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It's an unfortunate fact that there are countless scams floating about.
Scams prey on the people's dreams, whether that dream is of working from
home to spend more time with the kids, or whether it's about financial
independence.
People tend to fall for scams because they're so willing
to believe - they desperately hope an opportunity will help them achieve
their dreams. When the scammer runs off with the money, they not only
steal someone's money ... but they also steal their dreams. Let's work
together to stop the scams!
Some typical signs of a scam are:
- You can make absurd amounts of money in a very short time: "Make $5000 a week, every week!"
- You don't have to do anything; the system is on "auto-pilot": "This system is so effective and so simple that all you have to do is sit back ... and cash your cheques!"
- You are "guaranteed" to make money. No one can guarantee such a thing; not every
business opportunity is right for every person, even for legitimate offers. More than likely,
the person offering the bogus opportunity is guaranteed to make money - you're guaranteed
to lose yours!
- You don't need any experience: "Anyone can do use this very simple system to
make money!"
- There is no contact information. Emails and telephone calls go unanswered.
- You are told that it's a limited time offer - you MUST join today! If it's a legitimate business, it will still be around tomorrow, next week, next month, or next year.
- You can't figure out what they're selling.
- You're asked to send in money for information on the "opportunity".
- There are lots of $$$ and !!! all over the website. However, a professional-looking
site does not guarantee a legitimate opportunity!
- You're told that you can get rich quick off your "downline", and that your downline will be prebuilt for you.
- You can't find a product but it looks like you get paid for everyone you recruit or sign up. This is known as a pyramid scheme, and it's illegal!
- You are offered $1 ($2, any amount) to stuff envelopes. Envelope stuffing "opportunities" are scams! First of all,
machines can do the job far faster and cheaper than paying someone to do it. And what these scams usually amount to
is you stuffing an envelope with a circular asking someone else to send you $1 (or $2 or whatever you paid) for
the same opportunity!
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MLM or Pyramid Scheme?
There's a lot of confusion surrounding Multi-Level Marketing (MLM) and Pyramid Schemes.
One's a completely legitimate business (although difficult to do for most people); the other
is illegal in most places.
- MLM sell products and services through distributors. You get paid commissions on
your own sales, as well as sales of people you recruit.
- Pyramid schemes look similar, except that they focus on paying you just for recruiting others.
Pyramid schemes don't concentrate on selling a product or service.
- Pyramid schemes are illegal in most places because when they collapse - which they
eventually will when no one else can be recruited - a lot of people lose their money. The
only possible exceptions are those at the very top of the pyramid.
Some tips for avoiding pyramid schemes and fraudulent MLM plans include:
- Be wary of plans that focus on paying you to recruit others
instead of paying you to sell products or services. Key words that
should immediately make you cautious are "downline" and "pyramid".
- Never sign up for an opportunity in a high-pressure situation. For example, some
"opportunities" offer seminars or meetings to try to recruit new members. Don't
sign up at these events; take some time away to think about it and do your research.
- Be cautious of claims you can get rich through your "downline". These
opportunities often try to make it sound as if you can sit back, relax, and simply collect
commissions made by your "downline".
- Be careful of company "references". Unscrupulous companies may pay
someone to make huge income claims in an attempt to lure you in.
- Beware of claims of a "miracle product". Get hard evidence to back
up this claim.
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Research a new opportunity by:
- Find some testimonials. Try to hunt down your own testimonials instead of
using those provided by the company.
- Post a message inquiring about the opportunity on appropriate message boards or newgroups.
Learn from someone else's first-hand experiences. If most people have had a bad experience with
the company, then it's probably a scam - don't hunt for one good experience. It won't make it all better.
- Call the Better Business Bureau or the Federal Trade Commission and see if there have been any complaints filed against the company.
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If you have been scammed:
- Ask for your money back immediately.
- If they do not want to refund your money, inform them that you will contact the authorities.
- Notify the Federal Trade Commission.
The FTC can't resolve individual complaints; however, if they see a pattern of possible law
violations, they can take action against the company.
- Notify the Better Business Bureau.
- Contact your local Attorney General's Office.
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In this section:
Working for an Employer vs. Working for Yourself
Advantages and Disadvantages of Home Based Work
How to Protect Yourself from Scams
Are You an Entrepreneur?
Home Job Stop: telecommuting jobs
across the United States - technical jobs, clerical
jobs, marketing/sales, writing, customer service,
transcription, finance, and others.
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