Look out for scams
Scams are the bane of the work at home parent's existence. They
abound on the Internet and in the world in general. Fortunately,
there are some warning signs you should always look out for that
will keep you from falling for most of them.
WAH Job Scams
Probably the most common scam is to ask a potential "employee"
to pay a fee for the job. This may be disguised as an
application fee, software fee, processing fee, maintenance fee,
etc. If you are to be an employee, the employer should be paying
YOU, not the other way around. They may try to justify it as a
way to weed out the applicants who are not serious about the
job, but don't believe it. You wouldn't pay to apply for a
traditional, outside the home job, so don't pay to apply for an
at home job.
Some legitimate companies may offer equipment that you will need
to rent. This can be legitimate, but in general, you should be
able to buy such equipment on your own. Check into this option,
as it can save you a lot of money.
Home Business Scams
Another popular work at home scam is to offer a kit to start a
business, such as medical billing. This kit may contain outdated
or irrelevant contact information and useless software. Medical
billing is one of the popular areas for this particular scam. It
is very difficult to start a home based medical billing service
without prior experience,
MLM Scams
There are a lot of legitimate MLMs out there, but there are a
tremendous number of scams too. If you decide to start your own
business as a part of an MLM, you need to make sure they are
legitimate. Familiar names such as Tupperware, Avon and Mary Kay
are easily seen as legitimate, but what about the more
mysterious ones?
Some will refer you to a site that tells you all about their
wonderful opportunity, but not give you any details about what
you will be selling, or even claim you don't have to sell
anything. Be wary in these cases. Rather than a legitimate MLM,
you may have stumbled across a pyramid scheme. Pyramid schemes
earn money primarily through recruiting, not through sales to
customers. They may also require you to purchase a certain
amount every month or not earn your commissions. This is known
as inventory loading and is illegal. See this very useful
article on the FTC website for more information.
The FTC also offers some excellent advice on selecting a
franchise or business opportunity, which applies to both online
and offline opportunities.
In General
Watch out if the ad promises hundreds or thousands of dollars
with little effort, "guaranteed!" No one can guarantee that any
business will succeed, and all businesses require effort and
time to make money.
Also beware if no experience is required. While there may be
legitimate opportunities out there that do not require
experience, it is more likely that they are trying to prey on
the inexperienced.
LOOK OUT FOR CAPITALIZATION!!! AND EXCLAMATION POINTS!!! Got
your attention there, didn't I? That's their goal too. A scam
wants you to get so excited about their opportunity that you
don't think. Be too smart to fall for that.
Vague ads where you have no idea what the product or service you
will be selling are also trouble. Legitimate companies want you
to know what you'll be selling, so you'll be excited about the
business and the product. Scams just want you to be excited
about the business.
If you feel pressured to make an immediate decision, tell them
the answer is 'no.' Once again, a legitimate company wants you
to be enthusiastic and happy with your decision. If you're
buying a franchise opportunity, make sure they have a money back
guarantee.
Check the company out on the Ripoff Report. Businesses can reply
to reports here, so you get both sides of the story. See also
the BBB's report on work at home scams.
If You Get Scammed
First try to clear it up with the company. If they are
uncooperative, let them know that you will be contacting
officials about the matter. Then do it.
* If you found out about the company on a website, let the site
know so that they can take it off their site. * Post your story
on the Ripoff Report, so that others can see your story. *
Contact the Attorney General in your state or the state the
company is in. * Contact the BBB, both your local office and in
the company's state. * Contact the National Fraud Information
Center if this was a "get rich quick" or "easy money" scheme. *
Your local Consumer Protection Offices. * The Postmaster if you
recieved the offer in the mail. * The Federal Trade Commission.
Although the FTC does not handle individual complaints, they are
on the lookout for patterns of deception and unfair practices.
To register a complaint, write to: Correspondence Branch,
Federal Trade Commission, Washington, DC 20580.