Avoiding Home Based Business Opportunity Scams

A Home Business Article Contributed by Cassandra l. Keller

Avoiding Home Based Business Opportunity Scams

Millions of Americans are taking advantage today's technology and choosing the route of a home based business opportunity. With so many seeking the dream of owning their own business and working from home, it is not surprising that there is a different type of entrepreneur out their cashing in on their the vulnerability this dream creates.

For every legitimate home based business opportunity on the market, there is surely one or more work-at-home scam being pitched to consumers hoping to make a buck from their home-office. These scams are raking in millions of dollars each year paid by thousands of unfortunate individuals investing in an opportunity that never materializes.

Be Informed When it Comes to the Home Based Business Opportunity

Pyramid schemes are a common business opportunity scam. This work-at-home scam is usually pitched as a multi-level marketing opportunity, but instead of focusing on selling products the venture relies on bringing more people into the scheme. This is often because the products being sold are not actually producing revenue, instead they are making money off aspiring entrepreneurs who are required to make a purchase or invest in the opportunity. Sadly, this type of scam generally leaves the hopeful entrepreneur empty-handed.

Some home based business opportunities that turn out to be scams require you to send in money to learn how to make an income from home. In return, you receive instructions on how to place and advertisement like the one you read and responded to.

Another opportunity that is typically a scam are the types of ventures that require stuffing envelopes or assembling items at home. These prospects have been used for some time now and can be found in numerous media sources. The ad general promises you to make a generous wage but fails to say you must first pay a fee to start. Other scams allow you to complete the work and then claim your work was substandard, thus you do not get paid.

While there are some legitimate business opportunities to be found that fall under these categories, in general these types of scams are a waste of time.

Know That Questions to Ask about the Home Based Business Opportunity

By knowing what questions to ask, you can avoid wasting your time and money. To ensure a company is legitimate and to understand what you are getting into, be sure to ask what your work will entail, how much you will earn, how much money you have to invest, when the business was established, and request a copy of all the sales materials and information on products. Also, if you will be paid by commission, find out what that percentage is.

How to Handle Being a Victim of a Home Based Business Opportunity

Despite all the precautions, it is still possible to fall victim to a work-at-home scam. If this happens to you, do not turn your head. First, you should contact the highest ranking official in the business as possible and tell them you plan to turn report their scam. If they do nothing to accommodate you and defuse the situation, file a complaint with The Federal Trade Commission at www.ftc.gov, the Better Business Bureau at www.bbb.org and the Attorney General.