Scam or Legitimate

Scam or Legitimate?

You have heard, no doubt, about all the scams out there in the home business field. There are a lot of scams, but you do not have to reject the whole idea of owning your own home based business just because there are some dishonest situations. How do you avoid them?

What is a scam? According to definitions listed on the web, a scam is a ploy to raise money, or a fraudulent business scheme. Therefore, when you are dealing with a scam, you will end up paying money and getting nothing in return.

There are certain situations that should cause you to use caution when you encounter them. Being aware of them will decrease the chances you will fall prey to something dishonest.

Below are some things to avoid.

•A “job” that requires you to pay before they give you the job (not to be confused with investing in the start-up of a business, or paying a membership fee to acquire a telecommuting jobs listing. These can definitely be legitimate and are often required.)
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•A promise of making a certain amount of money in a specified period of time (make $2,000 in your first 24 hours) No one can follow through on that kind of promise.

•No contact information – there should be a way to get in touch with them - phone number, address, or email address, preferably all three.

There is no “foolproof” method of always avoiding a scam, but the three things mentioned above will give you a good start. If these seem to be in place, go on to the next step, which is researching the opportunity.

Before you decide to get involved in an opportunity, make sure you know and understand the way you will make money. Study the compensation plan if you are joining a direct sales company. Look realistically at the potential for earning income. Make sure everyone in the company has an equal chance to make the same amount of money.

Get to know the product. Buy it yourself and use it so you can see firsthand how it is. Also, if you do end up selling it, you can provide a personal testimony to its worth and quality.

Sometimes people will call an opportunity a scam if it has not been successful for them. When you look closer, you may find the problems were:

•They did not do their research. They may not have fully understood how they would earn money with the program.
•They did not give it enough time. Some people start up a business, try it for a few months, and give up because they did not make a lot of money. It will take time and money to get a business off the ground, and a lot of hard work and perseverance.

•They did not find the right opportunity for them. Sometimes people jump in because it is working for someone else, without investigating thoroughly whether this is something that will allow them to use their strengths/gifts, and if it is something they can feel good about doing or selling. Think it through. This is something, hopefully, that you will be able to work at for many years and you want to choose a business that will be rewarding and fit your interests and lifestyle.

Does this opportunity match up with what you enjoy doing? Do you have an interest in it? You will want to do something you are interested in because it will help carry you through the hard times. There will be those times when you feel your business is going nowhere, but if it is something you really enjoy, you will find it much easier to persevere and see it through until it becomes successful.
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You may hear someone say “I’ve been scammed”, yet, when you probe a little further into the situation, you find out that they got into a business, put up a website, told their friends/family about it, and that’s about it. Then they wonder why the business was not successful, and wrote it off as a scam.

In other words, there are very legitimate opportunities that people have named a “scam” because they did not give it enough time to see a profit.

To determine if a company is reputable, first check them out with the Better Business Bureau. If they do not have any record of them, that can be a good sign. Normally, they will have a record of complaints, even if the company is not a member of the BBB. Next, talk to people who are working at the business and see how it is going for them. Ask the following questions:

•What product/service do they sell/promote? – know the nature of the business
•What are the start up costs? Find out the initial cost to start up the business. In addition, are there any monthly or yearly fees? If you are given a website, what are the fees associated with it?
•What would the business entail for you – what exactly would your responsibilities be?
•How much time do they spend on the business in a week?
•Has it been profitable for them? How long did it take to become profitable?
•How long has the business been around?

After you find out the answers to these questions, try to determine if this is something you would enjoy doing. Can you get behind what they sell and promote it? If you will be required to spend time on the phone talking with others about the business, would you enjoy that? Many failed businesses could be avoided if people researched it and gave it some thought before they start.

The next time someone tells you they have been scammed, ask them about their experience. You will get better at spotting scams yourself or determining that there was a reason on their part that the business did not work out.

Do not deny yourself the freedom and flexibility that comes along with owning your own home based business, just to avoid the scams. There are SO many good, legitimate opportunities that are worthwhile and rewarding. Just do your homework.

Laurie Neumann, owner of www.christianhomebusinessconnection.com connects others with legitimate home based opportunities. She has compiled a Home Business Resource Guide with over eighty legitimate home based opportunities, which can be obtained at www.legitimate-homebasedbusinesses.com



Scam or Legitimate - To learn more about this author, visit Laurie Neumann's Website.

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