Jason Wyatt
Starting a business can change your life. But it also opens the door to scams that drain your bank account before you know it. Every year, people get pulled in by flashy promises and fake offers. If you really want to stay safe online, you need to know what some real scams look like. No worries, we’ll show you how to spot them plain and simple.
1. “Turnkey,” “Easy,” “Automatic” Promises
When someone tells you getting rich will be “easy” or “automatic,” you should be suspicious. Real business takes work. Anyone telling you otherwise is selling you a dream.
Why This Matters:
- Good businesses demand effort.
- If it was that easy, they’d keep it for themselves.
- Easy money ideas fall apart fast under real competition.
Red Flags:
- “No work required”
- “Sit back and collect money”
- “Just plug and play”
What To Do:
- Ask what kind of daily work is expected.
- Get examples of real operations.
- Talk to real users, not paid testimonials.
If you want a legitimate business opportunity, stay clear of anything that promises you success on autopilot.
2. Vague Business Models
If after reading the website and talking to someone you still can’t explain how the business works, that’s a problem. Real businesses are proud to explain exactly what they do.
Why This Matters:
- Good businesses show you everything upfront.
- Scammers keep it vague so you don’t ask tough questions.
Red Flags:
- “Proprietary system you’ll learn after you pay”
- “Confidential methods”
- “It’s not important right now to understand the technical “
What To Do:
- Demand full details in writing.
- Walk away if it stays fuzzy.
Legit businesses are clear and upfront. If it seems like they’re holding back information, then they probably are.
3. No Clear Revenue Source
If the only real money being made comes from signing up new people or charging you fees, that’s a huge red flag. Money should come from selling real products or services.
Why This Matters:
- Good businesses get paid by happy customers.
- Scams survive by charging hopeful entrepreneurs.
Red Flags:
- “Training fees”
- “Marketing packages”
- “Website setup fees”
What To Do:
- Ask: “Who is paying you?”
- Make sure customers, not new recruits, drive the business.
If the cash flow depends on you paying upfront, it’s time to move on.
4. Weak or Loophole-Filled Warranty
Be careful of those online ‘warranties’ that sound to good to be true. Scammers in this space often use complex contracts and legal loopholes to avoid delivering results, leaving you with nothing but wasted money.
Why This Matters:
- A strong company stands behind its promises.
- A weak warranty is a sign they expect complaints.
Red Flags:
- Lots of “may,” “could,” or “possible” in the fine print
- No clear refund terms
- Conditions hidden in legal jargon
What To Do:
- Read the warranty line by line.
- Ask them to explain the refund process.
- Skip offers with unclear or tricky policies.
When spotting scams, the warranty is often the biggest giveaway.
5. Business Located in High-Risk Countries
If the business is based in a tiny, obscure country, that’s a problem. You’ll have a tough time getting your money back if things go bad.
Why This Matters:
- The United States laws can’t protect you from overseas scams.
- Suing a foreign company is expensive and complicated.( nearly impossible )
Red Flags:
- No U.S. office address
- Company registered in Liberia, Cyprus, Seychelles, or similar
- No American contact person
What To Do:
- Double-check the company’s headquarters.
- Stick to companies with a real U.S. presence.
Good business opportunities don’t hide offshore.
6. Heavy Focus on Marketing, Not Product
Real businesses care about what they sell. Scams care about “marketing magic” and “automated income.” If the product isn’t front and center, something’s wrong.
Why This Matters:
- Products drive real revenue.
- Scams push hype instead of value.
Red Flags:
- “You don’t need to sell anything”
- “The system sells for you”
- No clear explanation of the product
What To Do:
- Ask: “What exactly will I be selling?”
- Check if the product actually solves a problem.
When figuring out how to spot a business scam, remember: no product = no business.
7. Low Cost, Out-of-State Offers
Offers under $20,000 coming from out-of-state companies are risky. If something goes wrong, taking legal action will cost you more than it’s worth.
Why This Matters:
- Out-of-state lawsuits are expensive and complicated.
- Prosecutors won’t chase small-time scams.
Red Flags:
- $5,000 to $15,000 “business packages”
- Company registered in a different state with no office near you
What To Do:
- Choose local opportunities when possible.
- Research the company’s size and history if it’s not local.
Real opportunities are either local or tied to companies with a solid national reputation.
8. Sparse Newspaper or Magazine Ads
Some scams buy ad space in big newspapers or magazines to look legit. But paying for an ad doesn’t mean they’re trustworthy.
Why This Matters:
- Ads are ads. They aren’t endorsements.
- Scammers use well-known media to build fake credibility.
Red Flags:
- Outrageous claims
- Toll-free numbers with no other real information
What To Do:
- Research the company outside of the ad.
- Check with your Attorney General and BBB.
Always dig deeper than the ad. Legit businesses have nothing to hide.
How To Protect Yourself
Slow Down:
- Scammers push you to act fast.
- Good deals are still good tomorrow.
Research Deeply:
- Search the company name plus “scam” and “reviews.”
- Look for third-party complaints.
Check Legal Registrations:
- Verify the business with your Secretary of State.
- Look for any lawsuits or complaints.
Ask Hard Questions:
- What am I selling?
- Who are the customers?
- How do I get leads?
- When do I start making money?
Demand Documentation:
- Get every promise in writing.
- Save all contracts and emails.
Verify Income Claims:
- Demand average earnings, not “potential” numbers.
- Avoid offers showing only the best-case scenario.
Use Safe Payment Methods:
- Use credit cards for protection.
- Avoid wiring money or using crypto.
Trust Your Gut:
- If something feels off, it most likely probably is.
- Walk away without looking back.
Finding a legitimate business opportunity takes work. Stay sharp and protect yourself.
What To Do If You Get Scammed
Demand a Refund:
- Ask right away in writing.
- Keep copies of all communication.
Report to Authorities:
- File a complaint with your State Attorney General.
- Report to the FTC.
- Alert the BBB.
Warn Others:
- Leave honest online reviews.
- Share your experience to help others.
Stay Vigilant:
- Scammers rebrand all the time.
- Stay cautious even after one bad experience.
If you lose money to a business opportunity scam, speaking up helps you and others avoid it happening again.
Final Thoughts
Real business opportunities exist, but they never guarantee overnight success. Scammers target your hopes and your wallet. Ask the hard questions. Move slowly. Protect your money.
Your future is worth it.
