The first rule of thumb is can you follow money? That is, can you figure out how company will be earning money from your efforts? If you’re offering lifetime free services to someone and earning a large commission every time someone signs up, where does money come from? It’s easy to tell yourself it can’t be a scam because no money is being spent, but you need to consider more possibilities. What information are you giving them? What about your customers? Can that be used against you? Do you have to download anything at any point? Spyware and/or affiliate commission theft could be goal.

Second, is pay commensurate with effort you are putting forth? If they are offering 2-3 times going rate for a job, but you have to pay for training, it’s probably a scam. They’re relying on your need to earn money and desire to earn lots of it with little effort to cloud your judgement. Similarly, if you are earning commissions for your efforts, does it look like company you will be representing can possibly be making a profit? This is very similar to point #1 above, but worth considering on its own.

You see it all time: Ads such as, “FREE HOME BUSINESS”, “MAKE A PROFIT WITH NO COST TO YOU”, etc. You see these claims in emails and on websites all over Internet. You see them in your local newspaper and in magazines. Are all these ads just a bunch of lies, or can you really build a home business without a monetary investment? I believe answer to this depends on a couple of different factors. 1) Is person seriously trying to build business and, 2) What are resources being used to build it.

Let’s look at first factor – YOU! (No, I am not picking on you.) What type of person can build a business without investing any money? He will have to be a self-starter. There will be no boss looking over his shoulder to make sure job is being done. He also must be dedicated and have a strong commitment to succeed. Trying to build a business this way is going to take much time and patience. There may be many hours of sitting in front of a computer submitting websites or placing ads in his immediate future. He must have “stickability”. He must decide what he is going to try to build and stick with it. He can’t be jumping from one “sure thing” to another.

The second factor we should look at is resources being used. Building an online business using free resources can be a very time consuming experience. I have read several testimonials from people who have done it, so I know it is possible. Success mainly boils down to this: having time to do research on many free online resources, and then doing necessary work required in putting them to good use. Let’s take a look at a few of these free resources and see if they really work.

The Internet offers a wide variety of free resources available to a person trying to build an online business. From free web hosting & html tutorials, to free affiliate programs & advice (some good and some bad).