many gurus on YouTube selling you false dreams telling you that if they can do it, so can you.
Only .5% to 13% of people are successful in these career paths. The highest odds against you would be climbing the corporate ladder. Your best odds would be a real estate agent. I am not advising everyone to be a real estate agent.
Which Path Should You Take for a higher income?
Your best chance of having a comfortable life is getting enough training or education to command a better than average income at an already established business. This is the safest route but not necessarily secure. Nothing is secure.
If you are young and ambitious with a background in Finance or accounting with the right personality to fit in the corporate culture, you may be the under 1% that makes it to the top of a corporation.
If you have always been an employee at a set 9 to 5 job and want to take your chance at going it on your own by opening your own business, then do your homework.
Habits and Skill Building for Success
In order to increase your odds of being succcesful plan to work longer and harder than 40 hours a week. You no longer have a 9 to 5 job. Hours and days might be unpredictable. It will take you on average 7 to 10 years to build a successful business. Once you are there and you have people working for you, that’s when more free time becomes available.
Maybe you don’t want the hassle of owning a business and having employees. You might have communication and marketing skills to become a salesperson, real estate agent, insurance agent or rise to the top of an MLM.
These are still possible if you’re willing to do the work. Those that are successful are willing to do things that unsuccessful people aren’t. The successful are willing to work days, nights, weekends, and many hours. They will network or join networking meetings face to face, have strong networks where people know you. Most of these people that succeeded in these opportunities have usually been successful at other adventures in their lives.
Also, don’t get into business because of the money you can make. Believe in what you do, especially if you are selling a product or service. You want to genuinely believe in what you are doing.
My Personal Experience
I have been with LegalShield since 2001. LegalShield is an MLM selling legal benefits for individuals, families, businesses, CDL drivers, identity theft and other products. They also have a full disclosure of what their associates make on this link. LegalShield income disclosure
I am also an insurance broker for Experior Financial Group that allows recruiting. When I recruit, I interview to weed out the 10% of the people that succeed in this business. I ask them to write me a business plan of what daily activities they will be doing in order to succeed.