Want a Home-Based Business? Spot Internet Business Scams
If you are considering starting a home-based business on the internet, think twice before investing your hard earned money. The internet is the tool most widely used by those seeking to better their financial status by starting a home business. Business opportunities can be easily and inexpensively researched by seekers, but it also gives those offering opportunities the ability to communicate to large target audiences with little time effort or money involved. It’s as simple as building a website, posting an ad or sending massive emails. Beware: the internet is also an excellent tool for internet scammers. Scammers have the ability reach those targets who are earnestly seeking to better their financial status and present fraudulent offers that appear real and credible.
Here are three types of the many current internet scams to watch out for:
- Pyramid (e.g. Ponzi) schemes- an illegal type of network marketing program in which recruits are asked to make payments to those above them in a hierarchy, and receive payments from recruits below them. These schemes have no products, services and are not sustainable. In reality, only the organizers make money while those at lower levels lose, and the scheme collapses. It always collapses. Pyramid schemes are illegal in over 28 countries including the United States, Canada, Mexico, France, the United Kingdom, Germany Norway, Italy, Australia and other countries. They are sometimes erroneously referred to as multi-level marketing” (MLM). While MLM is a system that uses a wide network of distributors, each of whom obtains compensation by recruiting new members, MLM companies actually sell products or services However pyramid schemes are illegal forms of MLM with no products or services.
- Invoice business scams-are scams that take advantage of the hopes, dreams and inattentiveness of their prey. The scam involves pay on invoice for products or services that will never be received. These have included directory listings, IPS service, hosting services as well as memberships to non-existent organizations and businesses. These scams are successful because their documentation and advertisement can mimic a legitimate business that is familiar. Often there is nothing to indicate that these documents are fraudulent. The best protection is to always carefully read the details and to call the phone number on the invoice.
- Work at home scams-These scams offer the opportunity to make “megabuck’s working at home either stuffing envelopes or assembling products. They involve you paying for the materials and information needed to do the work. When the products are submitted there is either little no compensation or useless information is sent to you. Many times nothing is heard further from the company.
Tips to avoid becoming a victim of internet business scams:
- Never send money to obtain information about a business opportunity.
- Get all promises in writing and carefully review all documents before signing.
- Check the business out with the Better Business Bureau, especially if there is no street address and phone number given.
- If no privacy policy is evident, look elsewhere.
- Fraudulent companies sometimes bury information within the document that they are not anxious to have exposed. Read all fine print and relevant links.
About the Author
Audrey Robinson is a scientist with a Masters and PH.D degree in Biology, as well as a small business owner and coach. She helps internet marketers obtain financial freedom and independence. Visit her websites www.meetaudreyrobinson.com/?t=articlesbase and www.theprosperitymall.com/?t=articlesbase . She offers help for those seeking financial freedom and independence, wealth management education, and importantion helth and social information.
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