Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Online Businesses and other Entrepreneur topics.

How Can I Avoid Online Business Scams?

Spotting Online Business Scams

Any Internet entrepreneur out there knows that for every viable computer business opportunity, there are 200 scams. If it sounds too good to be true, well, frankly, you know it is. Here are some helpful tips that can help you steer clear of con artists.

Guaranteed Money Overnight. Come on. If it were that easy to make money, we would all be millionaires. A true Internet-based business will require tremendous effort and investment on your part to become a success, and it definitely will take longer than overnight.
Send Money. While any business opportunity will require capital investment, be wary of a company asking for money up front. You should be well on your way to building a business relationship before your contact asks for money. Also beware of anyone asking for your bank account information, in return for depositing fees into your account for your cooperation (Nigeria scam, anyone?).
No Evidence of Product. Always ask for a sample of a product before entering into a business deal. If your contact is reluctant, the sample never comes, or it is shoddy, move on. There's a reason the products were so affordable after all.
“No Experience Necessary.” If you're going into a business, wouldn't you want to have at least some basic knowledge of the industry you're getting into? Your business partner should want the same; if he or she doesn't, it may be a scam.
No References. Be sure to ask for references of other entrepreneurs this individual or company has worked with. If he or she does not provide references or the references seem staged, run.

Comments

Nobody has commented on this tip yet. Be the first.

Ask a Question

Not finding the advice and tips you need on this Entrepreneur Tip Site? Request a Tip Now!

Guru Spotlight

Carma Spence-Pothitt

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!