How to Avoid Work-at-Home Scams

Part of the Home-Based Business For Dummies Cheat Sheet

Many companies hire home-based employees to sell goods or provide services for them. Although the vast majority of work-at-home opportunities are legitimate, plenty of them aren’t. For every opportunity you explore, follow these tips to help you avoid the scams:

  • Identify a company or product that appeals to you. Check with the Direct Selling Association (DSA) for a list of member companies, or look in your local phone book.

  • Take your time deciding. A legitimate opportunity won’t disappear overnight, so don’t let someone tell you that you have to make a decision right away. Think long-term.

  • Ask questions. Ask about the company, its leadership, its products or services, the start-up fees, the realistic costs of doing business, the average earnings of distributors, the return policies, and anything else you’re concerned about. Get copies of all company literature, and read it!

  • Consult with others who have had experiences with the company and its products. Check to see whether the products or services are actually being sold to consumers.

  • Investigate and verify all information. Don’t assume that official-looking documents are accurate or complete, or even produced by the company. (They may be created by the person trying to recruit you.)

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