Beware! Work From Home Business Scams To Look Out For

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.


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.


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."

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