Setting up a website and starting a company can take as little as ten to fifteen minutes. Anyone can do it. So, in a world of so many online businesses and online services, how do you determine the credibility of an online company?
It’s essential to spend an initial ten to fifteen minutes determining if a company is credible or not, as this could save you time, money, and reputation in the long run.
This guide will walk you through a step-by-step process to evaluate an online company’s credibility, from basic checks to in-depth investigations.
Step 1 – Check the website
Flash-in-the-pan scams and non-credible businesses often have very new websites, characterized by inconsistencies, glitches, or a poor overall layout and user experience.
The first step is to type the domain name into https://www.scamadviser.com.
This provides an overall picture of a trust score, which should be your first step.
You can also check if the website lists the employees working there, along with pictures. This doesn’t prove a company is legitimate, but it certainly gives extra confidence that the people working there are real (potentially!).
Step 2 – Check the business details
At the bottom of the website, you should see the business name, along with its address and contact information. Look up or check the business name and address, and verify if everything matches.
Also, check the business’s social media. Does everything match? Are there regular posts?
Do they have a contact email with a business domain? Non-credible businesses may just use a Gmail address.
Step 3 – Look up official business registration details
In most states in the U.S., you can search for a company on the Secretary of State’s website. Depending on the state, you can obtain a certificate of good standing, verify if they are up to date with their returns, or even check the listed owners. You can then verify if this information aligns with what you have on the website.
Step 4 – Read reviews, but look for authenticity
A credible company will typically have a substantial number of reviews to review. The most common review platforms are:
- Trustpilot
- Google Reviews
Ideally, you want to see a company with four or more stars out of five. Be cautious of what appears to be fake reviews. You can generally tell when reviews seem AI-written — they will almost sound “scripted.” Check out the one- and two-star reviews. Did the company respond? Is there a consistent pattern of issues?
Step 5 – Investigate the people behind the company
A credible company will often highlight the founders on the website or show the leadership and staff working there.
Take a look behind the scenes at the people who make up the company. What can you find out about them? Have they been involved in anything shady? You can search for things like “Company name + scam” or “Company name + lawsuit” to see if anything has cropped up in the past that you need to be mindful of.
Once you have completed these five steps, the next best step is to set up a call or meeting to discuss the services the company can offer you.
Step 6 – Company call
The company should be experts in their field and confident enough to be on a call with you to discuss your needs and what you’re looking for.
On the call, be wary of complex sales techniques — these are significant red flags. Here are some examples to watch out for:
Now or Never
- “The deal is only good for 3 days — then the price is going back up.”
- “We only have room for 5 more clients on this deal — then it’s gone.”
Don’t fall for this. You need time to think and deliberate over what you are being offered. A deal is not a red flag, but it should be provided with a fair timeframe, at least thirty days.
Withholding complete information
- “Let’s just get you signed up first, then we will go over the details.”
- Charging hidden fees or burying them in the fine print.
It often happens that someone signs up quickly, only to realise there is a huge cancellation fee, a long contract fee, or the fee increases after six months, and it wasn’t transparent during the call. Don’t sign up on a first call. Take time to review the information and get back to them later.
Social pressure and name-dropping
- “Everyone’s getting this — it’s the best thing out there! Don’t make the mistake and miss out!”
- “Even Mr. Big Shot is using this and loves it!”
This is a manipulation to get your business. If used lightly, it’s not a huge red flag, but excessive use should raise your defenses.
Step 7 – References
It’s a great practice to ask the company to provide a few contacts of some of the clients they already work with. Yes, they could fake these, but look for official business domain addresses. And if you have completed steps one through six, these should be credible references that give you peace of mind.
You don’t need to CC the company in — so you can ask any questions or express any concerns you may have.
Step 8 – Signing the deal
Many companies get to this point: a great call has happened, and it’s time to sign the deal. However, just because you have agreed, it doesn’t mean you need to sign immediately. This is one of the most essential parts.
A credible company will be transparent about:
- Pricing and terms of service
- Refund or return policies
- Privacy and data use policies
- Disclaimers and contact details
- Contracts
Ensure that all this information is accurate. Keep an eye out for hidden fees, end-of-contract price increases, and other potential issues, and ensure you are satisfied with everything.
Final thoughts
We don’t offer legal advice at RJM Tax Exemption. Still, we follow these steps and principles whenever we look at new partnerships and assess the credibility of an online company, to ensure we protect our reputation to the best of our ability.
We have seen companies become frustrated and lose income through working with non-credible businesses. These eight steps could save you a lot of money — just take your time and you’ll get the right deal in the end.
