The Problem With Referral Programs

Many jobs online require you to not only do something or sell something, but also to recruit others to do the same thing. Referral programs run rampant on the internet and can be found either as an incentive for many job sites, such as survey sites, or as a requirement for some sites. Referral programs, when they are legit, pay out reasonably enough, but they have some problems with them that should make you think twice about joining that at-home company for financial freedom while working from home.The main problem with these at home job is the recruiting itself. Generally, you have to recruit a certain number of people either because it's the only way to make any real money or as a requirement for joining the website. What this means is that the company is effectively turning you into their spammer; they know they can't be the ones to send out thousands of invitations and harassment to join or they may be kicked off the internet, so they get their employee hopefuls to do it for them. As an employee, you end up annoying half your contact list with constant emails to join your site, or you end up being ignored. At worst, you start being called a spammer, especially if you start looking to increase your contact list in order to grow your list of potential recruits. Sometimes you will have to pay the company to join their business and pay them for the pleasure of doing their recruiting for you! However, this isn't considered a scam because you do have the potential to make real money-if you have a massive contact list and are lucky to have some interested friends and family.Another related problem is how the recruitment aspect is marketed. These companies usually know that if they just say that you have to recruit people, they'll likely be ignored. So instead, they make the incentive for recruiting higher than the pay out for what you're actually doing for them and then rely on human greed. However, in order to actually be successful, you have to not only advertise to all of your contacts and social media contacts, but you'll have to build an advertisement that will attract them and pretty much maintain a business of making the company's business better-all the while paying a subscription fee for your work!Recruitment incentives should not be the bulk of the online company you're looking at and here's how you can tell if it is:1. If the payout/person recruited far exceeds the possible pay outs of the actual job you're doing.2. If you're getting more offers pertaining towards recruiting others than you are about the work that needs to be done.3. If the site is covered in banner ads about 'recruiting your friends!'If any or all of these things are going on, likely you're looking at a company that's trying to get you to do their work for a pittance and possibly charging you a monthly subscription for the 'honor'.Now this is not to say that all recruitment incentives are bad; plenty of perfectly legitimate online companies have referral programs. But the referral program should not be the bulk of your work in order to make any cash-you should be making cash via your work, not your ability to harass your contact list. Instead, the referral program should be like a bonus and it shouldn't be a huge one at that.There is absolutely nothing wrong with a referral program; so long as the referral program is the icing on the cake and not the cake itself. Just be aware of what you're signing on for before you sign up.