How to spot a fake company?

How to spot a fake company

Spotting a fake company is not that difficult, you just need to know where to look and what to look for. And I will try to show you “How to spot a fake company”. Let me set the context first. Recently in India 2 company were spotted as scam. They used to pay to like Facebook post. And to get this paid opportunities, you had to pay them.

You have to pay someone to get a job, that tells me it is a ponzi scheme. Let’s talk about it, and let me explain. Lets assume these companies were not scams and they pay the people 6 rupees per click / like on Facebook. One might argue, that is just wrong, because this is kind of paid promotion that might mislead general population who are not aware of this going on. I agree with you, but let’s put that aside for a moment.

So say, companies want to promote their page, say there is a local lay firm and they want publicity. They pay this social promoter company money, this social promoter company pays bunch of people to like the law firms business page. This way the social promoter company keep their cut before paying the publishers, who liked the pages. This way, the company makes money for their administrative costs, employee cost or in simple words operation expenses. But, here is one point to remember, say law firm paid 5000 rs, so they can buy 500 likes on Facebook. So, the social promoter company pays their guys 3000 rs ( 6rs per like) and makes a profit of 2000rs. This would be a sustainable model. And if something like this come out, I will not call it scam.

How to spot a fake company?

I just explained above how a sustainable business model should be. If you want to make money with such a business as publisher, you do not need to put your own money. Why you ask? Well, let us discuss, why they would need your money on first place. These companies were private limited companies, so they did not give you any equity in business for your money. So, probably their point was, they wanted to hook you, wanted to see that you were committed. But, think again, why would they need you in specific?

There are more than billion users of Facebook. In India, there are may Facebook users, if anyone offers 6rs for a like, they will find thousands or users, they giveaway likes for free anyway, I am sure even my mom would like to do the job. It sounds too easy to be true, or should I say too good to be true. You know why? Because it is not true. There is no easy way of making money. Not on Facebook either.

This business model should always flag the business, because it is not legit. Now hundred and thousands of people gave their money away to lose it. Being on internet for more that 1.5 decades I have seen few of such schemes, and now I know, when someone asks for money before they can pay you to do something or nothing, they are fake company. So now I think you know how to spot a fake company.

Author: pachubabu

I love trying different cuisine, hiking, travelling and blogging about personal finance ,investing & health/fitness