How to Tell a Work-at-Home Scam from a Real Opportunity

File this under the "this should go without saying but it still trips people up" category. Hence I'm going to run it.

Yahoo has an article on how to tell a work-from-home scam from a gem which includes the following:

Know the signs of a scam. This is where your instincts come in. If it sounds too good to be true, it probably is. That said, there are some distinct signs of a work-at-home scam, starting with overstated claims of what you'll be able to earn, of a product's effectiveness.  A safe rule of thumb to follow is if you're asked to pay money up front, forget about it.

Know common work-at-home scams. Some of the more prevalent scams include at-home assembly jobs, such as craft kits. Think about it: Have you ever had to pay an out-of-the-home employer money before you are paid a salary or commission? (Excluding franchises, that is.) Other common scams involve envelope-stuffing jobs, chain letters and "online business" opportunities that, again, ask you to send money for a disk, which often turn out to be poor business leads that you have to pursue on your own.

Use reputable web sites to find and vet work-at-home opportunities. There are work-from-home jobs that will provide the flexibility and pay many are seeking, but you've got to do some research to make sure they are legitimate. To check out a company, start with the Better Business Bureau. If you've got a sneaky feeling that a work-from-home job ad is really a scam, you may find it at scambusters.org, which gathers info on all kinds of online and offline scams.

Basically, use common sense. If it's too good to be true and/or if you're asked to do something strange (pay them in advance, provide a credit card number, etc.), then you should move on quickly.

Here's my question -- what VALID work-at-home opportunities are there in mass quantities? I understand that you may be able to find a local employer that lets you work out of your house, but is there a site somewhere that offers a wide variety of work-at-home jobs? I guess if you have some skill like writing, graphic design, etc. that you could offer your services on elance.com. But is there a list somewhere of ready-made opportunities where someone with any skill level can find an opportunity?

Or what about jobs you create on your own that allow you to work from home? Any ideas out there?

Comments

[Ryan S]

Buying stuff cheap or stuff that is free or heavily discounted due to rebate, and then reselling it on ebay. I did this casually for a few months and eventually was pulling in $600 a month profit. Once my profits got so high, the work to get my business registered with the state and city, state taxes, state tax id, federal tax id, etc. ate so much into my profits that I was making only $2 to 3/hour for my efforts. It's a LOT of paperwork and accounting. Making the profits is easy, proving what portion of your sales is profit to the state is not. So I found better things to do with my time.

[c b]

Off-topic yes but I had never seen 'elance.com' until that post. Thanks!

[Rod Ferguson]

I know of no valid work from home programs (not to say they don't exist, just that I haven't found any) but my experience has been that successful WFH people tend to take an existing skill and market it. A lot of minor brand names out there started because someone had a really good recipe for no-bake cookies, or made their own shampoo as a hobby, or taught themselves how to make something they couldn't get commercially (i.e. - cruelty-free or organic demigloss) and filled a niche well enough for the person to make it their livlihood. My advice to anyone I know who starts talking about WFH is to do an inventory of their skills, chop the list down to what they do well, then see if that short list has anything they do really well or uniquely. Figure out how to mass produce it, research a list of potential distributors and approach them. This can apply to kinesthetic skills (crafts, cooking, manufacturing) or intellectual skills (writing, designing, advising).

[Patty]

Try looking at www.wahm.com. This is a legit website for work at home moms. The thing I like best about this site are the message boards. There are many mom's on there that are working at home. The message boards can give you an idea if something is worth trying or not. Check it out.

Working at home is the wave of the future, my friend.

[Karen]

The usual sucessful suspects for working from home, as you mentioned, involving marketing a skill you already have - writing, design, tutoring, etc. I tend to think that most of these work-from-home jobs that involve selling products of some sort are scams, and in my mind this includes the well-established companies like Avon, Tupperware, etc.

I am expecting my first baby in August and work part-time in a non-traditional legal position. It isn't quite enough, so I hope to develop a part-time freelance writing career. My husband is a teacher, and is hoping to put together a part-time tutoring business on the side. Both of these potential work-from-home businesses have very low start-up costs and rely on existing skills. I think where people get in trouble is when they start shelling out money for products or "plans" to get them started.

I spent $56 on books about freelance writing - I might even let myself spend $44 more. After that, I need to work on bring money in from writing before I spend another dime.

[Danny Gamache]

There are a good number of legitimate home business opportunities out there. These are good guidelines, and there probably should be more.

I would however say that even legitimate businesses can require an upfront cost. After all, that makes it a business rather than a job. This amount should be minimal, probably under $100 to about $300 at the most. This should also come with a money-back guarantee.

Some other tips:
1. Make sure you learn background about the company - run from anything that says "ground floor". The company you partner with (remember you may be independent but you will be partnering with them), should be at least 5 years old, and bet yet 10 years old.

2. Watch for hype. If the presentation focuses on how much money you will make it is likely not a good long-term business. Instead look for companies that allow you to promote a legitimate product line or service.

3. Give the products/service and the business a 90 day test drive. Find out if the products are good enough that you would purchase them without the business opportunity attached. Secondly, learn from the company's material about how to build a business and ask a few people to try it with you for this time. This will give you a good flavor for the company.

I've worked part-time from home for over 12 years. I've developed a passive income of about $700 plus significant bonuses when I put in extra time.

Danny

[Frugal Momma]

I have been working at home for several call centers doing everything from taking orders for informercials to customer service to hotel reservations. I usually work early morning hours and while the kids at school.