A moneymaking idea that is catching the attention of those who have a computer and some time to spare is rebate processing. Not every company is legitimate.

In many cases you can receive as much as $15 per processed rebate. Some rebate information can be processed in as little as five minutes. If you have an hour of free time you could potentially earn between $150-180 per hour, but what many companies don’t tell you is that you may need to do some selling first.

You do need to know that most companies dealing with rebate processing will charge a fee to gain access to the rebate stream. In the case of one company I researched that fee was a one-time fee of $200.

Let’s take a moment and look at the motivation companies use for distributing rebates.

It’s the autumn and I realize I would like to upgrade my accounting software for my business. I head down to the local office supply superstore and find the product I regularly use has a sticker price near $300. However, a rebate of the same amount will allow me to gain the product at no cost. Factually the software offered is likely to be replaced for the upcoming calendar year so the company may be trying to get rid of the older product, but it is still newer than the program I currently have in my computer.

I pay the three hundred dollars, fill out the rebate form, include the sales slip, send it to the address provided on the form, and wait for my check.

How does the company make money? After all they had to pay to get the product to the supplier, they had to pay to have the rebate processed and they had to send me the money I paid for the product?

These companies are essentially using the free product as a means of collecting leads (the names and addresses of individuals who are using their products). This can be beneficial when they roll out new products and services. Essentially they are willing to take a loss in exchange for your contact information. They consider it a part of the cost of doing business.

If this were the premise behind most online rebate processing this would be a positive experience, but this type of rebate processing is the exception to an unusual rule.

I would advise you to investigate any company very carefully to make sure it is legitimate. There are many companies that use misleading advertising to get you involved. The misleading part of this scenario is that in many cases you must sell a product before you can process the rebate for the product. It amounts to little more than a commissioned sales job that you actually pay to be involved with.

Investigate carefully and invest wisely. There may be money to be made in rebate processing, but there may also be an investment that leaves you frustrated because you never really get what you were expecting.

Buyer beware.