Homeworking schemes

Some work from home opportunities may seem like an easy way to earn extra money, but not all schemes are genuine. Some are designed to make money from the people who sign up rather than offering real work.

Before joining any scheme, check it carefully, especially if you are asked to pay a fee or buy materials.

Common types of homeworking schemes

Chain letters

Chain letter schemes rely on new people joining and paying money into the scheme.

These schemes usually fail because the number of participants quickly runs out, meaning most people never receive the promised return.

Envelope stuffing schemes

These schemes often ask you to pay a registration fee before you can start work.

In many cases, the only task is placing advertisements to recruit other people into the same scheme. It is unlikely that you will earn any money.

Get-rich-quick schemes

These schemes promise large earnings with little effort.

They may direct you to premium-rate phone numbers or paid services that provide little useful information while generating income for the advertiser.

Leaflet delivery schemes

Leaflet distribution can be legitimate, but work may be limited and competition can be high. Earnings are often lower than advertised.

Pyramid selling and direct sales

Some direct selling businesses operate legally and offer genuine opportunities to earn money.

However, success usually requires significant time, commitment and sales skills. Make sure you understand any costs, risks and legal obligations before joining.

Home assembly schemes

These schemes may ask you to pay for materials or starter kits.

Some businesses then reject completed work for failing to meet required standards, leaving people out of pocket and unpaid.

Before you sign up

Before joining a homeworking scheme:

• research the company independently
• check reviews and customer feedback
• be cautious of promises of high earnings
• avoid schemes that require upfront payments
• read all terms and conditions carefully

If something sounds too good to be true, it probably is.

Get advice

If you are concerned about a homeworking scheme or think you may have been targeted by a scam, contact Consumer and Trading Standards for advice.