Bad Business Offers and How to Spot Them

| Posted: 04-05-2008 | Comments: 0 | Views: 1 | Rating: (50)

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There are so many opportunities on the internet offering to set people up in their own home based internet business that it can be difficult to separate the real, legitimate opportunities from the ones that only want your money. Knowing what to look for hidden within the offers can mean the difference between finding a legitimate business to operate and ending up helping someone else make money while losing your own.

With most fraudulent offers for in internet business there are four red flags that need to be thoroughly investigated before signing up to work for the website. Realize that companies that make these claims are not all out to commit fraud, however these are four flags that many unscrupulous businesses may have in common:

1. Large upfront investment
2. The chance to make big money with little work
3. Do not clearly state what you will be selling
4. Lack of available contact information

While it is not uncommon for business to want a fee to become a representative for their business, you have to consider the amount demanded from you before you can start selling their product or service. You should also have a clear picture of what you will get in return for your investment. It is common for the term training to be listed, but many times the training consists of links to other sites where you are expected to learn about the company's business model.

The training may also focus on how to recruit others into the business, offering to pay a "bounty" for bringing in new people. Companies that focus more on making money bringing in the most number of people rather than selling the product and making profit may be borderline illegal.

Anyone who has ever been involved in a business knows it takes work. One common trick is promising the potential business owner that you will make tons of cash without doing a lot of work...or even a week. The free lunch does not exsist, so don't let others try to convince you that it does. That disclaimer about income may not a representative of the potential earnings, should beg the question about why even bother to list it.

If you have been reading an online based business opportunity for several minutes and have no idea about the product or service you are being asked to sell, it could be an indication of a scam. Some companies don't tell you what the product or service is until it's too late, after you realize you can't sell it without feeling guilty that you did. Do your homework by finding out what the product is, and what you'll need to spend to get it before moving forward with the offer.

Look for contact information. When all you can do is contact the company by email and no other way, you can bet that business may not plan to be around long enough to answer complaints or questions in the future. Money back guarantees are also only about as good as the contact information. Email addresses and post office boxes are not good contacts.

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Article Tags: Home Based Internet Business, Recruit, Legitimate Opportunities, Online Based Business Opportunity

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William Drapcho is the owner of http://williamdrapcho.com and writes on many different topics. You can find out more by visiting his site, and signing up for his free home computer business ideas newsletter.

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