How do I avoid getting scammed when looking into a home-based business

home-based businessOne of the biggest risks for people who consider running a home-based business is getting scammed. There are a lot of business opportunities that seem to be lucrative, but actually turn out to be scams.

The good news is that there are also many other legitimate enterprises that can be run from home. The problem often lies in distinguishing the two. Here are some things to keep in mind to avoid getting hooked into a fake home-based business.

  • Run a Background Check – Anytime that a business is being considered, the first and most important thing to do is run a background check. Chances are, if the company has ever been involved in anything dubious in the past, other people will have something to say about it.

A simple search on the internet with the business name can bring up any results of swindling in the past. It may also be good to ask people who have actually invested in it.

The local business bureau may also be able to share feedback from actual past clients. Also, check the website and contact information. Many scammers use free services for webhosting and email services.

Not having an actual address or phone number and using a P.O. box are not good signs. These may mean that there is no actual way to get in touch with the company.

  • Don’t be too Quick to Pay– Many home-based business scams often involve a person shelling out some amount of money before they can start earning.

In some cases it’s okay to make an investment up font, such as when you’ll be receiving something in return. Examples of these include products for re-selling, a start-up kit for the business, that sort of thing.

However, any time money is asked for without anything in exchange, think twice. Such payments are often disguised as registration or sign up fees. Often, there is no need to pay a certain amount in order to get work or information about work. If there is a need to make a payment or purchase, then use a credit card. This way, there is an opportunity to cancel the transaction if it turns out to be illegitimate.

      •  Too Good to Be True Deals– does the home-based business you’re looking into promise a lot of money in return for minimal work? Does it promise truckloads of money overnight? Be wary. Get-rich-quick offers and too-good-to-be-true deals are often nothing more than rip-offs. While there are lucrative businesses out there, something that promises something for nothing is simply bait for people to give their money to scammers.

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