Legitimate Business Opportunity Or Scam?

Posted: Feb 25, 2010 |Comments: 0 |

Everybody has dreams of making millions and living a life of luxury. A quick search on Google will find you thousands if not millions of offers to make money online - the question is, how many are scams and how many are legitimate ways to make money? First, you have to know the difference between a 'job', a 'scam' and a 'business opportunity.'
A legitimate job will have all or at least most of the aspects you've come to know - an interview, resume, reference checks, etc. Just because something lacks these things won't make it a scam, but it should make you aware of what it's NOT… a job. An advertisement that makes it sound like you're working for them but never collects your personal information (employers are required to collect SSN for example) should raise a red flag. An example of this would be envelope stuffing. These 'jobs' usually require a start up fee to begin working, another red flag.
A business typically involves a product or service. Be very wary of a 'business opportunity' that lacks a product, or a service which requires some specialized skill. The product CAN be information, but a good business will sell information not freely and readily available. This is where most online scams fall short - it is just the same product repacked over and over (which in some cases is even the business model).
Similar to this is the infamous pyramid scheme, also known as multilevel marketing, network marketing, direct marketing, referral marketing, matrix marketing, direct selling, pyramid selling, and more. There are differences between multilevel marketing and a true pyramid scheme (pyramid schemes typically don't involve a product and are illegal), but the terms are often used interchangeably. The problem with these are that the people at the top of the pyramid make lots of money, and the further down the list you are, the less you make. The vast majority of people in it make little if any money, and unless you're able to recruit dozens of people who all produce in your 'downline,' you'll never find success.
An opportunity is a business proposition which gives someone a chance to use an existing model to begin a business. An example of a legitimate business opportunity would be an established franchise, such as a hamburger stand or donut shop. Many online money making schemes fall into this category. The problem is that unlike the hamburger stand, there is no training program, and no corporation or brand name to back you up. They proclaim that their system made so-and-so rich, and he or she is sitting on a tropical island or their yacht enjoying the good life without working. Keep in mind a legitimate opportunity will involve work. Someone may well have made a fortune, but odds are they made it by selling the system itself!

Still, most of these are not 'scams' per se. They are opportunities which may or may not succeed. A true scam is where someone is deliberately deceived or misled, often into sending payment in to receive a starter package or instructions, or a small amount (shipping charge for a "free" product) which is charged to a credit card, which is then used illegally, or for identity theft. There are several of these of course, the most famous being the emails from Africa promising millions if you just pay some small fees to transfer it. Common sense should prevail on most of these - if it sounds too good to be true, it probably is. Still, greed often wins out over reason.
Key things to look out for:
* Lack of contact information, email address or phone number for you to ask questions and get more details. If this business really made the owner $500 million, wouldn't they set up a customer service line?
* You must send money just to learn all about the offering. Naturally, you wouldn't expect a great business opportunity to give you all the secrets for free, but it should at least tell you in general terms what you'll be doing. A legitimate work at home opportunity does not require any money up front before you will get more details regarding the opportunity.
* PO Box instead of a physical address. A multi-million dollar company will have an office. Even if the original money was made as a work-at-home business, if they're serious about helping you succeed, there will be an infrastructure, including an office, with people handling orders, customer service, etc.
* Hidden fees. Read the fine print - "free" products that charge shipping and handling, or require you to enter credit card information often have ulterior motives. Money back guarantees can fall into this category as well, as the return policies can make it virtually impossible to return them. For online opportunities, it is much safer to buy through trusted sites like ClickBank, which have their own refund policies. Paypal is also very customer friendly when it comes to dispute resolution.
* Unrealistic promises of quick money with little effort. All successful businesses take effort - even if it's just at the beginning for setup and outsourcing. Phrases like "get rich with no effort" "lose 100 lbs this week!" "big bucks with strategies that any idiot could do!" are sure signs of illegitimate opportunities.
* Questionable domains. If the email comes from bobsmith@e22oif0d9.com, you can bet it's a scam. Likewise, if the ad takes you to a domain that doesn't look the same as the one you intended, it's probably not legitimate. Again, follow logic - if they made millions doing this, couldn't they have spent $20 for a decent domain name? Note that many ads will be affiliate links, which can be fine… for example ClickBank and Commission Junction links that track the affiliates with a numerical or alphanumeric code.
* Over emphasis on accomplishments. More time is spent telling you how good it feels to have money, and does a poor job of explaining the details of the offer. This plays on basic human greed. If at the end of the ad you still don't know what it's about, they're probably hiding something.
To find legitimate online money making opportunities, you'll have to weed through many scams and nearly useless programs. Remember that a legitimate offer will have reasonable expectations, require at least a moderate amount of skill and work (by you or someone you pay) and won't charge you for things you can get elsewhere for free.
We have tried many of these programs out for you, with varying degrees of success and failure. Read about our unbiased results at http://www.getrichexperiment.com.

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