View Full Version : Identifying Work at Home Scams

07-23-2006, 09:11 PM
The first thing you should do to avoid being a victim of a work at home scam is to become aware of types of opportunities that are most commonly scams. Here, we discuss some examples of such work at home scams, so that the next time you come across such a sale letter or advertisement, you will be well-equipped to differentiate between the genuine and fake ones.

Chain Letters/Emails

If you are a frequent visitor of the Internet, you might have come across chain letters or emails promising that if you send a specific amount to the top addresses on the list and pass them on to more addresses, you can get your name added to the list, and thus you can become a millionaire because other people will send you money as well. Well, these mails are framed in such a manner that only the top names receive all the money, leaving you trapped in cases of fraud.

Typing At Home

If you are a frequent computer user, then your typing speed is bound to be good, and what better way to capitalize on it other than getting to do some typing work at home. Well, don’t jump on all such opportunities, as most of them are deceiving. Such advertisements send you a disk and printed information, for a fee. All you need to do is to type these home typist ads, place them on the Internet, and sell them to more people like you. So, you see this scam is trying to turn you into a scammer.

Well, besides these two work at home scams, there are many more baits lying there for you. So, here we give a list of some of them.

* Email processing – Just read emails and get paid $3/per mail.
* Craft assembly for $600 a week. You have to call them and they send you a pamphlet with 100 companies to call, these companies will ask you to send $20 or $30 just to get the start up kit.
* Multilevel marketing (MLM)
* Email processing
* Typist- All you need is a computer and internet connection. What they omit to tell you is that you have to post the same add you responded too.
* Newspaper clip assembly. Get your local newspaper and send particular clips for $5/clip.
* Stuffing envelopes for $2. And the list goes on.

Besides most work at home scams do not offer salaries nor do they guarantee a regular income. For some of them, you have to invest a small fee to be part of the members or buy the product and they neglect to tell you that you have to work quite a few hours before you can ever see a penny. Never give out personal information. You can check the credibility of the company via the Better Business Bureau and see if they are legal or had any complaints or you can check with the FTC (The Federal Trade Commission) call them toll-free at 1-877-FTC-HELP. That's 1-877-FTC-H-E-L-P.

Note: If you feel suspicious about an opportunity, do a search on Google.com with keywords: COMPANY NAME Scam. You'll most likely come across discussions pertaining to the opportunity, if it's a scam.

07-24-2006, 06:06 AM
The ONLY way to avoid being scammed is to ALWAYS, Always, always READ the POLICIES & PROCEDURES (P&P) in conjunction with the Terms & Conditions AND Compensation Plan. How Many pages? (Less is usually better) Whom does it protect? Is the Comp plan set up to favor/ protect distributors or the company? Does it allow for "walkaway" recurring income? or are there loopholes to steal your commissions someday? Does it have a LONG TERM focus with a solid foundation, or is it a "get rich quick" mentality? Run from Startups as most crumble before 2 years!

Unfortunately we tend to get sooo excited just by what they've written on their website... AND we BELIEVE EVERYTHING we read WITHOUT bothering to test the writings OR ASK QUESTIONS! We're so happy to have found something that we think is "Up Our Alley" :) that we just sign up. :( We're too quick to check that little box that reads "I've Read the Terms and Conditions, Policies and Procedures and Compensation Plan Agreement and I Agree with them!" been there, done that - had to learn the hard way........ AND I learnt!!

May I ask you a simple question? When you purchased your home, piece of real estate or car didn't you read your contract/agreement/ paper work? If you didn't you probably asked your atty to, right? Work at Home businesses are no different! In fact they have EVERYTHING to do with dipping their hands into your wallet and/or yours into theirs, because money WILL be changing hands, which means that you HAVE to adopt a business minded attitude.

We think that because we do the work the company will pay us. Hmmmmm! Huh!
Study the Comp Plan! Yuk, yes I know it's probably not your forte! Ask yourself, does it pays the part-time average person a fair percentage? Does it reward more for promoting products NOT for recruiting reps? Does it pay on VOLUME for your entire group - not levels - The Compensation Plan WILL ALWAYS Drive the BEHAVIOR in the field. Where's the BREAKAGE? (breakage goes to the company!) What are the REAL/ACTUAL commissions? If you stopped recruiting today, would your check continue to grow? Most importantly What type of Comp Plan is it? If you want help with this, I'll mentor and coach you until it's clear to you, so please email me!

Crunch those numbers: Ask yourself how many people/product sales do you require in order to generate $100 per month. Based on the plan and bv/bp/cv - no fast starts etc. Once you've worked out $100 it's easy to get to $500, $1k, $10k. How STREAMLINED is the company? If you want help understanding this, please make contact with me, I'll help you.

Stay away from single product focus companies! Ask me why when we talk! AT&T and many others found out the hard way!
ALWAYS do a google/yahoo search on the "company name, scam"
Go to their "About Us" page and do a google/yahoo search on the "company management, scam" - Investigate the leadership... do they have integrity? If their P&P has words like "ongoing", "continued performance", "with or without cause", "for any or no reason" = BIG red flag with NO integrity as these are some of the loopholes to steal your commission one day (not when you're earning $1k pm rather when you're earning $5k, $10k, $20, $100k per month.) ... and you thought they would never apply those P&P on you? :) You'd better think again! Besides myself, I'll introduce you to many others! And if they tell you "Oh, we'll NEVER use those clauses against You" ask them why they're in there to begin with if they don't intend to use them....... :)

Does the Company Leadership have Proven Experience in the Business You're looking at & wanting to work? Have THEY built it or done the work? or are they a bunch of suits telling you what to do and they've NEVER built an organization in their life?

The Great things about Your Home Business are:
1) You get to pick the people You want to work with.
2) You get to pick the hours You want to work
3) You get Great Tax advantages for having a home business
4) There are Great travel opportunities
5) And You become Successful by helping other people become successful

And if you're not having fun in your home biz, you're doing it wrong... it's that simple.... however that can be changed.

This FREE eBook (http://robdora.bigmlmlies.com/?mad=6022) WILL provide you with the Truth & Save You Years of Failure and Frustration. It's 100% generic, NO affiliate links, NO companies or products mentioned and NO gotchas at the end to buy anything. It's the straight scoop. I'd like to offer this as my free gift to you. NO nwm should be without it.

"Dream Big, Dream Often"

07-26-2006, 11:26 PM
* Multilevel marketing (MLM) * Multilevel marketing (MLM) It never ceases to amaze me the extreme polar views on the topic of network marketing and MLM. Some people are passionate about it in the extreme, and there are even top celebrity authors like Robert Allen, Mark Victor Hansen, and Robert Kiyosaki doing it and advocating it. Yet, in many circles, you might as well declare yourself a leper as admit to being in network marketing.

Here's a bit of information on MLM's:

Maybe it’s the pyramid structure? But you can’t really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.

Or maybe it’s the fact that you have to pay to participate in it? But that can’t be it—that’s a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM program by comparison.

Now certainly, there are illegal pyramid, or “Ponzi”, schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered.

The Harvard Business Review will tell you to look at the following in a business and if any one does not make sense, don't invest.

1 The Company: Is it a solid company? Has it been around long enough to establish some serious credibility? Is it consistently performing and making money?

2 The Product: Is the product or service something that people can use? Would you ever be ashamed to offer it to people? Is it affordable?

3 The Need: It is a needed product or service or a want? (People will usually get what they NEED before they buy what they WANT, with the exception of a few :p-)

4. The Compensation: Can you make a REAL income? How well does the compensation pay? No one wants to work for nothing.

and Finally 5 The Timing: If I were to try to sell you an 8track right now, would you buy it from me? Probably not. 15 years ago cell phones were ghastly and HUGE and they were expensive. Very few people had them 15 years ago. Today, you can't drive a mile without seeing someone on a cell phone in their car or walking. That is TIMING and it is the most crucial part of any business.

30 years ago, medical and car insurance were not common place. Think about this: what is your car or medical insurance payment monthly? Now, how many times have you had to spend a night in the hospital or were in a car accident that caused you to use the benefits that you paid every month for? 1-2 times maybe. Is it worth it to you? Of course, because you know the overall value. Now, think about the same scenerio in a legal situation.. how would you handle it today without a legal plan?

If you still don't understand how this is NOT an MLM, give me a call I'd be glad to send you a visual from the New York Stock Exchange on MLM and a chart reflecting normal attorney charges, from my office.

Have a great day.




07-31-2006, 05:23 PM
I would also add on that you should be able to successfully contact the company via phone without any problems and you should be able to find out exactly where they are located and it is always a good idea to check out their reputation with the better business bureau.