When considering any online business venture there are certain flags that fly freely, warning you that your money could be wasted and there are a few other flags that may not be as prominently displayed. Of course, as more people begin to recognize the warning signs of fraudulent business practices, the designers of these sites are become more adept of shielding them from view until it is too late.



One of the most prominent of the warning signs is contact information. Names and email addresses are usually dominant in online advertisements, but if you call the number during normal business hours and the phone is answered by a six-year-old there's a good chance the owner of the business does look at it as a professional operation. How the person answers the phone can be a good clue as to how they operate and whether or not it is a legitimate business.

Now, everyone knows that home-based businesses run the risk of having a child answer the phone, during normal business hours that is typically taboo among true professionals. You may want to have website in front of you when you do call the person listed on the site, and focus your queries on the business, attempting to determine how prolific they are. After all, they will be the one training you to operate the business.

If there is no phone number or physical address, it is best just to close the ad and move on to the next one. If there is a physical address, you can verify its authenticity through the postal service's online service and quickly determine if it is a legitimate business address or something someone made up just to make people think they have an address. You may then through the online phone book, attempt to find the phone number for the address and if it is not listed on purpose, you will want to ask why they do want to be contacted.

If there are different program levels to choose from, with the higher costing levels paying high commission rates, you have to wonder why you have to pay a monthly fee in order to work for them. Sure, many companies charge a franchise fee, but what do you get for that fee? Training by the person who let their six-year-old answer the phone? Any support in advertising the site that does not make you sign up and pay for another service?

After reading the entire site, if you do not know what it is you will be doing, chances are it is not a legitimate business. Most real businesses will be up front about their product or service and won't make you buy it in order to become a distributor. You may also want to consider the legalities of requiring someone to stock merchandise in order to earn sales commissions as well as having to pay a recurring membership fee in order to be eligible to earn an income. The higher membership fee may earn more money, but probably will not be returned in the form of more sales.