Five Tips for Avoiding Home Business Scams
by Susie Cortright
Here are five tips to avoiding the scams and finding the right home business opportunity for you.
If It Sounds Too Good to be True…
It probably is. If you find an opportunity for which you can make a lot of money without spending any time working, move on to the next opportunity.
"Tammy made $4,000 in her first month. So can you." Testimonials that are difficult to verify may not be legitimate. If the ad only gives first names and photographs of people holding scads of cash, be careful. If Tammy is a legitimate home business entrepreneur, it's possible that she made that $4,000 in her first month and significantly less after that time period.
Also be wary of companies that offer to sell you lists of companies that are looking for home-workers. A friend of mine once shelled out $95 for such a list, which turned out to be a listing straight from her yellow pages. When she contacted these businesses, she discovered that they were neither looking for home-workers nor did they agree to be listed in such a book.
Be leery if there is a strict time limit for investing in a business opportunity. Scammers know that the faster you act, the less you think (and research). And if this is a fly-by-night company, these time limits provide a better opportunity to take the money and run.
Also, don't get too excited about deep discounts on starting costs. More costs may come later. And keep in mind that, in many states, the government does not regulate business opportunities with investments of less than $500. Some of the worst scams may fall into this category.
You can also conduct a search for the business opportunities on Google Groups (www.groups.google.com). You'll find an archive of newsgroup postings. If someone has been scammed, chances are they'll want to warn others.
If You Decide to Sign…
Get everything in writing, including business expenses from fees to equipment to supplies. Keep detailed records.
Some online opportunities are lucrative and legitimate, and armed with a few online resources, it's never been easier to sort the good from the bad.
When it comes to working from home, "when there's a will, there's a way." Now it's up to you to find the way that best suits you and your lifestyle.
Susie Cortright is the creator of the award-winning online magazine www.momscape.com as well as a representative for a rapidly growing new direct sales company. Learn about the company she chose here: www.momscape.com/business.htm
Share your thoughts about this article with the editor: Click Here
Debt from my past is preventing me from saving for my future! Tell us: Yes, debt is hindering my ability to save and I could use help dealing with it! or No, debt is not a problem but I am trying to get ahead financially!
More Money Tips & Tools
- How to get a faster tax refund
- Personal finance calculators everyone should use
- Why you should know your credit card payment cutoff time
- Saving-money secrets of the rich and frugal
- 5 low-risk ways to earn higher interest now
- How to save money fast
- 7 IRA withdrawals that don't trigger a penalty
- This week's Readers' Tips