When it comes to work-at-home jobs, let the job seeker beware.
"There are very few legitimate [work-at-home] opportunities available," says Beverley Williams, President and Founder of the American Association of Home-Based Businesses.
Work-at-home scams, however, are plentiful.
The Better Business Bureau received nearly 280,000 inquiries related to work-at-home scams in 1999.
And the worse the job market gets, the more ads for work-at-home scams there are. In fact, the origins of the work-at-home scam date back to the Great Depression.
"They never go away," says Holly Cherico, Vice President of Communications for the Council of Better Business Bureaus. "They tend to surge in number and intensity in uncertain times."
Are You a Target?
Work-at-home scams target the unskilled, homebound or financially needy with promises of easy money.
The most common victims are students, stay-at-home moms, the disabled, the elderly and those who have been laid off, according to Cherico.
A desire to "get rich quick" can make you especially vulnerable to work-at-home scams.
"People want instant gratification: 'Give me the magic in the box,'" says Williams. "I'm sorry. I wish I could, but the reality is these jobs are just not there."
"Instant money with little time or skill involved is just not a reality," Williams adds. "Being realistic in the expectation of what they can earn and how quickly they can earn it is the biggest obstacle people face when considering a home job."
"You want to believe that [work-at-home] ad," says Cherico, "but you can't drop common sense."
Spotting a Scam
Indeed, a little common sense and the help of two powerful consumer watchdogs can help you steer clear of work-at-home scams.
The U.S. Federal Trade Commission and the Better Business Bureau have identified the most common work-at-home scams as assembly, envelope stuffing, medical billing, online businesses that promise to turn your computer "into a cash machine," and pyramid schemes.
The Better Business Bureau and FTC advise consumers to be suspicious of companies that:
- Make you pay upfront for materials you'll need to work,
- Run ads which say "no experience necessary" or "easy money,"
- Make exaggerated claims of potential earnings,
- Use testimonials that cannot be confirmed and
- Avoid putting details about the program in writing.
Starting a Home Business
One option for those who need to work at home is the home-based business. It is not, however, an easy solution. It requires time, money and persistence.
"It's not something that happens overnight," says AAHBB President Williams. "It is difficult."
Still, if you're up to the challenge, Williams suggests the book "The Best Home Businesses for the 21st Century," by Paul and Sarah Edwards.
"This is a good starting place for people who are trying to find something they can do at home. It lists about a hundred different types of home businesses."
Williams also suggests consulting your local Small Business Development Center, which offers courses and counseling for those considering a home-based business. You can locate your local SBDC here: http://www.sba.gov.
Other Options
There are a number of other options for those who can work part-time in an office outside the home.
- Compressed work week: Allows an employee to put in a full work week in less than five days.
- Flexible Work Schedule: Allows an employee to vary arrival/departure times.
- Job Sharing: Allows two or more employees to share the duties of one full-time job.
- Telecommuting: Allows an employee to work at home during a portion of the week. The number of worldwide employees who allow telecommuting is expected to climb to 137 million by 2003, according to the International Telework Association and Council. Studies also show that disasters, such as the Sept. 11 attacks, renew employers' interest in telecommuting.
Flexible work schedules are usually at the discretion of your employer. As the Department of Labor notes, "[a]lternative work arrangements such as flexible work schedules are a matter of agreement between the employer and the employee."
