There are so many opportunities on the internet offering to set people up in their own home based internet business that it can be difficult to separate the real, legitimate opportunities from the ones that only want your money. Knowing what to look for hidden within the offers can mean the difference between finding a legitimate business to operate and ending up helping someone else make money while losing your own.

With most fraudulent offers for in internet business there are four red flags that need to be thoroughly investigated before signing up to work for the website. Understand that not all of the companies that make these claims are out to take your money, but these are four things that many less than honest companies have in common:

1. Large upfront investment
2. The chance to make big money with little work
3. Do not clearly state what you will be selling
4. Lack of available contact information

While it is not uncommon for business to want a fee to become a representative for their business, you have to consider the amount demanded from you before you can start selling their product or service. You should also have a clear picture of what you will get in return for your investment. It is common for the term training to be listed, but many times the training consists of links to other sites where you are expected to learn about the company’s business model.

The training may also focus on how to recruit others into the business, offering to pay a “bounty” for bringing in new people. A company that focuses on bringing in more people instead of selling the product may be on the border of being illegal.

Anyone who has ever been involved in a business knows it takes work. One of the most common pitches is the promise of a big payday without having to work more than an hour or two a day…or even a week. There is no such thing as a free lunch and those who try to convince you otherwise and not being totally honest. That disclaimer about income may not a representative of the potential earnings, should beg the question about why even bother to list it.

If you have been reading an online based business opportunity for several minutes and have no idea about the product or service you are being asked to sell, it could be an indication of a scam. Many keep it a secret until you have spent your money and find out there is no way you can sell this to others with a clear conscious. Know what the product is, and how much it will cost, before considering the offer any further.

Look for contact information. If the only means of contacting the company is through an email address, it could be they don’t plan to be around long enough to answer any questions or complaints. Money back guarantees are also only about as good as the contact information. Email addresses and post office boxes are not good contacts.

David Lawrence is owner of wahpips.com and operates a successful home based business.  He also coaches others seeking to start their own home based business.  To learn more David recommends you visit http://www.WAHPIPS.com