How to identify a work-from-home scam

business trendsStarting a small business from home definitely has its perks, including time to run errands during the day, increased workspace flexibility, and money saved on transportation. So if you encounter a company that claims to give you the freedom to work from home, it can be tempting. However, not all home-based business programs are as good as they seem. Here are a few ways you can identify home-based business scams:

  • Read the terms and conditions on the company’s site very carefully. You may be asked to pay a small fee for the start-up DVD or instruction guide. Be sure you can return this material without incurring even more fees.
  • Look for money-back guarantees or free, no-obligation trials.
  • If you can discuss the program directly with a representative, then there’s a good chance it’s a legitimate home-based business opportunity. Be wary of people who are evasive about your questions, pressure you into signing up, or insist that you pay for more information.
  • Companies that insist you must spend exorbitant amounts of money in order to work for them are usually not reputable.
  • Research the company as thoroughly as you can. Do an online search of messageboards, member blogs, and review sites. Talk with people you know who may be involved with the program.
  • Be suspicious of sites that boast mind-blowing income promises. No business can promise you $25,000 a week for four hours of work. If it sounds too good to be true, it probably is. Trust your instinct!
  • Even if promises of great income seem realistic, many companies post the income expectations of their highest earners – not the average.

For more information, check out what our GoForth Expert Carla Young had to say about finding legitimate home-based business opportunities.


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