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Types of Companies to
avoid
The following list refers to business
opportunities. For examples of companies claiming
to offer homeworking opportunities check out the
homeworking site
http://www.homeworkinguk.com
You should always check out
www.asa.org.uk if you are
considering any business. Here you will find a very
long list of adjudications following official
complaints about advertising. Many business
opportunties are listed here. The list covers every
case investigated since 1997. Be very careful if
they have been adjudicated against.
Also avoid:
- Any company where the product is secondary
to the "opportunity" or even non-existent, where
you make your money from recruiting not selling.
This is particularly common on the Internet
where you may pay large sums to buy a replica
website and earn far more whenever somebody else
buys a replica site from you rather than from
buying the products advertised on the site.
Current examples include host4income.com (see http://www.findhealer.com/wwwboard/supersite/messages/216.html for further details)and Armchair Tycoon.
- Any company where the product is overpriced
to cover the commission payments. Why would
anyone buy a product or service that was more
expensive than the identical product from the
competition? You may find a few people who are
unaware of prices initially, but long term
you're causing unnecessary problems for
yourself. This ploy is often used to sell websites that provide
web building software for creating a website in minutes without any previous knowledge.
- Any company promising vast sums of money in
X months time. Do the figures add up? (see NMG
below)
- Any overseas scheme not fully compliant with
UK law (often from offshore tax havens)
Examples
Cream of Egypt or Bodybite or
Zaffaran Trading Ltd or Aurum Marketing
or any similar schemes. These companies
claim to offer market research posts. By sending
off for kits from them for £40 each, they will
send you £80 for completing a product
awareness form. You'll find they've been closed
down before you get your money back. Bodybite
(Aurum) already has.
"How to Make £25 from each "Sold" Sign
that you see". You may well have seen this
advert, offered by many different companies. Every
wondered whether it really works? The following is
a quote from somebody who sent off for this one.
"Firstly you have to wait for the houses "for
sale" to actually be SOLD. Secondly, the
specially-prepared letter you send to them is a
letter welcoming the new occupants to the area and
introducing them to some of the shops &
services in the area. Before doing this, however,
you have to contact lots of shops and services and
persuade them that, in return for advertising their
services for free to new homeowners in the area,
they should give you a percentage of the sales
arising from your letter. Although the idea may be
a good one, I feel that the advertising of this
scheme is extremely misleading."
The New Millenium Group Inc
(NMG)offer you the chance to buy a silver
ingot for £62 and receive over £10,000
over a fourteen month period. Despite claiming to
comply with all MLM laws this is clearly
mathematically impossible. The product is only
worth about £5 and there is no way the
opportunity can possibly work, even if it isn't
closed down in a matter of months. A similar offer
is being made by World of Art Distribution
whereby you purchase a personalised portrait
for £60 and supposedly receive £3,522
over 12 months. Totally illegal in the UK.
There are also many chain letters doing
the rounds - you may recognise the names Sally
Brooker, David Rhodes or Edward L Green.
You are asked to send £1 to each person on the
list and then circulate the letter to 200 or more
people. You will spend a fortune on postage and
mailing lists and get nothing back. Don't do it!
The only use for these lists is to use the names to
compile your own mailing list.
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