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Determining if a Biz Opp Is a Scam

Think that homebased business opportunity is a scam? Here's how to know for sure.

This story appears in the June 2006 issue of Start Up.

Are you tempted by offers that promise you can make thousands of dollars a week working from home? Stop and think before you get involved. While there are legitimate opportunities to work at home, offers that promise instant riches with little work are generally scams. Legitimate opportunities to work at home come in the form of franchises or nonfranchise businesses, or if you're good at sales and recruiting, direct selling.

How can you tell the difference between what sounds good and what is good? We suggest you test any opportunity for three things: suitability, legitimacy and marketability. Start by asking yourself if there's a match between what you can and want to do and the work involved in the homebased opportunity. Consider direct selling, for example-only about 5 percent of people who sign up with direct-selling companies have the skills to make money at it.

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