The Top 10 Home-Based Business/Work-At-Home Scams

The Top 10 Home-Based Business/Work-At-Home Scams Note: These scams are not ranked by dollars lost or people scammed. In fact, there's nothing scientific about the list. It's just the ten home-based business scams we find the most disturbing.

10. Craft Assembly

This scam encourages you to assemble toys, dolls, or other craft projects at home with the promise of high per-piece rates. All you have to do is pay a fee up-front for the starter kit... which includes instructions and parts.

Sounds good? Well, once you finish assembling your first batch of crafts, you'll be told by the company that they "don't meet our specifications."

In fact, even if you were a robot and did it perfectly, it would be impossible for you to meet their specifications. The scammer company is making money selling the starter kits -- not selling the assembled product. So, you're left with a set of assembled crafts... and no one to sell them to.

9. Medical Billing

In this scam, you pay $300-$900 for everything (supposedly) you need to start your own medical billing service at home. You're promised state-of-the-art medical billing software, as well as a list of potential clients in your area.

What you're not told is that most medical clinics process their own bills, or outsource the processing to firms, not individuals. Your software may not meet their specifications, and often the lists of "potential clients" are outdated or just plain wrong.

As usual, trying to get a refund from the medical billing company is like trying to get blood from a stone.

8. Email Processing

This is a twist on the classic "envelope stuffing scam" (see #1 below). For a low price ($50?) you can become a "highly-paid" email processor working "from the comfort of your own home."

Now... what do you suppose an email processor does? If you have visions of forwarding or editing emails, forget it. What you get for your money are instructions on spamming the same ad you responded to in newsgroups and Web forums!

Think about it -- they offer to pay you $25 per email processed -- would any legitimate company pay that?

7. "A List of Companies Looking for Home workers!"

In this one, you pay a small fee for a list of companies looking for home workers just like you.

The only problem is that the list is usually a generic list of companies, companies that don't take home workers, or companies that may have accepted home workers long, long ago. Don't expect to get your money back with this one either.

6. "Just Call This 1-900 Number For More Information..."

No need to spend too much time (or money) on this one. 1-900 numbers cost money to call, and that's how the scammers make their profit.

Save your money -- don't call a 1-900 number for more information about a supposed work-at-home job.

5. Typing At Home / Data Entry

If you use the Internet a lot, then odds are that you're probably a good typist. How better to capitalize on it than making money by typing at home?

Here's how it works: After sending the fee to the scammer for "more information," you receive a disk and printed information that tells you to place home typist ads and sell copies of the disk to the suckers who reply to you. Like #8, this scam tries to turn you into a scammer!

4. "Turn Your Computer Into a Money-Making Machine!"

Well, this one's at least half-true. To be completely true, it should read: "Turn your computer into a money-making machine... for scammers!"

This is much the same scam as #5, above. Once you pay your money, you'll be sent instructions on how to place ads and pull in suckers to "turn their computers into money-making machines."

3. Pyramid Schemes (this is NOT the same as Multi-Level Marketing MLM)

If you've heard of network marketing (like Amway, Mary Kay or Pampered Chef), then you know that there are legitimate MLM businesses based on agents selling products or services.

The problem arises when there is no legitimate product or service at all and it is all about finding new recruits rather than selling products or services, beware: The Federal Trade Commission may consider it to be a pyramid scheme... and not only can you lose all your money, but you can be charged with fraud, too!

2. Chain Letters/Emails ("Make Money Fast")

If you've been on the Internet for any length of time, you've probably received or at least seen these chain emails. They promise that all you have to do is send the email along plus some money by mail to the top names on the list, then add your name to the bottom... and one day you'll be a millionaire.

Actually, the only thing you might be one day is prosecuted for fraud. This is a classic pyramid scheme, and most times the names in the chain emails are manipulated to make sure only the people at the top of the list (the true scammers) make any money.

This scam should be called "Lose Money Fast" -- and it's illegal.

1. Envelope Stuffing

This is THE classic work-at-home scam. It's been around since the U.S. Depression of the 1920s and 1930s, and it's moved onto the Internet like a cockroach you just can't eliminate.

There are several variations, but here's a sample: Much like #5 and #4 above, you are promised to be paid $1-2 for every envelope you stuff. All you have to do is send money and you're guaranteed "up to 1,000 envelopes a week that you can stuff... with postage and address already affixed!"

When you send your money, you get a short manual with flyer templates you're supposed to put up around town, advertising yet another harebrained work-from-home scheme.

And the pre-addressed, pre-paid envelopes? Well, when people see those flyers, all they have to do is send you $2.00 in a pre-addressed, pre-paid envelope. Then you stuff that envelope with another flyer and send it to them.
So....please beware....of these scams. There are some legit home businesses out there so be careful. Look for companies in business over 10 years. Look for companies with a needed product or service, something you would be proud to represent. Look for companies that have a national reputation and are members of the US Chamber of Commerce.

Also, don't be hung up on the BBB either. Did you know, common misconception here, that the BBB is NOT a government regulated agency? That in fact, they are local independently owned franchises where anyone, who pays the right price, can be a member in “good standing”. Now, don’t get me wrong, they are a good way to see about some companies but they are by no means the end all be all of determining a company’s worthiness. Again, anyone who pays enough money can have a high ranking with the BBB. This was just an FYI.

As for those of you who say…..”I want to work from home but I don’t want to have to pay for anything”. Well, that’s great! But it will never happen. Let’s be honest, there is no such thing as a free lunch. As we talked about in the previous post, there is a difference between a job and a business. You should NEVER have to pay for a job….but again…chances of finding a home job are about 3%. At any rate, if it is a true honest home business you need to expect to pay….Mr. Walt Disney didn’t start the Disney empire “without paying for anything”. Neither did Mr. Sam Walton, owner of Wal-Mart.

Real small home businesses have some small costs involved, less than $500 to start is reasonable and I would stay away from those wanting $1000-$5000. It doesn’t cost that much to start and run a home business so you shouldn’t pay it. The real ones will have a small monthly overhead as well. It should be around $50 a month but no more than $75. And everything should be included from your websites to training and team support to back office accounting, booking, payroll, processing, credit card processing….basically everything. It’s ok to pay this overhead because it’s a business, they cost money.

It’s not reasonable to assume you can run a business from home with a website, accounting, bookkeeping, payroll, processing and more for free so do keep that in mind as you search.

If you are coming across places that say free then I would RUN don’t walk the other way! They never are. I tried them many a times and 3 weeks later I had to buy this and 6 weeks later that. After 6 months these “free businesses” had cost me over $800 on average. What’s worse, in many cases, these “FREE” home businesses will have you work and work and promise a monthly check….a check that you will never see. If it’s free, simply, it’s not real and will never create a real income you can live off of. I’m not talking about $30 bucks a month here, who can live off of that?