Ask the Business Coach Joyce K. Reynolds is an expert Business Coach who works with CEOs, Sr. Execs, entrepreneurs and countless others providing knowledge, solutions, motivation and support that assist her clientele in successfully meeting workplace challenges. Find out more about Joyce's coaching practice. Home Based Business Scams Question: How legitimate are home based Internet businesses? It look like to me that most are just another scam to take your money for a seminar or course or no real product and very little chance to actually make a living this way. Most look like a recruit opportunity. Edith Answer: You are very right to be skeptical when it comes to investigating home-based internet businesses. Many of them, in fact, are pyramid schemes, multi-level marketing companies (built on illegal pyramids which, ultimately, collapse) or other kinds of scams. However, if you are interested in considering at-home internet companies, there are a number of things you can do to determine their legitimacy. Starting from the point that it is highly unlikely that any company - or anybody - offering big, easy income will deliver, you'll want to obtain all underlying information about any potential work or company you are contemplating. Ask if your income will be generated by product sales or if it will, in any way, hinge on recruitment of others. Get specific, written information including: how long the company has been in business; where they're physically located (no P.O. Boxes); who their customers are and how many they have; what their refund policy is; how long it takes to get paid and if there are any restrictions on payments; and, at least three references which you will want to call ask all your toughest questions about the company and its promises. If you're supposed to get some kind of a kit to begin your work, ask for a detailed description of its contents so you can decide if it's worth your money. Be sure to determine what - if any - further investment is required and what it provides. For example, even seemingly simple envelope-stuffing solicitations that promise steady income for minimal labor often require a significant investment in equipment or supplies. In some cases, you might even find that there's really no work attached to an offer but rather that you'll simply get instructions on how to set up the business (and, draw other people into the scheme). In other words, you'll want to be especially cautious of companies asking for money to make money. If a company is not willing to give you this kind of data before you give them any seminar fees or other investment money, you'll have your answer. Even if they give you information sufficient to keep your interest, before giving them any money, check with the State Attorney General's office, the Better Business Bureau and any consumer protection agencies from THEIR state to be sure they are clean. If no red flags are raised and you decide to try an opportunity - as with any agreement - get everything in writing. Submit any payment via check (so you can stop payment); UPS money order with signature required for delivery; or credit card that insures any payment over $50. Send any monies only to a physical address. The most important things are to be clear on what you are looking for in any such opportunity, take the time to do the research, and be certain that you have the drive and determination to make a home-business successful. Also see: • Ask Joyce your workplace questions • More questions • One-on-one business coaching Disclaimer: The information in this column is intended to provide the reader with general ideas or concepts to be used as part of a broader base of knowledge they collect to determine their own best course of action and solutions most suitable for solving their workplace challenges. The information in this column is not guaranteed to be the appropriate solution for each individual.