We need to consider the arguments on both sides. First, those that say we need to increase the minimum wage to a livable wage, tell us it will boost morale, inspire workers, increase loyalty, and more earned income would mean more money to spend.
Second, 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, trianing or degree required to get you there. But 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.
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.
What it Takes to Own Your Own Business
The Success Rate of Owning Your Own Business?
Fundera wrote a blog in November 2020 that shows: “20% of small businesses fail in their first year, 30% of small business fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business.”
Entrepreneur magazine shows the same numbers written two months later. To break down these numbers let’s paint a picture of 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. We can’t keep a quarter of a business open so we will be generous and say 9 businesses are still open for business.
Ten years ago, 100 people went into business and only 9 are still open. Breaking that down to a percentage would be 9/100*100 = 9% of businesses succeed or a 91% failure rate.
In the same article from Fundera, they go on to talk about the reason why most businesses fail. If you know the reasons why businesses fail, you can create a business plan to reduce your failure rate.
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 are people that 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.
If you want to know more about the success rate of a sales person, click here
There is a 90% failure rate for insruance agents and an 87% failure rate for real estate agents.
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.
If you are interested in becoming an insurance agent, be aware that they use the same tactics MLMs used to use (selling the dream of high income by MLM’s has now been federally regulated).
Insurance companies will sell you the dream of becoming a 6-figure earner your first year. The truth is that it takes about 7 years before you will see a 6-figure income.
Unlike MLM’s they can still sell you “the dream”. Insurance companies aren’t regulated like MLM’s.
You need to interview the insurance company whether it is a local branch down the street or an MLM and ask them about:
- 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%.
As an independent contractor the upside is that you are your own boss, lots of autonomy working your own hours and 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.
What Are the Pros and Cons of MLM and who Succeeds
MLM’s are they a business or a Pyramid Scheme?
The much-hated MLM business that everyone loves to hate, often called pyramid schemes. Corporations are set up like pyramids with the lowest level employees at the bottom and the very few C-executives at the top. They are a pyramid but not a pyramid scheme.
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 invest 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.
Fundera by Nerd wallet has a detailed article about all the statistics that can be found 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.
The failure rate for those in MLM’s is anywhere from 97%-99.5%.
There are many insurance companies that are MLM’s with no start up costs other than purchasing insurance for yourself.
Some insurance companies, whether they are an MLM or not, 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.
Some believe that if they join a new innovative MLM they have a better chance of succeeding. Others beleive if you a recruited by those 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. They have no time for you.
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
Which Path Should You Take for a higher income?
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.
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.
For the 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, or maybe you have a trade and can open your own business.
In the beginning be prepared 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 takes 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 workdays, nights, weekends, and many hours. They will network or join networking meetings face to face, have strong networks where people know who you are. Most of these people that succeeded in these opportunities have usually been successful at other adventures in their lives.
Also don’t do business because of the money. Believe in what you do, especially if you are selling a product or service. You want to genuinely believe in what you are doing.
I have been with LegalShield for over 20 years. They are a MLM selling Legal products for individuals, families, businesses, CDL drivers, identity theft and other products. I love this product and use this product regularly. LegalShield has a full disclosure of what their associates make on this link. https://www.pplsi.com/income-disclosure/
I am also an insurance broker for Experior Financial Group that allows recruiting. When I recruit, I have a real interview to weed out the 10% of the people that succeed in this business. I expect them to write me a business plan that tells me what their daily activities will be in order to succeed.
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 about this in this article. 
