Published On: Fri, Jan 31st, 2014

3 Tips to Avoid Business Opportunity Scams

I’m sure you’ve heard these words from a friend before “Are you interested in a Business Opportunity” I am willing to bet that you wondered if that was a real opportunity or if it was a scam. I will give you 3 tips to help you decide whether or not that opportunity is a scam or a legit business offer.

Sketchy details on how revenue is earned.

Any business model should be able to tell you exactly how you are going to make money. If you keep getting railroaded when you ask that question, you may be getting involved with a scam. If the presenter keeps referring you back to the compensation plan when you ask how revenue is earned, that is not a good sign.

Compensation plans so complicated you need a degree to understand them.

Anytime a flip chart has to be brought out to explain the compensation plan, you can expect trouble. If you can’t explain the compensation plan to a four year old, then something is not quite right. You can expect trouble with this type of setup. It shouldn’t take ten pages of diagrams to explain how you get paid.

Internet Scams

Specific claims about how much money you can earn.

Any ad telling you that you are guaranteed to make a certain amount of money is also probably a lie. No one will get the same results when it comes to business. Everyone is not coming into the business with the same work ethic or set of skills. Be very skeptical anytime you see an ad saying you can make a certain amount of money with a business opportunity.

A Bonus for Good Measure:

Has the person presenting the offer to you had actual success in this same “opportunity” or are they reciting the same “pitch” that was given to them.

You have to be very careful when you are evaluating business opportunities. Always do your due diligence. Check online to see if their are any complaints about the business. If they’ve scammed someone, it will probably be online. Pay close attention during your opportunity meeting before you sign on the dotted line.

Andrea Amir

Andrea Amir

Andrea Amir, the Organizer of Black Women Save, A Savings Movement that will help and encourage 1,000 Black Women Save $1,000 through the Save 1K Challenge.Take the Pledge and Join the Challenge
Andrea is also the founder of Smart Money Chicks. Smart Money Chicks’ goal is help women become financially savvy – and stay that way.
Andrea Amir

About the Author

- Andrea Amir, the Organizer of Black Women Save, A Savings Movement that will help and encourage 1,000 Black Women Save $1,000 through the Save 1K Challenge. Take the Pledge and Join the Challenge Andrea is also the founder of Smart Money Chicks. Smart Money Chicks’ goal is help women become financially savvy – and stay that way.

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Did you know?

African Americans are significantly more likely to have some type of debt (94%) compared with the general population (82%). Credit card debt, student loan debt, and personal loans are all significantly higher in the African American community.

Source: Prudential’s 2013 "African American Financial Experience" study