From DMs to Dollars: How to Tell If an Online Opportunity is Worth Your Time and Money
Many stay-at-home mums (SAHMs) are often presented with various business opportunities via social media, especially through direct messages. It's important to approach these opportunities with caution and a clear set of questions to determine whether they’re legitimate or a potential scam. Below are some constructive questions to help evaluate an opportunity, whether it's a multi-level marketing (MLM) scheme, network marketing, or other buy-in opportunities.
1. What is the structure of the business?
Is it based primarily on recruiting others, or is there a product or service that is being sold?
Why ask? In many MLMs, the focus is more on recruitment than the actual sale of a product. If you’re being asked to recruit a team, it’s essential to understand whether the product is actually desirable and if customers outside your recruitment network are purchasing it.
Are there specific sales quotas you must meet to receive commissions or maintain your status?
Why ask? This helps you determine if there’s constant pressure to buy products in order to maintain your position in the structure, which is often a red flag in MLMs.
2. What are the start-up costs?
How much money do I need to invest upfront, and what exactly am I paying for?
Why ask? Some opportunities ask for an initial buy-in for inventory, training materials, or membership fees. While some legitimate businesses require an upfront investment, a high start-up cost with little explanation could indicate a scam.
Are there ongoing costs (monthly/annual) that I need to be aware of?
Why ask? Ongoing costs can include inventory purchases, website fees, or training courses. If these costs don’t seem to align with the earnings potential, it might be a red flag.
3. What does the income potential really look like?
Can you provide clear, real-life examples of how much people earn in this business?
Why ask? If the business opportunity doesn't offer transparent or verifiable income disclosures, that’s a major red flag. Look for average income reports (if any exist) and seek out testimonials or case studies.
How much time do most people need to invest before seeing meaningful returns?
Why ask? Some opportunities may promise quick profits, but most businesses require time and effort to build up. A realistic timeline will help you understand if this opportunity is something that could fit into your life as a SAHM.
4. How does the compensation plan work?
Can you break down how commissions are earned? Is there a focus on personal sales or team-building?
Why ask? In some business models, a large portion of the income may come from recruiting rather than selling. If commissions from recruitment are more significant than from selling the actual product, this could be a sign of a pyramid scheme.
Are there tiered commissions? What happens if I don’t recruit anyone?
Why ask? Understand if income is mainly based on recruitment or if you can earn money through product sales without having to recruit others.
5. What kind of support and training will I receive?
What kind of training, mentorship, or resources are available to help me succeed?
Why ask? Legitimate business opportunities usually provide solid training, but be cautious if the “training” is mostly about how to recruit others or “sell” the business opportunity itself, rather than how to sell a product or service.
Are there ongoing resources to help me grow my business, or is it expected that I figure it out on my own?
Why ask? You want to know if the company will offer continued support or if you’ll be left to do everything yourself once you’ve joined.
6. What is the company’s reputation?
What do other people say about the business? Are there reviews or testimonials available?
Why ask? Researching the company’s reputation is crucial. Look for unbiased reviews on platforms like Trustpilot, Reddit, or Glassdoor, and be wary of companies that only share overly positive testimonials.
Has the company been involved in any legal issues or controversies?
Why ask? Some MLMs and other direct-sales businesses have been under investigation or faced legal action. If the business has a history of legal issues or deceptive practices, it’s better to steer clear.
7. What is the long-term viability of the opportunity?
Where do you see this business in 5-10 years? Is the market for this product or service sustainable?
Why ask? Some opportunities might seem great now but could fade as trends change. Look for businesses with long-term potential and solid market demand.
How do you plan to support new recruits and help them grow their businesses?
Why ask? It’s essential to understand if the business is built on sustainable growth rather than a model that relies solely on continuously bringing in new people.
8. What happens if I fail or choose to leave the opportunity?
What is the exit strategy? Can I sell my inventory, or am I stuck with products I can’t return or resell?
Why ask? Understand what your options are if the opportunity doesn’t work out for you. A legitimate business will have an exit plan with some flexibility.
9. Are there legal disclaimers or contracts?
Do I need to sign a contract, and what are the terms?
Why ask? Make sure to read all terms and conditions carefully. A scammy or questionable opportunity might have contracts that lock you into long-term commitments with no clear way out.
10. Is this the right fit for my lifestyle?
How much time will this take, and does it fit with my current family obligations?
Why ask? Realistically, the time commitment involved in any business should be considered. Make sure that the business doesn’t interfere with your primary responsibilities as a parent and homemaker.
Can I scale this business around my existing commitments and family life, or is it likely to become overwhelming?
Why ask? If the business requires significant time each week, you’ll want to weigh whether it’s worth the trade-off with your family time. It’s important to find something that aligns with your life, not one that adds stress.
Red Flags to Look Out For:
High upfront costs with little explanation (especially if you can’t return products).
Heavy focus on recruiting over product sales.
Pressure tactics or "limited-time offers" to get you to sign up quickly.
Promises of "easy money" or "getting rich quickly."
Lack of transparency in terms of income potential or business details.
No verifiable third-party reviews or experiences.
By asking these questions and staying cautious, you can make an informed decision about whether an opportunity is right for you or if it’s a risky proposition. The goal is to ensure that any business you join can realistically fit into your life and bring value, not just take your time and money.
