Avoiding Home Business Scams

For those people keen to start up in business for themselves using the Internet as their medium, avoiding the pitfalls is important to insuring success.

Learning to recognize a dodgy business or out and out scam can save you a lot of heartache and potential failure along what can be a considerably bumpy road ahead.

Tips for Avoiding Work at Home Scams

home business scams to avoidMany people could be contemplating starting a good home-based business that will help you earn income whilst remaining home with your family.

There are numerous amazing business opportunities as well as stories of success gained and money earned which are related to the home-based businesses.

However, there are also many scams, hoaxes and fraudulent schemes in existence that lie in wait for the unwary.

The Internet is plagued by tempting home-based job opportunities that assure massive gains for simple work. Most of these offers, starting from medical billing to envelope stuffing, are actually scams which victimize an individual's dreams to earn a living staying at home.

Online Scams - Common Characteristics

You should be alert while selecting a home based business. Online business offerings talk about three factors: a solicitation for the buyer, an inevitable payment to be made to the seller and an assurance to assist the buyer find leads or locations that will definitely earn profits.

They are usually advertised in classifieds, Internet, as well as in junk e-mail. Some tell you they are low-risk projects with money-return guarantees. Most of these jobs assure that no training is required. Offers lay stress on the amount the individuals might make every week in precise dollar sums, and scammers usually have shills who admit falsely about their own success.

You should always be cautious against such scammers. Most of the individuals who fall prey to the home based jobs, be it stuffing envelopes, online typing work, processing healthcare insurance claims or simply assembling toys, never get paid. The common prey to these scams is homemakers, senior citizens or people earning a low income.

The Internet aids these fraudsters to appear genuine since they can implement testimonials and show fake customer reviews to ‘provide evidence' that their work-from-home strategy is genuine. The advertisements help to further multiply their claims.

For these reasons, we recommend that ambitious home-based business entrepreneurs ought to implement a great deal of practical wisdom and intuition when they decide on the home based jobs. Failure to do so may result in frustration and failure in future.

How to Spot a Home Working Scam

Before venturing into a home based business, here are a few checks that can protect you from possible frauds.

If it sounds too good:

Beware of home based jobs which offer you a lot of money in a very short time span. If it sounds too good to be true, it is not true. There is no shortcut to earning money. So be careful before rushing into some such job offer.

Be wary of companies wanting money:

There may be very few genuine companies as well that ask a specific sum of money from you to receive their start-up package. However always maintain a stand of caution from companies that ask for money.

Stuffing Envelopes and Home Assembly:

Scams like these have been successfully going on since many years. Funnily they still make presence in genuine advertisements like in newspapers, magazines and such other trusted media. In these home based business strategies you shell out $25 to $45 and later they tell you that you do not meet the "company standards".

Paid Surveys:

There is no shortage of companies that are keen to obtain your opinions on a variety of services, products and strategies. Many offer to pay you for taking their surveys.

While some are actually legitimate, many are just scams designed to gain your personal information and details of your personal shopping or surfing habits and should be avoided. I have covered the subject of paid survey scams in a separate article you can read by clicking that link.

Pyramid Schemes:

Pyramid schemes are not legal in most countries. Fundamentally, a pyramid scheme involves people hiring other individuals to enroll in the pyramid, generally for a specific fee.

Your own "income" relies not on marketing a product or service, but on enrolling other people. There is a limit to how many individuals you can hire, thus most of these schemes make only a few people rich, but for the majority of people, they never earn even a single cent from a pyramid.


In short, common home business scams charge buyers fees for training, materials, sales or leads. But the scheme hardly materializes in the expected fashion. Legitimate options such as affiliate marketing from bona fide companies is a far better alternative that can produce a good income from the Internet.

The victims are left with losses and unsold inventory. Don't be a victim and don't lose out to any of the above scams: be diligent, learn to spot anything dodgy before they hook you in and stick to tried and trusted methods and working practices.

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