Don't believe promises that you can make lots of money easily by working at home. If that was true we'd all be doing it! Operating a home-based business is just like any other business -- it requires goods or services that others actually want to buy, good sales skills, hard work, investment in the right equipment and supplies, and time to make a profit.
	Get all the details in writing before you pay anything. You may find that the work is very different from what was stated in the ad. You should never have to pay first to get this information.
	Find out if there is a market for the work you'll do. If the promoter claims to have customers for your work, ask for their contact information and confirm that directly. If the work will be for professionals (for instance, medical billing for doctors), contact several in your area to find out if they actually employ people to work for them from home.
	Be aware of legal requirements. To do some types of work, such as medical billing, you may need a license or certificate. Check with your state attorney general's office. Find out from your local zoning board whether it is a violation to operate a business from your home. And look at the regulations from the Department of Labor to find out what types of work cannot be done at home under federal law.
	Ask for references of other people who have been doing the work. Then contact them directly to find out if the promises that were made to them were kept.
	Get the refund, buy-back, and cancellation policies in advance. This information should be provided to you in writing.
	Be wary of seminars that promise to help you make money. These are often high-pressure sales pitches for overpriced motivational materials, software that is unusable, or information that is generally available for free at the library.
	Know that if it says "this is perfectly legal," it probably isn't. Legitimate promoters don't have to reassure people that what they're offering is legal. Work-at-home plans for envelope stuffing are classic illegal pyramid schemes in which victims are instructed to lure other people into paying to find out how to make money and then send them the same instructions. They often claim to be legal and mention a federal law, but they actually violate that law.

If you need advice about a telephone solicitation or you want to report a possible scam, call the NFIC hotline at 1-800-876-7060. You can also ask questions or report fraud using our online forms.

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