Work From Home Scams
Scambusters.org describes “work from Home scams” as “Having you work from home, doing envelope stuffing, craft assembly, or other tasks where you are (supposedly) paid by a company as an employee. There are certainly some legitimate telecommuting jobs, but work-from-home jobs are often just big scams.”
If you have some work from home business ideas, you definitely need to do some research before you dive right in. You do not want to get burned. I have talked many times about online scams and you can review them by clicking the “Online Scams” drop down menu at the top of this page.
When I was getting near retirement, I started looking at the Internet as an avenue to creating some additional income and being my own boss while I enjoyed my retirement. As I looked at the different offers I was getting by email and while surfing, the majority of them asked….
– Want to earn thousands of dollars a month working from home?
– Earn a great monthly income working two hours a day!
– Got some spare time? We show you how to get rich working at home!
If you have been online for any length of time I am sure you have seen many of them. Some sound like they might be attainable and others if you just use your common sense are just hype and a lot of BS!
So I am repeating what my advice has been for the last twenty years. Check them out before you do anything, do your research and if you can contact someone that has been involved with the business. It will save you a lot of headaches.
Multi-level Marketing also known as Network Marketing
I wanted to comment about this area first since it always gets a lot of discussion. The US Federal Trade Commission describes Multi-level Marketing as:
“Another type of work-at-home opportunity is a multilevel marketing (MLM) plan. In multilevel or network marketing, you are supposed to sell products to the public — often by word of mouth and direct sales. In legitimate MLM opportunities, you will earn commissions for the products you sell, and for sales made by people you recruit.
But not all multilevel marketing plans are legitimate. Some MLM companies tout luxurious lifestyles and suggest you will earn enough money to quit your job or meaningfully supplement your income. But are their claims for real? Be wary and ask for written information about how much money most people make (after deducting their expenses). Also, if anyone suggests recruiting is the real way to make money, know this: MLMs that survive on recruiting new participants rather than retail sales are pyramid schemes. Pyramid schemes are illegal, and the vast majority of participants lose money.”
I have been involved with a number of MLM companies over the years. One I was involved with early on in my online career was Melaleuca. I made some money with it but going to big company meetings and meeting people at hotels to make sales just was not something I was into. I did love the products. Melaleuca is still around and going strong. A side note here, my sponsor in Melaleuca, who lived in the next town from me was making over $50,000 a month, so if you want to work at it, it can be very profitable.
There are other legitimate MLM companies out there that have been around for years. Avon, Fuller Brush, Amway, Shaklee, Herbalife, NuSkin, Mary Kay and Tupperware are just a few that have withstood the test of time and are still in business.
Identifying Opportunities That May Be A Scam
Many people get sold on an opportunity because of the claims of making “Big Money” in a short period of time. This type hype preys on people who are in need of financial help and those that really are not willing to work a business as a business. See my article Are You Treating Your Online Business Like A Business?.
And let us make one thing very clear, scam opportunities can show up anywhere, in your local newspaper ads, on Craigslist, your email or even from a trusted friend who has fallen for the hype.
There are a number of things you can do to check out possible work from home scams. You just have to take the time to do your homework. The Federal Trade Commission has a number of tips and possible safeguards for those wanting to get involved with an online opportunity. Check the FTC Business Opportunity Rule. Under this Rule, sellers are required to give you a One-page Disclosure Document. This Document offers key pieces of information about the opportunity. And you can use the information in the disclosure document to fact-check what the seller of the opportunity is telling you.
Make Sure To Check Them Out
One of the big advantages of the Internet is that it gives you a great way to fact check. You can check what type of experience other people have had. All you need to do is go to Google search and enter the company or principal’s name and add +complaint or +reviews or even +scam. Go over what others have said. You might even contact people that you identify as being for or against the opportunity.
In addition you can use these resources to check out the opportunity. It is possible that these organizations might have information to help you decide. Also, when you check these resources, check both in your local area and where the company is located.
We are talking about your money here, so do your homework before you get caught up in work from home scams.
Have a great day.
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