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Truth Behind the Hype - Internet Business Opportunity Scams Exposed

Business opportunity scams result in the loss of millions of dollars each year in the U.S. alone. How can consumers and aspiring entrepreneurs avoid being caught in the get-rich-quick traps that are so prevalent on today’s Internet?

SB Informer
Monday, May 22, 2006; 01:31 AM

The inception of the world wide web has proliferated the business opportunity scam in the same way the fast food industry has exploded the production of french fried potatoes. Millions of dollars are lost each year by victims of multi-level matrix programs, pyramid schemes, ‘cycler’ systems that promise to double or triple an investor’s money, and numerous other so-called opportunities that do little more than fleece the gullible.

According to a report published by the FTC, over 1.55 million U.S. citizens lost money to business opportunity scams in 2004. The total incidents of such loss exceeded 2.55 million, indicating that many consumers were duped more than once by this type of scam.

In over 90% of the cases referenced above consumers were sent, either via email communication, newspaper/magazine ad, or televised infomercial to a website where they were asked to join an opportunity system that turned out to be fraudulent. Without a doubt the internet has become a major courier for this particular form of deception.

Criteria set forth by the FTC to define a probable business opportunity scam include the following considerations:

Is the consumer required to pay anyone for the opportunity to operate a work from home business and, if so, is the consumer led to believe that most of the money earned through the opportunity will be from recruiting others to the business model and/or from purchases made by these recruits?

Does the alleged opportunity make any type of guaranteed earnings claims, yet maintain that the participant is required to make independent sales in order to accrue income?

Does the alleged opportunity make exaggerated claims as to the level of income participants are likely to enjoy?

While there are numerous other guidelines the FTC uses to identify scams, the above listing illustrates the basic framework would-be entrepreneurs should bear in mind when evaluating a potential business opportunity.

Despite the efforts of many individuals and organizations to educate the public, internet business opportunity scams continue to spread at an alarming rate. The ‘paid to autosurf’ fiasco of 2006 is a clear example of how totally illegal ponzi structures are accepted and even endorsed by large numbers of people.

Why do intelligent people continue to buy into this sort of hopeless nonsense? More importantly, how can aspiring entrepreneurs avoid falling prey to these scams?

For the answers to these and other important questions regarding business opportunity scams, request your free copy of the recently updated Net Marketing Exposed special report.

http://www.netmarketingexposed.com

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