Is This Home-Based Business Opportunity a Scam?

For a wide variety of reasons, home-based business opportunities appeal to a great number of different people. It sounds like a dream come true, doesn’t it? Not having to deal with the morning commute, being able to instead throw on a pair of slippers and sit at a desk in your own home.


But, as you might imagine, there are more than a few crooked business people out there who prey upon entrepreneurs’ desires. So, if you’ve been considering pursuing a business opportunity that allows you to work from home, then perhaps you should take a look at this brief guide we’ve put together to help you decide whether or not that home-based business opportunity is legitimate or otherwise.

Here Are Some Work-at-Home Opportunities to Avoid:

In discussing home-based business opportunities, the Federal Trade Commission (FTC) calls attention to some notable ones that are almost always scams. For that reason, you should avoid offers like these at all costs, and instead research others that actually offer you the chance to build a legitimate business with tangible profits.

  • Letter Stuffing: If you’ve ever wondered if letter stuffing is a scam, then let us be the first to tell you that it is. Basically, this business functions as a low-level pyramid scheme, one which can rob you of much of your hard-earned money. Avoid this business opportunity at all costs.
  • Home Assembly: This is another fairly common work-from-home business that you’ll see offered, and it’s almost always a scam. The FTC notes that these businesses will ply away your money by requiring you to purchase equipment in order to get started. After you’ve done this and begun to build products, they’ll then fail to pay you for the products that you’ve produced by claiming that they’re not up to par.
  • Conducting Online Searches: This one has scam written all over it. The advertisements for these kinds of programs offer ridiculous levels of earnings, and they are basically glorified schemes designed to fish for people’s financial information. Send these business opportunities to the trash can, just like you would that email that promised you an inheritance from your estranged aunt in Zimbabwe if you provide your bank account number.

There are, naturally, many more scam home-based business opportunities than the ones listed above. However, if you’re familiar with these, as well as the tactics they employ to lure people in, then you’ll be able to spot other similar schemes.


Of course, there can be exceptions to the rule, so if you’re honestly tempted into believing that a business opportunity similar to the ones above might be okay, then by all means do some investigating. However, when you do so, be extra vigilant. One great way to truly assess whether or not one of these business opportunities is legitimate is by requesting a list of other people who have signed on. If you get an extensive list of names with contacts, and after talking to those people you feel okay, then everything might be on the up and up. If, on the other hand, you receive just a handful of names, then it’s likely that the claims that have been made are exactly what they seem to be – too good to be true.

Legitimate Home-Based Business Opportunities

By now, you’re probably wondering if any opportunities out there are truly legit. The answer is yes. There are absolutely plenty of legitimate home-based business opportunities that many entrepreneurs such as yourself have pursued. In fact, many entrepreneurs have been able to use just such a business to move on to bigger and better things.


Here’s the long answer, though. The reason you might not be hearing as much about these opportunities is that they actually require work! Working from home is certainly a dream, but you still have to motivate yourself to stay focused with all of the distractions that working from home brings. In addition, a legitimate home-based business opportunity will typically require some significant startup fees.

Of course, if you’re really possessed with the entrepreneurial spirit, then there’s really nothing stopping you from working from home today. You’ve just got have the idea and the gumption to follow through with it. But, if you’re a little lacking on the inspiration front at the moment, then don’t despond. There are plenty of websites that pull together information about business opportunities that you can pursue within your own four walls.