One of the biggest fears people have about getting involved in home businesses is they don't want to be scammed.  That's very legitimate fear. There's thousands of scam artists out there -and there seem to be more and more every day. Add to this the advanced technology that scammers use to cheat you out of your money and you start to get a very frightful picture. The video below does a good job of showing what to look out for when evaluating a home business "opportunity".  Look for videos on this topic in the near future. 

Source: www.GarfieldHerriot.net 

DO YOU HAVE A TECHNIQUE FOR EVALUATING A BUSINESS OPPORTUNITY? PLEASE LEAVE IT IN THE COMMENTS

Disclosure Notice: I was a member of WBE.net about 3 years ago.  My membership has been inactive for at least 2 years.  I hve had no further dealings with World Business Exchange or anyone associated with them.  I recieve no financial benefit if you decide to do business with them. 

What is World Business Exchange Network?

According to their site, World Business Exchange Network (WBE) is a company set up to help people that are looking to start and internet import/export trading business that can be run out their home. WBE accomplishes this by providing training to its members on how to research, setup, and execute a trade of goods from one country to another. WBE also provides on-going access to a database it maintains of companies and individuals looking to trade.  Finally, WBE offers coaching/mentoring to assist its members in all aspects of the trade.

How do You make money?

You would take a percentage of the money being paid as fee for setting up the trade. You are, in essence, a middleman or broker that gets paid to bring two parties together. To get a visual of how this process works, click here

Does this business require any special licensing or permits?

Each state has different rules regarding licensing for this type of business so check with your local authority. Additionally, certain countries may have other requirements in order to do business there.  WBE claims to help you navigate these types of situations.

How much does this opportunity cost?

There is one time of $499. With this you get:

• Demonstration Video
• WBE.net user manual
• 1 year coaching and support

Additionally, there is a $25.00 recurring monthly fee for continued access to the WBE trade database.

Is this a franchise?

No. This is an independent business opportunity.  You will need to setup your own business entity in order to do trades.

WHAT’S BEING SAID ABOUT WBE

Ripoff Report:

"…almost 7 years, I still have not closed a deal and I feel that everything Mr. Roby has promised is a lie and a scam. It has not been like "having a garage sale" and I have not come close to closing a deal.

I have been a member since early 2008 and CEO of BT International in the MD/DC area and closed 7 deals in the first 15 months of involvement. The key factor in this business is to be committed and consistent and do lots of research in International Trade. Build relationships with the Ambassadors of the various countries, visit your local Trade Centers in your area, they have staff that will assist you.

‘Their leads are no good because they copy it from some other trade website and 99% are not current or have wrong information, therefore you cannot contact anyone.

Read more…

Programcritique.com

I bought the WBE.net program believing that I was going to be coached every step of the way until I made my first deal. However, I was told that I needed to go back and read a manual. I haven’t made any money with this business since I bought it and the coaching is no good, so I gave up. Also I asked for my money back on the second week. But guess what, NO refunds! I guess I should have checked in to that one before I used my card.

Complaintsboard.com

….In the meantime I was still making my monthly payments and was never late. When I called for help getting started again, I was told that my account was no longer active and had to pay the fee again to be reinstated…

Scam.com

One big Scam, they charge and even when you cancel, they charge you monthly. I joined and was told my account was finished, and I was charged every month after that. Only after looking over my CC statements, I found they had been charging me for over a Year after I canceled. Called them back to say I wanted to get my money back (because I could not activate the members section); they said they will have to call me back later – which they never did… however they did give me access back to the network which I did not want… they just wanted to cover their a.sses.

YouTube
 

Better Business Bureau

WBE currently has D rating with the BBB. They’ve had 9 complaints against them in the last 36 months, mostly regarding refunds. Here’s a excerpt of their report:

Most complainants are dissatisfied with the quality of counseling they receive. Most complain the company fails to respond to requests for assistance, information given is unreliable, or the company fails to adequately answer questions. Other complainants allege that lead information on the website is outdated or fictitious

Read the full report here. 

I’ve come across a few questionable business models in the years that I’ve been researching home business opportunities, but the one being offered by Data Networking Affiliates (DNA) is probably the most questionable I’ve seen in a long time.  DNA is a data collection company that is offering people a chance to own a home business in the multi-billion dollar data collection industry. What exactly is the business? You would be getting paid to collect license plate numbers from cars and trucks you encounter in day to day activities so that DNA then can put these numbers in a database that can sold to third parties. Oh, and recruit other people to the same thing so that you can be paid a percentage of what they make….but of course you’re not required to recruit people. You’re just paid much more money if you happen to recruit others. Read their press release for greater insight:

PRLog

Feb 17, 2010 – (PressRelease) February 15, 2010 – Dean Blechman, 
Founder of TwinLabs, one of America’s greatest sources for nutrition and health has joined DNA as Its Chief Executive Officer, Chairman Of The Board & Founder of Data Network Affiliates. Data collection  is a  $14 Billion industry. Data Network Affiliates was created to let online and offline marketer join this billion dollar industry. 
DNA is directly involved in providing American business with meaningful, actionable information that will keep America able to compete in the world sales market, and save consumers money by reducing vehicle and property fraud.
Public safety will also benefit, by providing law enforcement with real time information on stolen cars, crime scenes and possible whrereabouts of missing children. 
Private individuals will benefit by being able to receive monthly cash payments for doing nothing more than noticing license plate information on cars they already see parked or travelling. There is no cost at all to become an affiliate of this program. 
As an independent affiliate with D.N.A. you are helping to build databases. You are not selling a product. Instead you get paid to help prevent crime, and help American business regain its world leadership. 
http://jbpublisher.DataNetworkAffiliates.com

Now this just screams SCAM ALERT! SCAM ALRET! DANGER WILL ROBINSON DANGER! to me but i could be wrong. Since the site hasn’t officially launch yet there isn’t much information out there but I did come across this video:

Troy pretty much covered everything I would say about DNA and this "opportunity". Don’t waste your time or risk your privacy (or mines!).

Next! 

Our last review featured one of the largest direct selling companies in the world. It seems only fitting to follow that up another famous direct selling company.  Another guest reviewer turns the spotlight on Amway.  Like Avon, Amway is a household name for many people. But Amway is also known for being controversial. Over it’s 50 year history thousands of people have claimed that Amway has been the answer to their dreams of owning  a business. Can it be the answer to yours?

This review was compiled by guest reviewer G.M. Shu. If you would like to be a guest review please leave a comment and I will contact you 

What They Say

Pitch

In a nutsell, Amway (parent company:Alticor) claims to give you the opportunity to make money by selling products and by sponsoring/mentoring/training others as Independent Business Owners. Like similar Multi Level Marketing (MLM) companies, you recieve a percentage of the revenue generated by any of the IBO’s you sponsor.

Products

Amway offers a various products that their IBO can sell. Product categories include Nutrition & Wellness, Beauty, Bath & Body, and Home. You may have heard of some of their brands: NUTRILITE®, ARTISTRY® Skin Care,  L.O.C.® Multi-Purpose Cleaner.

Cost

According to Amway’s registration contract  the cost for joining is $137.75. This fee covers "Business & Support, IBOAI Support, and Product Info Pack". Additionally, several sites have reported that Amway encourages new IBO’s to purchase several self improvement/ motivational books and CDs. The cost of these materials can push the inital investment much higher.

What Kind of Support Do They Offer

Amway offers several ways to support IBO’s:

• Your sponsor
• Training-online, video, and instructor-led trainingMarketing
• DVDs, online sites, magazines, brochures, and free websites
• ProductsCustomer support

What Others Say

Ripoff Report: 28 reports filed against Amway. All of the reports were negative, here’s the most recent one

….My start up cost was 140 dollars. That money, I was told was to pay for my start up kit and for my 4 websites. Only maybe 2 close friends actually signed on the business with the full 140, the rest did 60 to mainly get the websites. Oh and remember my friend I mentioned earlier, the cousin of my upline and sponsor? Well, he also signed on with me as my upline since he signed up first. None of my friends including me have made any actual money since we’ve been in the business. Sure I’ve received checks: 1 for 6 dollars, another for 38 dollars and the last for 50 dollars, but that money still doesn’t exceed even my start up cost. Plus it was basically forced so that I would go on to the next bracket, I didn’t do anything my upline just bought a bunch of random crap. To be honest my friends also haven’t really done anything either except my one friend Neill who was occasionally selling some products to his mom. And basically not really seeing any money from that anyway, he was probably getting 10-20 dollars for selling like 200+ dollars worth of Amway garbage.

WAHM.com: 

I was an IBO with Quixtarseveral years ago, some family members are still IBO’s… Good products, the comp plan is ok. Since I am in Calif.it is easier and cheaper to drive to the store for the bulk of the products they offer. I know it works well in areas that are not as populated, but a hard sell for many….

YouTube.com

Positive:

Negative: (note: This Dateline expose is from 2006) 

Part 2 

Just Plain Funny: 

 Better Business Bureau

Amway is listed under 3 names in the Better Business Bureau. Amway, Quixtar, and Alticor.  All have an A+ rating. Only Quixtar has any compliants, 28 to be exact,  listed against them

Final Say

Overall Grade:   No Grade

I was personally involved in the Amway “culture” and prefer to abstain from influencing your decision…Now that we got the disclosure out of the way.  It should be noted that the culture of the company “called for” a lifestyle/mental change to narrow for my taste. Meetings, talks, reading materials, friends all related to the Amway …well way.  This might appeal to some and not to others. 

The travel industry is 700 billion dollar per year industry.  Yes, that’s billion with ‘B’.  So it should come as no surprise that there are many companies that claim they can provide home business seekers a way to cash in on the huge opportunity this industry offers. YTB International is one of these companies. YTB claims to have around 73,00 reps that offer travel packages to customers at discounts similar to travel sites like Expedia, Priceline, and Travelocity.  Additionally, reps can take advantage of ‘insider’ travel discounts for themselves and enjoy worldwide travel. Sounds good? Well, there’s more. YTB is also a MLM company that offers commissions to reps who recruit people into their ‘downline’.  Still good? Not so sure now?   You’re in good company.  There’s a lot of pro and con opinions on YTB.  I did my best to bring all sides of the issues to you today to help you decide if this is the right opportunity for you.

WHAT THEY SAY

The Pitch

YTB offers people the perfect opportunity to transform their lives by combining the powerful information – handling capability of the Internet with the world’s most dynamic product—travel—and the personal touch of independent, home -based business people.

How Do They Do It  

The Company operates through three subsidiaries: YTB Marketing, Inc. (formerly YourTravelBiz.com, Inc.); YTB Travel Network, Inc.; and YTB Franchise Services, Inc. YTB Marketing, Inc. markets Internet Travel Centers ("ITC" or "ITCs") formerly referred to as internet travel websites, on behalf of YTB Travel Network by use of Independent Marketing Representatives ("Reps"). YTB Travel Network operates home based travel websites which book online travel transactions, collect payments, collect licensing fees, and pay travel sales commissions. YTB Franchise Services was formed in March 2009, to serve as the corporate entity to offer the proposed/ contemplated franchise offerings in the future for the Company.

 Here’s YTB’s marketing video that illustrates what they offer (It’s close to 10 minutes long–you were warned):

 How Does it Cost

YTB Marketing generally charges an initial fee of $449.95 for the setup of an ITC plus $49.95 per month for web-hosting fees.

WHAT OTHERS ARE SAYING ABOUT YTB TRAVEL

Ripoff Report:

Then you have to shell out an additional $175 for their training session to become an RTA(Representing Travel Agent) and that doesnt include a $50 a month website maintenance fee. You do the math how much do you think that comes out to? 675(initial $500 set up and $175 training fee cost) + $600(total cost)to maintain website for one full year paid in $50 installments)comes to about $1275-that’s a lot of money to invest into a business especially if you don’t have that kind of money. 

If someone were to invest a total of $1275 over the course of 1 year in a business that can create a positive retrun on investment, I would challenge them to seek out other business opportunties, or even franchises that can claim the same low cost start up and maintenance. Franchises often require one to have a minimum of $25,000 working capital up front and can cost up to $1 million dollars for franchise liscense fees,plus monthly loyalty fees. (Examples – UPS, McDonalds, Jani King, Matco Tools, Jazzercise) – there are many more. I know this because I did the research. There is never a guarantee of success in any venture. Not even buying a name for $25 to $100K or more. 

Know this…The bonuses are real. The profit sharing is real. the free 100% health care coverage is real. the 100.000.00 life insurance plan is real, the 1000.00, 10,000.00, 50,000.00, 100,000.00, 500,000.00, and 1,000,000.00 bonuses are REAL. Hey how cool is it to make enough extra money that you can give a third of your money up for taxes and the 2/3 left is more than enough to live on, what a blessing  

YTB has been identified by Royal Caribbean and others in the travel business as nothing more that a MLM card mill. Pretty soon they won’t have anything to ‘sell’ other than the pyramid opportunity. Watch this group like a hawk before spending money. 

All of these business’ are sharing the same business model, it cost me way less to be a YTB rep than it did with my pizza business’ and the income potential is a hundred times better. Do I have to work, answer is of course. I tell people about the business, if the model makes sense to them, good if not, also good. What’s the beef? There were lot’s of pizza business’ in my areal some did great others closed their doors. Does this mean the pizza business is a rip off?

 Scam.com

Look I don’t want to get bogged down into trying to determine exact numbers….. As has been posted its a pointless effort. I think you can just step back and say for at least the last few years:

Recruiting comisisons are higher than travel comissions.
Membership fees are higher than travel comissions.
Most RTAs don’t sell enough travel to cover the monthly fees.
Many people become an RTA but never sell travel.

     Chris n

 

Marketing commissions: 16,136,795

Travel comissions: 1,608,688

Total Comissions: 17,745,483

Travel Comissions: 1,608,688/17,745,483 = .0906 rounded to 9%. For the quarter, 91% of the comissions paid out were recruiting comissions. only 9% of the comisisons came from selling travel. There are a lot of people on here that are lying – go look for yourselves – the numbers are straight from YTB.  

      Chris n

With the seemingly endless stream of economic bad news it is natural for people to be afraid.  It’s also natural for people to turn to the Internet in hopes of finding  work at home jobs that can bolster their income, or in some cases replace a lost income.  Fear is natural, but you shouldn’t let fear drive you into making a bad situation even worst.  Websites offering work-at-home jobs are some biggest scams on the Internet. And in the current environment you can bet that these types of sites will only increase.  Here are a few ways to use your Scam-dar to avoid these crooks.

‘We only require a small fee for the privilege of working for us.’

Legitimate jobs don’t require you to pay upfront to work with them.  Take mystery shopping. Typically, scammers will advertise an opportunity to become a mystery shopper.  But when you apply you’re asked to paid for something like an info packet or a list of employers in your area supposedly looking for mystery shoppers.

‘Dude, I’m making a fortune stuffing envelopes while I watch TV.’

If it was this easy we would all be rich couch potatoes! Be wary of any job claiming to pay big money for menial tasks.   In fact, just avoid them altogether.  No legit operation is going to pay you $2,000 a week when they could pay a teenager $5.50 an hour.

‘Girl, all I do is sit at my computer and fill out surveys all day longer and I get PAID!’ 

There are some legit survey jobs out there but have manage expectations.  I worked one of these sites for month and all I made was $16.  This was after filling out dozens of surveys.  So don’t fall for ads claiming you can make hundreds of dollars a week filling out surveys – unless you’re not planning on sleeping.  And again, don’t pay for any lists of companies.  You can find these companies yourself with little research.

When investigating any online opportunity you should always err on the side of caution.  Also, it’s always a good idea to research the company using the Better Business Bureau or the Federal Trade Commission.