LESSON #5: How to Avoid Scams

By | June 16, 2008

In the previous lesson we talked about a bunch of different ways of making money online. If you go out looking for those money making opportunities, you’ll find that there are literally thousands of them.

The question now is… How do I separate the real opportunities from the scams? Because we all know that the internet is full of scams, right? So lets talk about it…

(Watch this video…)

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Main points:

  • I believe that most business opportunities are not scams. But just because something isn’t illegal, that doesn’t mean its something you want to get into.

  • There ARE a lot of scammers out there though. There is no limit to how far a con artist will go to take your money. So you need to be on your guard.

  • If it sounds too good to be true, it often is.

  • Be an educated consumer. (here is a place to start: the FTC)

  • Don’t buy ANY business opportunities. (unless you honestly know what you’re doing)

    Action steps:

    1)If you ARE knowledgeable about scams, don’t let down your guard.

    2) If you don’t know about the most common Internet scams, do some research and become an educated consumer

    3) Put your wallet away

    Soon it will be time to choose one business model and focus on it, but before we can do that, we need to talk about two different pathways… and only you can decide which one is best for you. We’ll talk about those two pathways in the next lesson.

    As always, you are welcome to post your questions and comments below.

    Have a great day!

  • 365 thoughts on “LESSON #5: How to Avoid Scams

    1. Gary

      Great post. Thanks for taking the time to share your knowledge. I’ve always enjoyed getting posts from you, because they have so much useful information. Now, they will contain even more.
      Gary

      Reply
    2. Mary E. Griswold

      Sorry to say but I have neen cheated by one I thought was the greatest. Rich Sheflen charged my credit card $397 after I cancelled. I really don’t think I will ever get my money back even tho He said in one of his blogs that he would refund money.I am trusting God to make it right.
      Mary

      Reply
    3. Darcy

      Hi Eric

      I just wanted to thank you for your articles. I have been involved in computers for a long time and there are a lot of Phishing, Spyware, Malware and other pest in the Internet.

      One of the services I really like for Phishing is OpenDNS. You use their DNS servers instead of your providers. You can even protect your children from certain bad websites.

      Remember in the end it is still the Internet user that has to be on guard because no service seems to be 100% affective.

      Darcy

      Reply
    4. Gary

      Eric is creating high quality very detailed training videos…there is a lot of work that goes into these type of things so please be patient. Once the videos are complete you will be able to go forwards or backwards as much as you like at your own speed. Best of luck to you..I agree that his teachings are wonderful!
      🙂 😉 🙂

      We Give You 120 Individual Turnkey Websites With Your Paypal ID On Each
      http://www.Instant-Paysites.com

      Reply
    5. Nik Nasruddin

      Thanks Eric for the info.

      Eric is right.There ARE a lot of scammers out there though. There is no limit to how far a con artist will go to take your money. So you need to be on your guard. I 100% agree with him. So, people out there think first before you take an action.

      If you want to start your own easy arts and crafts business online, visit http://www.easyartscraftstips.com.Use Eric’s tips to start your own online business.

      Reply
    6. Diane

      Hi,
      Thanks for your lessons and tips. I feel like an ‘insider’. I always read your emails. I started looking at IM a year ago and have amassed many free reports, ebooks, etc., and you can see why I get 175 emails a week from Marketers, but I do like to look through some of them…curiosity. My Bookmarks list is a mile long with IM products I could buy. Gees I didn’t know I could go to Clickbank for alot of them. I signed up for one guru’s program for which I paid a monthly fee of 39.95. I learned little from him because he wanted additional $$$ for every marketing ‘sharpshooter’s video his Partners’ put out; then after 2 months all he did was, as an affiliate, promote other people’s products (some of which were already on my list!). I swiftly unsubscribed!
      The IM products I don’t buy into are the sales pages where testimonials are given from the Marketer’s Affiliates or Partners where the Affiliates/Partners test/review the product then say the Marketer is crazy for selling you this at this price, or you’re crazy if you don’t buy it…but these people never say if or what their earnings are…because they don’t have any yet. Each review lists their website link; another marketing site. I’ve clicked through many of those links to see what’s going on; observing. Of course I understand it’s business to business selling but I’m looking for their stats, their critique, not their dream, not their gladhanding. Mind you, there are many many times I wanted to buy but my credit card would be maxed out. Since I have a cc balance and because you can use your cc or PayPal etc. for paying PPC and SEO etc., I wonder if there’s a sales pitch out there to “let your credit card pay off your credit card”. I might go for that…maybe:) Best.

      Reply
    7. Gary

      Hi there…I couldn’t agree with you more that you need to be very careful when deciding which products to purchase or which ones will work best for you. Unfortunately the road you went down is very similar to the road most of us go down before we understand or know what works or doesn’t work. The good thing though is that we learn from past mistakes and it looks like you have learned from yours. I’ve personally learned the hard way also and I’m sure you will run accross a lot of people here that will state the same. Congratulations for moving on and best of luck with your business ventures

      😉 🙂

      Reply
    8. Bounama

      Great Eric!
      I think scams are one of the roadblocks on the way and a big test we should pass to get there.
      So, you did put this lesson in its right place.
      One thing only i want to add for my fellows is:
      “learn how to make money and avoid all the ideas of winning money; cause usually the winners end up being the losers”.
      Braveheart

      Reply
    9. Gary

      Its always wise to make smart decisions beforehand if at all possible. Unfortunately a lot of the “to good to be true offers” are not members of the BBB. If you were to file a complaint with the BBB they probably wouldn’t even respond. Sometimes we learn things the hard way but education like this is a good starting point

      😉

      Reply
    10. Gary

      Im so sorry that this has happened to you! You can file a complaint with the online BBB. Also if you paid with a credit card I would suggest calling them and having the charge reversed(explain to them what happened)

      😉

      We Give You 120 Individual Turnkey Websites With Your Paypal ID On Each
      http://www.Instant-Paysites.com

      Reply
    11. Pingback: Basic to Advance Internet Marketing Tips - Lesson #5

    12. Roland

      Yes, I know the feeling, spent money, attended seminars, bought ready made website, How can you really tell??? what’s real or what’s regurgitated crap… I mean you buy the products, but once you downloaded them or take them home from the seminar Where>>>>>>>>>>>is the support or who to call first. It made sense before you bought the product.. I have learned..I believe support with a real person is by far the most important thing and a legitimate way of doing business. Get you customer to understand…Do you agree???

      Reply
    13. Karen Hills

      Eric, I have spent lots of money on business opportunities online, some scams, some just hype. I really feel that you care about people and I know that I am going to really enjoy and benefit from your free videos. Thank you very much.

      Reply
    14. Pingback: Basic guide for beginners in website marketing: Stop buying stuff! | usefulstrategy.com

    15. Luca

      Eric,
      Buyer beware is right. I got scammed early even though I knew in gut that it was too good to be true. However it gave me the incentive to continue and make my money back with a legit online business. I learned a lot and know that I can be successful. My main site is up and more niche sites will follow.
      Thanks again

      Reply
    16. Rodney King

      I really appreciate your course. I have been on the Internet for may years. So many of the things you cover are not new to me; yet it is appreciated. I have not been successful on the Internet, except for selling a few items on E bay. Success on the Internet to me seems like a far away land, and impossible journey to the center on the earth. Yet I keep on trying; but spending less. Your course have peeked my interest.

      Keep going

      Reply
    17. victoria

      Hi, Eric and thanks for all these useful tips which can’t be found elsewhere. After watching lesson 5, I thought it’ll be a good idea to become an affiliate of your programs if you don’t mind. Pls let me know how to go about this if it’s possible. Thanks, Victoria

      Reply
    18. Carolina

      Eric,thanks for lesson#5…some I have experienced unfortunately…but have learned not to believe everything that comes across…God bless u for sharing…signed up for your market tips this week…does it take awhile to process to get the info to me?…Carolina

      Reply
    19. Anon

      I kept listening and thinking, where is the punch line? When is he going to say exactly how you can get scammed on the internet. We’ve all heard about the Nigerian scam, the Russian bridal scam, but people who get scammed by trying to make money online?? How?? By purchasing a clickbank product that doesn’t live up to expectations? Return it. E-Bay? What can you really buy on the Internet that’s risky? How can you lose money? Sorry my patience ran out and I stopped listening.

      Reply
    20. Ken

      Thank God. New Zealanders! I live on the Kapiti Coast in New Zealand and am an absolute Newbie. Loving the course going from scratch (thankyou so much Eric) and am presently wading my way through the Dictionary for Newbies. Woppuls love some regular contact with Kiwis doing this.

      Reply
    21. Michel

      I am interested in getting into the internet business. But I am confronted, not with a product sale or such but with a fairly expensive mentoring offer. it’s expensive but they take you step by step over a 2 month period to lead you into structuring a lucrative internet business.
      They called me from the US, I live in Belgium, they talked to me for an hour without real pressure to get in right away. one is Money Montage, the other one is power cash secrets. they seem legitimate in their layout, but how can you be sure, they are talking about €1500.00 ?

      Reply
    22. N

      Hi Darcy,
      Could you please explain what you meant by open DNS and DNS servers. Thanks!

      Reply
    23. Najma

      Hi Michael, I did buy both Money Montague and Power Cash secrets basic packages and i have been pressurised by them to get the mentoring so I was trying to pull out. i asked for money back from Money Montague and i have not got it yet. Not even a reply

      Reply
    24. Make Money Not Excuses

      Once again, thanks for the insightful video. I personally don’t feel I have ever been scammed, and quite frankly, I think many people cry scam to often when really they just wanted a free ride. However, I do know they are out there. I think most programs are legitimate. Sometimes it’s not the program that scammed you, but the person that brought you into the program. For example, a sponsor of an mlm program who mislead you. Or an affiliate marketer who used deceptive advertising to get you to click on his or her pay per click ad.

      Reply
    25. Lugui

      Hi Eric. My name is Lugui and I am from Mexico. Some day ago I discovered your website by an accident and suscribed to your newsletter because I want to start my own online business. The information that you share is worth. As the time went by I have learned that if one uses their common sense, will never be scammed (I’m saying this because I have been scammed).
      Yes, Eric is right, use always your common sense. All you have a great day and thanks Eric for sharing your knowledge.

      Reply
    26. Max Miller

      An excellent subject to plug in at this stage of the training. I was scammed by a leading computer manufacturer. The offer was buy a computer interest free for a year. They charged the purchase to my credit card (they needed the card number to prove my good payment history). It sounded too good to be true? A business friend suggested checking with the credit card company. I found out the truth and filed a complaint. The credit card company called the computer company and the charges were reversed the next day. You can never be too careful.

      Reply
    27. Dan and Deanna

      It is not fun to be scambed. Thank you for putting this out in the open for all to see. To keep yourself from being taken, to the best of your ability.
      Dan and Deanna “Marketing Unscrambled”

      Reply
    28. James Moses

      Been scamed a few times also. Sometimes we get in too big of a hurry trying to make things happen. Good information!

      JM

      Reply
    29. wilfrid

      Being in a dire need of an income (as I am) is a perfect target for “scammers” specially if your a nubbie even in the simple opperation of a PC like (I am). So take Eric’s ADVICE very seriously on this subject, and make yourself a TARGET.

      Reply
    30. Neil

      Thanks again Eric!

      I watch your videos late at night and sometimes it’s like a warm cocoa after a hard day.

      For example, today I got a reality check from a number of free ad companies who denied approval for my blog because of ‘not enough content’. I know it’s because I probably don’t know what I’m doing yet (with writing good blogs or marketing lol) but I am confident that soon I’ll be able to follow your model/s and highlight a few major gaps in my information field.

      I think you’ve really hit the nail on the head by pointing out that a lack of integration of information is holding back many of us would-be online business owners.

      Also, my faith in you as a good, spiritual person is a big reassurance.

      Reply
    31. Wyteria Jacobo

      Thanks again, Eric, for helping us avoid commom pitfalls. Like you, I’ve been scammed too. I’m at the point now, where I really don’t need to buy anything else.

      Reply
    32. Guy Thompson

      Thanks for the timely remimder. I do know I shouldn’t, but somehow keep buyig stuff I don’t really need.

      PS I’m glad I’m still on the list. I never saw items 1 or 4 (and they aren’t in my spam filter either.

      Guy

      Reply
    33. monica

      Hi Eric!
      Just want to thank you for your honest and so easy to understand lessons! You are deffenetly blessing for all of us out there with our hopes and dreams…I think that you are very honest man with a very good heart! Thank you again! I cant wait to get into my own internet marketing,so hopefully one day i can show my middle finger:) to my boss:)! Guys-never give up on your dreams,coz people without dreams-are dead…! Thank you Eric again,looking forward for the rest of the lessons…

      Reply
    34. Stephen

      Hi Eric,
      I am really enjoying your tips which I hope can start turning me some profits. Anyway I have a question, prior to lesson 5 you sent an email that linked to a list building site, dollar monitor, well I checked the site out and even got my free website. My question is, “Is this a test to see if some of us pull out our wallets or see if they fall for a scam or is this a site you would personally promote”? I am a little gun shy since I have been scammed myself and I am trying to learn from my mistakes.
      thanks,
      ssgoldfactor,Skip

      Reply
    35. James

      Hey, Eric I know all to well about scams, i even had that gut feeling and still pulled my card out. Will I guess we all have to learn the hard way some times. Thanks, James

      Reply
    36. Eric Post author

      I never promoted dollar monitor… you must be thinking of an email from someone else?

      Reply
    37. Jack

      Hi Eric,

      Heh. Heh. This lesson struck a chord with me.

      So far I have avoided being scammed by online business opportunities, but I have to share an experience that made me feel I had been scammed — whether the perpetrator intended it or not.

      Sharp marketing techniques by the seller led me to invest about $30 for an ebook (plus a BONUS ebook) on creating a job for myself writing articles for websites.

      Unfortunately, the books were full of grammatical errors and obvious indications of hasty writing.

      The only useful thing in either of them was a list of links to legitimate sites.

      It was worth the the pain of losing 30 bucks to be educated against “investing” larger amounts in such schemes in the future.

      Thanks,

      Jack

      Reply
    38. Chris Harris

      As usual you are on the money. Thanks for the help. I need to make money NOW, and out of desperation I purchased some knowledge from Shawn Casey. He has a lot to say that involves further investment but it is sound advice. The problem is there is no investment capitol to be had these days and my credit is shot! The next thing is since I have no J.O.B. I need to make money somehow. What would you suggest?

      Reply
    39. Eric Post author

      i would suggest trying to save up some capital to help you start an online business. You don’t need much, but at least a couple hundred dollars. This is needed mainly for your website, possibly for a few tools, and to start getting traffic.

      If you can’t come up with any funds to start your website, you can start by doing some free article marketing. Sign up for some affiliate programs, such as clickbank. Then write some articles related to the products you are promoting and submit them to free article directories. you can then earn commissions when people click your affiliate link in the article and buy the product. You can also find other free methods of driving traffic to your affiliate links.

      I do not consider that to be a foundational way of building an online business, but it could be a good way to earn some commissions to get started. Some people earn $200/day using that method.

      And keep following my lessons, which are free.

      Reply
    40. ayiee

      Thanks again, Eric, for helping us avoid commom pitfalls. next lesson please?

      Reply
    41. Anthony Causey

      Being online for a while I know that most are scams. You have made some great points to keep people protected from throwing money away! Keep up the good work and thanks for the terrific tips.

      Reply
    42. Laurie

      Hi Eric and everyone
      I’m an RN and until a few days ago had never considered doing anything on the internet except buying, chatting, and etc. A few weeks ago I paid a very minimal amount of money to be an authorized Rep for a cosmetics company. Most just to get the cosmetics for a cheaper price. Well low and behold, I found out through surfing and my friends/colleages just how easy it was to sell. I woke up this morning to find emails online about people interested in the products I had available. Within 15 minutes of waking up, I was overwhelmed. I started calling friends/ex’s lol, anyone I could think of who might know how to create my web based idea. I posted a question in yahoo answers and someone referred “Eric’s Tips” and I can honestly these first 5 videos have been more informative and to the point than I could have ever imagined. Thank you so much. I’m putting everything on hold until I finish the tutorials and I’m sure my decisions on what I will do will be based on tried/true knowledge. Thanks again.

      Reply
    43. Ron Mettler

      Hey Eric, Thoroughly enjoy your tips. You’ve got my attention big time. Is there anyway to acquire an accelerated time frame of the tips? I’m on pins and needles waiting to get a copy of Butterfly Marketing through your link today. Thanks for the bonuses.

      Ron Mettler

      Reply
    44. Bob

      Eric –
      Mike’s BFM2 order page is showing an announcement that everyone will get a copy even if they exceed 5,000 orders.

      Reply

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