Warning: What You Don't Know Will Hurt You!
After being online since 1999 and attempting to start many online businesses and failing all I can say is Buyer Beware! There are too many scams to list anymore and this article will just give you an insight into what to look for in spotting an unscrupulous scam before you lose money...
If you do not heed the advice you read here you are on your own!
Pre-Launches: This is one of the biggest scams online. If a person is recruiting people and selling product the company is already launched. The term pre-launch gives you a false sense that you are getting in before everyone else and therefore you are going to make a lot of money before other people join. Whenever you see the term pre-launch run for the hills!
Get 3 People Who Get 3 People Who Get 3 People: The math involved in Network Marketing always makes it look so appealing. Many websites today have Income Calculators where you can plug in the mathematical variables. For instance: If you recruit 5 people and they recruit 5 people in a 5 level payplan you will eventually earn over $3900 extra per month! That is very appealing to people. The problem is that if you are a good recruiter the people below you most likely are not. I remember one company I signed up over 87 people. NOT ONE person recruited anyone! This may come as a surprise to you but MOST people do not know how to build an online business, are lazy and may just want something for nothing!
Information Ebooks: I would venture to say that most Internet Marketing ebooks are a complete waste of your money. They promise you great wealth and usually sell for under $49.95 but the techniques they use are ineffective and severely outdated. I would highly recommend steering clear of information products related to making HUGE amounts of money online. This tip alone will save you $1000's.
Multiple Streams Of Income: This is one of the most common Myths you will see online. It is hard enough to build ONE successful business but the people who promote these programs promise you can build six simultaneously. It should be renamed: Multiple Streams Of Expenses. That is what it really is. My suggestion is to find a great legitimate program and promote it until it is successful and runs nearly on auto-pilot and then you can start to build another.
HYIP: This is the King of all online rip-offs! It can be disguised many different ways but the most important signal you have to look out for is the earning percentages. They claim you can earn anywhere from 1-10% DAILY on you investment! If that were true don't you think everyone would close their IRA's and 401k's and do this instead? NEVER invest in an online HYIP!
Matrixes and Powerlines: The hook here is that a company will help you build a Powerline of paying customers so you don't have to. Before you commit to your monthly payment they will send you emails saying how many people are signing up under you that you are losing potential income on. This creates a sense of urgency and many people will become victims to these programs. I saw one online that promises you will earn $1200 a month for never recruiting anyone. This is completely false and I would advise stay away from these programs.
In summary. Use your common sense. The old addage: If it sounds too good to be true, it probably is. This statement should be your guide when choosing an online business.