These are most certainly the biggest scams regarding home businesses. They are not in any particular order. Various companies involved charge various up front fees some ranging from a few hundred into the thousands.
1. Craft assembly
Here you are required to pay an up front fee to get your starter kit so you can assemble your craft objects. It does come with written instructions and the necessary parts.
People begin assembling the first lot of craft products and advise the company when they have completed them. The idea or promise has been that the company will buy these assembled crafts from you and you will make money.
Unfortunately, they tell you that “they didn’t all meet our specifications” and at this point you realize that even though you followed all instructions to the letter, they are not going to buy the crafts. The company has taken your money and left you with the assembled craft. This is a scam and the only one making the money is the company selling the kits. You could try to sell them at a local market to see if you could recoup your initial investment.
2. Companies looking for workers in their own home.
Here you pay a small fee to join. The catch here it is a list of companies that you are shown who are not even hiring home workers – so you have lost your money. Some companies may have originally hired home workers but do not do that now.
3. Medical Billing/Medical Transcription.
Unfortunately, people do not think about this very much. It is advertised that you do not need previous experience. You buy the soft ware and then you are given a list of potential customers in your local area.
Most clinics process their own bills immediately. Medical transcription is a very specialized field and it requires that you know and understand medical terminology. There are companies that will employ people to do medical transcription but not from home.
There is little doubt that the people this software would want to refund your money.
3. Call this number.
The way this is advertised, if you call a specific number like a 1900 they will give you details of what they are selling.
Don’t call any numbers like this because they could be charging your account several dollars per minute. They are not free calls so do not waste your money.
4. Make money with your computer at home.
The advertisement could be a variation of this but you pay them a fee and then they send you a list of instructions for making your computer a money making machine. You will find that these instructions are how you can place ads so that you can get other people to sign up just like you did.
5. MLM – Multi Level Marketing.
Usually when you join these schemes you have to recruit more and more people. People are more interested in finding more people than in actually selling the product.
I think that the FTC would view this as a pyramid scheme.
6. Earn money typing at home.
Now if you are a really good typist why not use that skill to make some extra money at home.
You pay a fee and then the scammers send you information and a disc that show you how to place an ad and sell the information and disk to other unsuspecting people. This is very similar to #4.
7. Chain letters.
This is a very familiar way of being conned that has been around for some time. You are instructed to send some money to the top 3-5 names of a list you are sent. Then you join the list at the bottom and one day you will work your way to the top and you will be sent lots of money back.
This is another pyramid scheme and people involved with these schemes can be prosecuted.
We often wonder who would willing fall for these schemes. In this economy, there are a lot of people who are looking for quick ways to make money. These include the sick, elderly or disabled. Another group that fall for this is the low income earner, the stay at home parent or guardian who wants to earn extra money. These scammers promise the world but really they are the only ones making money.