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I keep applying for work at home jobs, but I never get hired. I have a home computer with a modem and five years experience as a secretary. Please help, I am desperate!

As you have discovered, home based jobs are hard to find. As a matter of fact, it takes us hours of work, a full staff and a lot of resources to find the jobs that are posted in SOHO Jobs Weekly. You should know, employers will only respond to applicants that they are interested in interviewing. They do not have the time to contact every potential SOHO'er that submits a resume or brochure package.  The average job search (for a non-home based position) requires at least 30 resumes and 3-5 interviews before landing a job. Some job seekers spend months answering ads and knocking on doors. Now, imagine how much more difficult it is to land a HOME BASED job! 

SOHO suggestions?
Avoid the "resume templates" that come with popular software programs (such as MS Word and WordPerfect.) Employers have seen that classic MS Word resume too many times. Try to prepare a resume that is not only informative, but also exciting and unique.
Avoid email attachments (*unless requested by the employer*). Attachments are dangerous and require too much download time. Many employers never open attachments, but instead, send them directly to the trash file. If an attachment is requested, send it as an .rtf file.
Your home office should be fully equipped with a high speed computer, unlimited internet access and a modem. Most job seekers that are hired also have the following:
-- A dedicated Internet or Fax telephone line
-- Windows 98 and CURRENT software programs
-- A laser printer
Have you thought of preparing a brochure? This is a great way to introduce your home office services while still passing on the same information that your resume includes. Many job seekers call these "Resume Brochures". In other words, a resume in a three panel brochure format. Our certified resume writers can prepare your Portfolio that includes a brochure, resume, and other materials. Or, if you are a SOHO Jobs subscriber, you can get free access to resume and brochure templates!
Most important: Don't give up. It is hard to go SOHO, but not impossible! Our subscribers have an upper hand because they are provided with hundreds of real home-based job leads weekly.  If you are ready to work SOHO, subscribe today or take a look at our free job posting area.

What is the difference between an employee and a independent contractor and which one is a better option for me?

Whether a person is an independent contractor or an employee generally depends on the amount of control exercised by the employer over the work being done.
An independent contractor:
Operates under a business name, Has his or her own employees, Maintains a separate business checking account, Advertises his or her services, Invoices work, Keeps business records, Sets own hours and usually has more than one client.

An employee:
Performs duties dictated by someone else, Is given training for work, Works for only one employer, Receives a weekly or bi-weekly paycheck.

As an Independent Contractor you will pay more taxes. When you work for yourself, you double the fun of paying the FICA tax. Fundamentally, you're paying the employer's share of Social Security. You pay the employee's half of the tax -- 7.65%, plus the employer's half -- another 7.65%. Furthermore, as a freelancer, you can't hitch a ride on your employers benefits plan. And, if you don't have an employed spouse with a health plan that you can join, you will need to buy your own package. Ditto for retirement insurance. Independent contractor status, unfortunately, does not come with a 401k. Nor does it include vacation or sick pay. Basically, work you see is what you get.

You will almost certainly earn a higher income working as a freelancer because you will be able to set your own salary. Furthermore, you will have more write-offs and deductions, which may compensate for the extra social security tax. As a final point, it is much easier to launch your own work-at-home gig then it is to locate one with a reputable employer who is keen on offering not only home-based arrangements, but also benefits to boot.