As more people look to owning their own home business, sometimes they are blinded by their own ambition and don’t see the red flags that warn them of scams and outright fraud. Searching through the internet, there is no lack of opportunities to work at home and make money, and even some of them are legitimate. The old caveat of buyer beware is best remembered before you spend your money to own your own online business.
Franchises have been around for decades offering everything from cleaning company franchises to nationally-known restaurant chains. Benefits include having a proven business model and corporate support as well as national advertising. On the downside, you don’t really “own” the business since, by contract, you have to follow the rule the franchised business owns it. All you have is the right to operate the unit for which you have paid.
Online franchises are essentially the same and yes, they will charge you for the opportunity to own your own business. Just line off-line franchises, there are some important things to look for when considering investing in an online business. Some of the things to look for include:
• What do you get for your money?
• What level of support is available for the business?
• How is your money being used to support your individual unit?
• Is there accurate and up-to-date contact information available?
• Is there a non-internet location for the business location?
Red flags that hint the offer is not legitimate include:
No contact information: This means more than just an email address. It only takes a couple of minutes to set up and email address and less time to delete it.
What are you selling for the business? If you have read through the first two or three pages and have no hints as to what the business does, close the page and move on.
Is there a physical address available? Most fraudulent online business offers will not have an available address to which complaints can be sent. Most scams will have little or no contact information and finding the people to whom you will send your money exist only online.
What do you get for your money? The only way to make money is to offer a tangible product or service to others. Targeted advertising that brings potential customers to your site is an important part of any online business model. Many of these fraudulent online offers leave it to the new franchiser to advertise their own site. Otherwise the effort, and money, takes visitors to the main company’s site. Remember, you only get paid if sales are made through your individual site.
How do you earn money from your business efforts? One of the reddest of flags is the promise that you make more money recruiting others into the business than actually selling merchandise. Most of the online scams offer payment for recruiting others into the business and many times it pays more than your commission for selling whatever it is you’re selling.
When considering investing in an online business it pays to remember two very important business strategies. First, if it sounds too good to be true, it probably is and second, a sucker is born every minute. It pays to be skeptical when considering any home business offer in order to protect your cash.
