WORK AT HOME SCHEMES

You can find ads like this everywhere — from the street light and telephone pole on your corner to your newspaper and PC. While you may find these ads appealing, especially if you can’t work outside your home, proceed with caution.  Not all work-at-home opportunities deliver on their promises.

Many ads omit the fact that you may have to work many hours without pay. Or they don’t disclose all the costs you will have to pay. Countless work-at-home schemes require you to spend your own money to place newspaper ads; make photocopies; or buy the envelopes, paper, stamps, and other supplies or equipment you need to do the job. The companies sponsoring the ads also may demand that you pay for instructions or “tutorial” software. Consumers deceived by these ads have lost thousands of dollars, in addition to their time and energy.

Classic Work-at-Home Schemes:

● Medical billing. Ads for pre-packaged businesses — known as billing centers — are in newspapers, on television and on the Internet. If you respond, you’ll get a sales pitch that may sound something like this: There’s “a crisis” in the health care system, due partly to the overwhelming task of processing paper claims. The solution is electronic claim processing. 

The promoter also may tell you that many doctors who process claims electronically want to “outsource” or contract out their billing services to save money. Promoters will promise that you can earn a substantial income working full or part time, providing services like billing, accounts receivable, electronic insurance claim processing and practice management to doctors and dentists.

They also may assure you that no experience is required, that they will provide clients eager to buy your services or that their qualified salespeople will find clients for you.  The reality: you will have to sell. These promoters rarely provide experienced sales staff or contacts within the medical community.

The promoter will follow up by sending you materials that typically include a brochure, application, sample diskettes, a contract (licensing agreement), disclosure document, and in some cases, testimonial letters, videocassettes and reference lists.

For your investment of $2,000 to $8,000, a promoter will promise soft software, training and technical support.  And the company will encourage you to call its references. Make sure you get many names from which to chose. If only one or two names are given, they may be “shills” — people hired to give favorable testimonials. It’s best to interview people in person, preferably where the business operates, to reduce your risk of being mislead by shills and also to get a better sense of how the business works.

Few consumers who purchase a medical billing business opportunity are able to find clients, start a business and generate revenues — let alone recover their investment and earn a substantial income. 

For more information go to: http://www.ftc.gov/