Are There Legitimate Credit Card Business Opportunities?

There are a number of companies out there claiming to offer legitimate credit card business opportunities for entrepreneurs. The credit card industry is a multi-billion dollar industry that provides credit for many different consumers.

Credit Card Business Pyramid Schemes

A pyramid scheme is a type of business structure where the person at the top recruits a given number of salespeople. Those salespeople then go and recruit other salespeople, and they get paid a commission for recruiting them. The chain goes on and on, and, when drawn on a piece of paper, it resembles a pyramid. Typically, the salesperson has to pay a fee in order to be able to join the scheme. These fees are what pays the commission; there is rarely ever profit generated from actually selling a product. The same is true of some credit card business opportunities. If you are asked to pay a fee in order to participate, beware. The same is true if you are asked to recruit other salespeople for a referral. You may be getting involved in a pyramid scheme, which is usually only profitable for the person at the top. All others make very little, if any, money for their efforts.

Commission Only Credit Card Business

Another standard credit card business opportunity offers a commission for every account you sign up. While these are generally more legitimate than pyramid schemes, they are still very risky. You may be told you are "ready" to go sell unsecured credit cards. Without a refined knowledge of the rates and penalties involved in selling unsecured credit cards versus secured credit cards, you are an ineffective advisor. Furthermore, you will not be paid per hour you work for the credit card company. You will only be paid when you make a sale. For unemployed individuals who think this is a good job opportunity, the length of time in between commissions plus lack of any benefits does not make it an attractive offer.