Posts Tagged ‘how to know if an mlm business is a scam’

Avoiding Home Business Scams

Monday, December 28th, 2009

There are many reasons a person may wish to work from home, unfortunately that desire or need to do so can ultimately cause a person to be taken advantage of by a scammer.  Money and dreams get lost when this unfortunate thing happens.  Do not be one of these people.  Be careful to do your preparation in order not to be tricked.  These steps include: carefully reading the terms of the opportunity and researching the Better Business Bureau, as well as investigating the source of income of the business.

Before attempting anything, the Better Business Bureau should be contacted regarding the authenticity of the products offered by the business.  This organization keeps an eye out on possible scams.  Their database holds all the information and you can gain access by either going online or calling them.  Either way, they will tell you through a rating system whether or not a particular home business is a scam.

After doing that, you need to investigate the source of income of the home business.  Why should you do this?  Because you want to stay away from pyramid schemes.  What do I mean by a pyramid scheme?  It is a fraudulent business arrangement where monies from new members are used to pay old ones.  The scheme does not succeed when fresh members fail to join. 

To avoid pyramid schemes, you need to see if a home business is making money from things outside of membership.  Think about Avon, a home business where you sell makeup and additional products.  This is how both you and the company make your money.  True, you can make money from signups, but that’s not the sole source of the business’s income.  This is the reason behind their being considered a genuine home business opportunity. 

Anyway, once you have that information, you are ready for the final step: carefully reading the terms and conditions of the opportunity.  Be on the lookout for things that seem suspicious like a promise to make an overwhelming amount of money, or the requirement to mail out packages or brochures.  Either one of these might mean that this is a fraudulent mail order business.

Ensure that you are not deceived into a home business scam by carefully following the steps outlined in this article.  And, in the process, you can not only preserve your dignity but also save your money.

 

Carin Davis is the editor and webmaster of http://www.CarinDavis.net. A site dedicated to the development and training for Network Marketers and Home Business Owners.