Gather all important information BEFORE putting any money out. A legitimate Work From Home company will be more than willing to give you clear information about exactly what you will be doing, how much and by what means you will be getting paid, and any other pertinent information. If you can't get this information, move on.

Figure out who your really working for. The company that you're contacting (or who contacted you) may not be employing you directly. They may only be interested in selling you training and materials. They will then expect you to find your own customers for work.

Establish that there really are customers for your work. If a company tells you that there is a large market for work such as medical billing and craft making, this may not be true. If any company tells you that it has customers waiting, ask how you can get in touch with them to confirm. It also pays to go out and do some research of your own. Ask likely customers in your area (for example, doctors for medical billing services) if they actually employ people to do that kind of work from home.

Find other people who are Working from Home with this company. Several Work From Home sites include testimonials for their product or system. Ask how to get in touch with people who work for the company, go to blogs or chats about Working From Home, and ask if the company kept its promises.

Familiarize yourself with the return policy. If you are asked to buy equipment, supplies, books, CDs, videos or anything else, ask whether and under what circumstances you can return them for a refund. Make sure this policy is in writing somewhere.

Follow all legal requirements. To do certain types of work, such as medical billing, you may need to have a license or certificate. This varies from state to state so you are going to get the best answers by checking with your state attorney general’s office. Talk to your local zoning board about any restrictions on operating a business from your home. There may be licenses to apply for. However, some types of work cannot be done at home under federal law. Look for the nearest U.S. Department of Labor in the government listings of your phone book.

Beware of the envelope stuffing scheme. In this scam, instead of getting materials (which you pay for) to send out on behalf of a company, you get instructions on how to place an ad like the one you saw, in turn asking other people to send you money for information about working from home. This is an illegal pyramid scheme because there is no real product or service being offered. You won’t get rich and in fact you could be prosecuted for fraud.

Be cautious of offers to send you an “advance on your pay.” This is a scam to build trust and get money from your bank. The company will send you a check for part of your first month’s pay. After you deposit it and the check will clear because the normal time has passed to be notified that checks have bounced. Then the crooked company will contact you to say that you were mistakenly paid the wrong amount or that you need to return a portion of the payment for some other reason. After you send the money back, the check that you deposited will finally bounce because it is an elaborate fake. Now the company has your payment and you’re left owing your bank a fee for a bounced check as well as having lost the money you withdrew.

Hit the books and do your own research about Work From Home companies and their opportunities. You can't always believe everything that you read. There are many legitimate Work From Home opportunities available out there. There are several, however, that are very well put together scams. The “Work-At-Home Sourcebook,” along with other publications, can be a great resources that may be available in your local library. They provide good advice and lists of legitimate companies that hire people to work for them at home. You may discover that these companies hire only local people and that there is nothing available in your area.

Be realistic. Working From Home is no different than any other business. It requires hard work, skill, good products or services, and time to make a profit.