5 Common Types of Online Home Business Scams You Should Avoid

5 Common Types of Online Home Business Scams You Should Avoid

[This is a guest post and is written by Abi Cool]

You might have come across the quote that says, “money answers all things,” have you?

The truth is that there seems to be something about possessing more bankrolls that could easily entice us. Could you attribute this to its ability to acquire numerous material things and give you a sense of security and power?

Online home-business scams, or work-at-home scams. Have you heard about them?

Arguably, a good number of people have fallen into the hands of online con artists who promise “too-good-to-be-true” investment opportunities that spew out huge amounts of money within a short time frame.

That’s why it is crucial to be at least aware of these five most common online home-business scams. Why? So that you could avoid them.


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Money Making Myths and Scams

Technological advancements have made such a tremendous impact on the nature of today’s society. On one side of the coin, it is proposed that the existence of AI technology has displaced humans from many jobs. On the other side of the coin, however, it is quite vivid that technology has opened up many new jobs and other money-making opportunities (primarily through the internet).

Scoial media iconsFor example, social media platforms allow you to increase your audience and reach more potential customers for your business. You can monetize the views on your YouTube channel as well. They are several websites that offer opportunities in content writing, graphic design, website design, affiliate marketing, and many more.

The point is this; even online, there are authentic opportunities for making money online. However, while searching for profitable ventures, it is essential not to get too desperate or let your emotions take the steering, or they might drive you towards making drastic decisions.

Just like it takes effort to dig up treasures from beneath, genuine money-making activities attempt providing valuable goods and services and building trust too. Isn’t it saddening to know that there are a couple of misconceptions that people hold about making quick money?

5 Common Types of Online Home-Business Scams

An abundance of gold on the surface of the earth would be a rare opportunity which would naturally not be open to everyone. It is for this reason that we build our intuition to sense these scams so that we do not fall prey in the hands of their perpetrators.

1. Pyramid Schemes

Pyramid schemes are quite popular. In many countries across the world, these schemes have popped their ugly heads in different ways. Perpetrators of this come to you bearing tales that equate the scheme with multi-level marketing.

The way pyramid schemes operate differ from that of multi-level marketing (MLM).

MLM focuses on pushing a product forth so that with a larger number of distributors, the product meets more customers.

On the other hand, pyramid schemes are after getting your money with claims that you would be paid a certain amount, which increases as you recruit more people. At times, these schemes are presented so subtly that one could easily find themselves entangled by the stories that are told. You are required to personally increase your audience and convince them to join the scheme.

online homebusiness scams to avoid - pyramid scheme with it's levels and number of participants on each level

Pyramid schemes also promise vast sums of money that would be earned at an ultimate level. That, of course, is practically impossible. Why? Because this level would require that all the recruited individuals that you have introduced must each recruit a certain amount of people. And these people, in turn, must recruit a certain number of people. It goes on and on, and it’s exhausting! At some point, you give up.

Pyramid schemes do not reinvest the funds they receive. Do you get the idea? The money brought into the scheme can never be sufficient enough to pay everyone the enormous amounts of money that have been promised as a return for investment.

2. Ponzi Schemes

Tell me about that money-making opportunity you are considering, and I would tell you that if it sounds too good to be true, it most likely is.

Ponzi schemes appear as an investment with claims of high rates of return and little or no risk. Companies in charge of these schemes work hard to get new investors; the new income inputted helps to clear up the investment returns of old investors.

It gets worse!

The scheme clearly heads for a destructive end. As more individuals pump in their money, more debt is incurred.

For example, Mr. A invested $100 and was promised $150 in return. Mr. B invested $200 and was promised a total return of $300. However, $150 from Mr. B’s investment is used to pay back to Mr. A. That leaves the company to go in search of an investor whose funds would then be used to pay Mr. B. The story goes on until the scheme folds up.

A lot of individuals get involved with this with a notion that everybody has their lucky moment in life, and they have most likely found theirs. They feel confident as far as they get their returns until the program closes in their faces! How sad.

3. Investment Scams

To get a tree, you must plant a seed, right? The concept of investment is similar as it entails putting money to good use to get a reasonable return from it. Here is the best part, whether you possess a massive sum of money or a small one, investing in profitable opportunities is never really a bad idea.

That being said, risk almost always characterizes investing. Therefore, be careful! Save yourself future hassle by finding out beforehand the risks involved and how long it would take to begin receiving returns. However, investment scams present risk-free opportunities that provide huge profits quickly.

We know that positive testimonials from others can be convincing. But it is also important not to believe this information from random strangers who might be claiming that this or that investment opportunity is an excellent one. Also, take care against investments in products or online messages that beckon on you to put in large sums of money.

These scams provide claims without reliable information about the nature of the investment or the organization promoting it. Seek thorough understanding and knowledge, or the outcome could be rather devastating.

4. Work At Home Scams

With several job opportunities available online, it is totally possible to work at home. However, several scams rear their ugly heads through this channel. (Here are just three examples of typical work at home scams – this, this, and this).

Here’s how it usually goes:

You have been searching for genuine money-making opportunities online. Lights beam from your gadget, your fingers scroll through the options appearing before you. The same routine occurs several times. Your eyes have scanned through many websites and then, voila! …Here is a beautiful opportunity staring right in your face.

an example of a work at home scam online

See! You they promise you a ridiculously massive amount of cash as remuneration for a job which would be yours. The only thing you need to do is to pay for some training and materials. You let out a scoff- you are far from gullible because you have previously read this article.

Okay, let’s put the storytelling on a halt for a while.

The point is, like typical jobs, genuine recruiters do not require payments from people they wish to employ. Some scams can rid you of your time by engaging you to do several jobs, after which they disconnect from you without making payment. See freelance scams that you should avoid.

5. Matrix Schemes

Matrix schemes are like pyramid schemes with a little twist. Here, members are required to pay a sum of money to join a waiting list for a particular product, which is, in reality, higher in value than what you paid.

Matrix schemes come in many forms. However, just like pyramid schemes, their members climb levels by recruiting more individuals or making referrals. At times, matrix schemes involve buying a first product that is usually quite affordable. Once you have bought it, there are additional claims that as you climb the ladder, you become entitled to much more expensive products like televisions, sophisticated mobile gadgets, and sometimes cars.

Some people might win, but this is at the expense of the money paid by other members. Sadly, a good number of people lose their money.


Everyone needs money to keep up with the activities of life and pay bills. The thought of having an abundance of it can serve as a motivation to work dedicatedly towards amassing it. The good news is that there are many money-making opportunities today- both offline and online.

In order not to be gullible, there are also several money-making myths and scams that you should be aware of. Most of them promise vast sums of money within a short time, while you are required to make a payment, personally increase your audience and recruit more individuals on board.

It is rather heartbreaking to know that some individuals still consider these options as excellent business opportunities. Would you promise to get proper information on any opportunity that you are considering? If yes, also remember these scams discussed above so that you do not turn out gullible.


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What about You?

Tell us, what is your perception of fast and easy money?

What other types of online home-business scams have you heard of? Has your loved one fallen into the hands of any of these scams? I would like you to share your opinion in the comment section below.



  1. Shubhangi says:

    Hey there,

    Really a good read on online scams.  Most of the times people get scammed by shinny objects which promises them fast and easy money.  Fast and easy money does not exist, to earn money you have to work hard.

    Luckily when I started working online, I started with one of the most trusted sites like Clicksense and Wealthy Affiliate.   

    • Hey, Shubhangi and thank you for the comment. And yes, you are right, there’s no such thing as fast and easy money. And yet millions and millions every day go after it. Why? I don’t know. But because there is such a cosmic demand for it (fast and easy money), that’s why all kind of online scams prosper.

      As for Clicksense and Wealthy Affiliate… I have done used Clicksense yet. But Wealthy Affiliate is my favorite platform as well. Truth be told, I found it after I had been scammed by one of those Get-Quick-Rich schemes. And I am very happy with their training, service, support, etc. Simply awesome!

      Thank you again for the comment, ma’am :)

      Stay safe,

  2. Shane says:

    Hi Egon, you have a wonderful site that will help your reader decipher a lot of the lies and deceit associated with some of the people in these scams. I love the topic it never ceases to amaze me how many dodgy operators are out there, but you have also named a good one. A genuine and honest platform here that is not going to rip anyone off. I have been a member of wealthy affiliates for 6 months and have found them to have a real plan to follow to success. All you need to do is put in the required amount of time and effort you can succeed. 

    Thanks for the information, this will help a lot of people. Cheers Shane.

  3. Lucas says:

    Wow thank you so much for the informative post. Before this I legit though that pyramid and ponzi schemes were the same thing haha.

    Matrix schemes on the other hand sound like something really scary. It feels sort of like a fake lucky draw.

    I think the best way to stay away from these scams is to not get greedy. Many of these scams are too good to be true so if you have some self control I believe you won’t be at risk of getting conned.

  4. Stratos K says:

    So many fake schemes and online scams that is becoming extremely difficult to distinguish what is real and what is not. Nowadays that online is 24/7 in our lives we should be extra careful of all these people that are promising the world and are talking advantage of people weaknesses in order to profit. There are legitimate ways to make money online but with so many scam earning money online got a bad name so we got to the point that most people don’t believe that there is money to be made this way. Thank you for the interesting read.

  5. Alenka says:

    Thank you for this list of 5 Common Types of Online Home Business Scams. Goodness knows there are quite a few out there!

    I fell for an MLM scheme once. Lost a bit of money, and quite a bit of time. I know there are some MLMs that are not too bad, but on the whole they are no good.

    If you are looking to work online, why not learn some skills (it doesn’t take that long!) and have your own business, instead working on making MLM bosses richer and richer every day? 

    There are some good places to learn online marketing. The place where I learned affiliate marketing is called Wealthy Affiliates and they are amazing. You will be equipped with everything you need to run your own business online in no time. And all that for a very low cost too. Check it out, it’s fab!

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