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Avoid Deception in Home Based Business Opportunities

© 2006 Leslie Truex

As a home based business owner, I read many home business magazines. The other day I was reading one and came across an ad for a home based business opportunity. The ad included a list of 16 companies, how they ranked in US sales in August 2005, how long each has been in business and how many products each had. Because I have a home based business with a business opportunity, I looked to see if my company was on the list. Sure enough it was there, BUT the number of products listed was wrong...by over 200! That made me wonder what other errors were on the list? And then I wondered about the person running the ad. Did he know he was wrong? Did he skew the data on purpose to deceive people into joining with him? Where did he get the data in the first place? Finally I wondered how many people were responding to this ad without researching to see if the information in the ad was correct?

Advertising is about attracting new customers. To this end, ads are sometimes mistaken or outright deceptive. Its up to you, as a business opportunity seeker to research claims before you join so that you know exactly what you're getting involved in.

Here are my four tips for researching a home based business opportunity claims:

1) Verify claims. Home based business opportunities frequently use hype and grandiose claims to entice you. However, not all of them tell the truth. When I knew I wanted to build a residual income, I verified all the claims programs made before joining. The company I eventually joined said it was in the BBB, so I checked its BBB online. It said it was INC Magazine's Hall of Fame, so I checked with INC Magazine. It said it received a BBB Hall of Fame award, so I contacted the BBB and got verification. You need to make the same checks. The Internet makes it easy to verify claims if the program gives you enough information. For example, if the program says it was featured in a news story, you can use the Internet to go to the newspaper, magazine or TV station's site. Many archive their features. If not, you can write the editor or producer and ask about the feature. In fact, you want to get a copy of it to verify the feature was positive about the company. Third party endorsements or awards are a good sign, but be sure the company has actually earned them by going to source.

2) Verify research. This is similar to number one, but is related to products. Many will say their products improve health or decrease illness. You want them to prove it. While customer testimonial is nice, what you really want is research particularly if the products are in the health and wellness field. The same is true if the home based business opportunity uses other research to back it's claims. For example, it might say, "studies show grape seed extract improves heart health." What you want to find out is what studies? Where can you find them and read them yourself? If the company's materials or website don't indicate what studies it used, ask. The company I chose always puts a citation so we can go read the study ourselves. I like this because it's unlikely it has skewed the study results to fit its own agenda. But, you can only know this if you verify that its using the research correctly.

3) Search the web for personal stories. People love to complain and let you know their horror stories with home based business opportunities. These offer some great insights into people's experiences. However, it is important that you recognize that people frequently are the cause of their own pain because they didn't do steps 1 and 2. So as you read different forums or sites like RipOff Report, read the complaints AND the responses from people who like the program. If there are no responses from people who like the program, that's your answer. But if some people hate the home based business opportunity while others love it, figure out what's going on for the people that hate it and what's working for the people who love it. The best example I can give is that people who don't like the program I'm involved with complain about getting and paying for items they didn't order. They say the company shouldn't do that; however, it's clear on the paperwork or online enrollment that there is an auto-order system. It even tells them how to stop the order. So anyone who complains about this aspect clearly didn't read what they signed and that's their fault not the company's. This is the type of information you need to decipher. Are the complaints legitimate and how have others been able to avoid the pitfalls?

4) Read the fine print. As you can see from my last example, it is extremely important to read what you sign or agree to. While we like to think most people who will enroll you will be honest, not all are. Companies do their best to terminate dishonest people because it ruins their name, but it can take time. So it's really up to you to ask questions and don't sign anything without reading the agreement. If you aren't sure you're getting a straight answer, call the company directly and ask. Some things to look for are: 1) Refund policy. Don't just check that it has a refund policy. You also want to find out what it takes to exercise it. Some companies make it nearly impossible to get your money back. Some companies require you to mail them in writing, not email or phone or fax; 2) Are there quotas or other requirements necessary to get a check? 3) Is there an autoship and how does it work? 4) What is expected of you including any restrictions?

After 8 years of working at home, I believe home based business opportunities offer a great way for people to work at home. But just like cars, some are lemons. The best way to avoid being scammed or misled is to do your research and make sure you fully understand what's involved in working with a home based business opportunity.