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Sunday, June 04, 2006

Work at Home Schemes and Scams

Sophisticated hype abounds on the Web these days, so be careful when you start out on the work from home path. Preservation of capital is still a basic rule of wealth building, but the scammers want you to give up a portion of your capital to them. Here are six tips for recognizing a scam. One needs to run through this checklist every time a new internet "opportunity" is being considered. These are things you will want to avoid.

1. Any deal you do not completely understand. The big print might make absolute sense or get your attention. It is the fine print that will be the determining factor, though. If you actually read the fine print you might be losing more than gaining. The more important your deal the more important it is for you to read and understand the terms. Ask multiple questions and get legal help if need be.
2. Any deal requiring multitudes of money up front. Do not spend all at once. Make sure you will get what you pay for. You want to be sure that the golden egg in that basket is real before the scammer has your cash.
3. Any deal you are asked to do in a hurry or under the pressure of time. Time should not be important when making a business deal. Both parties will want to be sure they know exactly what they are getting into. If someone is trying to rush you in making up your mind it is because they do not want to give you time to consider the negatives, or perhaps to realize it is a scam.
4. Any deals with people or companies you have never heard of or do not know. Let people know that you will be checking out their business and background. This will hinder them from wanting to lie to you. Make sure you follow through and find out all you can.
5. Any deal into which you are being manipulated or schmoozed. If some one is trying to bully you, charm you to death, or anything else. Just let them you know what they are doing and walk away, or simply walk away or hang up (you owe them nothing--not an excuse, not an explanation, not even a goodbye).
6. Any deal that looks like a pyramid scheme. These scams are made to look like legitimate MLM and network marketing business but are illegal. The earlier people in the plan get paid with money taken from the new people. These companies have you spend thousands of dollars up front and claim you will be raking in the money in weeks.

The most important thing to remember is that if it is too good to be true then it is untrue. There is probably not a person on the planet who would not want to get rich quickly. Some people have gotten rich quickly, but not many. People who have more money than they know what to do with usually earned it over time with hard work and perhaps a sprinkle of good fortune, such as being at the right place at the right time (or else someone who worked for it willed it to them). I wish you a wisely navigated business journey!