There are MANY, MANY report scam out there – which is why it is so important to be able to recognize them when you see them. Avoiding scams is tough but we are here to help!! If you are unsure then you need to ask yourself the following questions:I am not adding value or (2) no one would pay me for this in “real life” then I would walk away – maybe even run!!
If you are not adding value to the product or project – then why would anyone pay you for your work? The exception to this rule would be the instances where you are making money off of peoples differing perception of value. The risk you take is that you are involved in a company that is scamming you or teaching you to scam others or both. You also need to ask yourself: even if this is legal – is it ethical?
If you can’t get paid for it in person, then why would anyone pay for it online? Again it is possible that the business is perfectly legal and yet pays you for things online that a person in real life would not pay you for – but the odds of this being the case are extremely small. It is more likely that the business is designed to scam you or to train you to scam others or both. I have a low risk tolerance and if either: (1)
Some legitimate businesses may require that you pay a franchise fee or buy a business kit in order to start your business with them. The presence of an upfront fee is not a definite sign of a scam – many businesses have legitimate reasons for requesting upfront fees. Reputable franchises spend a lot of money on advertising, research, branding and other items. They charge a franchise fee in order to cover these costs and in order to earn a profit from the companies operating under their banner.
Chances are decent that if you have heard of and seen the franchise in your real life (other than from the person “selling” it to you!!) then it is legitimate business. Kit based businesses can collect fees for the same reasons and also to cover the cost of your business start-up kit. Again this is a mixed bag – some companies charge fees that merely recover their costs of material – knowing that they will make their money off the mark-up on their products.
Other (less reputable) companies often sell “kits” that are made up of books and other materials that provide little or no value to the person purchasing it – they do not care if you sell any of their products – some do not even have real products – they make their money from selling these “kits”. Again it is important to go for businesses that you are familiar with or do your research.