How to Avoid New Business Opportunity Scams

If you are looking for a new business opportunity, steer clear of any company or person claiming they can offer you a “guaranteed” or “risk-free” business opportunity.

If someone is promising you that you are going to earn a lot of money, but they’re being vague about what you would do or how you would earn it, that is a sign of scam.

How to Know If It’s a Scam?

Promises of a big income or business opportunity, especially when the “opportunity” involves an up-front fee or giving your credit card information, should make you very suspicious. It doesn’t matter if the ad shows up in a trusted newspaper or website, or if the people you talk to on the phone sound legitimate. It still could be a scam.

How Scammers Operate?

Scammers try to take advantage by creating the impression that their business is a magic place where you can easily make money without putting in hard work or without having a solid business plan. If someone is creating a high pressure atmosphere for you. You should walk away and do your research before you spend your money. They may tell you that you don’t need to know these details because they are going to take care of everything. Don’t trust those claims, you need to be involved in your own business.

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If you’re getting promises like that, it’s a great sign your dealing with a scammer. Scammers want to create an impression that if you don’t buy immediately, you’re going to miss out on a valuable opportunity. They want you to pay or give up your bank or credit card information before you had an opportunity to look into their claims or talk to other people who have had experiences with the company.

This is a classic sign of scam!

Ask Questions and Fact Check

Ask Questions and Fact Check

Ask Sellers to give you a one-page disclosure document that offers key pieces of information about the business opportunity. Use the information in the disclosure document to fact-check what the seller tells you. In addition to reviewing the disclosure document, here are some questions to ask:

  • What tasks will I have to perform? Are any other steps involved?
  • Will I be paid a salary, or will I be paid on commission?
  • What is the basis for your claims about my likely earnings? Do you survey everyone who purchased the program? What documents can you show me to prove your claims are true before I give you any money?
  • If a seller makes a claim about how much money a person can earn, the seller also has to give you some earnings claim statement with more specifics.
  • Who will pay me?
  • When will I get my first paycheck?
  • What is the total cost of this business opportunity, including supplies, equipment, and membership fees? What will I get for my money?

Also Read : Golden Rules for Dealing with International Clients

The answers to these questions may help you determine whether a new business opportunity is legitimate, and if so, whether it’s a good fit for you.

Talk to Someone

Before you give up your money or personal information, talk to someone you trust. Con artists want you to make decisions in a hurry. They might even threaten you. Slow down, check out the story, do an online search, consult an expert or just ask a friend.

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