Home Based Business - Opportunity or Scam?
A Home Business Article Contributed by Elizabeth Fox-Wise
Home Based Business - Opportunity or Scam?
As more people opt-out of traditional jobs and look for a home based business opportunity, the number of work at home scams has increased proportionately. You have to be careful when choosing a home based business opportunity because there are a lot of scams out there, however, there are also legitimate opportunities. Don't become one of the many unfortunate many who have been tricked out of their hard earned money in their pursuit of a home based business opportunity. Be more informed, be sure to ask the right questions, look out for these common home based business opportunity scam.
Common Scam Marketed As a Home Based Business Opportunity
Two of the most common home based business scam seen in America are stuffing envelopes and assembling products from home. Typically, the company will make you pay money up front to acquire the supplies needed for the job. Then one of two things will happen; either you will complete the work and send the products in - only to be told your work is substandard and they won't pay for it.
Or you send in your money and receive instructions to run an add just like the one you responded to and get other people to send you money. Neither of these are legitimate home based business opportunities. That is not to say that this type of word does not exist among the legitimate business opportunities - but because it is so often used as a scam, you should always use caution when considering them.
Another Common Home Based Business Opportunity Scam is Pyramid Schemes
Pyramid schemes will try to pass themselves off as multi-level marketing, but there is one key difference between a Pyramid Scheme and a Multi Level Marketing business. Pyramid Schemes are more concerned with you bringing in more people than they are with you selling any of the product. This should alert you that they are not making their profit from the legitimate sale of product, but rather from taking the money of wishful entrepreneurs like yourself.
Generally the pyramid scheme will have some reason you need to lay out cash to get started - either to purchase product or a membership. A Pyramid Scheme is not a legitimate home based business opportunity and if anyone makes any money it is only those at the top of the pyramid.
How to Spot a Home Based Business Opportunity Scam
In general, the old adage "if it looks too good to be true it is" still holds true. Home Based Business Opportunies which make promises of earnings that sound too good to be true probably are. You have seen them everywhere - make thousands of dollars a week with little or not work involved. Whenever you see that promise being marketed somewhere you need to walk away or at least proceed with extreme caution.
Realistically we all know that running a business always takes work and that, at least at the beginning, you are among the fortunate few if the business can support itself. It might take years before it is making thousands of dollars a month and it may never make thousands of dollars a week. After all, if their business was taking in that much money - why would they bother to market it to you?
