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Home Based Internet & Computer Business Franchises

Research Before Buying In

There are numerous companies out there that employ unethical, borderline, if not full blown, illegal practices that prey on people who want to work from home. They may use elaborate tactics to convince you of their credibility, creating impressive websites and offering references who may be paid to give positive feedback. Some people may believe that if a company posts an ad on a legitimate job posting site the company is legitimate. If you're not sure, make one of your first tasks checking out the company with the Better Business Bureau. Keep in mind that a company may not have a record with the BBB because they have changed names or settled claims, meaning that they could still be bad apples. To meet the growing popularity of home based businesses, information has become increasingly available on the subject. iVillage.com provides numerous articles on many aspects of homebased businesses, as well as online forums where people post their experiences. It may be worthwhile to post a query on one of the message boards to see if anyone else has had an experience with the company in question.

If your BBB search turns up empty, contact the company making the business proposition and ask the following questions recommended by the Federal Trade Commission (FTC):

• What tasks will I have to perform? (Ask the program sponsor to list every step of the job.)
• Will I be paid a salary or will my pay be based on commission?
• Who will pay me?
• When will I get my first paycheck?
• What is the total cost of the work-at-home program, including supplies, equipment and membership fees? What will I get for my money?

Additionally, you should find out a company's refund policy and get it in writing. Typical HBB schemes include envelope stuffing, home typist and data entry positions, medical billing, and home assembly. Oftentimes a fee is required to cover "administrative costs" or a "start up kit" and "materials." You should never pay someone to give you a job. If you pay for a start up kit or materials, it is not a job. Franchises usually require a franchise fee, which is a normal course of business in that industry. With your franchise fee you are buying the right to use that company's preexisting brand recognition, as well as receiving training and in many cases administrative and technical support from a franchisor's headquarters. When you buy into a franchise you are not an employee, but a business owner.

A lot of companies who are not above board will try to make themselves sound like franchisors, promising an existing client base. Be critical of companies claiming to provide you with customers who are chomping at the bit. Most often you will have to sell your own services, like medical billing. Granted you will need the software and infrastructure provided by many medical billing concepts, however what is misleading is the actual demand for those types of services, which means you will have to prospect and obtain your own clients, who may not be in need of those types of services or because those tasks are performed in house. one way to safeguard yourself against an unwise investment is to contact people likely to use those kinds of services and ask them if they hire people like you to do those types of services from home.

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