C03 - Sitting Ducks

When you begin to look for easy ways to make money from self-employment and don't know what reality is, you are advertising to the world, "Hello world, my name is Sitting Duck. Shoot me, please."

No one can shoot you, if you understand the truth and know the facts.

In this chapter, you will read about some common scams and learn how to avoid them.

The newspapers, internet, direct mails, spam emails and other media are full of all types of money opportunities. The high sales pitch, incredible promises and fake testimonials make many people respond to these advertisements and lose money quickly.

A few people waste their time and energy on them. For every real opportunity, there will be fifty fake opportunities. When you err on the safer side, sure, you may miss one or two real and genuine opportunities. But, that doesn't really matter because there are thousands of other real opportunities around you.

As ignorance of dangers ahead is undesirable, the information, collected from some government and consumer-protection websites, has been included in this book.

Common Scams
There are two basic types of scams.

In the first type, scamsters tell that you can work from home and do easy tasks where you are supposedly paid by a company as an employee. Work-from-home jobs, unless you create it on your own after careful research, are often just big scams.

In the second type, scamsters promise to help you start your own home-based business. You will be required to buy a startup kit to cover just the administrative expenses of the scamsters. These scamsters target the weak, old, unemployed, women, students and the get-rich-quick dreamers. Generally, they don't target professionals.

There are hundreds of scams. Here you will read about a few of them. If you come across schemes that resemble the following scams, be careful.

Type From Home
You will be asked to send the fee to the scamster for more information. You'll receive a CD-ROM and printed information that tells you to place similar ads and sell copies of the disk to the people who reply to you.

Actually this scam turns you into a scamster.

Another variation is you will be asked to buy a software, computer or manual to standardize the activity so that the quality does not go down.

You will become their employee as soon as you buy it and you will get an appointment letter also. They will promise you endless work when they get that project that is in pipeline from a Fortune 500 company. It will be an eternal wait.

BPO Franchises
You see an advertisement for franchise or subcontract opportunities for once in life time Business Process Outsourcing projects. It says anyone, including you, can handle this labor intensive project that does not require technical knowledge with a few computers. All you need to do is to give them a call. When you contact them for more details you will be asked to pay a big amount, sometimes as high as Rs.15,000, as the cost of application form and brochure. When you get the application and submit it for approval, they will send you a letter of regret promptly after finding out that your experience and infrastructure are inadequate to meet their standards. Of course, the application fees is always non-refundable. They said it right at the first meeting. Didn't they?

Chain Mails, 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. Of course, you will receive real money once or twice and you'll be hooked.

This is a classic pyramid scheme, and most times the names in the chain mails and chain emails are manipulated to make sure only the people at the top of the list, the true scamsters, make any money.

Email Processing
There are many variations of the scheme. One is the classic Envelope Stuffing Scam. For a low price of $49, you can become a highly-paid email processor working from the comfort of your own home.

What does an email processor do? If you think of forwarding or replying customer emails, forget it. What you get for your money are instructions on spamming the same advertisement to others.

Who will pay money for each email you write unless you are a world famous author? Would any legitimate company pay such money for clerical work? If you were an employer, would you be happy to pay?

Creative Work
You will be encouraged to assemble toys, dolls, or other handicraft articles at home with the promise of high per-piece rates. All you have to do is buy the starter kit which includes instructions and parts.

Once you finish assembling your first batch of crafts, you will receive a rejection mail from the company that your work does not meet their high standards. The scamster makes money by selling the starter kits - not by selling your handicraft articles.

Transcription Service
This category includes Medical billing service and Insurance claim processing. You are told that the high income Physicians and Lawyers in the United States are busy. They don't have time to write down the details of their clients. So, they would dictate the details to voice recorders.

All you need to do is to hear their voices, transcript them into your word processor and make money. What you are not told is that the big overseas organizations give these projects to companies that have hundreds of employees and these BPO companies don't subcontract their work to individuals.

Transcription business is real. However, individuals will find it difficult to get assignments.

Multi-level Marketing
With many MLMs is the pyramid and the ladder-climbing become more important than selling the actual product or service.

If the MLM business opportunity, whether it has two levels or three levels, is all about finding new recruits rather than selling products or services, be careful.

Genuine companies appoint dealers only in the first phase of expansion. Be careful if recruitment of agents is an ongoing activity. You can consider becoming a link in the network only if the company has good reputation and they don't ask you to buy a worthless kit.

How To Avoid Scams
There are hundreds of other fraudulent schemes. The scamsters are more intelligent than an average man. So, they come out with new scams every day. It is impossible to elaborate on all. This book gives you a few suggestions that will keep you away from such scams.

Never Pay to Work
If you go for a job interview, what would you do if the interviewer wants you to pay $50 to give you a job, for startup materials, or to prove that you are a serious employee? An employer must earn by using your service and not by offering you job and promise. No legitimate company charges employees or subcontractors a fee for offering jobs.

Treat working at home just like working for an employer at their place of business. If you follow this rule, you will never be a loser. If you are asked to pay for a job or information about work-from-home jobs, you know it's a scam. Of course, you will miss a few genuine opportunities. Don't worry about them. World is full of better opportunities.

Verify Credentials
Some businesses may require start-up costs to cover materials or other items. If you think you should not miss out such an opportunity, verify the credentials of the company. If the company uses free web hosting services; uses free email services and does not disclose its address and a telephone number, then think twice before you deal with them.

Think Like Employers
Think from an employer's point of view. If you were an employer, will you carry on such a business and pay the promised wages to a home-based worker for the work she does? This exercise will save you from loss and trouble.

Check Legality
Before starting anything, check out the legality of the business. Will you be able to explain in public about what you do step by step without hiding anything?

Resist Temptation
Scamsters know psychology better than professional psychologists. They build superb promotional materials that tempt even experienced and intelligent persons. Consult knowledgeable people who have goodwill for you, before making any financial commitment. Never respond to doubtful offers, even if the offer comes from your best friend.

Research Claims
Sometimes, an incredible claim may be true. But, don't believe it without doing research about it. As internet has vast information on all subjects and is open to all, you can do research on the topic and come out with your own business concept without the intervention of other companies.

Safe Opportunities
If you don't have experience in business or are not personally guided by a professional, the best and safe business opportunities are those you discover by analyzing your physical, mental and emotional skills, your nature, your talents, your knowledge, your family, your life, your community and the world around you. Nothing can excel them.