Beware!
Home Based Business Scams
Pyramid or Pozi selling
Home based business scams and other cons have been with us since the first man or woman tried to get something for nothing.
You are asked to believe something which you know is 'too good to be true', yet the proposition is so attractive that you talk yourself into believing that "in this case" it might be true - usually because you desperately want it to be so.
Now you came to this site looking for information about earning extra income, you are looking to make money - not to lose it - so it is worth taking a quick look at some of these cons and the ways people are going to try and part you from what you already have!
There are probably no new income cons. People have been cheating each other since the beginning of time and everything now is just a variation - sometimes a very clever one - of tricks and income cons which have been pulled on the innocent and the gullible over the centuries.
Make money stuffing envelopes? - I don't think so!
The work at home scams which I personally find most objectionable are those which prey on the most vulnerable.A housewife (these home based business scams are usually directed towards women), desperate for a few pounds, signs up to a scheme where she will be paid to fold letters and stuff envelopes.
She is asked for a 'registration fee' or perhaps a 'security deposit'. Probably not a lot of money - $29.99 perhaps. Whatever, it is money she can ill afford and worse, it's money she is going to lose. These are income cons of the worst order!
In an age where a machine can stuff envelopes at the rate of 50,000 an hour, what possible point is there in paying to have the job done by hand?
Variations on these home based business scams include her being required to find addresses to send the envelopes to - in other words, list building for the company. Or she will be told 'her standards aren't high enough,' or the labels aren't straight, or the handwriting (the scam justification here is that a 'hand written' envelope is more likely to be opened than a machine printed one) isn't good enough.
The toy assembly thing is similar. The things are junk to start with, they can be assembled in the Far East for much less and she is unlikely ever to see her money back, much less show a profit on the work done.
Mathematical scams
The other scams are what I would describe as 'mathematical'. That is, ones which at first sight look foolproof, but on close inspection can be seen to be impossible.All variations on a theme, they are based on the classic chain letter. You send a small sum of money to the top name on a short list of names and addresses. You then delete the top name, add your name at the bottom of the list and post copies of the letter to half a dozen other people who will then each send out six more copies.
The maths are easy and believable, by the time your name gets to the top of the list and everyone sends you a small sum, you will receive thousands of payments.
The actual maths is quite different of course. In order to succeed, most peopled mailed would have to respond - they won't - but more importantly, everyone in the country, and then in the whole world would have to take part, and how could the late joiners ever get anything then? Well of course, they can't, it's a scam and the only people to win are the originators.
Money making scams which involve gambling
These scams are also often sold on a 'mathematical' basis.For example, if sufficient people club together to cover all the possible permutations on a series of football results, then they are guaranteed to win. Yes, but the prize money shared between all the people involved, must always be less that the amount 'invested' or gambled, since the pool promoters will take their share out of the pot, before paying out any prizes.
Another one which is mathematically deceptive is the simple toss of a coin.
Say the coin is tossed in the air and comes down with the head facing up six times in a row. What are the odds on the next throw having it tails up? One in seven? No, the odds are the same as for the first, and every other throw - 50/50 - since there are only two faces it can show.
It is the same as attempting to double up on each losing bet. The logic says you must eventually win, the mathematics says the world might run out of money before you do!
The Pyramid Scheme or Pozi Selling
Pyramid marketing works on the same faulty logic.The guy at the top of a pyramid scheme recruits two salesmen who each pay him. They in turn recruit two or more people each, who pay them to join the scheme.
They then each sell places to other people, who hope to sell more places.
See where it's going?
The first people in the scheme - at the top of the pyramid - make good money, but it gets harder and harder for the lower level staff to recruit, until eventually there are not enough interested people in the country to support the scheme and it collapses. In most countries, this type of selling is now illegal. There is usually some perfectly sound product involved, but the scheme runs on the assumption that profits are made by recruiting people to market that product.
Note that Pyramid selling is not the same as Multi Level Marketing, or MLM, which is perfectly legal and can generate regular income.
Investigate thoroughly first
So, these home based business scams have always been with us. We know when it doesn't feel right and we should always trust that feeling.Don't hesitate to research any business scheme and try to discuss ones which look interesting with people already involved - not the guy selling, but the people who bought into it - before getting involved. If money is being asked, either up front, or later down the line, establish what you get in return.
That said, the world does run on trust and it is perfectly reasonable for someone to charge for a good product, or even for a good idea. We on Income in Later Life.com will always try to provide information which is reliable. If we say we have tried it, we have. If we didn't think it good value, we will say so!
More Scams
We are always looking out for cons such as home based business scams that may take your hard earned money, so that we can warn you about them.Check out the following pages for more things to be wary of.
Internet Business Scam. How to avoid them, and how to make money.
Email scams to watch out for.
Earn money reading books. The cons and the real opportunities.
Your Feedback
Have you been conned?
If you have come across additional income cons, we would love to hear from you. Telling your story may help others to avoid falling for the same ploy.
