February, 2010


3
Feb 10

Work From Home Careers: The Psychology of Scams – Part 2

In this second part of our examination of work from home careers and scams we explore why some are effective and therefore dangerous.

A work from home company needs care

Most people establish a work from home company of some form when they start a home business. If you set up any form of legal separate company then you are in the public record along with what services you offer.

This was how I was caught out when I was a raw Internet Marketer. I started my work from home career and was looking for ways to send traffic to my Internet site. As has now been proved I was becoming aware Google’s Adwords was falling out with the network marketing community.

I had heard of a technique called Search Engine Optimization (SEO) as a way of getting ranked in Google’s organic searches. What I was unaware of at the time was ‘white hat’ and ‘black hat’ SEO. White hat I now know is the legitimate methods like Blogging, video articles, article marketing etc. as means to drive traffic to your site. Black hat is the shady methods used to trick Google into getting you listed in search engines.

Here is how I believe my new part-time career had been scammed. The company rang me out of the blue, knew which opportunity I was with and said they were endorsed by them (I later found out this was simply a lie). They had a slick line and even an online demo (I now believe it’s a rigged demo) where I entered my opportunities normal conversion rates and, ta da magically it said I could get 1,00O visitors a month. There was the hook, I had entered the figures not them.

The of course this was followed with a ‘time limited’ offer and I would get the package for $500 less, this was probably the normal price anyway. So yes I fell for it. Why do I now claim it was a scam? Firstly because by business opportunity later issued an alert against them and the pressure tactics they used. Secondly someone far more knowledgeable about how SEO works explained their approach would not work, it sounded plausible but in truth was the opposite. They asked me to pick keywords, again so they could say ‘well you picked the words’, when an ethical company would have helped me pick the keywords to fit my niche market.

The cost to me was well in excess of $1,000, the question is would the people in that company ‘mug’ me in the street for $1,000? Probably not, they are probably decent people looking to make a living. Here’s the other thing, they were dealing in electronic cash as opposed to real cash, my credit card.

Nearly all serious fraud involves electronic cash, the people committing the frauds simply fail to see taking money in this way as stealing. However they would see taking $1,000 cash as serious theft.

In conclusion they failed to deliver on every promise, refused me a refund and blamed the whole thing on my choice of words. So if something sounds too good to be true it probably is. Check the company out and ask for names of other people you can personally contact to check their work.

Andrew Peel

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2
Feb 10

Work From Home Careers:The psychology of scams – Part 1

People in work from home careers will face Internet ‘scams’ soon in their career. The question is, ‘Why do they work and how do you stop them?’

Why part time careers get stung easiest

Here are some staggering statistics anyone should ponder. They are from the book I have been reading this month, Predictably Irrational, by Dan Ariely:

  • In 2004 the total cost of all robberies in the US was $525M or $1,300 per person. Pretty bad you might think.
  • However theft and fraud in the workplace was $600 Bn! That’s higher than robbery, larceny, grand theft auto and burglary combined.
  • Individuals inflated insurance claims by $24 Bn and the IRS reckoned lost $350Bn.

Where do you think the most amount of police and judicial system time and money goes? The first category. This proves we see two types of dishonesty and treat them quite differently. Even though the really clever stuff costs the economy far more we treat it almost as, ‘innocent padding’.

Most people start their work from home business as part-time careers. As a result unless you get the proper training you are prey to every scam out there. They all hook you by offering quick results. They know most people are working this opportunity part-time so the promise of quicker results for little effort  if you whip your credit card out is powerful.

I will end Part 1 by explaining the initial psychology of the scam. It’s simple really, given the chance we will all cheat. This has been proved in controlled social experiments many times over. However most of us have an internal ‘dial’ that says, ‘whoa that’s going too far’.

Taking some pens home from work without permission is technically stealing. We justify it by saying, ‘Oh everyone does it’. Taking a laptop home from work for the kids, now most of us would definitely stop there. Logically though there is no difference between the two acts, it’s our ‘dial’ that says the laptop is going too far. Also the fact it is a physical thing that we could be asked to account for stops us.

So how do you protect yourself from the garbage? Simple, do the research before you whip out the credit card. If they keep ringing and they sound desperate then alarm bells should ring. Genuine work from home careers opportunities train their associates to encourage you to do your research and ask questions. They also follow up with you at agreed times not wait until its Dinner time and pounce on the phone.

Andrew Peel

Take the opportunity to join a community of professional Internet marketers where the training never stops and the Leaders give.

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