• Avoiding Home Business Scams

    Date: 2010.01.12 | Category: Uncategorized | Tags: ,,,,,

    The desire to work from home can be so strong that it leads people right into the hands of a scammer.  When this happens, money and dreams get lost.  Do not try to be a part of those figures.  Be careful to do your preparation in order not to be tricked.  These steps include: carefully reading the terms of the opportunity and researching the Better Business Bureau, as well as investigating the source of income of the business.

    Some agencies, such as the Better Business Bureau, provide invaluable information that can help you protect your interests before starting a new venture.  This is a watchdog organization that keeps an eye on fraudulent business opportunities.  Their database holds all the information and you can gain access by either going online or calling them.  Either way, they will tell you through a rating system whether or not a particular home business is a scam.

    After doing that, you need to investigate the source of income of the home business.  Why should you do this?  Well, you want to make sure that a pyramid scheme is not the structure of the business.  How do we define a pyramid scheme?  It is a fraudulent business arrangement where monies from new members are used to pay old ones.  The scheme fails when new members stop joining. 

    You need to see if a home business is making money from things outside of membership, to avoid pyramid schemes.  Consider Avon, a home business opportunity where you sell makeup and other products.  Both you and the company benefit from you selling their products.  Correct, you could earn money from signups, but that is not the only source of the opportunities income.  This is the reason behind their being considered a genuine home business opportunity. 

    In any case, when you got that message, you’re ready to attempt the last step: Study with care the terms and conditions of the home business.  Be suspicious of offers that guarantee returns of huge amounts of money or that require the mailing of packages or brochures.  Both can be indications of a mail-order scam.

    In conclusion, if you follow the steps laid out in this article, you can avoid a home business scam.  And, in this process you are preserving your dignity while saving your money.

     

    Carin Davis is the editor and webmaster of Carin’s Marketing Secrets. A site dedicated to the development and training for Network Marketers and Home Business Owners.