The Internet is littered with offers for home-based business opportunities that promise big profits for easy work.
But many of these offers, which range from envelope stuffing to medical billing, are really scams that prey on people’s aspirations to work for themselves.
Business opportunities share three characteristics: a solicitation to the buyer, a mandatory payment to the seller, and a promise to help the buyer find locations or leads that will bring profits.
The 10 Most Common Home-Business Scams
1. ATM Machines
2. Envelope Stuffing
3. Home-Based Product Assembly
4. Internet Kiosks
5. Internet Storefronts
6. Medical Billing
7. Multi-Level Marketing
8. Pay Phones
9. Rack Displays
10. Vending MachinesPhoto by BusinessWeek.
Is That Biz Legitimate or a Scam?
August 19, 2008 by Rich | 7 Comments
In Advice, Internet, Scam
Vlad (Small Business Blog) on August 19th, 2008 at 2:07 pm
What’s wrong with medical billing? I know people who do just that.
BTW, never heard of ATM machines as home business…
Brandon Smith on August 19th, 2008 at 2:39 pm
I think one of the problems is that there are so many scams out there that legitimate businesses can’t even break through the clutter.
You either have to spend the $10k to advertise on Entrepreneur.com or you are forced to swim with the muck rakers.
If I didn’t have a good referral line (and a legitimately good opportunity) I would be toast.
Dane on August 19th, 2008 at 4:13 pm
You can advertise here for much less than $10k, and we don’t allow any muckrakers!
cassy on August 19th, 2008 at 6:21 pm
I think whats wrong with this medical billings is that people can easily get medical certificate without any proper medical check up or even if he/she really dont have any illness, as long as he/she can pay.
James Getten on August 20th, 2008 at 7:51 am
If I had the money back that I’ve spent to find a good Internet business, I could retire.
Brandon Smith on August 20th, 2008 at 12:42 pm
I agree. I have come so close to putting up a website that weeds through the junk and only posts legitimate offerings, but my boss mentions to me (and he is correct) that it is out of scope for what we do.
I haven’t read this blog too much, but it looks like this may have the potential for that.
I am purposely not posting my offering (that wouldn’t be kosher in the comments I am sure) but I am looking to possibly advertise it here.
Boy it does look different than a lot of biz opps.
annalaurabrown on August 20th, 2008 at 4:41 pm
Why is multi-level marketing considered a scam? Yes there are companies out there who pretend to be viable MLM’s and are not but as a rule Multi-Level Marketing is a completely legal and viable home business.