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Definitive Guide to Work At Home Scams


If you are looking to work at home, it's important to know how to screen out the frauds.

Make $1000's overnite! Make big money today! These are the words that scammers use to catch your attention and can appeal to individuals looking for home business ideas. After all, everyone wants to make money 24 hrs a day? However, the old cliche that if it looks too good to be true, then it probably is... This is true for moms and anyone else who wants to work from home. If you are searching for online work or a home business you must be very careful to avoid frauds.

Pay to Work??

Many home business opportunities require an up front payment for supplies, products, license fee, and marketing materials. This is legitimate and simply the cost of doing business. However, one of the biggest scams is charging a fee for a kit or an information packet which does nothing more than tell you to place the same kind of ad that you bought the packet from. This is essentially a worthless list of instructions to place an ad similar to the one you just responded too.

One ploy often used is the "Ticking Clock". If a website has a clock ticking and says the offer expires within an hour or two... beware... that is a strategy people use to get people to buy before properly researching the company.

False testimonials are another technique scammers use to sell their goods. If you see testimonials on a website, ask the website owner for direct contact information for at least 2-3 of the people that are claiming success from their business. If they don't respond or refuse to provide contact info... move on to something else.

Most legitimate companies have an online forum or discussion group where you have the chance to talk to others who are already working and making money from the opportunity. Always look for the companies forum or discussion group BEFORE you buy into the program.

Sometimes, paying a fee is legitimate and appropriate, but clarify specifically what the fee covers and exactly what you are getting in return for your payment. Also most all of the honest companies offer a 100% money back guarantee if you aren't satisified with your purchase.

I hate to use the word "never" but, NEVER pay an upfront fee unless the company offers at least a 30 day money back guarantee. A good example of an appropriate cost would be companies that are selling a franchise and geographic territory. You are paying for their name recognition and all the advertising they do... If you can get in early or perhaps on the "ground floor" with an up and coming company, you may just hit pay dirt. Believe it or not, it happens more often then you might expect.

Work at Home Jobs and Employment Fees

We don't usually expect to pay a fee to find a job.... and if you apply for a position directly with a company who has posted an opening, there is no cost involved. You simply send them a resume and follow up with an application. Then if you are fortunate, you become a candidate and begin the interview process. However, many of the "online jobs and employment opportunities" posted on the internet, work similar to using an offline "employment agency".

Paying a fee for a legtimate online job is essentially no different then using an offline employment agency who charges a fee for their service. They either charge you an upfront fee or the employer [they refer you too] pays the agency a portion of your fair pay over a period of time, which reduces your starting pay and usually delays any raises you may get in the future. One way or another you are paying for the job. They just aren't as upfront and revealing as they should be...

We must remember that webmasters who post job or income opportunities have expenses and overhead just like the agency and are also in business to make a profit. Therefore, don't automatically disqualify a job opening if there is a fee involved... just make sure the offer, and fee attached. has included a 100% money back guarantee.

Don't ever make a payment on an unsecured webpage. Make certain the webpage has https at the front end of the URL address. It is actually a myth that it is unsafe to make an online purchase. In reality it's probably more safe then giving your credit card to the grocery checkout person or dept sales clerk. You will also need to keep in mind that all purchases made through your credit and debit cards can be contested and eventually credited back to your account. Use this avenue in case the company balks or is slow to process the refund.

One more thing... do those who follow in your foot steps a favor and report the company to the BBB and other consumer protection agencies. This should only be done with companies who are obvious frauds. Not one that you change your mind about after you see all the work involved. Unfortunately, there are a lot of people quick to claim fraud simply because they didn't make the kind of money they unreasonably expected. The people you see giving true and honest testimonials on websites, have all worked very hard over a period of time to achieve their success.

Hype and Exaggeration.

It's not unusual for a legitimate company to use some "wall street" marketing strategies. So if you see something that looks pretty darn good... don't automatically discount their claims. Many companies also tend to use some of their most successful associates in the advertising copy. Once again, just make sure you can get access to these people and verify the income claims made on the website.

MLM Multi-Level-Marketing Opportunities

Many people do not trust MLM opportunities. However, some of these are your best options for working at home. Especially if you like and use their products.

Shaklee, Herbal Life, Strong Future International, Tupperware, LifeForce and Pre-paid Legal are all good examples of MLM businesses with excellent reputations. These companies typically have some start-up costs for samples and marketing materials.

In the past, Affiliates who did well with these MLM businesses were usually sales oriented individuals. The internet has changed that due to all the online marketing techniques available today. Basically, anyone willing to learn some relatively easy online advertising strategies, can now achieve some level of success.

Emailing, chat rooms, forums, newsgroups, blogs, social networking websites has leveled the playing field and opened the door to anyone willing to make the commitment and do the work involved. Learning how to navigate websites like Twitter, Facebook, Utube, Myspace, Ebay and Google will give you a tremendous edge.

The biggest obstacle to overcome with MLM businesses is that some of them oversell their start-up products and supplies, which can cause an overlap of the customer base and glut the market place. This can challenge even the most aggressive individual who has an interest in making money with one of these businesses. However, if you are willing to do the work involved, the income can be very lucrative. In fact there are studies that indicate one in five new millionaires made their money from network marketing or MLM. Make sure you check out the following first:

  • Check product prices before joining an MLM group. High cost products and services can be difficult to sell.
  • Make sure they don't have high sales quotas. Sometimes these companies have weekly or monthly sales requirements which you must meet to maintain your status. If the affiliate doesn't make their quotas then they must buy more products then they want or need.

Research and Screen out the Scams

Prior to purchasing a home business, a prospective business owner must take time to do some research. A quick call or visit to the BBB can screen out a potential fraud and prevent a lot of wasted time and money. Once again... it's very important to communicate with others already involved and having success.

A web search can also be helpful, as can checking other sources, such as work from home forums. WAHD Forum has a very active group of moms and other successful affiliates who know about most of the fraudulent companies. A quick check with these people can help avoid a costly mistake.


About The Author*
Erich V Winnecke is a mentor to online income seekers and owns the Work-At-Home-Directory.Com website... which is for people who are interested in locating a work at home income source or starting a Home Based Business.

This article may be reprinted only if the About The Author's resource box is kept intact and all links remain live. All rights are reserved by the author.

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