How To Spot Fraudulent Business Opportunities And Money Making Schemes?
Serge Dandelin writes about fraud and due diligence:
"Fraud. You find it everywhere. There is so much of it in today's world that you would think this is the rule and not the exception.The fact is that many people find it easier to make money by cheating others than working hard. Sad but true.
Where does that leave you?
You need to be very circumspect when you buy something on the Net so you could spot the signs that point to fraud and protect yourself."
Mr. Dandelin, who is apparently a "Search Engine Optimization specialist and consultant" who has written over 300 articles in print and 5 published ebooks, proceeds to demonstrate that he knows very little about business opportunity laws.
Don't follow his advice.
At present, there is only one sure fire way to avoid a business opportunity fraud.
First, locate the regulator responsible for overseeing the sale of business opportunities in your state.
There are 26 such regulators.
Second, phone them up, or email them and ask if the seller is registered in your state.
Third, if they are not registered- pass on the opportunity. If they are registered, get a copy of their registration and start your due diligence - preferably by finding other people interested in the opportunity.
Here is an example, from the State of Washington. Coastal Vacations is a fraudulent business opportunity seller of work at home scams. In 2001, the State of Washington cracked down on them, and again in 2007.
But if you don't know where to look, then all the regulator's hard work goes out the window.
So why did Serge write up his silly article on fraud - when he had nothing of value to add?
Because he wants you to think that he is a trusted authority, which will make it easier for him to sell you some scammy SEO services.
Read More From BizOp News
April 2, 2008
How to Make an Earnings Claim - For Network Marketers
I have no idea about who VitaMist is and whether their products are worthwhile.
But I do know that their simple statement about earnings claims is very useful.
# Income ClaimsIn their enthusiasm to enroll prospective Representatives, some Representatives are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of direct sales.
This is counterproductive because new Representatives may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved.
The Company firmly believes that the income potential of a VITAMIST® Representative is highly attractive, without reporting the earnings of others.
Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in direct sales.
While Representatives may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact the Company, as well as the Representative making the claim, unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation.
Because VITAMIST® Representatives do not have the data necessary to comply with the legal requirements for making income claims, a Representative, when presenting or discussing the VITAMIST® opportunity or Marketing and Compensation Plans to a prospective representative, may not make income projections, income claims, or disclose his or her VITAMIST® income (including the showing of checks, copies of checks or bank statements).
Now that is how you make a negative earnings claims properly.
