Are there any true home based business out there that won't scam you?

Question

What do ppl do who get scammed by these companys and how do we know who's legit and who isn't?

Answer 1

Check and see if it is listed on the NYSE because it can't be a scam to be listed on there and go on the BBB

Answer 2

I have a successful home business and some of my friends and I have put together a free website to help others start their own business (and avoid scams). If you are looking for more information check out our Great Home Based Businesses site. We have specific pages on: hundreds of great ideas for home based businesses by category (including information on kit businesses and franchise businesses); resources for selling from home; resources for providing services from your home; avoiding scams and a lot of other pointers. PLEASE NOTE: we do not have a business or product that we want to sell you - our site is all about providing information.

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When it comes to avoiding scams - here are some things that we have learned - if you are unsure then you need to ask yourself the following questions:

1. What is the value that you have added to the product or project?

2. Would someone pay you to perform this service in person?

3. Do they need money upfront?

Some legitimate businesses may require that you pay a franchise fee or buy a business kit in order to start your business with them. The presence of an upfront fee is not a definite sign of a scam - many businesses have legitimate reasons for requesting upfront fees. Reputable franchises spend a lot of money on advertising, research, branding and other items. They charge a franchise fee in order to cover these costs and in order to earn a profit from the companies operating under their banner. Chances are decent that if you have heard of and seen the franchise in your real life (other than from the person "selling" it to you!!) then it is legitimate business. Kit based businesses can collect fees for the same reasons and also to cover the cost of your business start-up kit. Again this is a mixed bag - some companies charge fees that merely recover their costs of material - knowing that they will make their money off the mark-up on their products. Other (less reputable) companies often sell "kits" that are made up of books and other materials that provide little or no value to the person purchasing it - they do not care if you sell any of their products - some do not even have real products - they make their money from selling these "kits". Again it is important to go for businesses that you are familiar with or do your research.

4. Do you KNOW anyone that has successfully made money with this business?

5. Does the person "recruiting" you make money just by signing you up?

Beware of "pyramid" schemes - schemes in which people are paid based on how many people they sign up not based on sales or other indicators. Finders fee or referral fees are very common in all businesses but they are not the main source of money in a legitimate business. Not only are pyramid schemes illegal in most places but only the first few people in a pyramid actually make any money - the people in the centre are lucky to recover their initial investment and the people at the bottom are the ultimate losers - they lose their full investment.

and the main question:

6. Does it sound too good to be true?

Because if it does - then it probably is!!

You need to RESEARCH all aspects of starting a small business. This means checking with your local and federal better business bureau or other business verification agency. BTW - seeing a "Verified" or "BBB" (Better Business Bureau) logo on their website does not mean that they are actually registered with any qualified agencies. Many sites will put a dummy logo on their sites and some go as far as providing a link to a dummy verification page on their own domain!! You should be able to go directly to the agencies site and lookup that business there. If you find such a logo on a website then find that they are not members in good standing with that agency - then they are SCAMS!! Run away from this business, pausing only to report the site to your local fraud bureau.

Some of the more common scams are:

i. Stuffing envelopes: this common scam has you "buy" envelopes and flyers from a company - once you have stuffed the envelopes and submitted then the company will often say that the quality is below standards and do not pay you for your work - worse you never get your initial fee back.

ii. Home assembly: this is very similar to the scam discussed in (i) - you pay for the raw material - make the products and company rejects them - leaving you out both money and time.

iii. Medical billing: some reputable companies provide medical billing services from home and look for new typists all the time. Unfortunately, scammers have caught onto this and are trying to get people to pay hundreds of dollars to special equipment and software to do this from home. Most legitimate companies looking for workers will NOT charge the person any fees upfront. They will sign a contract with the person and provide a license to their existing software - they will also provide all of your work - you do not have to (and usually can not) try to get jobs directly from medical clinics.

iv. "E-mail processing", "typing from home" or claims to "use your computer to make millions" or to help you "make money online": your return for investing in these scams? a half-baked summary of how you can scam others the same way you have been scammed. There are ways to earn money typing from home - but again - legitimate companies will not ask you to pay up front fees - they will not offer to sell you "customer lists" - they will provide you work directly.

v. "E-mail us for more information" or "call us at 1-900 for more information": these scams collect contact information for legitimate and scamming marketing lists. Further 1-900 phone numbers cost you money - money that goes to the scammer. The other concern is that these scams often request additional information to sell to other scammers or to engage in identity theft.

vi. Chain letters / e-mails promising that you will "make money fast" or requesting that you send them personal or financial information or send money: these scams collect contact information for scammers, facilitate identity theft and take money from those unwitting enough to send it.

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My key pieces of advice in picking your business:

1. Do what you know and love.

2. Follow your instincts.

3. Figure out how to provide value to your clients.

4. Talk to successful home business owners that you know and trust.

5. Whatever you do - try not to limit yourself to one income source - one of the best ways to grow your small business is to open yourself up to other income streams. If you start a catering business maybe you could also teach cooking classes in your house, or if you start a typing business then you could also do legal transcription for sale. This approach has been invaluable to me - allowing me to get through slowdowns in my "core" business.

6. Accept that "get rich quick" schemes only work for 1 in every million people and generally require illegal activity - instead try to build a lasting business that will continually pay you a reasonable amount.

As for specific ideas - there are hundreds - most of the ones we discuss on our site relate to you selling your own products (e-books, crafts, antiques, designs, CDs, DVDs, knowledge via website) or selling your own services. We generally recommend that you not pay someone else for the right to promote their products but develop your own. Contrary to popular belief - everyone has some skill or knowledge that is valuable.

Also - if you are interested in a "kit business" such as Pampered Chef, Mary Kay, AVON, etc... or a home based business franchise such as ActionCoach, Coffee News, WSI corporate, Candy Bonquet, etc... - we have a pages dedicated to these businesses on our site.

Anyhow - that's my two cents - Good luck with your business - I'm sure if you do your homework you'll be very successful!!

Answer 3

Hi

Yes! There are a few real scam free home base businesses out there, you just need to do some research.  Try some review websites sources, they might shed light in the subject,  and help you. Also you may want to check out my own research review page, on my own research.

Answer 4

Sometime using google by putting in the company or business entities name and then the word "scam" after it will sometimes bring up something about what is being reported by others on the net. and can sometimes give you an indication about the online entity you are trying to find out about. That is... who is legit and who is not.  :)

I found the following the be one of the fastest growing legit businesses on the net, that is if you like to receive the best free offers from the net...all in one place!  :)

Believe me...the quality of free offers from the site...far outweights the low monthly cost by leaps and bounds!

Check it out and see why it is fast becoming the premier freebie site on the Net! You'll find out how legit this one really is!

http://go2-url.com/freebieforce

Answer 5

Yes there is legit home businesses out there. They can just be hard to find sometimes. Do your research.  Make sure a business is willing to answer ALL your questions or concerns before you make any kind of commitment. If there are products involved, what exactly are they? Have you heard of them? Would you yourself use them? You have to be comfortable with a business and what it is involved in if you will be happy doing it and expect to make money with it. Don't ever give anyone money for information. You should never have to pay to find out anything. Anything that requires a fee for info is a scam!! A good business should WANT to tell you everything you want to know for FREE!  Just be sure that you feel 100% informed and comfortable before any commitment or investment. I have done a lot of research on different home businesses and I really enjoy helping others with this. If you would like more info email me. I would be happy to help!

Answer 6

http://www.myvemma.com/lovelife

Answer 7

work only for established companies you've heard of. like famous magazines. magazines need articles from readers.

every month there are articles they will pay you for: poems, recipes, helpful household hints, photos, jokes, comic strips, essays, arts/crafts, and more!

go to a bookstore or library and just look thru all the magazines (especially women's); look for the opportunity or guideline pages; write down the submission info.

here's a few i submit to:

http://rd.com. most want new articles, but reader's digest will pay for previously published stuff that you find in other magazines! ($100-$300).

southern living magazine: recipes, $20.

family fun magazine: kid's craft ideas, $100.

family circle magazine: household tips, $50.

http://bhg.com: monthly recipe contests, $50-$400!

http://unusualjobs.blogspot.com

Answer 8

Hi Strickland,

That's a great question and one I had to deal with my self not too long ago.  In addition to some of the good points April made earlier I'd like to add these thoughts.

If you know what type of Home Biz op you're interested in that will help you find what you're looking for.

For example:  are you looking for something where you sell a physical product or not?  Also, what are your expectations for your home biz op:  Replace your full time job, earn extra income working part time….?  

Are you looking to make money right away?  How much?  Do you have the basic skills needed for most home biz ops?  If not, are you willing to take the time to learn the skills you will need to be successful in a home biz op?

One other thing, and this is big.  Make sure whatever home biz op you join has ongoing training AND support so you'll be up to date with the best, current marketing strategies.  This is especially important for newbies but seasoned home bizers benefit too.  To use the fishing analogy, it’s the difference between you getting a great fishing pole and being left to figure out on your own how to use it to catch fish versus having a guide help you learn which pole suits your needs, how to set it up, tips for casting in different situations, where and when to fish and so on so that your outing is successful.  Can you tell I like to fish?   ☺  You could use any other analogy as well, cooking/recipes, traveling etc.

The company I'm in offers free training without obligation so you can see if their business suits you before you invest all your money and time.  That was one of the main reasons I eventually joined their company.  I was able to check them out BEFORE I invested.  Now, I didn’t make a gazillion dollars in 30 days, but I did learn how to market online and make a steady income after about 6 months.  An added bonus for me was that I was able to use some of the products and marketing to grow my offline business.

One last thing, look for a company that's been around for a while and is growing (or has steady growth).  Can you contact the business owners as well as the person that brings you in to the biz op?  These are all things to consider that will keep you from "getting scammed".

I hope that helped a bit.  Feel free to get in touch if you have other questions (and I'll try to check back in to this forum too).

I wish you all the best,

M.E. Ward

Answer 9

Your best bet is to check their background. Are they with the Chamber of Commerce, Direct Sellers Association, Direct Marketing Association? Researching the background from all angles, and ultimately finding something you can confidently stand behind is the way to go.

HTH,

Trhonda