These offers usually look legitimate, but in reality, the truth about home based business opportunities is that more often than not, they are scams and instead of making money, you could end up losing it.

If you're looking into a home based business opportunity, take the following precautions to avoid being scammed and losing money:

• If it sounds too good to be true, it probably is. Think about it. If it was really possible to make $10,000 a month filling out surveys online in your pajamas or retire by 30 by purchasing a booklet that promises to make you wealthy working at home, no one would be working outside their homes. Extraordinary promises like these rarely if ever turn out to be true. If you come across a home-based business proposition that promises such a high income with what sounds like very little work, it's best to avoid it.
• Consider how much the opportunity costs. Some home-based business scams require an "initial investment" of anywhere from $1,000 to $50,000 and then promise a big return on their investment. This is a red flag; there are many home based business opportunities that offer free registration or a nominal fee. It's true that it takes money to make money, but asking for large sums up front should be considered a red flag.
• Make sure they offer a money-back guarantee. You should not consider any company or opportunity that does not offer a money-back guarantee. It should be at least a 30-day return policy. Be sure to read the fine print involving the return; they could promise a money-back guarantee, but the fine print might stipulate a 48-hour guarantee. It should be, at minimum, 30 days.
• Do your own research. Before you pick up the phone and order the latest home-based business, do a little research on the company or organization first. A simple Google search on the company can tell you a lot about whether an opportunity is legitimate or a scam. If the search comes up with a lot of angry reports, stay away from them. Be sure to check them out on the Better Business Bureau as well. If they are not on there, or if there are negative reports, don't purchase the home-based business plans. If you don't find anything derogatory, and if they offer a money-back guarantee, go ahead and proceed, but do so with caution.
• Know the common scams. Pyramid schemes, stuffing envelopes from home, and assembling things at home are all common scams that still turn up. In reality, the truth about these home based business opportunities is that you will spend money up front for fees, equipment, or training materials, and then never end up making money for a variety of reasons. These should be avoided, period.

Legitimate home based business opportunities do exist, but they are few and far between. If you do happen to find a home based business opportunity that is legit, don't expect to become a millionaire from it. Most people don't make enough money from home based businesses to support themselves or quit their day jobs.