Wouldn't it be nice to make money from home, have more freedom, more time and independence?
It all sounds so good. The digital entrepreneur lifestyle appeals to just about everyone, which is why the make money online (MMO) industry is flooded with scams, and people who sell inferior products and programs that don't deliver.
With a little bit of research and some knowledge, it gets easier to separate the lies from the truth.
Defining what a scam is… isn't always easy.
Wikipedia describes it as an attempt to defraud someone by first gaining their confidence.
But, by that definition, you could argue that every fast food restaurant scams us by putting up false pictures of big juicy burgers… when really, what they sell is a bun with condiments, and an embarassingly small piece of meat buried in there somewhere.
So, what makes a scam a scam, isn't so clear.
There are flat-out scams. The ones that take your money and run, or get you to install malicious software.
And then there are the semi-scams. The ones that provide some value, but fall far short of their promise. Or, they give you something up front, only to pull you further into their money-sucking funnel.
In the make-money-online industry, a common tactic is selling products that only give you one piece to the puzzle. Sometimes it's because that's the only piece the seller knows, and other times it's because they're leaving a trail of crumbs that just leads to more spending.
And then there's the bait and switch.
For example, I recently reviewed a course that taught you how to rank your videos in the #1 spot on YouTube. No one can make that promise, and if by chance, someone stumbles upon a simple “trick” that does work , they're not going to share it publicly… and the trick won't last for long as search engines have gotten good at fixing these glitches.
Sure enough, after going through several tutorials, the person teaching the course said, “This probably isn't going to work for high and medium competition videos, but it should work for low competition ones.”
In other words, the course did not deliver on what it promised. However, there was some really good information in the course and the person clearly went through a lot of effort to create it.
So, was it a scam? Unfortunately, even though the course provided some good value, a deceptive ‘hook' was used to sell it. Some might call that a scam.
The following 12 tips (or identifiers to watch for) might seem obvious to some, but that's not always enough to stop us from making poor decisions, especially when it comes to money.
Most of us have seen these “red flags” before, and know better. But, emotions and the hope that something works, can still get the best of us.
The promise of a better life is so appealing that online money making scams still catch people who should (and probably do) know better.
So, how do we spot these scams?
Before we get started, while most of these indicators are a good sign that something deceptive is going on, they are not a guarantee. If something still looks like it might have value, it's worth it to do further research.
Every once in awhile, even legit products and programs fall into what may be considered deceptive marketing tactics. Just like the big juicy burger pictures.1. Within Minutes, You'll Be Making Money
The most obvious ‘tell' that you've found a scam is the get-rich-quick promise.
Making money online just doesn't work like that.
Some of these scams are so blatant that they claim you can get rich with a simple 3-step process. While many real programs simplify their process by breaking it down into steps, the implication is not quite the same.
Here’s a good example of a scam . There's only 3 steps here; Step 1 is to “set up an account and log in”…
Step 3 is “deposit money in your bank account”. So, what is step 2?
That's all you have to do. Just use the course, deposit your money and enjoy life.
You can't make this stuff up. (well… someone did)A Get Rich Quick Analysis
Let's look at this from a different perspective.
Some of these programs claim you can make $10 or $20 for just a few minutes work. If you do the math, that's hundreds of dollars an hour.
I'm not saying it's impossible to earn that kind of money, but if you knew a guaranteed method to make hundreds an hour, that was so easy anyone could do it, what would you do with that information?
You could create a course and sell it, but…
If it was absolutely guaranteed (like putting 10 bucks into a machine that spits out twenties guaranteed)… I'll tell you what a business minded would do.
They'd hire someone (or a few dozen people) to do the work for them, pay them by the hour, fill their bank accounts with the money left over, and retire somewhere warm.
The reason THEY don't that, is because it's not that easy, and it's not guaranteed. 2. They Don't Tell You What You Will Be Doing
If you’re like me, you don’t put your debit or credit cards into a machine without knowing exactly what you’re paying for.
The same rule applies when buying something online.
However, many of these scams don't play that way. They ask for your money up front. You will be shown a sales page, but the real “secret” is only revealed AFTER you pay for it.
The truth is, there is no “secret”.
Making money online is like anything else. It's a process, it requires work and you have to learn how to do it.
No one is selling the “secret” to fixing cars. Or, the “secret” to playing a piano.
They are all just skills that require knowledge, training, and practice.
And, if you were to check out a school that teaches auto mechanics, or piano lessons, you would not be sent to a sales page with a “buy now” button.
What you would likely see is course description outlining everything you will learn, a schedule, and maybe even the course objectives and outcomes.
A legitimate make-money-online program will usually explain, in at least some detail, what they teach and what you will be doing.3. Watch For The $1 Trial and Money Back Guarantee
While it's not a sure-fire indicator of a scam, the $1 trial is simply a way to get your credit card. Not necessarily for fraudulent purposes, but to identify YOU as a buyer. (and disqualify those that are not)
When your credit card comes out (even for $1), you are identified as a “buyer with intent”.
There’s nothing wrong with that, and it doesn’t mean you’re being scammed. But it's something to be aware of.
Car dealers use this method all the time, to determine if you’re a potential buyer. They ask for a small deposit, and even though it’s refundable, it demonstrates a level of intent and commitment.
I certainly don't want to discourage you from purchasing products that have a discounted (or free) trial and/or money back guarantee. Many of the good ones offer them both. But it's important to be extra cautious if they're asking for your credit card.4. Be Careful Of The Automatic Renewal
Membership sites and subscription based products that come with a discounted trial, usually have an automatic renewal policy.
Before you sign up, it’s best to do some research. You are providing them with sensitive account information. therefore it’s critical to make sure they’re payment system is safe and secure?
Contact support and find out what their cancellation policy and procedure is. Do they require 30 days in advance to cancel?
A scam like this can operate and make money, even with 100% cancellations. If they’re billing everyone that joins for just the first 30 days before they cancel, they’re making a fortune. Some people will fight for their original investment back, but many will be happy to just cancel the subscription and take the first month as a loss.
And although they may offer a “money-back” guarantee, but if it's just a flat-out scam to begin with, it will be difficult (if not impossible) to get a refund. Research their procedure ahead of time and establish a line of communication with them.
Another semi-scam here, is when you purchase a product thinking it's a one-time payment, but it turns out to be monthly recurring. They don't always tell you this when you sign-up. I've had to ask for refunds before as a result of this scam.5. No Contact Information
If they don't have a legitimate way to get in touch, take that as a big red flag.
You may stumble onto a program that claims to pay 6 (and even 7-figures) to its members, but their only method of communication is an obscure email?
Legitimate companies, especially ones that deal in these dollar amounts, will have information about who owns the company, who manages it and so on.
They will usually have a “CONTACT” form or the ability to submit a support ticket.
When spending a considerable amount of money (as many of these programs require), you should be able to contact help and support before you buy.