I’ve been struggling with this blog post all week. Someone I know in Columbus answered an ad for an at-home business opportunity and is facing financial disaster because of it. Their story is both compelling and terrifying — a “there but for the grace of God go I” kind of tale, but it’s not my story to tell.
Still, I wanted to write about these work-at-home scams. They’re everywhere these days, from the “business opportunities” section in the newspaper classifieds, to Twitter and Facebook, where this one suddenly appeared on my wall a couple of weeks ago. These companies claim to offer you an opportunity to have your own business, when the only thing they really offer is an opportunity for you to spend your money on their services. They don’t care if you get your business going or make any money because they’ve already made their profit, selling to you. Here are my six tips for deciding whether your new business opportunity is real or a scam:
Work at home businesses may leave you in financial trouble
1. Do your homework. Google them. Go to a site like Ripoff Report, where consumers write about their experience with various companies. Are there a lot of complaints about them? Then steer clear. Don’t fool yourself into thinking that others got taken in because they’re unsophisticated, but it won’t happen to you.
2. Does the company use high-pressure sales tactics? Anyone offering a legitimate business opportunity will understand that you may have questions, and may need time to think things over. A scam artist will go for the quick sale, pressuring you to make a decision on the spot.
3. Is this a known scam? A few months ago, my teenaged son was looking for a job, and decided to investigate some of the “business opportunities” listed in the Worthington News. Assemble toys at home. Stuff envelopes. He quickly figured out that he’d have to send money up-front to get a kit so he could start working. It sounded like a scam, and in fact, these are well-known scams. So are “mystery shopper” opportunities and making money typing from home. Click here for a more complete list.
4. Does it sound too good to be true? Your mother was right about this one — if it sounds too good to be true, it probably is. Starting and running your own small business takes hard work and dedication. If someone tells you that you can make $50,000 a year sitting by the pool and clicking your mouse once in a while, be suspicious.
5. Do the numbers add up? How much money are you going to invest in this business? If you’re selling something, who’s going to buy your products — friends, family? How much can you really expect to make, selling to people you know, and what’s your plan for getting more customers? If you’re training to do a new kind of work, is there actually a market for that kind of work? How much money will you make? If you’re sinking money into websites, advertising or promotions, find out what the reasonable market value of these things is, and don’t pay more than that. And don’t get all your information from the people who are selling to you; do your own research.
6. What do your friends and family say? I know, family members can stir up all sorts of unpleasant emotions. But try to listen to their questions and concerns. Are some of them valid? Do you have answers for them? If not, you’d better wait before spending any money.
