3 Tips To Avoid Scams

by Jim on October 28, 2014

There are many opportunities online and overall they tend be legitimate. Unfortunately, there are several scams which is one of the reasons for me creating this website to try and steer clear of the scams.

But sometimes,​ the best ways to avoid scams is by being proactive. Use these 3 tips to avoid scams.

Tip #1 - Wait

Before you embark on any opportunity program, wait a little while before signing up. This is especially true for new programs. Granted, you may not get in at the introductory price but you will have two advantages that the earlier adopters didn't.

  • Feedback about the program will start to build over time.
  • If you find that the program in question seems like a viable way to make money, all the failures will be gone from the playing field. You will actually have less competition at this stage.

Tip #2 - Contact the Seller Before Purchasing and Ask Questions

The questions you ask is really up to you but more importantly is how quickly they respond to you. If you are wondering what the credentials are of the seller this would be a good time to ask. See if you can find out what they have sold before and if the participants were successful and the success rate.

Also, do a search online for information about the seller and see if there is any negative press about him or her. If there is you could ask the seller about that as well.

If the program in question has a hefty price tag, see if the seller is publishing a phone number and call it. Does the seller respond right away? Is it actually the seller and not some help desk? If there is no phone number, this could be a red flag.

Tip #3 - Use PayPal to Pay for the Purchase

If the seller does not accept PayPal make sure whatever payment processor they are using will advocate for you in the instance that something is not right. One caveat: not taking action is on a particular program is not the fault of the seller!

With PayPal, you have 45 days from the time of your purchase to file a complaint. If the seller does not respond to you within that time frame, you automatically get your money back.​


Other Points to Consider...​

You Must Take Action

Some Programs Just Flat Out Stink

Look For Programs That Offer a Money Back Guarantee

Hopefully, these tips will help you when evaluating online opportunities to keep away from the bad programs and know how to choose the ones that actually have potential to work. Also, be aware that I am constantly on the lookout for opportunities and evaluate them myself (or use other evaluations as the basis for determination). So be sure to always check back here.

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Get Paid to Dropship

by Jim on October 16, 2014

Did you know you could get
paid to dropship?

Wait! You don't know what dropshipping is?

Or perhaps you've heard the term but weren't really familiar with what it was.

I will be exploring dropshipping in this article to not only help you understand what it is, but to help you determine if you should implement it.​

DropShipping
Grammatical Side Note: The word dropshipping does not appear to be a single word. Officially, it is drop shipping. But it is always referred to by most as a single word. In fact, a quoted Google search for "dropshipping" brings up many more results than a quoted Google search for "drop shipping". It's the other way around for a quote Bing search. I will be using "dropshipping" throughout.

Dropshipping Defined

When a vendor chooses to incorporate dropshipping, they are not holding any product in inventory. Instead, when they receive an order for a product from a customer, the vendor will order the product from a third party supplier and that supplier will ship the order to the customer. The vendor charges the customer a higher price than the supplier charges the vendor, resulting in a profit.

Advantages of Dropshipping

  • No need to hold inventory hence less capital outlay needed
  • Fulfillment of orders handled by suppliers
  • Diversification of products and/or suppliers
  • Relative Ease of Setting This Type of Business Up
  • Can be run from any location if its exclusively online

Disadvantages of Dropshipping

  • Supplier could be out of stock
  • Fees for dropshipping can eat into profit margins
  • Shipping costs are controlled by supplier
  • Dropshipper must handle returns unless other arrangements are made with supplier
  • Some suppliers will not white​ label the shipping labels (to be explained)
  • Customer orders several products in one order and they are sourced by different suppliers, resulting in shipping charges for each supplier
  • Competition is fierce due to low barriers to entry​

What's Your Verdict?

Based on the advantages and disadvantages it seems like it could go either way. If you look at the advantages you could get started very quickly and be up and running in practically no time.

The disadvantages are something that really need to be considered however. You can't take this lightly because the profit margins on this type of business model are tight. Any adverse situation will squeeze them further.​


The good news is that there are people who are successful at dropshipping.​ Currently in the pipeline is a strategy guide to overcome the obstacles associated with dropshipping and it will teach people how to develop a successful dropship business.

If you would like to be alerted when this guide is ready, please leave me your name and a valid email on the right ->

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Preliminary Considerations

There is some housekeeping that needs to take place before you start listing your products. You will encounter problems with your dropshipping business if you ignore these! Click on the arrows for more details for each item:

Ask Supplier for Price List

Make Sure You Are Crystal Clear on Shipping Fees and Handling Charges

Understand the Supplier's Return Policies

Make Sure Your Profit Margins Actually Allow For Profit

Stay Away From The Hottest Selling Categories

Factor in Other Costs

Overview of Process Flow

The following is an overview of how the sales process works in a dropshipping transaction (click on each arrow to find out more information bout each item):​

List The Product for a Price Higher Than The Supplier Gives

Buyer Purchases Item

Purchase Item from Supplier and Have Them Ship to Customer

Make Sure Your Customer Service is Impeccable

Other Considerations

When you make sales online, there are certain conditions that can require you to charge sales tax on your purchases. It used to be that sales online were pure and you didn't have to charge taxes on sales. That is still true in many instances but is getting much more fuzzy. Governments all over the world are looking for loopholes that can give them an excuse for them to get online retailers to charge tax. It stinks but it is a consideration.​ Whoever deals with the customer direct, is the one responsible for charging tax. That is usually the dropshipping entity.

Another factor is any kind of state licensing that could be required. Some products require special provisions in order to be sold. Also, along the lines of sales tax, you may need to obtain a sales certificate from your state specifying that you are exempt from being charged sales tax from your supplier. Many supplier may require this and won't do business with you if you don't possess this certificate.

Disclaimer: The information in this report is for information p​urposes only and should not be misconstrued as giving any kind of legal, tax, or even business advice. Consult the proper professionals to get the appropriate advise for your business.

Want to Get Started in Dropshipping?

Simply Leave Us Your
Name and a VALID Email.
We'll Send You Our Strategy Guide That
Shows You How To Set Up Your
Dropshipping Business
The Smart Way!

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Scam Adviser Roundup Week of 10-12-14

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