Talking to potential customers for my small business?

How to avoid business scams?

• So, it was about a week ago when a customer came in while I was at work, and we got to talking, and we ended the conversation like this: he gave me his business card, after I told him I was interested in a job in sales or some sort of business type of job. He told me that his job is actually to help people start their own business and he will be able to help me even though I am a minor (im 17). I felt very lucky and grateful that I ran into him, because a previous attempt to get started in an entrepreneurship program did not end the way I wanted, so I thought this has to be IT! and I think he also saw that eagerness and desperateness in me. So, he actually called me a few days later, to set up a meeting. So, I met with him a few days ago, with his wife. They basically told me that they are part of a business that is much like Amazon, where customers buy products on their website. So, my job would be in retail, until I am 18, I can start franchising. In my honest opinion, they seemed like genuine people! I really felt like they wanted to help me, after getting to know my background and my situation and everything. But after talking to numerous friends of mine, they keep telling me that this could possibly be a business scheme, for different reasons, such as: 1) there is a $175 fee to start my website "business," where basically I get my own website, and I get people to buy our products. 2) I went online to find out some info about them, but could not find anything on Google. The only info I got was from their actual website, and even then I wasn't given very much information. 3) They repeatedly told me of their success as a business, and how many people they have led to success in their own businesses, and that it is an international business, but yet I have NEVER heard of it, and I couldn't find anything about it online. If those aren't "red flags" for being a business scam, I do not know what to look for! I need some insight, please. I really do not want to get screwed over. PS I am meeting with them tomorrow night with my mom (since a guardian/parent needs to be present; for I think there will be some papers to sign), to talk things over. So, should I just skip the meeting completely, and just not trust them at all, or should I go to the meeting open-minded, willing to take the risk? What kinds of questions would be good that might possibly raise flags or maybe give me some reassurance that these people are actually honest?

• Answer:

  It is most likely a scam (but legal) in this sense. You pay him $175.00 and THEN you buy stuff from him which costs you more money. Your source of income will be to find new people like yourself who will pay YOU $175.00 AND buy stuff from your website. It is close to impossible to make money doing this. It is usually called "multi-level marketing" and works like a "Ponzi" scheme in that once new pople STOP joining .....all the money is gone. It is not usually illegal as long as they tell you all the details. Just because something is "legal" does not mean it is a good idea. Skip the meeting...unless they have great snacks. Do NOT give him a dime.