Avoiding Work From Home Business Scams

by WorkFromHome on May 13, 2011

One of the most difficult components of working from home is differentiating between legitimate work from home business opportunities and scams. Scam artists go to great lengths to ensure that their offers appear to be authentic. They use well-written sales pitches and urge you to make time-sensitive decisions that usually involve the investment of up-front money. There are several tell-tale signs that a potential business opportunity is a scam.

  1. Any company that makes unreasonably outrageous claims with regard to earnings potential is almost always a sign of a scam artist. Common sense needs to come into play to help determine the authenticity of a home business opportunity; if it looks too good to be true, it probably is. You are not going to get rich by processing rebates, or joining a multi-level marketing opportunity. Scammers are great at tugging at the heartstrings. Their business offers are often accompanied by stories of rags-to-riches. These stories are designed to create trust and offer relatable scenarios to those interested in starting a home business. Unfortunately, they are almost always scams. It simply is not possible to get rich quickly, despite what scam artists may tell you.
  2. Anyone that asks for money up-front is usually a scam artist. Most legitimate businesses do require some form of start-up capital or an initial investment of time to set up the business. but, a company that is asking for an “administrative fee” or “processing fee” without giving much detail as to what you will receive for your investment is a sure sign of a scam.
  3. Have you ever visited a home business sales page and seen numerous “free bonuses” that come with your investment? These sales pages offer bonuses in an attempt to lure you in to spend your money because they are willing to give you so much extra for your money, which makes the opportunity seem like an incredible value. Think about it. If the business opportunity itself is good, they wouldn’t need to offer anything else other than the invaluable product or opportunity. The “added bonus” scam is a filler piece, and another way scam artists try to manipulate you into giving them money.
  4. Think twice about doing business with a company that gives little information about who they are. Any reputable home business opportunity website will include contact information, phone numbers, addresses, and links to any awards they may have won. They often have a contact page where interested parties can request additional information or speak directly to someone in human resources. Scam artists rarely give out any type of contact information. Always check a website’s credentials with an online business verification website. Another great way to check a business’s credibility is to check job boards and user forums to determine if anyone else has had success in utilizing the business model.
  5. Avoid companies that attempt to trick you into signing contracts or agreements by using fancy words or jargon. Unfortunately, most people do not fully read contracts or agreements. This can cause frustration and undue stress on the part of the potential business owner. If a company is truly interested in partnering with you to start a home business, they will be up-front and patient with ensuring that you understand what is expected of you and what your role will be in working with them. Any home business scammer will resort to threatening your potential partnership if you do not sign documents at their discretion. They will often dodge your questions, or claim ignorance, or offer redundant reassurance if you ask them a question that they do not want to answer.

Scam artists spend a lot of time writing convincing copy and encouraging potential home business owners to give them money. After all, they make money by preying on honest, hardworking individuals looking to secure a legitimate work from home business. It is important to approach acquiring a work from home business as you would any other opportunity or offer. By conducting proper research, not rushing the business start-up process, and being cautious to not fall prey to scam artists, you can rest knowing that you will secure a profitable, legitimate home business opportunity at the right time.

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