About Making Free Money

The potential to earn "free money" is exponential. From national companies to Internet companies, more and more freelance, contract and seasonal workers are turning to companies that offer "free money" as a way to supplement their income or build income solely through that endeavor. Because the abundant number of Web-based companies offering "free money" is higher than those advertised locally, we will look primarily at how to make "free money" online.

Considerations

Web-based companies require talented full- and part-time contractors or freelance workers to complete assignments from home. The term "free money" is used to indicate the absence of program or participation fees, software and other training costs as well as lead or information payouts. Generally, a company will advertise a telecommunication position, promising work for skilled contractors. In exchange for answering Internal emails or reviewing customer comments, for example, the company will pay the contractor a set fee per assignment. This fee will vary depending on the assignment, industry, employer and type of response or duty that is required.

Size

Most Web-based companies that claim "free money" can be achieved via partnership with the company indicate the earning potential. In some cases, the company will claim that several hundred dollars can be earned on a monthly basis. For example, a Web-based company that contracts part-time data entry associates, and for this example will be called Company A, confirms an earning potential of $500 per month for part-time workers. To affirm or guarantee this salary, Company A outlines the number of entries that must be made and approved for payment daily during a four-week work cycle. To guarantee high quality work, Company A clearly states that all assignments are verified for payment, and that payment is strictly dependent on a minimum performance standard. This standard is outlined on the company's' website.

Types

A freelance worker can make "free money" participating in surveys, testing new products or books, reading customer complaints and responding by mail or email, data entry, conducting consumer interest polls and proofreading. Regulations and quality control will vary by company. However, in most cases, a worker will have to follow a general guideline. For example, a data entry associate might be evaluated on how many assignments are completed within a specified margin of error. This could mean, each assignment can only have two spelling or clerical errors (or be within five percent of the margin of error) to be received for payment. These regulations will vary by company.

Misconceptions

All earned income is taxable. Just because a freelance worker does not pay a participation fee to earn the money does not mean he is exempt from paying taxes on the money. He must report all earnings in a 1099 or other applicable form. Contact the IRS to ask about filing forms and deadlines that apply. In some cases, it may be best to request an Employer Identification Number and file the earnings as an independent contractor. Speak with a tax attorney to learn more about this and other options.

Warning

The legality and validity of the many Web-based companies promising to deliver free money is questionable at best. Many of these websites advertise free money at no start-up cost to you. However, what many of these companies fail to advertise is the processing fees and training costs required for participation. in many cases, this disclaimer will be posted in the fine print or addressed at the initial set-up stage. The company may affirm that the nominal fee is a one-time processing fee to cover the cost of materials, but in charging the fee, the company undercuts its initial claim of "free money."

Resources

• IRS