)
)
The internet offers numerous ways to make money, but it also hosts scams. Here are five common online business scams and how to recognise them:
1. Multi-Level Marketing (MLM) Schemes
What it is: MLMs promise income through sales and recruitment, often focusing more on recruiting than actual product sales.
Why it’s a scam: The vast majority of participants lose money, with only those at the top profiting.
)
)
)
)
Example: Herbalife paid £200 million in 2019 to settle claims of misleading practices.
Warning: If it feels like a pyramid scheme, it probably is.
2. Online Survey and “Get Paid to Click” Sites
What it is: These sites claim you can earn money by completing surveys or clicking ads.
Why it’s a scam: Many pay very little or not at all. Some sites charge an upfront fee but don’t deliver.
Example: InboxDollars and Swagbucks offer small earnings, but many users report wasting time for only minimal rewards.
Warning: Avoid sites that ask for money upfront or promise unrealistic earnings.
3. Dropshipping Scams
What it is: Dropshipping involves selling products that are shipped directly from a supplier to the customer.
Why it’s a scam: Some courses and services overcharge for basic advice and use low-quality suppliers.
)
Example: “Million Dollar Dropshipping” scams promise big profits but offer minimal support.
Warning: Be cautious of programmes that promise quick profits for high fees.
4. Fake Freelance Job Platforms
What it is: These platforms claim to connect freelancers with clients but ask for upfront fees or direct you to low-paying jobs.
)
Why it’s a scam: Once you pay, the job listings often turn out to be fake or unprofitable.
Example: FreelanceWorkers.com charged freelancers but offered no real opportunities.
How to Protect Yourself:
Research thoroughly before committing.
Be sceptical of promises that seem too good to be true.
Look for red flags such as upfront fees or pressure tactics.
Report suspicious sites to the relevant authorities.
Stay informed to avoid falling for these scams.