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Friend got laid off and is on unemployment looking at AM?

by JiuJitsuSweep
12 replies
hey guys and girls been awhile since i have been on here and had a question i cannot find the answer anywhere else.

A buddy of mine who wants to get into Affiliate Marketing had a question and it may be beyond my level of expertise so here goes.

He got laid off in october ( his job in construction has been dwindling due to the economy ) and is collecting unemployment from the state, and was asking about getting into Affiliate marketing ( was looking at a construction consulting/e-book style of niche ) and was wondering if income from sales of his e-book would be considered a " job " per say where he would have to report the money earned from sales as " income " to the state he is collecting unemployment from?

This is all speculation since sales of an e-book or affiliate marketing or Google adsense isn't exactly a reliable income stream , i guess it can be in the long run but in the short run probably not.

Anyway i advised him to get started but that once he gets to that bridge to cross it, but i don't know what to say regarding reporting any income to the state that he is collecting from .

Has anyone ever run into this situation before?

Thank you
#friend #laid #unemployment
  • Profile picture of the author vivi62
    Hi in the uk we dont have to show any income proof for 12 months if newly self employed but it may be helpfull to ring and ask at what stage if you make any money do you tell the unemployment office.
    Regards
    vivi62
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  • Profile picture of the author CDarklock
    Originally Posted by JiuJitsuSweep View Post

    he would have to report the money earned from sales as " income " to the state he is collecting unemployment from?
    Yes, it is self-employment income and needs to be reported just like any other income. You may want to check with the state about reporting requirements for that.
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    • Profile picture of the author JiuJitsuSweep
      Originally Posted by CDarklock View Post

      Yes, it is self-employment income and needs to be reported just like any other income. You may want to check with the state about reporting requirements for that.

      i kind of assumed this but wasnt sure

      thank you
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      • Profile picture of the author Tyler Pratt
        he should just make the money first and then worry about what the state will do. I bet the money he makes from AM will surpass his unemployment checks.
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        • Profile picture of the author sadiecopywriter
          Originally Posted by Tyler Pratt View Post

          he should just make the money first and then worry about what the state will do. I bet the money he makes from AM will surpass his unemployment checks.

          I would not recommend doing that, because it's considered more than just breaking the rules, it's considered unemployment fraud, a federal crime. With the government looking to cut anywhere they can, they're not going to ignore fraud. Your friend could get in a lot more trouble than simply having to pay back checks he received.

          However, from personal experience I know that unemployment does give you a threshold. This threshold is the amount of money you can make without sacrificing any of your unemployment check. The threshold is different for every person because it's based on how much money you made when you were working. The unemployment office should be able to tell him what his threshold is.

          Also, there are special provisions in place for people who are trying to create a job for themselves as this is considered 'looking for work'.

          I would talk to the unemployment office about both of these options. After all, they want to get as many people off unemployment as quickly as possible so they'll be happy to help.
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          • Profile picture of the author Chris Chicas
            The last person you want to talk to is someone in the unemployment office. They'll treat you as if you're taking money from their own pockets. It's like going to the gas station and kindly asking if you can siphon some gas.

            I know a lot of people that have seasonal work and the rest time they are on unemployment so I know a thing or two about how they operate.

            I wouldn't worry about such thing until you begin making some serious money - and if that person is a newbie this will take time - won't happen over night most likely.

            Once you start making good money, at least a thousand a week, then what I would do is get as many affiliate/commission checks as possible lumped for them to arrive within the same week. That way you can claim you made money that week while still having the other weeks clear of no earnings. Take my advice with a grain of salt but I think this could work well - and that's what I would do.

            As you get more into this it will become more clear as on what is the most sensible thing to do.

            And this is what I call a "newby worry" Just like most newbies worry about having their work ripped off and this slows them down greatly. Along your path you'll find tips and tricks to deal with those issues... but 'til then - get going first.
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  • Profile picture of the author mgreener
    Hi,

    Hopefully he would when he gets to a point where that income is sufficient to support him. I don't think making a couple hundred a month on the side would disqualify him from unemployment.

    This is something that he should clarify at the unemployment office.
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  • Profile picture of the author Rien
    It all depends on the state you live in. As someone
    already mentioned there is a cutoff point. Your friend
    has to ask or check the unemployment office's website.

    This is just an example, so please treat it as such.

    If he collects $500 a week from unemployment and is
    allowed a $100 income threshold, as long as he does
    not earn more than $100 in affiliate income weekly he
    will still get the full $500.

    Whatever he makes over that threshold will be deducted
    from his unemployment check because he NEEDS to self
    report it.

    The first thing he needs to do is talk to the folks at the
    local unemployment office himself.

    Hope that helps.
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  • Profile picture of the author caseycase
    Honestly, his best bet would be not to ask here. Have him talk to an accountant or an employment law specialist. You already have conflicting opinions in this thread, and I would hate for your friend to get steered in the wrong direction.
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  • Profile picture of the author Mike Hill
    If your friend got laid off from a construction job due to the economy why would he then want to start a construction consulting related business?

    He would be better off creating a tools review affiliate site or something geared towards home owners doing their own minor construction projects if he really wants to stay in that market.
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  • Profile picture of the author Marketing Fool
    I'm not a lawyer...but I think it depends on how he structures things. Is he just "self employed"? If so that's probably considered income.

    If he stars a corporation and does not "hire himself" then he is certainly NOT employed. He merely owns a corporation that may or may not pay dividends etc.

    It all depends...check with a CPA or tax lawyer.
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  • Profile picture of the author gvannorman
    What I would do is report the income as self employment income. I believe it is one of the questions that have to be answered each week when you claim the benefits. Then you are covered either way. Now, how much you are able to earn is something I think that only the Government can answer. Of course you could consult an attorney regarding this if you prefer.

    Since there is no way of knowing how much money your making from the sales or Adsense until its already made and Adsense only pays once a month anyways. You will probably still get some money from unemployment. But, make sure you claim it as income or you will eventually face fraud charges.
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