Nearly three out of four people in multi-level marketing jobs do not earn money or actually lose money. Of course, most people would never knowingly accept work with such a high risk of not being paid. But if this job promises to let you work from home, it can suddenly be worth a try.
Thanks to the Internet, frauds at work from home have increased in recent years. And they look very different than before. The times of pyramid schemes and Ponzi schemes are mostly over: Now you are more likely to be hired for multi-level marketing or wrong jobs as virtual assistants.
How can you differentiate a scam from a true work-from-home business? Opportunity? And what about the gray areas that are not really cheated, but are not really profitable? We have the answers ̵
Pyramid and Multi-Level Marketing Plans: What's the Difference?
Most people have heard of pyramid schemes. These now illegal scams promise to pay members to recruit more people than to sell products or services. As more people join, recruitment becomes impossible, so new members can not make a profit.
Since they are largely suspicious and mostly illegal, you do not come across many pyramid schemes today. In some ways, the multi-level marketing model (MLM model) has taken its place.
MLMs are among the most common misleading work-from-home jobs available today. But anyone who tries to recruit you for an MLM will tell you, "It's not a pyramid scheme!" And they are right – it is not so.
MLMs depend on selling products or services while recruiting new members working under you. The model combines the pyramid idea with the actual products to be sold. You can also see MLMs, referred to as networking marketing opportunities.
And to be clear: You can make money with an MLM. It's just that only a small percentage of the people joining make money while the vast majority of them do not earn or lose money. Although an MLM is not as much of a fraud as a pyramid scheme, we recommend avoiding these risky "opportunities."
Why do so many people lose money with MLMs? This is related to the structure of these companies. People who join have to buy their own inventory to sell, and they are often pressured to buy larger stocks than they need. Then they earn money through commissions on their sales. They can also benefit by hiring new people and getting commission from each of their downline members.
This means that part of the profits from each sale for new members will flow into the pockets of people in their ranks "upline". And although they are under pressure to buy inventory, there is often little guidance on how to effectively sell that inventory. Many people join MLMs, invest funds in their inventory, and then go out when they realize they can not sell it fast enough to make a profit.
However, as MLMs typically have a friendly-sounding community, they promise a lot of money. and a lot of pressure to stick with it, people often invest hundreds or thousands of dollars before they leave. While it is possible to make a profit with an MLM, the numbers are not on your side. Better settle down and look for a job that will reliably pay you for your time spent.
Other Common Fraud Cases in the Workplace
While MLMs are one of the most widely used options for fraudulent working from home, you can join find the job search on others. Here are some of the most common fraud cases you should look out for.
Virtual Assistant Fraud Cases
In this type of scam, someone gives up a great-sounding job advertisement for a virtual assistant. It just sounds like they need to be paid well to respond to emails, phone calls and other common tasks. But then they offer to send you a big prepayment – they only need some of your financial data.
These scams are designed to access your bank account information and steal your money before you know what's going on. Be wary of job postings for "virtual assistants": As a legitimate job, this is actually quite rare. If they offer to pay you before you do any real work, run them and block them from reconnecting. Otherwise, your inbox will be scanned for bogus threats to contact the authorities if you do not comply.
Social Media Fraud
Many modern frauds also go back to people's love for social media. With these scams, you're promised hundreds of dollars just to spend time on your favorite social platforms.
However, before you can get paid, the company usually asks you to pay for access to training or its platform. Here is a tip: Any job where you have to pay for work is not legitimate. A real job pays off without you being asked for money first.
These jobs promise you to be well paid for easy data entry from home. While data entry is also a real task, there are plenty of scams. Real data entry orders are usually not paid as well. So if you promise huge profits, do not trust him.
These scams often require you to buy the expensive software before you can start. Again, you should not have to pay to take up a job – a real employer will provide you with the software you need to work with them.
How to Avoid Scams
Although these types of scams are now incredibly common There are countless other scams that need to be avoided from home. Even if you think you know them all, new ones keep appearing. Instead of trying to remember any kind of scams, you should use these tips to improve your scam radar for working from home.
Keep Your Head Free
If you want to leave your dull office and quit your misery commuters, it's easy to make emotions cloud your mind. Your enthusiasm for a promising work-from-home offer can tarnish your judgment and cause you to sign up for a scam.
Try to keep a cool head while looking for a job. If you find a job that sounds too good to be true, give yourself a day to think it over before you apply. If you come back with a calmer perspective, the red flags may become more apparent.
Avoid Transactions in Advance
Ordinary jobs do not require you in advance, and they do not pay you in advance. either. Be wary of any offer that promises to pay you before you have done any work or ask you to pay for equipment or software before you have earned your first paycheck hands of a being of whom you know nothing. Even if the initial transaction is a small fee, these scammers can cause new, unexpected future costs or even steal your data directly.
If the Job Promises That You Make Great Money Without Investing For every effort, it should sound too good to be true.
All legitimate remote jobs require actual work. Just because you work from home does not mean that you're being paid to do nothing. If a job promises easy money to people without marketable skills, it is not a real job.
Waiting for an Interview
A legitimate, full-time remote position almost always involves an interview by phone or video call. If you do not have an interview, how does the company know it wants to hire you?
However, many freelance or contractual work-from-home positions do not include job interviews. At a minimum, however, you will be asked to send your resume and examples of your abilities before you hire them. If you do not have an interaction that shows an employer what you have, it's probably a scam.
Avoid employers who contact you first.
If it is a legitimate business, many people should want to work. Why are they showing up with an unwanted email in your inbox?
Real work-from-home jobs do not need employees who can be hired. They are waiting for potential employees to contact them with applications. But scammers always need new victims, so contact the people first.
Find out how to get paid.
When a job promises big paychecks, it's not clear when or how you get them. That's another red flag.
Real job opportunities make their payment structures clear. You may receive a payment via PayPal every other week or a direct deposit once a month. You will not be asked when or how you will be paid.
Also, avoid any "employer" who promises to send you a big check, and then ask you to take part of it for your payment. Real work-from-home jobs do not expect you to handle large sums of money that are not yours.
Always search for a business online before working with them. Browse and flip past the first page of Google results. Take a look at the social media pages and check with Glassdoor what former employees have to say. If there is no information about a company outside its website, this probably is not legitimate.
What to do if you find a scam?
If you notice a scam at work from home, you can notify others by putting him in the Scam Tracker of the Better Business Bureau Report. This is also an excellent place to investigate everything you think is a scam.
But keep in mind that scammers are always finding new ways to trick people for their time and money. They can act as well-known, legitimate companies with familiar logos. They can offer realistic sounding possibilities. The best way to be on the safe side is always to be careful about reaching out to remote employment opportunities and researching carefully before proceeding. There are many legitimate remote jobs – just do not be fooled into finding the perfect job.
Of course, workplace fraud is not the only thing you need to avoid. Next, read our guide to avoiding frequent travel fraud.