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Avoiding Home Business Scams

Anyone can be a victim of home business scams. A home based business sounds like a dream come true to many – stay at home mothers, students and others who are only available on a part-time basis, retirees who want to reenter the working world and of course, people who are just plain fed up with making that long commute every day to sit in a cubicle.

However, while there are a lot of great and perfectly legitimate home business opportunities for you out there, there are also many unscrupulous operators who want only to separate you from your money. Learning how to avoid home business scams puts you at an advantage – you'll be able to identify the genuine opportunities that can bring you personal autonomy and financial freedom while steering clear of those who want to cheat you of your hard-earned money. Read on for some tips on how to avoid home business scams.

  • Remember that any offer which seems too good to be true almost certainly is. This is advice that you probably heard from your mother. It's good advice.

  • If you are given a 1-900 number to call for information, don't call! There is almost certainly no work on the other end of that line - just a charge to call the number, which the scammer pockets. Legitimate businesses will give you a toll free number or a regular number. They will not attempt to make money from your inquiry call.

  • Beware of any "envelope stuffing" job. This scam has been around for a long time now (since the 1920's, in fact) and just refuses to die. The only way to profit from this "job" is to get in on it yourself, which is illegal and unethical. Steer clear of this one.

  • Beware of upfront fees. Any work from home opportunity which asks you to pay money upfront should be thoroughly investigated before you even consider handing over your money. Many of these are scams (medical billing is a common one). There are many legitimate opportunities which do require a small upfront investment from you (in fact, most network marketing opportunities require some upfront investment), but any time that you are asked for money to begin, approach with extreme caution.

  • Do your research before signing up. Check out the company with the Better Business Bureau. Look up the company's website. Do an online search for criticism of the company. People trying to hook you into a scam will try very hard to impress upon you the urgency of signing up now. The harder someone is trying to get you to make a decision on the spot, the more wary you should be. Good opportunities with reputable home based businesses will still be there next week after you have done some research.

  • Watch out for pyramid schemes. If you are offered an opportunity where your pay will come from exclusively from recruiting others rather than actually selling a product or service, it is most likely a scam. Network marketing companies have a recruiting component through which you can earn income, but the central focus should be on the product you are selling. Again, investigate the company before you even think about jumping in. Click here to learn more about telling the difference between a pyramid scheme and a legitimate business opportunity.

  • Read the small print. Will you be able to get out of the business at any time without a penalty? If there is a required auto-ship (a certain amount of product that your much purchase automatically every month), is it reasonable? Is it month-to-month so you can stop at any time?

    There are a variety of different home based business scams out there, just waiting to lure in the desperate and gullible; don't get caught up in these fraudulent schemes. You can find legitimate work from home business opportunities, but you must do your homework on any company you are considering doing business with. It's always better to be safe than sorry.

    If you know how to avoid home business scams, you will be able to find a genuine work from home business which will give you the financial rewards and personal freedom you've always wanted.

    Return from Home Business Scams to the Your Small Business Guide Home Page.


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