Legitimate business or Scam?

July 28, 2008

John Tozzi writes an interesting article on business opportunities for BusinessWeek Online.

The Internet is littered with offers for home-based business opportunities that promise big profits for easy work. But many of these offers, which range from envelope stuffing to medical billing, are really scams that prey on people’s aspirations to work for themselves.

Michael Webster (bizop.ca) is quoted as saying:

While some home-based business scams target vulnerable people such as the unemployed, experts say anyone can be taken in by the right pitch. “The techniques are no different in kind from the ordinary marketing techniques that normal sales people use. They’re just selling nothing,” says Michael Webster, a Toronto lawyer and the author of a blog on business opportunity fraud. “Anybody can be a mark on any given different day. Even I could be.”

This is very generous of Michael.

This article [and don’t forget the slide show] highlights that scammers are not without skill or charm that can hoodwink even an especially knowledgable professional, including a wary trial attorney.

  • Only about 5% of fraud victims ever report their loss.

Let’s not forget that Richard Solomon, a 45 year U.S. franchise veteran, believes that the large majority of new franchise offerings are just selling nothing [impossible to determine + from – RE: advertising mask + sham business].

Advertisements

BusinessWeek franchising article

March 12, 2008

BW Logo

Please find the current Special Report on Franchising. I am quoted in the article Is It Time to Buy a buy Franchise?

“If any promise is made, you should have it in writing, and if you put it in writing and it isn’t included in a franchise agreement, you should assume you are dealing with a liar and a scoundrel,” says Stewart.

Further…

But he suggests that a majority of the new offerings being marketed are “non-sustainable,” and that the number is greater than in the past.

“These fly-by-night systems come in to the market because people allow them. They buy them and they think it’s just like McDonald’s.”

There is also a slideshow called Franchising Experts Weigh In. I’m the last guy [far right] with the red face on holiday.

“If you really have no experience in an industry, like collecting dog poop, then you should work there [first]. You need to understand what that potential franchisee is going through.”


%d bloggers like this: