Work From Home Business Ideas? Are They Work From Home Scams!

Work At Home Scams

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.

Local Consumer Protection Agency
Your State Attorney General Office
The Better Business Bureau

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.
Joe Reinbold
Proud Member of Wealthy Affiliates

10 Comments

  1. HI there, I have always wanted to make money online, but I’ve always stumbled across scams and multi-Level Marketing bull!! Your website explains thingsvwell on what to look out for, and what to actually ignore!

    Now I’m actually interested in making money online from home again. Thanks man and keep up the great work. Beautiful website!!

    • Hi Hassan, thanks for visiting my website. Glad I could be of assistance and thanks for your nice comments. I hope I can be of assistance in the future. Please visit again. I wish you the best of success.

      Joe

  2. This is very important information to be shared with everyone. My own website deals with financial scam specifically, right now I am writing about how to report them! It is sad that there are so many people out there, willing to scam others in order to get rick!
    You are pointing out some great resources to check out the businesses before joining. Good read for everyone.

    • Hi Xena,

      Thanks for visiting and thanks for your comments. I hope by getting this information out it might save some people money and aggravation. I see from your comments that you have a similar interest in identifying financial scams. I would be interested in visiting your website. If you want please reply here and leave the URL to your web site. Thanks again and have a great day!

      Joe

  3. Your absolutely right in your opening statement in that a lot of work from home opportunitys are just big SCAMS. I am going to have a look through scam busters as well as this looks quite useful to me.

    You know ive had the same emails in my time promising to make me millions and your right its mainly BS there certainly is no quick way and people need to realise this.

    What do you think of MLM? Ive had some experience with direct selling companies that operate this model and it seems to me the ones further ip the line are the rich ones and we get very little return.

    Thankyou also for the links at the bottom with regard to checking out if SCAM organisations have been reported. This is very useful!

    • Hi Andy,

      Glad I could be of help. MLM can be very successful when you are with the right company. You need to be an individual who is interested and comfortable with sales and approaching people personally because that is what it takes to be successful in traditional MLM. In a legitimate MLM, the sale of products is what is important and if you can do that, you will be a success. But, success comes over time not overnight. It can take you a year or more of hard work to get to the income that the members in the upper brackets brag about. As I indicated in my article, I am not into that type business. I tried it and it just was not for me. I am more comfortable with running my own online business services and with my association with the Wealthy Affiliates opportunity.

      Thanks for visiting and for your comments. Please visit again.

      Joe

  4. I had a bad experience about 20 years ago with the ‘Amway’ MLM scheme.

    I paid a lot of money just for the privilege of being a distributor. The guy who presented the scheme in a posh hotel made it seem like everyone in my ‘upline’ was making it good.

    But when I got into the scheme, it was all HARD WORK. I was chasing orders and then delivering products after having to collect them from the home of my immediate upline. It was silly.

    It was worse than my day job and the commissions were measly. It was all lies. I hated it. Never again.

    • Hi Vic, as I indicated in my article, I have the same feelings about the traditional MLM. They do take hard continuous work and they are not something you can get rich overnight with. Sometimes you can get a lot of hype from representatives who are just trying to sign up new members rather than promote the products.

      I want to thank you for visiting my site and wish you the best of success in your endeavors.

      Joe

  5. Hi Joe, I was talking to someone who said they were making money from MLM. So it can happen. I guess that is the problem, finding the few companies that are genuine and separating them from the cheats. Keep up the good work. I will visit your site again and read some of your reports to follow. Best Regards, Chris

    • Hi Chris, thanks for visiting and for commenting. You are right, you can make money from MLM, I have myself but like anything else, you have to work at it in order to build a team under you. When you are able to do that then you build your commissions. You also need to believe in the product that you are promoting.

      Glad you will be returning. Have a great day.

      Joe

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