How To Spot A Fake Product or Business Opportunity Scam
Your brand and business could be one of the most lucrative things in your life. The last thing you want to do is start with a business opportunity that isn’t legit. You also don’t want to have someone undercut you with knockoff products. It could take you months or years to grow and a possibly large investment to get your business started, so choosing poorly could hurt you big time. In this post, you’ll learn how to spot counterfeit goods online and a solid business opportunity from a scam.
How to protect yourself as a consumer from buying fake products online or joining a scam
With the rise of fake product sites and counterfeit selling pages, this can be damaging to the brands that aren’t selling fakes. So for a consumer, what are the dangers of buying fake products?
How can the consumer ensure that they aren’t sucked into this seedy world of business and are buying from a reputable company that has spent time and effort into customer service and patenting? How can you avoid joining a scam vs a legitimate business opportunity?
Also, before covering these tips, realize that plenty of legitimate business opportunities are labeled as “scams” for a number of reasons. One of the most common reasons is that the person is ignorant of how building a business actually works.
Another is they were looking for something that was “get rich quick” and when they find out it requires effort and work, they call it a scam. A third common reason is that they never learn the skills to become successful. They claim that they “failed” or it “doesn’t work”, or “it’s a scam” when in reality they just quit.
Spying out a fake business opportunity and counterfeit products
A company may want to look at a Brand Protection Guide to secure their online businesses. This also applies to the buyer themselves, and it’s going to be important for them to not buy anything unsavory.
One major issue is looking for the security of the website when buying. Some websites are in fact illegal and will be selling products that are either fake or that won’t ever actually appear on your doorstep.
Always look for the padlock symbol (which shows a safe and secure connection between browser and web server to ensure there is no third-party interference). This also holds true from people offering you a business opportunity.
So what exactly are the intricacies to look for to ensure you’re on the right page?
1. Contact details for the business and how long they have been in business
Where are their offices based, is there a telephone number on their website? All legitimate online stores and businesses will have registered addresses and/or details that prove they’re not selling counterfeits and are a legitimate business.
Also, consider how long they have been in business. “Ground floor business opportunities” can sound very appealing, but many businesses don’t make it past their first few years in business. You can certainly risk it and join one of these business opportunities, but understand that they can go out of business just as quickly.
As a rule of thumb, if you are looking at starting a network marketing business, for example, a company that has been in business for at least 5 years is a safer bet.
Does the business have a corporate headquarters you can actually visit? Not that you can’t have a business yourself from home, but if you are buying a franchise or starting an online business like network marketing, having an actual corporate office is likely a good sign.
2. Customer feedback or reviews on the business or business opportunity
Do they have reviews anywhere else online that say a little more about their brand? Any review on their own site may have been tampered with by their management and could be fake, so look into the brand first.
Look for video reviews and testimonials as much as possible. A video review or testimonial is much harder to fake than a written one.
Also, reviews and testimonials are something you should put on your own website as well. They are a great way to build trust and credibility for your business. Plus, these testimonials and reviews can be a great selling strategy for your business as well.
Facts tell, but stories sell Click To TweetWhen happy customers share their story other potential buyers could relate to their situation as well and decide to buy. This works much better than you just talking about the features of your business. Also, beware that some negative reviews. This may just be competitors in disguise trying to sell you on some other business opportunity.
5. Do you trust the look and feel of the brand?
Does it seem legitimate? Are they asking for more money than other sites selling the same?
Do they have a unique product or service that you can’t get anywhere else or at the price they are offering?
If they’re selling designer goods, does the imagery and description look to a high standard? If not, or if you even have a hunch that the website is not good, then it probably could be selling counterfeit products. You’ll definitely want to conduct further investigations before you part with your money.
6. Try the products before joining a business opportunity
If you are considering joining a business opportunity, ask yourself if you would use the products or even like the products. One sure sign of a bad business opportunity is garbage products that no one would ever use.
You are going to have a hard time selling products you have no interest in and can’t become passionate about. Imagine saying to someone, “I don’t use these products at all, but you definitely should!”
It’s possible to sell something you aren’t interested in, but it makes it a lot easier when you do use the products or service yourself. Also, consider that if you wouldn’t use the products or services, others will probably feel the exact same.
Your business and products don’t have to appeal to everyone to be successful but don’t intentionally limit yourself into products that don’t appeal to a large audience. For example, I myself never would see myself, as a male, using a lot of skincare products.
Certainly, some do, but a majority of men don’t, so in this instance, it’s almost like losing out on around half of the population before you even open the doors of your business. Again, this doesn’t mean you can’t be successful in a business like that, but you’ll be limiting your potential customer base before you even begin.
7. Does the business payout based on recruiting
Another misconception people have is that if recruiting is involved in the business then it’s a scam. This is not the case, however, if the company actually pays a commission on the act of recruiting someone, it is not legal.
Many people not educated on this and it can be a fine line on what is a legal business opportunity and what isn’t. For example, a legitimate business pays out on the sale of products or services, not someone joining as a sales representative.
Often a person joining a business opportunity will get products to use themselves and to sample and sell because that will help jump-start their business. However, it should not be a requirement to start selling the products.
Also, in this case, if someone did just join as a representative no money should be paid as a direct commission to the person that recruited them. Only commissions can come from the sale of products.
A bonus or percentage of sales from those you recruit is fine as long as it is coming from the sales of products or services and not purely recruitment. A business opportunity that is structured in this manner is often referred to as MLM or network marketing. Thankfully there are many legit network marketing companies.
Getting paid based on the sales of your organization is just leverage and every business does this.
The bottom line for protecting yourself from fake products and business opportunities
These fraudulent websites have existed for many years and whilst they are being vetted more strictly, some still slip through the cracks. This can leave vulnerable shoppers open to being sold goods that are not real and stopping legitimate businesses from prospering. It’s a circle of deceit which must be stopped.
When choosing a business opportunity, make sure you lookout for the things mentioned above to avoid wasting your money. If you’d like to learn more about starting a real business with affiliate marketing, check out this Affiliate Marketing Beginners Guide.
Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook
Facebook: facebook.com/coachmikemacdonald
Email: [email protected]
“I help business owners scale their businesses and generate more quality leads with paid advertising and automated marketing strategies”
P.S. Interested in starting your own home business, but don’t know where to begin? Click here to check out a guide to starting an online business.
If you enjoyed this post, How To Spot A Fake Product Or Business Opportunity, please retweet and comment below.
