Welcome to our BookWormBiz Business Details Page, where you can learn the details on how you can Make Money in Three Ways! You can:
You can also benefit in two additional and important ways! You can:
We have designed an inexpensive and easy-to-use system for you to grow your business. Scroll down, or click on any link below to learn more!
Our members typically join us as Preferred Customers, receiving a single product every month to enjoy! And at BookWormBiz, we also encourage our Preferred Customers to create their own digital goods and sell them at BookWormBiz! Members will earn a $3 royalty for each final sale of any product they author!
Preferred Customers can upgrade to a status of Distributor by making a single retail sale every other month! Distributors can make additional income through our multi-level-marketing program! BookWormBiz is a company that enables you to sell any digital product, such as an eBook, mobile app, music CD, or Video. At BookWormBiz, we believe these billion dollar markets are an ideal match for a multi-level-marketing sales approach, and we'd like you to make money through product sales!
At BookWormBiz, we sell our products via Multi-Level-Marketing, or MLM. A profit is made by the Distributor who sells a product, and a commission may be paid to the Distributor who sponsored the one who makes the sale, and further commissions may be paid to the Distributor who sponsored the sponsor, and so on for up to six levels of commission payments. See our section below, The BookWormBiz Compensation Plan, for more details!
As you grow your business you will earn points for sales of products you author, sales you make, and sales made by your downline. We will keep track of your points and update them each month. When you reach certain point levels you will be eligible for recognition and rewards. See our section below, Earning Rewards and Recognition at BookWormBiz, for more details!
There are many tax laws that you may be able to take advantage of by running your own BookWormBiz Independent Business. Deductions for business use of your vehicles and deductions for meals and entertainment are some of the advantages that can become available once you are in business. One of our favorite deductions is the new $5 per square foot home office deduction, which you can read about here. In many cases, tax savings from the home office deduction can alone exceed the bundle plan costs of your BookWormBiz business! And there are many more deductions that can increase your savings! See our section below, Saving Money on Your Taxes, for more details!
At BookWormBiz, members can choose to author products, or they can choose to sell products and work to sponsor others who sell products, or they can choose to do both, or they can choose just to enjoy the products. There is no requirement to author a product in order to earn sales commissions, nor is there a requirement to sponsor others in order to earn royalties on a product you author. Whether you author products, sell products, or both, you will gain points toward rewards and may be able to save money with tax deductions. There are many different ways to earn money, and you can choose the way that works best for you!
At BookWormBiz, our philosophy is to focus on the success of our Members, since we will succeed only if our Members succeed.
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For those of you new to multilevel marketing, the system works by having each person sell products and also sponsor others who sell products. You can earn commissions both from your own efforts and from those below you on the sponsor tree. If you sponsor seven people, your sponsor tree would look like this:
In the above diagram, you are represented by the rectangle labelled "You", and each of the people you sponsor are represented by the smaller rectangles. If the seven you sponsor go out and sponsor seven more, the situation looks like this.
In the above diagram, each of the people sponsored by those you have sponsored are represented by the small squares. And if those sponsor seven more, and we represent the new ones by solid circles, then the distribution chain looks like this:
Of course, actual results may vary, but it should be clear that multilevel marketing can be a powerful way to sell products.
There are a few terms used in multi-level-marketing (MLM) that are common in the industry that you may not know if you are new to MLM. A downline is every distributor that you sponsor, and those that they sponsor, and so on down the chain, up to the point where the compensation plan ends. An upline is the person who sponsored you, the person who sponsored them, and so on. Breakage is commission income that a Distributor was not qualified for. Breakage flows up the upline and a portion can be awarded to the first qualifying recipient. A leg of your downline is someone you directly sponsor, and all the members of your downline that are also members of that sponsoree's downline.
In most businesses, advertising and store-front costs are a significant portion of the cost of the product. Putting ads on TV, radio and in the printed media involve costs for production of the ads as well as costs to run the ads. Maintaining a store-front involves costs for the building, maintenance of the building and utility costs. And then there are the costs for all of the employees necessary to operate that store-front.
By avoiding the use of advertising and store-fronts, multi-level-marketing approaches can operate far cheaper than traditional businesses and this is where the money comes from to pay the commissions to the distributors!
Since multi-level-marketing involves earning money as a result of sales made throughout a downline, it has some characteristics that are similar to an illegal pyramid scheme. The difference between the two lies in how the money comes in. In an illegal pyramid scheme, people may pay in to a pot to join the scheme, with the money going to those at the top of the pyramid. In a legal MLM the money comes from the sale of a product. As long as the sale price of the product is fair, then the business is simply selling via MLM instead of using advertising and store fronts, and the business is legitimate and fully legal. At BookWormBiz we sell our digital goods at a price that represents a fair value to our purchasers, and members only earn money on commissions and royalties based on product sales. There is no money made on the act of recruiting someone. You will only earn money if that recruit buys or sells products, since earnings are all based on product sales. Note that in some cases, Distributors may wish to enjoy the products themselves and in this case they sell to themselves and commissions may be earned on those sales as well.
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At BookWormBiz, if you qualify (see Additional Rules below) you can earn money in the following ways:
*You make the markup from the wholesale price to the retail price when you sell a product. This markup can vary depending upon what plan you purchase the products under.
Authors always qualify for royalties as long as they are active members of BookWormBiz.
Members always qualify for the markup on any sale they make on their own.
To be Fully Qualified for Downline Commissions, the Distributor must meet the Following Conditions:
If a Distributor makes one sale in the previous month, but does not make a sale to a non-Distributor in the previous two months, the Distributor may partially qualify for commissions. (The 40% rule still applies.) See the full BookWormBiz comp plan (available after signup) for complete details on this, as well as the rules for handling of breakage.
At BookWormBiz there are several ways you can make money. Authors need not sell nor recruit if they do not wish to. They will still get a royalty on every final sale of their works provided they are an active member at the time of the payout. Sales people need not author any product if they do not wish to. They will still get any qualified commissions from sales they make and sales from their downline. Or, you might choose to be an author and a sales person and make money both ways! The choice is up to you!
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Often, it is easier to understand a compensation plan through the use of examples. This section will discuss several examples of the BookWormBiz Compensation Plan to be used as a tutorial on how the compensation plan works. NOTE THAT THESE ARE TUTORIAL EXAMPLES ONLY. THERE ARE NO GUARANTEES OF INCOME. RESULTS MAY VARY.
As a first example, we'll show the power of our system in a case where a Distributor sponsors five people, and everyone who joins also sponsors five. In such a situation the commissions are as follows:
So in this example, where everyone sponsors five people down the line, each level grows by five times more people. Provided the distributor makes one sale in the previous month and one sale to a non-Distributor in the previous two months, and everyone down the line purchases one product in the previous month, the sum of all the commission income is $12,712.50 per month, or $152,550 per year in this example. Example only; no guarantees of income; results may vary!
As a second example, consider a case where the Distributor makes one sale in the previous month and one sale to a non-Distributor in the previous two months, but they have sponsored just two people. Even if each of those two sponsor hundreds each, all of whom purchase a product that month, the Distributor will still earn no commission. That is because with only two legs, if we try to reduce the biggest leg to 40%, then the other will be at 60%, and if we next reduce that one to 40%, the original one is at 60%. This happens until both legs are reduced to 0%. So the Distributor will not earn any commission in this case. Hence, as a result of the 40% rule, you need at least three legs to earn downline commissions.
As a third example, consider a case where the Distributor makes one sale in the previous month and one sale to a non-Distributor in the previous two months, and they have sponsored three people. If two of the ones sponsored go on to sponsor hundreds, all of whom purchase a product that month, and the third one does not sponsor anyone, then the Distributor will earn $6.25. This is because the Distributor will earn $1.25 from the purchase made by the one who did not sponsor anyone and $2.50 from each of the other two. That is because $2.50 is 40% of $6.25. Each of the strong legs gets reduced until no leg accounts for more than 40% of the commission income.
You may be wondering why we have the 40% Rule. It is there to ensure a healthy growth of the downline. Without this rule it would be possible for people to game the system in an attempt to make more income for themselves while yielding less for those in their upline.
One way to make a small profit is by selling one product per month for $9.99 plus tax. The money earned will slightly exceed what you pay for the wholesale cost of the products plus the online subscription to our software as long as you purchase them through our six month bundle.
A second way to make a small profit is by recruiting three people and recommending that they buy or sell a product you have authored. Provided you make one sale in the previous month and one sale to a non-Distributor in the previous two months, and everyone down the line purchases one product in the previous month, you would then earn a $1.25 commission on each of three sales, plus a $3 royalty on each of three sales, for a total of $12.75, which exceeds the monthly cost of our six month bundle plan.
A third way to make a small profit is by recruiting three people who each sponsor three themselves who each sell a product each month. Provided you make one sale in the previous month and one sale to a non-Distributor in the previous two months, and everyone down the line purchases one product in the previous month, you would earn 3 times $1.25, or $3.75 per month in commissions from those you have sponsored, plus 9 times $0.75, or $6.75 from the second level for a total of $11.50 per month which exceeds the monthly cost of our six month bundle plan. You will also earn the markup on your retail sale - further increasing your small profit.
A fourth way to earn a profit is if your products become popular and 4 or more of them are sold every month. You will earn $3 for each final sale of any product you author. Note that you need not sell anything to earn royalties, you will earn royalties on items you author whether you make a sale or not as long as you are an active member at the time of the final sale.
The power of MLM can be shown when the recruiting continues down many layers. For the case where a Distributor sponsors three people, and everyone who joins also sponsors three, the situation is as follows:
So in this example, where everyone sponsors three people down the line, each level grows by three times more people. Provided the distributor makes one sale in the previous month and one sale to a non-Distributor in the previous two months, and everyone down the line purchases one product in the previous month, the sum of all the commission income is $645 per month, or $7,740 per year in this example. Example only; no guarantees of income; results may vary!
The power of MLM becomes even stronger if each person sponsors even more people. For the case where a Distributor sponsors seven people, and everyone who joins also sponsors seven, the situation is as follows:
So in this example, where everyone sponsors seven people down the line, each level grows by seven times more people. Provided the distributor makes one sale in the previous month and one sale to a non-Distributor in the previous two months, and everyone down the line purchases one product in the previous month, the sum of all the commission income is $93,170.00 per month, or $1,118,040 per year in this example. Example only; no guarantees of income; results may vary!
A distributor will earn no commission in a month that follows a month that they fail to make a sale and they will not qualify for breakage income.
If a distributor fails to make and record a sale to a non-Distributor in the previous two months, but they do make a sale in the previous month, the commission income is half of what it would otherwise be and they will not qualify for breakage income. Example only; no guarantees of income; results may vary!
When potential monthly commissions are unpaid either due to the 40% rule, or due to the non-Distributor sale rule, or due to the monthly sale rule, a portion of that money flows up the sponsor chain to the first fully qualifying sponsor, further increasing the income of that sponsor that month. See our compensation plan for full details. Example only; no guarantees of income; results may vary!
The above examples show many different scenarios in order to assist in understanding our compensation plan. Some of the earliest examples, since they involve only a few sales, may occur early on for a Member who works to grow their business. The first one and last two are quite unlikely, as a perfectly uniform growth would rarely occur in practice. People are different, and some will do more, and others less. In the industry it is common to have to approach many people before five would sign up, and it is also common that many may need to sign up before five would go on to build their own downlines. As emphasized above, all of the above are examples only, and the intent is to show the power of MLM for those who work hard to build their downlines as well as to help you to understand our comp plan. Results may vary!
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At BookWormBiz, we have the following Associate Levels and Awards:
Each Associate Level is determined based on the Lifetime Point level that the Member has achieved. A point is awarded for each penny earned in commissions and/or royalties, as well as 125 points for each personal sale (or purchase) made.
Associates will gain recognition by having their names listed on the online BookWormBiz Hall of Fame and be invited to attend the next members meeting where they will receive their award at the registration desk. Awards at the Associate Levels consist of color coded T-shirts. Associates will be encouraged to wear the shirts at the annual meetings so that all participants can see and celebrate their level of achievement.
Associate I - The Green Shirt Award. An Associate will earn the title of Associate I by acquiring 2000 Lifetime Points. They will be entitled to the "Green Shirt Award", which will be a Green Shirt indicating their accomplishment.
Associate II - The Yellow Shirt Award. An Associate will earn the title of Associate II by acquiring 20,000 Lifetime Points. They will be entitled to the "Yellow Shirt Award", which will be a Yellow Shirt indicating their accomplishment.
Associate III - The Orange Shirt Award. An Associate will earn the title of Associate III by acquiring 100,000 Lifetime Points. They will be entitled to the "Orange Shirt Award", which will be an Orange Shirt indicating their accomplishment.
Senior Associates will gain recognition by having their names and pictures listed on the online BookWormBiz Hall of Fame. Awards at the Senior Associate Levels consist of color coded T-shirts and hats. Senior Associates will be able to attend the membership meeting for half of the usual registration fee. They will receive their shirt at the registration desk, and their hat during our first day recognition dinner. Senior Associates will be encouraged to wear the shirts and hats at the annual meetings so that all participants can see and celebrate their superior level of achievement. Senior Associates will be invited to give a short talk about their success at the membership meeting and be eligible to receive a speaker's fee for their efforts.
Senior Associate I - The Red Hat Award. A Member will earn the title of Senior Associate I by acquiring 400,000 Lifetime Points. They will be entitled to the "Red Hat Award", which will consist of a Red Shirt and a Red Hat indicating their accomplishment.
Senior Associate II - The Purple Hat Award. A Member will earn the title of Senior Associate II by acquiring 2,000,000 Lifetime Points. They will be entitled to the "Purple Hat Award", which will consist of a Purple Shirt and a Purple Hat indicating their accomplishment.
Senior Associate III - The Blue Hat Award. A Member will earn the title of Senior Associate III by acquiring 10,000,000 Lifetime Points. They will be entitled to the "Blue Hat Award", which will consist of a Blue Shirt and a Blue Hat indicating their accomplishment.
Distinguished Associates will gain recognition by having their names, pictures and biography appear prominently on the online BookWormBiz Hall of Fame. Awards at the Distinguished Associate Levels consist of color coded shirts, hats and coats. Distinguished Associates will be able to attend the membership meeting free of charge. They will receive their shirt at the registration desk, their hat during our first day recognition dinner and their coat at the closing day banquet. Distinguished Associates will be encouraged to wear the shirts and hats at the annual meetings so that all participants can see and appreciate their superior level of achievement. Distinguished Associates will be invited to give a featured speaker presentation at the membership meeting and be eligible to receive the featured speaker's fee for their efforts. Additional awards are also achieved at this level, as described below.
Distinguished Associate I - The Brown Coat Award. A Member will earn the title of Distinguished Associate I by acquiring 40,000,000 Lifetime Points. They will be entitled to the "Brown Coat Award", which will consist of a Brown Coat, a Brown Shirt and a Brown Hat indicating their accomplishment. Brown Coat Award members will have their hotel expenses paid to attend the membership meeting wherein they receive their award. They and their guest will have a seat at a table of honor at the first day recognition dinner and at the closing day banquet.
Distinguished Associate II - The Black Coat Award. A Member will earn the title of Distinguished Associate II by acquiring 200,000,000 Lifetime Points. They will be entitled to the "Black Coat Award", which will consist of a Black Coat, a Black Shirt and a Black Hat indicating their accomplishment. Black Coat Award members will have up to 100,000 points of their expenses paid to attend the membership meeting wherein they receive their award. They and their guest will have a seat at a table of honor at the first day recognition dinner and at the closing day banquet.
Black Coat Awardees will also receive a new compact car at the time of their award. The value of the compact car will be limited to 2,000,000 points in value, and the Awardee can specify the make, model and features they desire.
Distinguished Associate III - The White Coat Award. A Member will earn the title of Distinguished Associate III by acquiring 1,000,000,000 Lifetime Points. They will be entitled to the "White Coat Award", which will consist of a White Coat, a White Shirt and a White Hat indicating their accomplishment. White Coat Awardees will have up to 100,000 points of their expenses paid to attend the membership meeting wherein they receive their award. They and their guest will have a seat at the table of highest honor at the first day recognition dinner and at the closing day banquet.
White Coat Awardees will also receive a new vehicle of choice at the time of their award. The value of the vehicle will be limited to 10,000,000 points in value, and the Awardee can specify the vehicle, make, model and features they desire.
A Member achieves a Gold Star Award for every additional 1,000,000,000 Lifetime Points they achieve beyond their first White Coat Award. Upon receiving a Gold Star Award, they will receive a White or Black Coat with one or more Gold Stars on the shoulder and down the sleeve, a White or Black Shirt with one or more Gold Stars on the shoulder and down the sleeve and a White or Black Hat with one or more Gold Stars indicating their accomplishment. Gold Star Award members will have up to 100,000 points of their expenses paid to attend the membership meeting wherein they receive their award. They and their guest will have a seat at the table of highest honor at the first day recognition dinner and at the closing day banquet.
Gold Star Awardees will also receive a new vehicle of choice at the time of their award. The value of the vehicle will be limited to 10,000,000 points in value, and the Awardee can specify the vehicle, make, model and features they desire.
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By operating your own BookWormBiz Independent Business, you may be able to save on taxes in the following ways:
We at BookWormBiz are not a CPA or tax advisory firm, and do not give tax advice. We recommend that you work with a qualified tax advisor at tax time. However, there are some tax advantages that we believe you should consider bringing up with your tax advisor once you are engaged in a home based business. Some tax advantages applicable to small businesses might become beneficial to you!
While we are not CPAs, we can point you to someone online who is. Sandy Botkin, CPA, has an excellent book as well as several videos that you can consult. His book is available here and one of his videos can be found here.
Once you are in business, you may be able to deduct $5 per square foot for a home office used for that business. As an example, if you devote a 12 foot by 12 foot area in your home to business use, this would result in a 144 square foot office and may be a deduction of $720 on your tax return. This simple deduction alone can in many cases offset the yearly cost of two six month bundles! Again, we do not offer specific tax advice, please see your tax professional for advice on your situation. You can also visit the IRS website, and read about it there.
Once you are in business, you may be able to deduct a portion of meals and entertainment expenses provided those expenses have a legitimate business use. You should keep documentation on who you met, what the business purpose was, how much the expense was, when it occurred and where the meeting occurred. MLM businesses can allow you to see significant tax deductions by combining business and pleasure. Again, we do not offer specific tax advice, please see your tax professional for advice on your particular situation.
Once you are in business, you may be able to deduct much or all of a vehicle's costs, provided you use that vehicle for your business. These savings can again be quite substantial at tax time. To maximize your deduction you should keep an accurate log of your vehicle use so that you can get the best possible advice from your tax professional for your particular situation.
In addition to the specific expenses mentioned above, there are many other business expenses that you may be able to deduct at tax time. Computers, printers, ink, paper, and an internet connection may all be things that can be deducted in whole or in part. See your tax professional to find out what can be deducted for your individual case!
A home based business may qualify for large tax deductions, while a hobby will not. Therefore, it is very important that you run your business as a business, and not a hobby. In Sandy Botkin's book, a full chapter is devoted to a discussion of this issue. Sandy points out that one way to be considered a business is to show a profit for any three or more years in a period of five consecutive tax years. Sandy also mentions that there are other ways to be considered a business even if you don't meet the three years of five criteria. See his book for details, but to paraphrase, here are several of his recommendations:
When you join us you will gain access to our Business Tracker Excel Sheet. The Business Tracker Excel Sheet has several tabs in it that can assist you. Included in the Business Tracker Excel Sheet are:
We believe that our Business Tracker Excel Sheet can be a valuable way for our members to record information that can be very valuable in running their business as well as being very valuable at tax time. Again, we do not offer specific tax advice, so please see your tax preparer for advice on your particular situation.
Taxes are an enormous expense for many individuals. Taxes often exceed what people pay on any other expense they have, as they are often even higher than what they pay for their housing. Having a small business may enable you to take advantage of some good tax laws to reduce your taxes. See your tax preparer for advice on your particular situation.
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BookWormBiz is a new approach to a multi-level marketing company. One of our new aspects is that we allow members to sell their own products and the products of their fellow members. BookWormBiz started by realizing that eBooks are a new and large market and that home publishers could use a multilevel marketing approach to help them get their works known to a wider audience. But it quickly became clear that other digital good markets could also be served by us, and so we quickly expanded our scope to include videos, webinars, music, and any other downloadable content.
At the very beginning of the company we are providing some works for sale that were written by our founder, Dr. Delbert Larson. His book, "God, Nature and the Human Soul", has sold online for over $20, and many of Dr. Larson's scientific works are on sale by the big scientific publishers for between $25 and $30. Yet the works being offered at BookWormBiz all retail for just $9.99 plus tax. Additionally, we are offering carefully formatted versions of many of the most popular public domain works ever written. Works by Jane Austen, Mark Twain, Charles Dickens and many more! Typically, we bundle up several public domain works in two formats each to provide a good value on these classic works. Click on our Products tab for more details.
But it is not our intent to use BookWormBiz strictly as a vehicle to sell these original works. Rather, our intent is to give all our members a place where they can sell their own quality works through network marketing. The one thing we do wish to emphasize is value, and it is our aim that any works sold on BookWormBiz have a fair market value equal to or exceeding the purchase price. We want our customers to get an excellent value for what they buy!
Our goal is to be the next big thing on the web. Google dominates the search market. Facebook dominates the social network market involving the sharing of pictures and posts, and Twitter dominates the market for short messages to followers. At BookWormBiz, we are aiming to dominate the market for more lengthy content, offering people the chance to market their premium works through a fun MLM environment. BookWormBiz is a new social media entry, focusing on the very best that people have to offer one another - and doing so in a way that can financially reward our members! Since we were the first company in this niche, we hope to achieve more members than any MLM in history. That is our goal.
We believe our vision is realizable because we are combining several crucial aspects into our system. First, we are a purely digital company. Since we deal with digital goods, there are no issues relating to manufacturing, storage and delivery to hold us back. Second, we automate many of the tasks. By developing world class computer programs to handle product delivery and member accounts, we keep our operating costs low. Third, we have worked hard on compliance. By working with a top legal adviser, we strive to be fully compliant with our legal environment, which is a crucial factor for success. And fourth, we have an extremely low cost. By having an extremely low cost, our business is something many people can become involved in and stay involved in for a very long time.
Eventually our vision is a company that has millions of members. In such a company, we envision creative people competing to bring their best creative works to BookWormBiz. We envision a day when full length, Hollywood quality movies may be offered as products at BookWormBiz, along with major book releases and albums. The eventual product line will only be limited by the creativity of our members, and that is a very high ceiling indeed!
At BookWormBiz, every product will be sold at a retail price of $9.99 plus tax. If an author is a writer of short stories, they may wish to bundle several short works into a single $9.99 product. If an author has more significant works, they may choose to release their long works as a series of shorter $9.99 products. How this is done is up to the author. The goal is to ensure that what we sell is worth the purchase price.
In addition to our digital products, we also sell an optional license to our online Members Resource Center (MRC). The MRC is an enterprise level software application that will be available 24-7 to support you with many of the tasks you need to do. In the MRC, we assist you with sending an appropriate recruitment email to others, have an easy-to-use system so that you can record your non-Distributor sales, have quick links to enable you to renew, show you detailed reports of your downline and your past activity, and more!
While some software can cost $25 or a lot more per month, the list price for our Members Resource Center license is only $7.50 plus tax per month!
Within our Members Resource Center, members who upgrade to Distributor status (by making a retail sale) will also gain access to our Sales Tools. (This serves as the Starter Kit for BookWormBiz Distributors.) Our Sales Tools include a template for making your own business cards, a spreadsheet that you can use to track your business, a spreadsheet that you can use to show prospects various scenarios of our comp plan, and a document that has a step by step plan for growing your business!
Our Starter Kit is included FREE of charge within the Members Resource Center!
At BookWormBiz we have optional bundle plans that include both a software license and a monthly product delivery for the period of the bundle. We recommend that all new members join by signing up for our best value, which is our Six Month Bundle Plan.
With our Six Month Bundle Plan, you get a six month subscription to our Members Resource Center, six months of access to our Sales Tools, plus six products to sell or enjoy, all for $59 plus tax! One product will be automatically scheduled for delivery in each of the six months! With our Six Month Bundle Plan, you get everything you need to start your business for less than $10 per month plus tax!
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Here at BookWormBiz, we provide a genuine work-from-home opportunity. We have:
BookWormBiz is built on a sound corporate foundation that prepares us to keep up with the growth that can occur with success, and we have worked with an eye toward being both legal and secure:
Of course there are many work-from-home opportunities in the marketplace. One thing that separates BookWormBiz from the crowd is our philosophy of focus on our Members. We aim to be the first choice for Members, by working to overcome many of the hassles and costs that can be part of a multilevel organization. Our advantages include:
As described above in detail, there are many ways to make money with BookWormBiz: