Make Money Stuffing Envelopes – A Scam

You’ve probably seen the ads in your local magazine, stating that you can just stuff letters all day, and make money.  Does it sound too good to be true?  Absolutely, because a process like this is generally automated.  I wanted to show you exactly how this process works, and how they scam you.

It’s a referral based system:  A company isn’t just going to send you 1,000 sheets, and tell you to stuff them.  Instead, they want you to print them, send out the envelopes, and pay for postage all by yourself.  In return, you’re going to find that if someone signs up for a product that you sent out, you’ll get a commission.

Let’s take a look at this basic formula –

Let’s say you go to the dollar store and for every 100 envelopes, you spend $1.  You buy 1,000 for $10.  Now, you need to print out these 1,000 flyers at your local Kinko’s, etc.  Let’s say that’s going to cost you .05 per sheet (I’m being generous with being cheap).  That’s going to be $50.  Now, you can’t forget those stamps.  As of 2009, a simple stamp is going to cost you .44.  The 1,000 flyers that need to be mailed cost you $440 in stamp.s

• $10 (envelopes) x $50 (copies) x $440 = $500 per 1,000 mailed.

Now, let’s say that you get the typical 2% conversion ratio, and the item that you’re selling is going to net you most likely $15-$20.  Let’s say 20.

• 1,000 x 2% = 20 sales x 20 = $400.

Now, as you can see, that 2% conversion can typically be pretty high, but my point here is that you’re going to most likely break even, if not lose at least $100 per 1,000 mailed out.

Who wins in the long run?

The company that sends you the leads and sales.  You’re paying all of the mailing costs up front, while they send you a measly percentage for each sign up, and you don’t even know if you if you’re going to get a sale or not.  In the meantime, the other company can sit back, and laugh while you pay for all of their mailing costs!

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