The Silk Purse

We've all heard the saying "You can't make a silk purse out of a
sows ear", but yet almost everyday, people are trying -
figuratively speaking of course - to do just that. There are so
many opportunities being presented on the web, it is difficult
to distinguish between the two. Some are the proverbial "silk
purse", and others are the "sows ear". How do you tell the
difference?

You have to be very careful on the Internet. There are many
legitimate deals, but there are many unethical people also. Don't
be misled by anything that guarantees riches for very little
work. If you have a good product and market it well, you can
make an excellent income and maybe even become wealthy.

When you first get interested in an opportunity however, before
you go "gung-ho", step back a bit and take a hard look at it.
There are danger signs that some have, and if you see them, it is
possible you should simply walk on by.

Probably the number one danger sign is the promise of huge wealth
in a short period of time with no effort on your part. Commonly
called "illegal pyramids" or possibly a "ponzi", many are a money
making system that create income from getting people involved in
the business, and not selling a real product or service. Or they
may sell an inferior product at an inflated price with the
majority of the purchase price being distributed as commissions.
Like chain letters, they rely on a constant infusion of funds by
new entrants to pay the old. But, like musical chairs, when the
music stops, someone can't sit down.

Another serious danger sign is the lack of contact information.
If all you have is a form to fill out on a web site, and no
contact methods, this should definitely be avoided. A legitimate
company will give a physical address, a phone number, and have an
email address you can write to.

Never send cash or a money order, as you have little if any
recourse if they don't deliver. Don't think that writing a check
is safe either, as they always cash or deposit the check before
providing you anything. This is the prudent thing for any vendor
to do, as it prevents cheats from taking advantage of them.

Your absolute best bet is to pay for online purchases with a
credit card. If the company does not deliver, you can dispute
the payment and have the charge reversed. If a company does not
accept credit cards, but did in the past, it is almost always an
indication that victims are beginning to charge back their
program membership, and "product" purchases on their credit
cards. This is a major danger sign as very likely they have lost
their vendor status with the credit card companies, due to the
volume of their charge backs.

If the seller won't, or like a private individual, can't accept
credit cards, consider using an escrow service. Escrow services
are another good payment option. For a small fee, an escrow
service holds the buyer's payment and forwards it to the seller
upon the buyer's receipt and approval of the item within an
agreed upon inspection period. For buyers, escrow services can
help ensure that they get what they pay for.

Sellers may find escrow services less expensive than
participating in the credit card payment system, especially if
the buyer pays the fee, and they avoid the problems of bad checks
or stolen credit cards. If you use one, ensure that the service
is licensed and bonded, and how you can confirm that with the
appropriate agency. If you have been defrauded, contact the
National Fraud Information Center at 1-800-876-7060 -
http://www.fraud.org/

Online Auctions topped the complaint list of the frauds reported
last year with 63% of all frauds reported coming from that
quarter with an average loss of $487 per person. Web sites are
still the most common way that consumers are solicited for
fraudulent Internet offers, but the statistics reveal an increase
in the number of initial contacts made by con artists using
email.

There a lot of people trying disguise that "sows ear" to look
like a "silk purse", but if you use common sense, you can
recognize it for what it is.