If you are thinking of joining a home-based business program or even if you are already a member of one, take a look at these warning signs of trouble ahead. Any one of these signs by itself may not mean much, but, when you start to see three or more,
it’s definantly time to watch your purse strings.
1. No Physical Address or Contact Numbers
The Internet has made it simple for new home based businesses to create a presence without having any real physical central location. While not all businesses require a physical address, those that are offering goods or services to reps and consumers would be expected to have some traceable location. The lack of a phone number makes it all but impossible to pursue any customer service, commission, or other representative issue.
2. Company Officials with Shaky, Sometimes Even Unconfirmable Employment Histories.
Every story is a success story when you hear them from a rep selling on a new deal. Ask how many companies have the Company President, CEO, and CFO been with in the last five years. Then research the answers for yourself to be sure of what you were told.
3. The Cloudy Personnel Biography
No company names, or other traceable details about their supposedly blockbuster careers. Phrases like “Has had fifteen years of success in the Network Marketing Industry” don’t mean a thing without real facts.
4. The “Play It Again, Sam” Syndrome
Repackaging a network marketing business opportunity that has failed elsewhere does not a success story make. Sometimes a business opportunity that has failed elsewhere is rewrapped in a new website, a new name, a new comp plan and sold as a new, viable opportunity. Often, the failures are blamed on poor management, etc., when perhaps it is the “opportunity” at fault.
5. Answers to Direct Questions That Never Get Answered
If you ask a question and the answer does not directly answer your question, beware!
Evasive answers should make you very hesitant to get involved.
6. Nonacceptance of Credit Cards
This strategy eliminates the ability for reps to pay for product with a credit card AND
eliminates their ability to dispute charges if the company fails to deliver.
7. Company Headquarters Has An Offshore Address
This so obvious, that we are not going to address it!
8. Nothing To Sell
Without any real products or service, its difficult to show there is something being sold to an end-user other than the opportunity – which in fact can possibly then be described as a Pyramid Scheme.
9. Minimal or Non-Existent Refund Policy
Any legitimate company will stand behind its product or service.
A lack of a refund policy, or one that expires in a very short period are often questionable situations. Others may incorporate a non-refundable setup charge, or non-refundable Rep Kit fee.
10. Reliance on A Lack of Knowledge
“We’re a publicly traded company, so we must be legitimate.”
If hit with this phrase, ask if the company engaged in a “reverse merger”.
Also ask if the “parent” company “acquired” the new company to add value to a traded stock.