Success Begins with a Book
Debbie Bernstein LaCroix
Success Coach / Usborne Books Supervisor / Children's Book Author
Avoiding Scams
Protect yourself!

 

What is a scam? A scam is a business, job, or opportunity designed to take your money and time leaving you with nothing.

 

Scams prey on those who:

  • Are desperate to make money
  • Really, really, really want to stay at home
  • Can't seem to find something that works
  • Want to make easy money 
  • Are looking for an easy way out
  • Are at the end of their rope
  • Just started looking
  • Don't know any better
  • Are trusting

So always keep your eyes open when applying for a job or requesting info on a business.

One sign of a scam is "claims". 

Think again before joining if they claim the following:

  • Make $500 - $10,000+ amount per week! (or any income claims)
    Look for more info. If they claim you will start out making this, they are most likely lying. You need time to learn the business, build it, create a client base and grow. Also, ask questions. I just learned of a new technique where they are not necessarily lying, but they are not telling you the full truth. They tell you how much they make, but it includes their full time out of home income or other investments--I make $100,000 a year!
  • Easy money!
    Yeah, right! If it really worked, everyone would be rich. They are not telling you about the hard work they put in, or the others they scammed.
  • No selling, no recruiting.
    Again, ask questions. Even if you are signing people up for a membership or service, you are still selling.
  • Risk Free!
    Every business has a risk. There is never 100% guarantee you will make money. Even if they say money back guarantee, there is still a risk. You are putting in your time! Time is very valuable. Plus, chances are the money-back guarantee does not include shipping costs, restocking costs, etc. So be leary of anyone who claims this.
  • Any website where you have to search and search for what they do.
    If you have a great biz, wouldn't you be proud! In a few cases the company will not let them advertise. If this is the case, they should be able to tell you exactly what you will be doing in 1 sentence via email or phone.
  • Websites that hype money more then product.
    They are more focused on signing you up, and getting you to sign up others then what the company is about. Ask yourself if you feel good about that. My belief is you need to love your product. These businesses push it doesn't matter what you sell.
  • Any biz that spams your email or message boards
    Do not respond to jobs that land in your email box. Do you really want to work for someone who is scamming you? Also, when you see ads on message boards most often it is against board policy. Can you really trust someone who breaks rules and guidelines to help you bring in a legit income?
  • Ads that read: Now Hiring "4" People / "7" People Wanted
    Opportunities that advertise they are hiring a specific amount of people are often scams, or opportunities you will want to avoid. They will take anyone and everyone, and your money.


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JOB SCAMS

Run if they:

  • Ask you to pay for training
  • Ask you to change to their service or to enroll (like LD or internet)
  • Ask you to purchase supplies from them
  • Ask you to pay for processing
  • Ask for any money whatsoever, especially PayPal.

A job is when they hire you. That means they cover training expenses, processing and necessary equipment. It is OK if you need access to a fax, high speed internet, or long distance. However, you should be able to pick your service. 

When checking out their website, be sure to look for:

  • Address
  • Contact info and phone number (Be leery of any website that does not have a phone number and address)
  • About Us

 

BUSINESS/OPPORTUNITY SCAMS

These type of scams prey on selling you information or a dream. Stuffing envelopes and craft assembly are two common scams. With envelope stuffing, you pay them money and they send you a letter on how to scam others.

Many legit direct sales businesses do include a start-up fee. However, be sure to know what you are getting up front. The investment should include things like products, catalogs, or a website. Training is free from your upline. Avoid businesses that require you to pay for extra training.

Examples of scams::

  • Stuff envelopes
  • Assembly jobs (you pay for the materials, and will never pass their inspection process)
  • Chain letters
  • As seen on Oprah letters
  • Anything that asks you to pay for more info
  • Opportunity packets that cost money (Do you really think they will give you your money back?)
  • Unrealistic income claims

HOW TO AVOID SCAMS

The best way to avoid being scammed, is to ask questions! If their answer seems off, or they stammer, be leery.

  • How do I make money with this program?
  • What do I need to do?
  • What products or services are involved? (without a product or service, there is no business)
  • How long did it take you to make that amount?
  • What percent of the company is making that huge claim? (most likely if it is correct, less then 1%)
  • How many hours did you work initially?
  • What type of training is provided?
  • Am I required to purchase anything?
  • How am I paid?
  • How often am I paid?
  • How long has this business been around. Proof please.
  • What is your experience?
  • What do I get for the money you are asking?

**Be very leery of giving out personal information before you are hired, and only after you are 100% sure it is a legit biz.

  • Check with the local BBB
  • Search for complaints online

Remember, before joining something that you are unsure of, visit message boards and ask. http://www.wahm.com is a great board, as is http://boards.babycenter.com/n/pfx/forum.aspx?webtag=bcus9262

Follow your heart! Often times the "easy" answer is the wrong one.

 

Other Scam Resource Links:

Investigations: http://www.sohojobs.org/scams.html

How to spot a scam: http://www.entrepreneur.com/article/0,4621,287579,00.html
http://www.scamfreezone.org/spot.htm

Riley Guide, resources: http://www.rileyguide.com/scams.html

Monster.com article: http://featuredreports.monster.com/privacy/safeworkathome/

Consumerwebwatch: http://www.consumerwebwatch.org/dynamic/fraud-investigation-job-sites.cfm

WAHM Undercover: http://www.wahm.com/under.html