Home-Based Businesses: Legit or a Scam?

We’ve all daydreamed of the wealth and freedom that a home-based business can provide. And, the extra income and flexibility they seem to promise is even more alluring when times are tough and budgets are barely balancing. Scammers’ claims prey on these very ideas and hopes: “Be your own boss. Work from the comfort of home. Make unlimited income quickly. Kiss that tedious commute goodbye. And all for only $19.95!”

Think about the ads you’ve seen and the offers you’ve probably received promoting high-paying, home-based job opportunities that require little-to-no skill and a minimal investment of time. According to Accel’s financial counselors, the vast majority of home-based business opportunities are scams. And usually, those making the offers stand to benefit financially in significant ways, so they’re relentless in their attempts to get you to buy in.

So before you jump on an opportunity you can’t refuse, here are a few hints to help you ensure your home-based business opportunity is in fact an opportunity, rather than a future financial problem.

Five scam-avoiding rules to live by:
1.  NEVER pay to work! You wouldn’t pay to interview with a company, would you? Beware of offers that require fees to learn more. If “start-up materials” are required, make sure they have a real-world value—which leads us to the next rule…

2.  Research, Research, Research. Get your Google on. Talk to others. Find out everything you can about the company and business being offered. Make sure the company has a reputable name, a physical address, and a telephone number you can use to cross-reference your research.

3.  Beware of incredible claims. Every scammer promises unlimited wealth for easy, unskilled work. So if a claim sounds too good to be true, it probably is. Like any line of work, a home-based business will require skill, effort, and an investment of time.

4.  Be patient. Avoid high-pressure, limited-time offers. If you’re looking to start a home-based business, you have a lot of work ahead of you—so don’t let anyone rush you. Also, avoid divulging any personal financial information on forums or message boards—scammers prey on desperation.

5.  Delete your spam. There’s a saying, “If it’s spam, it’s a scam.” Fraudulent offers for home-based businesses almost always arrive as unsolicited e-mails. And, the better the offer sounds, the less likely it’s legitimate.

If you have any questions, feel free to contact an Accel financial counselor for advice on this or any other topic regarding your financial well-being.