How to Tell If a Business Opportunity is a Scam
A Home Business Article Contributed by Bonny Albo
How to Tell If a Business Opportunity is a Scam
Worried that the business opportunity that sounds too good to be true? Read on to see four things every business opportunity seeker should know before signing on the dotted line.
Learn About the Business Opportunity, and the Field it's in, BEFORE You Sign Up
It's quite simple, really. If you decide an affiliate program is the route you want to go, then you should learn everything you can before you even take a look at a business opportunity. Concerned that the business opportunity you are interested in might be a pyramid scheme (illegal) and not a multi-level marketing (MLM) company like it advertises?
Although it is fairly easy to differentiate the two - MLM's sell products, whereas pyramid schemes depend on recruiting new people, not selling - it can still be a hazy line. Make sure to do your research before considering any options. http://www.pyramidschemealert.org/ is a good place to start, and don't miss the US government's http://www.ftc.gov/bcp/conline/edcams/dotcon/.
Get All of the Business Opportunity's Specifics in Writing
A legitimate business opportunity will have all of their business procedures written down. Do they have a privacy policy? A money-back guarantee? How are complaints handled? Make sure to read all of the fine print, and review it with a lawyer if you don't completely understand everything. And don't forget to look for the company's address, phone number and other contact information, which should be clearly marked on all written documents. This information will come in handy later.
Talk to Other Business Opportunity Owners
This may sound like a tedious and unnecessary step to ensure the business opportunity you are researching isn't a scam - but it's probably one of the most important. Ask for the names and phone numbers of at least two other satisfied business owners that already work with the organization. Then, call them. Ask pointed questions about the business opportunity, such as, "How long did it take to recoup your investment? ", "How are problems handled within the organization? ", and "Do you have any satisfied customers I can speak with? "
If they do offer you contact information for customers that have enjoyed doing business with them, call them as well. Be honest, and let them know that you are interested in the business opportunity, and want to hear about their experiences with the company. Ask the customers about the quality of the product or service, and how any concerns are dealt with.
Check To See if the Business Opportunity is Registered
Your final step is to check to see if the business opportunity is registered with the Better Business Bureau or their local chamber of commerce. However, be aware that just because there have been no complaints against the company doesn't mean that the business is in the clear.
After completing these four steps, you should have a clear picture about the business opportunity you are researching, and whether or not the opportunity is a scam, or for real.
