7 Things to Look For in a Home Based Business

What are the things you should look for when you choose a home based business? That is a question often asked to me. Now, I’ve tried many different things, made a lot of mistakes, and also I’ve wasted a lot of money online. In my opinion, it is okay to waste money trying new things but when you waste money on things people already tried and failed on, then you’re just being a complete idiot. I’ve failed many times and wasted a lot of money, so learn from my experiences and failure so you don’t need to fail anymore.

So what are the things you should look for when choosing a home based business:

1. A Unique Product

The first thing you should look for in a home business is a business that offers a unique product. You should never join a business that product is already filled with competitors, where the niche is already saturated. Perfect examples for this are vitamins, juices, pills, and lotions, these kinds of products are often found in MLM opportunities.

These kinds of old school marketing niches are bad businesses or products if you want to get a decent amount of income online or a successful business going for a long time.

Now, what you want is a product that appeals to many people but doesn’t have too many competitions yet. When you sell pills to lose fat, you can only sell that to fat people, correct? Try finding a product that can be sold to all people.

2. A Great Support Team And Network

The second thing to look for when you choose a home based business would be a great support network. Unless you’re someone that is an expert on Internet Marketing or you’ve many experiences you would want to choose a home business that offers a great support network that you can rely on when you run into problems and you need solutions.

A great support network would be like a forum, this is the place where you get personal and specific solutions for you problem. A 1-800 number would be perfect, it allows you to call and talk directly with the support team. A personal sponsoring consultant or mentor like me, I often get questions from my members and it’s my responsibility to help them and answer them. So having a personal sponsoring consultant is a great idea. Webinars and live conference calls that is held on a daily basis would be great too, this is the place where you could interact with the other members here.

So when you choose a home based business, make sure that your business has all of those. Those are the things you must look for in a home based business.

3. An Honest Company Management

The third thing would be an honest company management. When you choose a home based business to start on, make sure you know the company management. This is a must when you decided to be on a long term business with the company. You would want to know what type of individual runs the company. A person with a good track of success record and good reputation is someone you want to work with.

Now, you don’t want to wake up one day and watch that your CEO has ran away with all your money in the news.

4. A Great Marketing System

The next one is a great marketing system; this is a really important thing to look for in a home based business. Now, it doesn’t matter if you have the greatest product in the world but you’re not marketing it or you don’t have a great marketing system to help market your product, it’s useless. It’s completely useless because you won’t be making any success or any money if you don’t market your product, which having success is the whole point on why you are in this business.

Now, let me give you an example, my mom makes a better burger than McDonald but McDonald makes billions where my mom don’t make any money. Why? Because my mom never markets her product, that’s why she never make money from making burger.

There are three things you want to look for when choosing a great marketing system:

1. Would you want to do it?

The first thing is you need to ask yourself would you want to do it. Now, you need to know a lot of old school MLM systems actually tell their members to go out and chase their friends and families. Now you ask yourself, do you want to do it? Are you thick skin enough to go and chase people to buy from you? Now even if you are thick skin enough, you would not want to do that for the rest of your life, correct?

2. How would you respond to it?

The second thing is you ask yourself how you would respond to it. If somebody chases after you with that kind of old school marketing method, harassing you until you buy their product or maybe join them in their business, what would you do? Would you buy from them? I don’t think you would. If you don’t even want to buy from people like them, just imagine yourself doing their marketing method, nobody would buy from you.

3. Does it apply leverage?

The third thing is does your company’s marketing system apply leverage? Internet is the biggest leverage of all; 1.4 billions users are on the internet every single day. Your product would be seen by 1.4 billions of users online. Now imagine that kind of leverage. Now, time leverage, for example does your company have a call center that will help you close sales while you’re doing your things? A predesigned website, prewritten emails follow up? So that you can concentrate on doing your things while your marketing system works for you 24/7, these kinds of marketing systems are what you should look for in a home based business.

5. A Global Reach – Making Sales Globally

The fifth thing is global reach. Does the home business have a global reach, meaning you could make sales globally from any part of the world?

For example, when your market has ran out in the U.S, will you be able to sell your products in Europe, Asia, Australia, or any country in the world?

Products like vitamins, pills, lotions, and health products are those that are hard to be sold globally. Every country has its own rules; you will have a lot of hoops to jump through before you’re approved to sell your products in other country.

Information and financial education products are preferable. You can sell them in any country in this world you want. If the product is unable to be sold online then there’s no use in doing a home based business because the strength in a home based business it’s that you’re going to be making money from global sales.

6. A Decent Compensation Plan

The sixth will be a decent compensation plan. A good compensation plan is one that offers a simple to understand, big upfront income, and also a decent residual income built in.

What I meant by simple is that it is easy to understand. When you ran into compensation plan that is so confusing that you can’t understand it then don’t do it, chances are nobody will understand it.

Second, always look for a home based business that offers a big upfront income, about $1,000+ per sale. So that you could quickly get out of your job and re-invest in your business so that you could achieve financial freedom really quick.

After a big upfront income, you’d want a compensation plan that offers a decent residual income. So that you don’t have to work forever but still get paid for what you’ve done before, a lifestyle that you want without having to be bound by your job. I love what I’m doing.

7. Giving Back To The Society

Now last but not least, this is the thing that everybody overlooks and regards it as an unimportant aspect in a business, is your company giving back to the society? Now, every time your company does charity, giving back to the society, donating for social causes, they are indirectly building credibility online and offline.

When people like your company, it will be easier for you to market and sell your products, correct? If you want to receive, first you must learn to give. That may sounds so cliché, but that is the universal law in all business, will it be home based business or brick and mortars.

Now let’s summarize, what are the things to look for when you choose a home based business:

1. A unique product

2. A great support network

3. An honest company management

4. A good marketing system

5. A global reach to sell your products

6. A decent compensation plan

7. A charitable company

If the home business you’re looking for has all that criteria then you’re in good shape. It would be a mission impossible for you to fail in that home business. Now the main reasons I were able to present these advices were of course, I had those experiences. Where do I get it? The company I work with of course.

Why Consider Network Marketing As Our Home-Based Business?

We are not asking that anyone get involved in network marketing and change everything immediately. We are however, suggesting that people consider the addition of the right home-based Network Marketing business starting their journey of financial success in a different direction. Having a home-based business is not a new concept. Network Marketing is not a new concept. Having a home-based Network Marketing business is not a new concept. However, never in the history of our country has the concept been so prevalent and is fast becoming the norm rather than the exception!

The reason is very simple. Our concept is providing American’s with what they want; control of their time and financial opportunities proportionate to their abilities and effort.

With the right home-based Network Marketing business, one has all of the benefits and advantages of a home-based business and unlimited financial opportunity usually associated with a large traditional business.

Employees and Debt
Rather than having several employees working with other employees under one roof for the benefit of someone else’s company, with Network Marketing, we have a bunch of home-based business owners, working under their own roof, networking with other home-based business owners, all working for their own companies. This concept provides an incentive and opportunity of multiplication and duplication for each home-based business owner equal to or greater than that of the owners of traditional businesses with multiple employees and locations, with out all the hassles associated with traditional businesses! It requires no debt, no employees and no complicated administrative procedures. With Network Marketing, we work with and for other people and other people work with and for us.

What is Network Marketing?
When you purchase a product or service, usually over 50% of the retail cost is associated with marketing! That would be any cost associated with getting someone to buy the product plus any cost incurred once it is produced by the factory. With Network Marketing, the products are shipped directly to the consumer from the factory. Those monies normally associated with marketing are paid to several home-based Network Marketing businesses owners which had previous network marketing or internet marketing influence in the referral of the customer!

Are the products less expensive?
Most customers will not buy inferior products and there is limited benefit to paying a little less for a product on the short run. Let’s assume that you sold yourself a product, ordered it from a Network Marketing company and in return the company paid you a 50% commission or rebate. In effect you’ve saved 50% on the products you purchased. That may save you a few dollars. Although saving money is important, the concept of earning money on products that we are already buying is far more exciting.

The concept is to redistribute the marketing dollar!

Imagine having a network of thousands of customers purchasing quality products or services each month where you receive a few dollars per month for each customer! Remember, these are products or services that we are all already buying, or should be, and this is money that is normally paid to others. In essence, the simple process of referring other customers who also refer other customers to a Network Marketing company, presents an opportunity for a redistribution of the wealth to you and I, the consumer!

Traditional Marketing versus Network Marketing
A traditional company would typically have a Vice President of Marketing with several regional managers reporting directly to them. Those regional managers would recruit, hire, train and manage several area managers who, in turn, would each recruit, hire, train and manage several sales representatives. The sales representatives are then responsible for selling the company’s products or services.

Plotted on a piece of paper, the shape of the traditional organization would look like a triangle or pyramid. It’s quite obvious that the higher the level the higher the pay and that there is less room at the top for advancement. It is also evident that it is mathematically impossible for each and every sales representative or employee to rise to the top regardless of how good a job they do!

The Difference
First and foremost, Network Marketing is different. Each individual starts at exactly the same level – at the top of their own organization, has exactly the same opportunity as everyone else and is compensated in directly proportion to the activity or success that they have had an influence in generating. Secondly, one doesn’t need to be a sales person to reap the level of financial benefits normally associated with company owners, sales managers and marketers. Thirdly, in Network Marketing we work with, when and for whom we choose. And last but not least, different than in a traditional company, we only work for ourselves and those whose activity generates income for us! We may also choose to work with those which we are generating income for, because, in most cases, they don’t make money unless we do.

How does it work?
In Network Marketing, there are customers and also independent representatives who operate as a home-based business. The customers may also be independent reps. Independent reps can earn management positions if they so desire. Different than in traditional business, each independent representative is given the opportunity and responsibility of both recruiting customers and other independent representatives. Each independent representative is owner, president, and vice-president of marketing for their own home-based network Marketing business.

Network Marketing is a word of mouth business. By spreading the word, the network marketing marketer identifies others who desire to be customers and or independent representatives (home-based business owners). The independent rep helps those newly recruited independent reps build their own home based business by helping them identify other customers and independent reps who desire to own their own home based network Marketing business. In a mature organization, it is normal for there to be 50-100+ customers for each customer/independent representative that you personally refer! Through this duplication and multiplication process each home based business owner can recruit and sponsor a few customers and/or independent representatives and, as a result, generate a sizable organization of consumers and marketers.

Referring
Does this sound like a foreign and awkward activity to you? How many people have you referred to your favorite restaurant or to your favorite movie. How many more have gone because the people you told enjoyed the restaurant or movie and told someone else who went? How much did you get paid? We are all already referring customers everyday! It is just that most of us don’t get paid for it.

The question is not whether we refer customers, the question is whether we are getting paid for the activity!

In network Marketing, customer/independent reps receive an income for “marketing” the products for the company simply by referring other customers! Normally, we receive compensation through 5 – 10 generations of this duplication activity. In addition, there are usually additional performance and leaderships bonus compensation structures! Assuming an association with the right company: Network Marketing is the one of the very few processes I know of where you will earn in network marketing relation to your ability and effort with virtually unlimited potential! Although most people are looking only for a few hundred or few thousand of supplemental monthly income, I personally know, know of, or have met a substantial number of people who earn several tens of thousands of dollars per month from their home-based network Marketing business!

Choosing a Safe Business Opportunity
Once it has been determined that a home-based business is appropriate, and further determined that a home-based Network Marketing business is even more appropriate, the real difficulty is in determining which network Marketing opportunities to become involved in. Without experience in the industry, unless you’re extremely lucky, it is next to impossible to pick a winner on the first try! Unfortunately, it seems that experience in the industry is not always sufficient for the proper evaluation of a network Marketing opportunity. As is the case with traditional business, there are good opportunities and bad opportunities. As is the case with traditional business, unfortunately many people let their emotions cloud their rational judgement when it comes to evaluating a network Marketing company and/or business opportunity!

Evaluation Process
There are certain criteria which must be used rationally when one does an evaluation. Technically, these could be divided into two categories: absolutely necessary characteristics and desirable characteristics. For me, the desirable characteristics are also necessary, therefore, I will not distinguish between the two and will address them in no particular order.

Competent Company Management Team
Normally it is very difficult for us to know any more about the network Marketing company’s management team than what they tell us themselves. The evaluation of the management team only becomes an issue with a new company! If a company has been in business three to five years with a well documented and stable growth record, we really don’t need to waste our time. New network Marketing companies are starting up at a higher rate than ever before. It seems that every person who has ever been successful at network Marketing wants their own company. Surprise, running a network Marketing company is traditional business and new network Marketing companies fail at near the same rate as traditional businesses!

Age of the Company

The most common mistake made by the masses is getting emotionally tied up in the “ground floor opportunity” pitch which caters to our “greed” and the “fear of loss”! If a person is determined to get involved with a new network Marketing company, they should do so because they understand totally the market for the product(s) and the experience of the management team. Being on the ground floor is usually not best because a majority of new companies will fail. Even if the new company does succeed, there will be many adjustments and changes during the initial growth and there usually is a lack of proven marketing procedures, materials, and training support. The attrition rate is usually much higher during those first years because most individuals are not emotionally flexible enough to accept the changes and turmoil. A network Marketing company experiences four basic phases of growth and market penetration. The risk of the company failing during phase one (usually first 3-5 years) is 10-20 time greater than in phase two. Contrary to popular belief, it usually is far better to be involved with a network Marketing company after they’re entered phase two. The risk of their failure is negligible. Their success indicates that their products are acceptable and that their marketing procedures and materials work! Then, either fortunately or unfortunately, our success depends only on ourselves!

Remember, the Vehicle must never be the limiting element in our success!

No Major investment
With the right network Marketing opportunity, one should be able to start their own home-based business for hundreds of dollars, rather than the normal thousands, tens of thousands, or hundreds of thousands of dollars usually associated with other traditional businesses which have any serious financial potential!

No Inventory, No Receivables, and No Collections
I will not spend time on these. If you have ever experienced them as an owner, they need no explanation.

No Employees
Employees require a tremendous obligation from the business owner; mentally, emotionally and financially. With network Marketing, other independent distributors in our organization, while working their own home-based business, supply the same benefit to us as employees would to a traditional business. We have no payroll, no benefit overhead, no space requirement, and no management duties other than a moral obligation to help others in their business just as others will help us.

Residual Income – Persistency
Unless you have been a successful network marketer, insurance agent or marketer, author or actor, it is really difficult to understand the tremendous benefit of residual income.

Starting on a part- time basis, a sincere person or couple with desire and persistence can, within a three-to- five year period, build a meaningful residual income to last a lifetime and then some.

Building a residual income is a little like flying a big jet. It takes a significant amount of fuel to get it off the ground, but once it has reached altitude, it can throttle back and fly on a fraction of the fuel needed for takeoffs. The big difference is that a residual income can “fly” seemingly forever with a little refueling along the way. The income stream can be passed from generation to generation.

All the other benefits of network Marketing, such as control, opportunity, and flexibility are important, but Residual Income is the essence of network Marketing!

Experience has taught me that many more people propose to have Desire and Persistence than actually demonstrate it. The purpose for this communique is to identify Individuals who sincerely want more Success in their life but don’t seem to have the right Vehicle for their journey. If you are one of the few, then I invite you to investigate a home-based network Marketing business opportunity which would allow me to work with you and for you, in order that we both achieve our Success goals. If any of this makes any sense to you and you would like more information, use if for your success. If you would like a bio on my experience and qualifications, just ask. Thank you for your time, your most valuable asset!

How To Discover Your PERFECT Home Based Business – The 1st Of 7 Keys – A Profitable Business

This is the first in a series of seven articles that tell you how to sift through all the home business opportunities you hear about every day, and find the PERFECT home based business for you.

Are you ready to start making some real money in your own home business without working 60 hours per week? Are you ready to stop throwing your money down the “home business opportunity rat hole”?

Read on and I’ll show you how to test every home based business opportunity to make sure it fits the definition of The PERFECT Home Business, before you invest your time and money. Then, focus on the one that fits the best, and make it a success.

Each letter in the word “P.E.R.F.E.C.T.” stands for one of the 7 keys to finding the perfect home based business. Each key is something your home based business opportunity MUST have in order for you to enjoy the financial freedom and lifestyle you want.

What makes an opportunity P.E.R.F.E.C.T.? The “P” in PERFECT stands for “Profitable”. If your business isn’t profitable, why do it? If it isn’t highly profitable, you won’t be able to earn enough to make it worth your time, or you won’t be able to grow your business by reinvesting your profits back into the business.

“Profitable” means:

• High gross profit margin (preferably greater than 65%) and net profits of 20% of sales or better before taxes.

If you sell something for $1.00 and it costs you $.50, your gross profit margin is 50%. That’s about the profit margin most retail stores get. You need to do better than that to survive and thrive in your home business.

All of your other expenses such as advertising, overhead, and so on, have to come out of your gross profit before you have any “net profit”. If you sell something for $1.00 and the costs of your product, including all of your other expenses, add up to $.90, you only have ten cents per dollar in net profit (that’s a 10% net profit).

So, for example, if you want to earn $50,000 per year from home with a 10% net profit, you would have to sell $500,000 worth of your product. Wow, that’s a lot of product. Wouldn’t it be better to only have to sell $250,000 worth of product, or even less, to earn your $50,000 income goal?

That’s why you need a business with at least 20% net profit. And, if you really could sell $500,000 worth of products, wouldn’t it be better to have 20% net profit and earn $100,000 per year on that $500,000 in sales? The PERFECT home based business may even enable you to earn up to 40%-60% or more (sometimes more than 90%) in net profit. Yes, really.

At 90% net profit you would only have to sell $55,556 worth of product to earn your $50,000 income. That’s my kind of home business!

• “Profitable” also means a net profit (your “salary”) before taxes of at least $50,000 per year. And $100,000 or more per year would be more like it (unless your goal is to supplement your income to the tune of $500 to $1,000 per month. But, would you turn down $50,000 per year if you didn’t have to work any harder than you did to earn $10,000 per year?).

Your goals may be different than mine and you may be satisfied with lower profits. But, I believe you need to set your goals high, yet at a reasonable level. Then, even if you fall a little short, you will still be very successful.

• Low overhead (less than 5% of sales). Overhead is all the “fixed expenses” of running your business such as computers, printers, other equipment, furniture, office supplies, and office space rental costs.

A home based business is ideal for keeping overhead low, but you still have to be careful to minimize the space needed, the cost for utilities, and the equipment needed to run your business. Don’t go hog wild buying an expensive desk and file cabinets with your first profits. Instead, reinvest those profits in your business and keep your overhead low. You’ll be glad you did.

• Low labor content for manufacturing, assembly, or shipment of the product(s).

You don’t want to spend all of your time assembling and shipping something you sell. Most of your time should be spent on marketing and growing your sales and profits. The PERFECT home business enables you to sell products that involve little or no labor cost to make them or ship them.

• A high average order. Believe it or not, it takes as much effort to sell a $5.00 product as it does to sell a $50.00 product or a $500.00 product, maybe even more effort. So, the PERFECT home based business offers products with a high perceived value and a price well above $20.00. The exception is when you want to sell a low priced product, or even give something away, just to get customers added to your e-mail list so you can sell them other more expensive items later.

• Low initial investment required (less than $1,000 preferred). I don’t know about you, but business opportunities that require $5,000, or $25,000, or more to start scare me a little, unless the return is well worth the risk. There aren’t too many people that even have that kind of money to invest in a business. Why not find the PERFECT home based business that only requires $1,000 or less to get started, perhaps even a few hundred dollars?

• Small inventory with rapid turnover, or no inventory required. Imagine your garage or basement stacked from floor to ceiling with products waiting for someone to buy them. Yuk! Much better to fill each order as it is received without having any inventory in your home, or at least a very small inventory. The PERFECT home based business will allow you to do that.

• Repeat or backend sales potential. One of the highest marketing costs is the cost of getting a new customer. If that customer buys your product over and over from you (repeat sales of a consumable product or a monthly membership fee, for example), or if the new customer buys other products from you later (backend sales), you can dramatically increase your sales and profit. This is a very important ingredient in the recipe for a successful home based business.

A Better Home Business Idea For Stay at Home Moms

Many moms start a home business in order to care for their children while creating an income. The desire to care for one’s children, the incompatibility of an 8 hour work day with school hours, and the expense of childcare prompt many women to leave their job in order to be available to their children. They need a business schedule that can be integrated with their parenting duties. This article will explain why affiliate marketing, earning a commission by promoting other people’s products, is a better business idea for stay at home moms because it allows the flexibility needed to manage multiple responsibilities and is accessible to people in all income levels.

The first reason why moms can benefit from this business idea is because affiliate marketing doesn’t have the time constraints that many other home businesses require. Affiliate marketers can work as much or as little as they want. Since you are your own boss, you can set your own hours. Stay at home moms need this flexibility because one day may be busier than another or a specific time of day or night may be more convenient. This allows them to better manage their responsibilities to their children as well as build a home business. Affiliate marketing is ideal because the flexibility of being able to set your own hours allows them to easily integrate a home business into their routine. The internet also allows affiliate marketers to be making money at any time of the day or night, whether you are working or not. Moms can be assured that even though they need to focus on another responsibility, they are still making money with their affiliate marketing business.

Another reason why affiliate marketing is a better home business idea for stay at home moms is that it costs very little to start. In a one income household, money often has to be budgeted carefully. They don’t always have the extra money to pay for expensive start up costs, or invest in pricey inventory that many home business opportunities require. Affiliate marketing fits all budgets because it can be implemented using either free or paid methods, and you don’t have to invest in expensive products in order to sell them. There is a way for moms of all income levels to get started with affiliate marketing.

Therefore, affiliate marketing is a better home business idea for stay at home moms because it gives them the flexibility they need to manage multiple responsibilities, and can accommodate all income levels.