How Do You Spot A Scam?

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3.4K followers

Hi folks. Many of us arrived at Wealthy Affiliate because we were scammed on the internet and likely even lost some (a lot?) of money. But now that you've been here for however long I wonder how many of us are still tempted. So I'm curious, how do you decide if "a new opportunity" is a scam or not? What questions do you ask yourself? What flags are you looking for?

I think it's great when I read WA blogs asking other members if they think something is a scam or not. I think it's a great way to ensure we're not buying glitz and glamor. There are other websites and products that could indeed help our online business but we must use caution and determine if they will help or hinder.

So how do you decide what can help and what is a scam?

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Recent Comments

49

I look at whats offered. If someone says that you won something that you did not enter-thats a red flag right there. Also if people on social media contacting you and saying that they love you and you dont even know them (both examples have happened to me) report these people. Yes there are many ways to make money online but also many scams. Very sad

I've been told I've won something and that I'm loved...too funny, well, not that I'm loved, I am. But from strangers? I don't think so. It's amazing what people will do to attract new subscribers. I'm glad that WA promotes quality and not spamming. Thanks for your comment.

I look for what they offer and the business model. If that's bad then I move one. If it's not bad, then I research them and look for the negative reviews. I want to know all the bad stuff people went through not the good stuff. If I can't find any bad stuff, I will read the good reviews...If what they offer is worth my time which is hardly ever, but there maybe a diamond in the ruff out there, then I will try it...but, note this is rare very rare. Great question.

I was with a scammy company and it actually took me a few months to find a "bad" review. And that review turned out to be a good review because I learned a lot of things about this company from that. And I got out as quick as I could...which led me here. I agree, there's not many out there that we can rely on.

Good question. I've tried a few I've lost money on. I'm in no great hurry to try anything else!

Same here. Live and learn, right? We have to be careful even with the ones that say free. I always look for free training and will check that out and, if it seems legit, I may look into it further. Find reviews, good and bad, is also a great way to check something out.

Hey there Rick... really great hearing from ya'! I still just use the WA model... If you can't successfully test drive it for free, I simply walk the other way! I haven't checked out too many "opportunities" lately! (-;

Hi back and yeah, I've been AWOL for a while. Just getting back into things here. I agree, the WA model is a great one to follow and we should use it as one of our tests when checking out something new. We've learned about value here so we need to apply it wherever we go online. Thanks for your comment.

If there is no product, or if the product is simply a cover for a recruitment scheme it is a scam. For example selling websites noone used, or a"thought of the day" for a $50/month subscription.

Exactly, it's all in the product. And it needs to be something we're proud to promote and know people need, even if it's an online opportunity to work from home. You're attaching your name to it so make sure it's something worthwhile. Thanks.

There are so many questionable products I prefer to look at how to tell if an business is one I want to be involved in.

1. Are the products ones I am proud to promote?
2. Is it an established company?
3. is the compensation plan fair?
4. Does the company promote recruitment rather than sales.
5. Is there expensive "training" involved.

If the answers to the first 3 are yes and to 4 & 5 no then it is worth investigating.

I always say "Is this something I want the town crier to know about?" Meaning, like you say, will I be proud to promote them and don't care if everyone knows about them...even my family who are sometimes the hardest to convince. I agree, we each should have a checklist and if enough things are checked off as positive then yes, it's worth investigating further. Thanks for your comments.

Obviously I don't really get tempted anymore after experiencing the great joys of being a WA member but the questions I always seek answers for are these.

1) Is there a cost to get started?
2) If there is a cost, how much is it and is it recurring?
3) Are there any upsells and if so how much?
4) How do I get paid?
5) What is their Refund Policy?
6) Is there any technical support?
7) Do I have access to the owner or creator of the opportunity?
8) What EXACTLY can I expect to do to make money?
9) What are others saying about the opportunity?

I also look to see if they show the all too obvious scam signal by showing big houses, fancy cars, bank checks and deposit amounts. Then I use my commonsense.

The only thing that I was mildly tempted with not long ago was DS Domination which for those who don't know it stands for Drop Ship Domination. Basically you copy items for sale at Amazon and paste the pictures and descriptions into eBay but charge a higher price.

First off I was like, hey not a bad idea. However I am an eBay Power Seller and I know how certain things need to work in order to be compliant within eBay that weren't really addressed with this system. I also know how certain shipping terms work with Amazon Prime. Because of those and the fact that you are NOT drop shipping by using this system, I knew it was borderline scammy.

Thanks, Robert. The questions you ask are bang on. Those are good rules of thumb for anyone checking out "an opportunity". I just want to add that when reading reviews it's important to read ones from people who are being honest and objective. Too many are written by the very people whose only motivation is to promote the product and make money off of you. While that's to be expected to a certain extent it's still important to get the "other side of the story". That's what brought me to WA, finally finding that other side and following the link through to WA. Thanks for your comments.

Oh most definitely Rick. I should have clarified #9 better by saying What are the scam reviewers saying?

Yeah,i don't mind if they're a member and promoting the product but I do want to read an honest review. I also like to read reviews from people who aren't members and don't like the product. Mi want to know why so I can make an informed decision.

I agree 100% Rick.

1st, if it sounds too good to be true, it probably is. Especially, the ones that say you can make money instantly with a push of a few buttons.
2nd, check out the company or reviews. If they don't have a legit follow up email or contact, I won't deal with them. A lot of the reviews you look up are phony, provided by them.
A lot of companies also offer a low cost or free start up, but you have to check what the full cost is or upsells that you need to have to run the business.
I was about to give up on trying affiliate marketing, because I got so much junk.
At least WA is straightforward with their free trial and what the total cost is for membership.

Hi. The easy push-button-way-to-riches still astounds me. Why do we think it's that easy? I always refer to this as "going to bed broke and waking up rich". It just doesn't happen. I agree with you about the free stuff as well, sometimes free turns into expensive or even finding out that you've been placed on email lists that are being passed around like candy. Thanks for your comments.

Here are some red flags. Some really obvious and some that get lost behind shiny objects.

They swear you can get get rich overnight/fast
Completely Passive Income
Shows owners/users/marketers sitting in the lap of luxury - big house nice car
Product is basically just reselling itself - like 99% of all MLM
Tells you nothing about the actual product
OR
Actual product description is vague at best
Product offers no real value at all
*******READ PRODUCT REVIEWS ON EVERYTHING**********

After all of that, if they passed all of the above, here's the real litmus test:
It should offer you value up front so that you can see what you're really working with. Note - this should appear in the form of FREE content before you ever sign up for anything!! That doesn't necessarily mean a free trial offer or a money back guarantee. It means, it tells you who this company is, and they demonstrate (not tell you, but actually show you) how they offer value. You should have a value-packed experience before you even consider it. If you don't gain new information or knowledge from their campaign (pre-enroll/sign-up) they're likely not going to have anything after you hand over your card either.

Hi. Totally agree with you. Reading reviews allows us to make our own informed decision. And these reviews must be honest and objective. Also, having the ability to try it out for free is another important point. Much like WA has the Starter Membership, we must be given enough information and be able to check something out for a reasonable period of time. This allows us to decide if something is legitimate and worth investing our time and money further. Thank you for your detailed list above.

Hi Rick, thanks for your response, and note on my profile.

Great point about honest and objective reviews, and it's a good idea to read many, because even if you feel one was being objective, you should see a trend if you look at a handful or more.

And definitely a free trial period is ideal, but many prefer to offer a guarantee. That can be okay too if the company is trustworthy.

All legit offers with a free trial or a guarantee should be (and are from my experience) giving you a flavor of what to expect on the other end. They should have enough confidence in their product to do so, and if they don't, that's another red flag....

Good point about "confidence in their product". They should have nothing to hide. And if you are thinking of signing up you, too, need to have confidence in the product you will be promoting. Thanks again.

Take a look at one of my posts:
http://mybestinternetmarketingtools.com/the-get-rich-quick-scam/

Hi. Thanks for that. I liked your advertising campaign section, definitely things to watch for.

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