As with anything new you to decide to try there is some risk involved. By using some common sense & doing a bit of research you can reduce the risk of having a bad experience.
Today I’m going to talk about the top work from home scams. Please bear in mind that not every single one of these is an absolute scam, but in my opinion all of these are risky & not the most effective way to make money working from home.
If you don’t have time to read the list then my advice is to follow this one simple rule; If it seems too good to be true, it probably is.
There is no shortcut to magically creating a profitable business (believe me because I’ve tried!). The people who try to sell you a dream which involves you making lots of money, travelling round the world & hardly working, they are just selling a dream.
They are capitalizing on your emotional need & desire for freedom – for some people this desire for freedom is so intense that they will believe anyone who tells them if they buy this course or do this exact thing or method then they will have anything they want.
Creating a real business, which is profitable & secure takes work and time. Sorry to be a kill joy! However there is an upside to that. The journey you go on, and the person you become in the process of building your business will be far more valuable than the money or freedom you get out the end. Do it properly and that is where the real rewards lie.
You’ll look back on everything you have achieved with great pride and it will give you greater confidence to move forward and achieve even more in your life.
Let’s look at the top work from home scams so you can avoid them!
Avoid Multilevel marketing, pyramid schemes
I am always a little bit sad when I go to a networking event and meet people involved in these types of businesses. The people I speak to are adamant that they make money and that it is a good business opportunity. But I just can’t see it.
A business where you have to invest your own money in product and can’t even make a good return on selling that product just isn’t a viable business model. The only way you make money is by convincing other people that this is a good business model & getting them to join you.
And then you all try to sell your product to your friends & family, most of whom will probably have a pretty poor opinion of these types of businesses and won’t be very keen to buy from you.
So in the end you just end up as a sleezy salesperson whether you think you are or not – thats what other people will immediately be feeling because of the stigma attached to these type of businesses.
Mix this with the fact that only a very small % of people at the top of the pyramid actually make decent money out of it. The effort & knock on your reputation does not justify the reward. Stay away!
Avoid business start-up kits
There are some companies which sell “everything you need” to start your own business. They will sell you a concept for a business like, “Selling succulents online” and then provide you with a website & social media profiles with the branding all done for you.
They’ll give you a pack of information about how to launch your business including templates for legal documents etc. It is very easy to think this is a fast track way to owning a business. Don’t be fooled into thinking that at the end of this process of setting up you will have profit in your business.
You will have a concept, a website & some social media profiles. You’ll have the framework but you won’t have a business. Business start up kits don’t include clients ! The most important aspect of your business.
Without clients you don’t make any money at all. In fact, it would be better to spend your time and money on getting clients first and ignoring the website until you have money to invest in it.
Do not wire money to anyone!
If someone asks you to wire them money so they can wire you money then stay away. This is just basic common sense. Never randomly send money to someone you have never met.
This is actually the reason why getting clients can be hard, because if you are getting clients from online, then that’s what you are. A random person online asking for money.
This is why it takes time to build up a business, you need to build up a reputation. Testimonials, reviews, past projects all help to convince future clients of your legitimacy.
Stay away from re-selling or wholesale
I’ve looked at these types of businesses when I was starting out. There are lots of “entrepreneurs” online which suggest that the best way to start a business now is to re-sell products.
You buy from Alibaba or some low cost website and then market it as a more premium product on another site or platform and mark up the cost. A couple of years back I thought I would try this with a jewellery line. So I created a website and started researching products on alibaba.
Then it got to writing the product descriptions and that’s where it ended. This is an icky, icky type of business to get into ! The only way to make money from this business is to basically lie about where the product came from in order to sell value which is not there. Do you want to create a business which makes money out of lying & selling poor quality product?
Avoid trading scams & trading bots / systems
Do you remember when the bankers lost a lot of money which led to a giant crash back in 2008? Trading is not easy. Traders like us to think that they can guess the market but in reality it is incredibly difficult to do that.
If you think you can predict the future with all of the millions of variables then why not just win the next lottery? Stock trading systems promote themselves as a way to beat the system a fail proof way to turn a small investment into a larger one.
In my opinion, when it comes to investing advice I’d rather trust one of the richest men in the world Warren Buffet, who is very cautious about where to invest & tends to stick for a long time to one particular strategy with the general idea being that on the whole, the market will rise over time. Buying a selling in quick succession like a trader adds a lot of risk and even more when you have no idea what you are doing.
Online surveys & mystery shopping is a waste of time
Taking online surveys & Mystery shopping
These aren’t exactly scams in the traditional sense. But in terms of how many hours you invest into doing these activities vs the money you get out its not worth it. You might as well go and get a job in a supermarket.
Don’t compete with data entry or call centers
Again, not always a scam but not worth your time even if it is a legit opportunity. I’m going to quote T Harv Eker (by the way his courses are one of the few I actually got benefit from) here: “If you are willing to do only what is easy, your life will be hard. But if you are willing to do what is hard life will be easy.”
It doesn’t take much skill to enter data or do tele marketing or customer service type jobs. Yes, you can do them from home but think ahead, where will you be in 5 – 10 years?
Very likely still doing Data entry or working in a call centre, there isn’t a great progression in this type or role as the skills are not highly valued and you are also competing with a lot of other workers in countries that will work for $3 an hour.
Thats my list of the top scams to avoid. Believe me, I know how easy it is to get sucked in and think there must be a shortcut. I’ve wasted money on plenty of courses & “systems” that suggest they have the answer.
And every single time I am completly dissapointed after logging on and releasing they don’t have the answer I am looking for – because the answer is – working hard !! You just can’t get around it. Result takes effort.