Would you be tempted by an online business training program that promises you could earn thousands of dollars a month working from home? I wouldn’t blame you if you were. But don’t believe the hype. Promises like these are signs of an online business scam.
The FTC recently took steps to stop a company that was promoting a bogus online business opportunity to retirees and veterans, among others. The company claimed that you could start your own business working from home and make a LOT of money by following its 21-step system. How much is a lot? One of their websites said you could “make $5,000, $10,000, $20,000 or more every single month.”
Despite the promises, most people who paid for the online business program made little or no money. But you know who did make a lot of money? The people running the bogus business opportunity. The FTC alleges they collected more than $125 million from the customers they ripped off.
Recognize the Signs of an Online Business Scam
Marketers of these fake business opportunities often make similar claims that are a sign of a scam. They:
- Guarantee that you can make a lot of money.
- Promise that you can make money quickly and easily.
- Use high pressure sales tactics, like saying you’ll miss out if you don’t buy in now.
Report Scams
If you come across someone selling a business opportunity that you think could be a scam, report it to the FTC. Why bother? Because your report matters.
Learn More about Starting a Business
Learn more about your rights if you’re thinking about buying a business or business opportunity. You can also visit the Small Business Administration site for tips on starting a business.
June 11, 2018, by Alvaro Puig, Consumer Education Specialist