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. Heidi Schell

      Hello Eric,
      Thank you first of all for this information which is much needed.
      This company out of Utah had been recommended to me by a successful Internet Marketer. Unfortunately I didn’t check them out – what a big mistake! They were going to help me prosper – but now they are ones prospering – because they have my $600.00!:( They do have a decent rating with the BBB, but now I know why. When they sent me a partial refund I had to sign a paper stating that I would not file any complaints with regulatory agencies nor file any dispute with my credit card company. I found several websites where this company is mentioned by name and has very negative reviews:( I blame myself for not having checked them out.
      Maybe this will help someone else!

      Reply
    2. Heidi Schell

      I totally agree here. I was really new at all this, so I got help from a well meaning friend who created a google adwords account for me. I never even activated the campaign, but paused it. The next day I was suspended permanently from google, and they never told me why. 🙁

      Reply
    3. Micah

      Hello Marija,

      Yes, there are many “Money Making Machines” for online business, but they often take time and hard work, before they can start working like clockwork for you.

      Reply
    4. resty

      Thanks a lot for your lesson’s. It gives me a lot of encouragemnet now to restart again this damn online home business. honestly more than 6 months ago i’ve already bought 6 programs already hoping that i can get back the money that i’ved wasted, but until now i haven’t gain any returns even a single cents from my paypal. thanks for this and i will wait for more.

      Reply
    5. Mike

      Hi Eric, et al,
      Just got finished with Lesson 4. I know there are many other online biz opps out there you did not mention, but I am curious about one. Any experience with CPA (cost per action) or know anyone with success at such? Thanks – great program! Cheers, Mike

      Reply
    6. Eric Post author

      Yes I’ve made money with various CPA offers from CPA networks. Most of the highly successful CPA marketers are basically paid traffic experts. In other words they pay money to drive targeted traffic (PPC, CPM, etc) to offers that convert. It’s just a numbers game at that point, but you really have to know what you’re doing or you can lose a lot of money. I teach about paid traffic later on in the lessons. There is also a lot of money to be made running your own CPA offer (the flipside of the coin) IF you have an offer that converts well for the mass market. Again that’s another opportunity that requires some know-how to make it work.

      Reply
    7. Peter

      Hello everyone!
      I also have a feeling on coming to the right place.
      I was struggling with all that information on Internet so I lost focus. But I started to organize on my e-mail account and moved e-mail to different maps and thought I can read that later. Yesterday I started with the map “Eric Holmlund” (wich is a Swedish name) I was having 24 lesson in that map, now I will start on lesson 5. I am also using google translater a lot since my English is not the best, yes I am from Sweden and I am 61 years old, trying to get an income from internet since I have got the diagnos ( I dont know the English word for it) maybe u say “hit the wall” out burned anyway it comes much from stress thats why it´s good for me to work in my own speed.
      Thanks Eric
      If I make good money I will invest in a children home for street children in Thailand.

      Reply
    8. G.S.Commander

      Phishing is one of the most persistent scam systems, as you say ranging from e-Bay to Paypal and Banks also Building Societies.

      I several of those types, Not forgetting the ones that say they are off someone who requires a kind person such as yourself (Flattery) to help them acquire their inheritance and by doing so they will share that fortune!

      Oh Yes, as if!
      It’s a laundry money system at it’s best, or a down right Robbery system at worst

      Reply
    9. Ross

      Scams Eric is the worst thing about this biz so hopefully there is no more $ going into a black hole!!!

      Reply
    10. Mark Lewis

      Thank again Eric. Looking for to the incoming tips.

      Mark

      Reply
    11. rob williams

      That’s cool man, I think I’ve been scammed a time or 2. But I’m still holding on to the dream. I’ll hold on to my wallet in the mean time. Thanks

      Reply
    12. Ed

      Hi Eric,
      It is so difficult to discriminate the scams when some are recommended by folks who build a level off trust with you with good fr$$ information, content or whatever. My girlfriend bought a program a couple of months ago for $997 (called Traffic Chaos I think), worked on it diligently but hasn’t made a cent. She says that the customer support has been good but there always seems to be a problem. If you do everything you are told and the only person who makes money is the person who ‘sent’ it to you, is it still a scam?

      Reply
    13. Micah

      Hello Ed,

      That is a very good question. Sometimes, it’s simply that a business idea itself just won’t get off the ground. However, dedication can truly pay off.

      I’ve heard that most start-ups totally fail. However, many of the people who try again, succeed. Of the people who try a third time, almost all have very successful businesses.

      It shows that success is often a choice, or a reward for what you are willing to commit to achieve it!

      Reply
    14. Kandy

      Hi Eric,
      Just have to say how much I appreciate your ethics, morals, values and principles. I’m a Realtor in Ocala FL and I’m constantly getting bombarded with “the latest and greatest” lead generating system, “become a millionaire Realtor by doing just 2 things”, so-on and so-on. You get the picture.
      Last week I purchased your “no income system plus upgrades” and have run into the information overload syndrome. I have narrowed down my efforts to a digital/info products and affiliate marketing focus so I will be moving a bit faster on these lessons than maybe the multitudes that are following them. I’m more of a hare than a tortoise!
      It is my plan to purchase the “real short cut system” within the next few weeks to a month.
      Thanks again for providing such transparency and sincerity with your programs. You are sowing good seed.
      All the best…Kandy

      Reply
    15. BARBARA

      I have been fooled a few times and lost. I am doing what you suggested- Don’t buy into ANY get rich scams…no matter what!
      Barbara

      Reply
    16. Micah

      Hello Karen,

      The videos can’t be emailed. We recommend that you bookmark this page, if you want to be able to easily revisit, and watch the lesson again later.

      Reply
    17. bob

      I gotta say this info is great.I feel that is the answer to me starting my own business. I am so pumped about this THANK YOU Eric.

      Reply
    18. Steph

      Hi Eric

      Thanks for your valuable and succinct videos Eric. I’m impressed with the video series and genuine info so far. I am also very happy to find out there are other Kiwis here too! Maybe you could consider a form so that we Kiwis can also ‘chat’ to one another!

      Reply
    19. Tracy

      Thank you Eric such a informative lessons. I’ve been wanting to open my online business for very along time. But doesn’t know where to start. With your lesson I’m more determined and so excited to read your lesson each time.

      Reply
    20. Newb2brocks

      Dear Eric,

      Another short, sweet and full of sense tips for people like me. Thanks a lot!

      I have to admit I was one of those who had been scammed time and time again in my searching for online business. So far I’ve learnt this from you (a) don’t just buy products out there (b) be aware of scam

      Looking forward to receive another notification in my e-mail for another and another and another tips from you.

      God Bless You….

      Newb2brocks

      Reply
    21. Lynda Mekalick

      Hi ya all!

      Another Kiwi here, from Tauranga. One often feels rather “alone” here in lil ole NZ! Good to hear from other Kiwis!
      Cheers

      Reply
    22. Lynda Mekalick

      Hi Shane
      The Squidoo lens you mention has been taken down by Squidoo! A pity – I’m sure it contained valuable info.
      Cheers

      Reply
    23. Harvene

      I totally agree!! Bought the product and realized all sites were just his product with a different twist. Lots of time, confusion as to what I was really promoting and money spent. Good marketing on his part—

      Reply
    24. Harvene

      Good rule of thumb–if it’s a click bank product, not likely it will go out that fast. I’m been bamboozled so many times. I now close it, come back next day and see if the counter starts all over. Then I check with ask.com, warrior page to see about it. Of all the products I’ve bought (thru my anxiousness) only 2 said “too late”. Figured not for me and went on.

      Reply
    25. Harvene

      Thanks for sharing the name. I’ll watch for any products by Charles Ryder.

      Reply
    26. Ronald

      Hey Eric,

      Whats with the No Cost Income Stream, should I just follow your lessons for now. I have made no money with any of the systems I brought and I have been scammed more times than I want to remember, (Please)!!

      Reply
    27. Ronald

      Erice,

      You really can show me how to make some money online? I am lesson #5 and yes, I have been scammed. I will try to follow your lead.
      Ronald

      Reply
    28. Serena

      Your action steps are great reminders to be a well educated and discerning consumer. You’re also helping me a lot to stay away from ‘shiny objects’! Thanks for the very down to earth instruction.

      Reply
    29. Mauricio

      Hi Eric, great information, I wish I had met you before…please, I would love to ask you if you know anything about My Online Business Empire (MOBE), from Matt Lloyd, I guess you can call it MLM…have you heard about it? What’s your opinion about it? Anyone out there also, have you had any experience with them? Thanks all of you and thank you for all the advices Eric!

      Reply
    30. Abhaskar

      Thanks Eric

      Great Info and it very very useful for everyone. And with these information I feel that I learnt lots of things and in the same way I feel I learnt nothing from your whole knowledge… I have to learn lot of things from you….

      Thanks once again……

      Reply
    31. Sara

      Absolutely true! Business opportunity is just opportunity. Can I take it? Some I can but some – can’t. It depend on many factors and knowledge. Marketing research is basic and business plan too. We can fail hard if this work not done.

      About scamming – it growing and become more sophisticated. From PC World blog: ”Research firm Gartner estimates that nearly 10 million Americans were hit by online fraudsters last year–largely due to a wave of phishing e-mails seeking to steal users’ identities.”
      There is link for article:
      http://www.pcworld.com/article/119941/article.html
      So check out everything about things before tick any single box.

      Reply
    32. Sara

      Dear Kannan

      Real survey sites do not asking personal information every time. You sign up once and that’s it. Bogus one’s do it. And hawing paid membership too.
      Did you seen job in real world where you must pay to do it?

      Reply
    33. Sara

      Mary, use PayPal in future. You can manage your subscriptions and request refunds true to it. And your bank details are safer in this occasion.

      Reply
    34. Micah

      Hello Ronald,

      The No Cost Income Stream teaches HOW to get free traffic and valuable advertising at no cost.

      If you are looking for free content though, you are welcome to continue watching the lessons at Eric’s Tips: http://www.ericstips.com/

      They have helped countless people go from beginners to successful online business owners.

      The lessons are presented in a sequence that starts at the very beginning, where the very first things you need to learn about online marketing are shown in the first few lessons!

      That said, Eric is a huge proponent of not buying stuff! He believes that you should only buy products that you know you can use right away for your business or in the near future.

      Tools will always be necessary, and inventive minds will continue to produce quality tools. However, some tools are just plain junk, because they are not quality. Also, if it’s a quality tool, but is only going to be sitting on your computer collecting virtual dust, then it is junk to you!

      Reply
    35. Micah

      Hello Mauricio,

      Thanks for pointing out the product. We are unfamiliar with MOBE.

      If Eric feels that it would benefit his readers at this stage, he’ll be sure to do a review.

      Reply
    36. Joseph Juhant

      I was Scammed recently..60 day monet back guarantee don’t mean a thing..I called the company
      and emailed the guy and filed a paypal dispute something tells me I lost $148

      Reply
    37. Tank Johnson

      Hi Eric,
      “choose one business model and focus on it”

      IMHO this is the hardest thing to do for most of us as there are so many shiny objects out there that promise to make it so much easier.

      What very few people say is it requires dedication and effort – not all that different from a job in the bricks and mortar economy….

      Regards

      Tank Johnson

      Reply
    38. Jiji

      enjoying your tips and lessons, thanks Eric for your forthrightness and honesty

      Reply
    39. Rodney

      Hey?! If someone replies to one of my comments, where do I find them?

      Reply
    40. rupert

      Aloha, As you talk about scams, I just bought 10 membership websites from you and it is from some pirate group. they have disappeared and so has my $450.00. So, are you a scam too?

      Reply

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