Beware! Work From Home Business Scams To Look Out For
Beware! Work From Home Business Scams To Look Out For
Sure, there is the occasional chance to get in on an IPO before it hits big (something like google, myspace or even Microsoft) but no one really knows which business is going to be the next big thing, so unless you have deep enough pockets to invest in every new startup, don’t count on making your millions on the stock market. Furthermore, if you had plenty of money to invest in new internet startup, you probably wouldn’t be reading this article or even looking for a way to start your own business.
So, how do you separate the wheat from the chaff when it comes to starting up a new home based business? There are plenty of scams out there, as well as plenty of legitimate home based businesses. So rather than a costly game of trial and error, or dismissing them all and throwing out the entrepreneurial baby with the home based business bathwater, here’s an in-depth look at some of the most popular work from home business scams to give you an idea of what to look out for. Many of these scams are some of the oldest tricks in the book, and while you’d think that no one would fall for them anymore, you may be surprised how, when these old scams are repackaged and put in the hands of a good salesman, people cannot stay away from the allure of a good old-fashioned get-rich-quick scheme. A good rule of thumb for any work from home scam is that, "if it sounds too good to be true, it probably is." Here’s a closer look at some of the most popular scams that are definitely too good to be true.
Assembly
An oldie, but a goodie, assembly scams try to convince you that you can buy a kit of raw materials, assemble them in your own home, in your spare time, then turn around and sell the items for a 1000% mark-up. Using logic here will go a long way. In America particularly, assembly jobs have gone the way of the dodo, and if there was a boat-load of money to be made doing assembly work, the company in question would simply put together an assembly line in a warehouse and make the 1000% profit themselves. With an assembly scam, you’ll receive several boxed of un-assembled junk and at the end of the day, all you’ll end up with is a finely assembled pile of junk.
Multi-Level-Marketing
Call it a pyramid scheme, call it a ponzi scheme, call it whatever you like, while a multi-level-marketing scheme may sound great, it always breaks down when you look at the math, and it’s illegal (just ask a certain business man currently under house arrest in New York). The basic premise for an MLM scheme is that through recruiting of other people under you, you make a percentage of their profits and when they recruit more people, you make a percentage of those profits. A good way to spot one of these schemes is when you see a sales business where the product is secondary to the sales pitch.
Examples include dietary supplements that promise everything from curing cancer to re-growing hair, but end up being nothing more than a multi-vitamin. There are some multi-level-marketing businesses that are actually legitimate, but they are few and far between, so rather than learning the hard way, it’s best to just stay away from these businesses unless they are selling a product that you really believe in. If you do choose to get involved with an MLM, make sure it’s a product you are passionate about, because you will most likely end up with a garage full of the product, rather than a bank account full of profits.
Online Businesses
This next one is tricky, because while there are thousands, if not millions, of legitimate online businesses, there is probably an equal amount of fraudulent ones. Many of the fraudulent online businesses will offer claims of getting rich quick, or making an absurd amount of money with little to no up-front investment. The sales pitches usually ask questions like: "Do you have a computer and an internet connection, you can make $60/hr while you sleep". Again, if this were legitimate, wouldn’t the company in question just setup a server farm with thousands of computers, each making $60/hr?
So how do you spot the legitimate online businesses? A great place to start is a certified business list, like the SBA registry. There are plenty of online resources, such as the BBB, which will identify some of the sleaziest businesses, but if you’re searching for a legitimate business, rather than just searching to de-bunk a scam, the SBA registry will point you to hundreds of businesses that have been verified and approved by the Small Business Association. Examples include businesses like: TeamLogicIT, an IT service for small and medium sized businesses or Cruise Planners, a subsidiary of American Express that specializes in planning the perfect cruise vacation for its clients.
While none of the legitimate businesses will offer the same type of "get rich quick" income that the scams claim, the big difference is that with a legitimate business, you actually will make good money over time, and you won’t end up in jail. Trying to make a living can be tough, particularly in our current job market, but if you’re considering a work from home business, check out some of the prominent small business franchises available at Small Business Sale. Each one is guaranteed to be a legitimate business, and if you invest a little money in the purchase of a franchise, work hard to build your business, and follow the business plan created by the franchisor, you will make a good living, and be the proud owner of a successful small business. Bes of all, you won’t find yourself sitting in the same position you are right now, six months from now, after discovering that the get rich quick scheme that you were promised was a sure thing, turned out to be "too good to be true."
Beware Work From Home Business Scams To Look Out For - To learn more about this author, visit Candice Clem's Website.
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Anyone who has ever stayed up all night and watched some of the infomercials that come on well after the last of the late night shows knows that there are plenty of people out there who would like you to think that you can easily make 10-20 thousand dollars a week by doing practically nothing. At first glance, these get rich quick schemes might seem like a great idea, particularly if you’ve recently found yourself out of a job and are getting a little desperate, but take a closer look at any of them and you’ll find that there is still no easy way to make a fortune overnight.
Sure, there is the occasional chance to get in on an IPO before it hits big (something like google, myspace or even Microsoft) but no one really knows which business is going to be the next big thing, so unless you have deep enough pockets to invest in every new startup, don’t count on making your millions on the stock market. Furthermore, if you had plenty of money to invest in new internet startup, you probably wouldn’t be reading this article or even looking for a way to start your own business.
So, how do you separate the wheat from the chaff when it comes to starting up a new home based business? There are plenty of scams out there, as well as plenty of legitimate home based businesses. So rather than a costly game of trial and error, or dismissing them all and throwing out the entrepreneurial baby with the home based business bathwater, here’s an in-depth look at some of the most popular work from home business scams to give you an idea of what to look out for. Many of these scams are some of the oldest tricks in the book, and while you’d think that no one would fall for them anymore, you may be surprised how, when these old scams are repackaged and put in the hands of a good salesman, people cannot stay away from the allure of a good old-fashioned get-rich-quick scheme. A good rule of thumb for any work from home scam is that, "if it sounds too good to be true, it probably is." Here’s a closer look at some of the most popular scams that are definitely too good to be true.
Assembly
An oldie, but a goodie, assembly scams try to convince you that you can buy a kit of raw materials, assemble them in your own home, in your spare time, then turn around and sell the items for a 1000% mark-up. Using logic here will go a long way. In America particularly, assembly jobs have gone the way of the dodo, and if there was a boat-load of money to be made doing assembly work, the company in question would simply put together an assembly line in a warehouse and make the 1000% profit themselves. With an assembly scam, you’ll receive several boxed of un-assembled junk and at the end of the day, all you’ll end up with is a finely assembled pile of junk.
Multi-Level-Marketing
Call it a pyramid scheme, call it a ponzi scheme, call it whatever you like, while a multi-level-marketing scheme may sound great, it always breaks down when you look at the math, and it’s illegal (just ask a certain business man currently under house arrest in New York). The basic premise for an MLM scheme is that through recruiting of other people under you, you make a percentage of their profits and when they recruit more people, you make a percentage of those profits. A good way to spot one of these schemes is when you see a sales business where the product is secondary to the sales pitch.
Examples include dietary supplements that promise everything from curing cancer to re-growing hair, but end up being nothing more than a multi-vitamin. There are some multi-level-marketing businesses that are actually legitimate, but they are few and far between, so rather than learning the hard way, it’s best to just stay away from these businesses unless they are selling a product that you really believe in. If you do choose to get involved with an MLM, make sure it’s a product you are passionate about, because you will most likely end up with a garage full of the product, rather than a bank account full of profits.
Online Businesses
This next one is tricky, because while there are thousands, if not millions, of legitimate online businesses, there is probably an equal amount of fraudulent ones. Many of the fraudulent online businesses will offer claims of getting rich quick, or making an absurd amount of money with little to no up-front investment. The sales pitches usually ask questions like: "Do you have a computer and an internet connection, you can make $60/hr while you sleep". Again, if this were legitimate, wouldn’t the company in question just setup a server farm with thousands of computers, each making $60/hr?
So how do you spot the legitimate online businesses? A great place to start is a certified business list, like the SBA registry. There are plenty of online resources, such as the BBB, which will identify some of the sleaziest businesses, but if you’re searching for a legitimate business, rather than just searching to de-bunk a scam, the SBA registry will point you to hundreds of businesses that have been verified and approved by the Small Business Association. Examples include businesses like: TeamLogicIT, an IT service for small and medium sized businesses or Cruise Planners, a subsidiary of American Express that specializes in planning the perfect cruise vacation for its clients.
While none of the legitimate businesses will offer the same type of "get rich quick" income that the scams claim, the big difference is that with a legitimate business, you actually will make good money over time, and you won’t end up in jail. Trying to make a living can be tough, particularly in our current job market, but if you’re considering a work from home business, check out some of the prominent small business franchises available at Small Business Sale. Each one is guaranteed to be a legitimate business, and if you invest a little money in the purchase of a franchise, work hard to build your business, and follow the business plan created by the franchisor, you will make a good living, and be the proud owner of a successful small business. Bes of all, you won’t find yourself sitting in the same position you are right now, six months from now, after discovering that the get rich quick scheme that you were promised was a sure thing, turned out to be "too good to be true."
Beware Work From Home Business Scams To Look Out For - To learn more about this author, visit Candice Clem's Website.
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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