By Sandra Guile
Better Business Bureau
Before replying to that offer for “business coaching services” or enrolling in courses with an unknown business, it might be a good idea to research what’s really involved.
The FTC investigated a business coaching scheme that allegedly took more than $100 million from financially-strapped consumers. The ads the scammers used to draw people in employed high-pressure tactics, promised big earnings, and guaranteed access to expert business developers – but only if the person signed up for classes.
Victims paid between $2,000 and $20,000 for the program and its related products and services but found it nearly impossible to get their money back if they tried to cancel.
Others who opted out of classes were persuaded into paying money for online products or coaching services billed as methods to improve profits, but they never saw the results they were promised.
While this scam takes a slightly different form, this would still technically be deemed a work-from-home scam. This term encompasses a number of online schemes because even though the methodology of the scammer may change, the victim is always asked to pay an upfront fee for products, equipment, or services. Afterward, they’re typically pressured to buy more in order to increase profits or recruit others.
Scammers of this type tend to target small businesses or start-ups as well as individuals, as they are often looking to boost revenue or expand quickly.
Anyone interested in starting a company – whether online or as a brick-and-mortar store – is encouraged to connect with business organizations like the Small Business Administration (SBA), or SCORE. Local colleges with small business centers can act as another resource for free information.
If you see an ad online or receive an email that promises a lot with little proof, make sure to research it before committing to anything. See if the company attached to the claim has a BBB Business Profile on bbb.org before making an investment, and report any questionable activity to scamtracker.org.
Sandra Guile is the Community Outreach Specialist for BBB. She promotes BBB’s message of marketplace ethics through public speaking engagements, presentations, media relations, press releases, web content, and other written materials. Your BBB is located at 1 East 4th Street Suite 600 Cincinnati, Ohio 45202 – to reach the office, call (513) 421-3015.
