We get a lot of questions on here about "is this job opportunity too good to be true" and "does this job sound like a scam?" I want to address two of the most common schemes:
Multi-level marketing
Did your friend, distant relative, or some guy in the grocery store recently approach you about a "great job opportunity" where you can "be your own boss," "work your own hours," and/or make money by "doing things you already do" like buying detergent, clothing, cosmetics, or vacation packages through independent seller agents?
If so, you are likely being recruited for a multi-level marketing (MLM) company. These go by various different names like "network marketing," but they all have one thing in common: they are (barely legal) pyramid schemes where the real money is made not by selling the product but by recruiting people to your "down line." There is a guy named Ethan Vanderbuilt who exposes a lot of these "business opportunities" and runs the real numbers on these schemes. If you suspect that a job opportunity is an MLM, I urge you to check out if he has posted an article or video on the company in question. In virtually all cases of MLM, you will make much, much less money than you will working for McDonalds.
These companies typically make money by recruiting new sellers and getting them to recruit even more new sellers. You usually pay an upfront fee to get a website setup, take training classes, buy materials, etc. This money goes to the very few at the top of the corporate ladder. Virtually nobody makes decent money as an independent agent for these companies. All the real money is at the top where the founders are. These companies also have a habit of going out of business, and the founders move on to start another one until it dies.
Some of the most well-known (and most likely to make you lose money as an independent consultant) MLMs are:
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Amway
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World Ventures
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Empower Network
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Avon
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Herbalife
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LuLa Roe
In my honest opinion, MLMs are scams that prey on the desperate and uninformed. People will tell you that those who fail just didn't try hard enough. These systems are designed for you to fail and get burned out. Don't get sucked in.
Check-forwarding scams
There are tons of these floating around. Basically, someone "hires" you to process payments through your personal checking account. What ends up happening is that they send you a bunch of fake checks and tell you to deposit them. You deposit them and are required to send money through an untraceable unrecoverable method (i.e. Western Union). Western Union has be fined in the U.S. by the FTC for being complacent in these scams. A few weeks later, the bank realizes that the original check is fraudulent, and it bounces. You've already withdrawn and sent off the money, so the bank comes after you for the funds that bounced. No legitimate business requires you to process payments through your personal bank account.
If you are suspicious, or something sounds "too-good-to-be-true," I also would urge you to ask the folks over at /r/scams as they have a pretty good eye for this stuff.
Basically, if a job's duties require you to do anything with your bank account or pay an upfront fee to get hired, be very, very skeptical.
Submitted May 14, 2017 at 10:51AM by ScrewedThePooch http://ift.tt/2rerfZJ
