Are you thinking about starting a home-based business? Before you part with your hard-earned money, keep in mind that home based business schemes have been around for years so do some investigating before you sign your home-based business affiliate agreement.
The popularity of many home-based business opportunities on the Internet is due largely to low startup costs and the lure of easy money.
Before you sign on the dotted line ask these few basic questions before you commit to any home based business opportunity,
What are the Startup Costs?
How much are the start up costs for the home based business opportunity you're considering? Are there ongoing costs? If so, what will they entail and how much are they? One of the major causes of home-based business failue is due to not projecting the costs and expenses of operating a home-based business.
How much are the start up costs for the home based business opportunity you're considering? Are there ongoing costs? If so, what will they entail and how much are they? One of the major causes of home-based business failue is due to not projecting the costs and expenses of operating a home-based business.
This is especially important if you are tyring to start on a shoestring. Start up costs can be deceiving and often a home-based business can cost more to start than it may appear. The attraction of the initial low startup cost may vanish into thin air once you find out just how much is not included in your home-based business package.
Is there any Traning and Support Available?
The training and support offered by a company can make a huge difference in your success. Is it live training or is it Memorex? What I mean is can you attend live training sessions and have your questions personally answered by a qualified instructor or are you handed a bunch of books and CD's before being left alone to figure it out by yourself? What about your up line, Do they good ethics and leadership skills? Are they dedicated to helping you succeed? Many times a quick search on Google will reveal quite a bit about the people and company included in your business plans.
The training and support offered by a company can make a huge difference in your success. Is it live training or is it Memorex? What I mean is can you attend live training sessions and have your questions personally answered by a qualified instructor or are you handed a bunch of books and CD's before being left alone to figure it out by yourself? What about your up line, Do they good ethics and leadership skills? Are they dedicated to helping you succeed? Many times a quick search on Google will reveal quite a bit about the people and company included in your business plans.
What are the Rules for Advertising and Promotion?
Many home business opportunities have rules regarding how and where you can advertise. In some cases you may have strict limitations, and in others you may be able to do more or less whatever you want. In any case, it is very important to know and understand what you can and cannot do. For example, the company names are often copyrighted and/or trademarked and therefore you are not free to use them in your advertising without permission.
Many home business opportunities have rules regarding how and where you can advertise. In some cases you may have strict limitations, and in others you may be able to do more or less whatever you want. In any case, it is very important to know and understand what you can and cannot do. For example, the company names are often copyrighted and/or trademarked and therefore you are not free to use them in your advertising without permission.
What is the Realistic Income Potential?
Read your income potential disclaimers. While a company may tell you hat is possible they won't make any income guarantees. They will however give examples of the best case scenario which is usually the exception to the rule. What is your product or service? Is it based on a need or is it predicated on a "wish list" want? Before you invest your time and money into any home-based business opportunity, you should understand how much you could realistically expect to make.
Read your income potential disclaimers. While a company may tell you hat is possible they won't make any income guarantees. They will however give examples of the best case scenario which is usually the exception to the rule. What is your product or service? Is it based on a need or is it predicated on a "wish list" want? Before you invest your time and money into any home-based business opportunity, you should understand how much you could realistically expect to make.
How Long Have They Been in Business?
One rule of thumb when evaluating a possible home-based business opportunity is longevity. A company who has been in business has an established track record. Good or bad there is a paper trail you can follow. By using Google to perform a little due dilligence you can quickly find both the positives and negatives about both the business and it's key players. Stay away from Pre-Launch and "Revolutionary" startup home-based business opportunities. Very few of thise ever make anyone other than the founders any money. Don't lose sight of your objective, which is to build a business that will provide you with an income over the years and not just a quick fix.
One rule of thumb when evaluating a possible home-based business opportunity is longevity. A company who has been in business has an established track record. Good or bad there is a paper trail you can follow. By using Google to perform a little due dilligence you can quickly find both the positives and negatives about both the business and it's key players. Stay away from Pre-Launch and "Revolutionary" startup home-based business opportunities. Very few of thise ever make anyone other than the founders any money. Don't lose sight of your objective, which is to build a business that will provide you with an income over the years and not just a quick fix.
What Products or Services are Involved?
High quality goods and services that fill needs will attract an audience over a greater length of time thansome flash in the pan fad. Do you remember the pet rock?
High quality goods and services that fill needs will attract an audience over a greater length of time thansome flash in the pan fad. Do you remember the pet rock?
If the product is a consumable, what is the reorder rate? Consumable products offer the home-based business owner a greater profit potential because people will reorder and buy more. Non-consumable products are sold less often and have a very limited re-order potential so you need to constantly go out and find more customers.
Is your home-based business opportunity customer based or distributor based?
If you are considering an MLM home based business then you are most likely looking at a distributor based business. A distributor based business really means that there are no real customers. Think about it for a minute. A distributor based business has no real customers - only distributors. Like you, they are only interested in making money. If your product doesn't make them any money they drop you like a hot rock and move on to another flavor or the week. Distributors have no loyalty!
If you are considering an MLM home based business then you are most likely looking at a distributor based business. A distributor based business really means that there are no real customers. Think about it for a minute. A distributor based business has no real customers - only distributors. Like you, they are only interested in making money. If your product doesn't make them any money they drop you like a hot rock and move on to another flavor or the week. Distributors have no loyalty!
A business based on a sollid foundation of customers is more stable. Customers are consumers of your products. They like, want and need your products. Fill their needs with a high quality product at an affordable price coupled with great customer service and you will build a steady income stream for the life of your home-based business.
Are There Quotas or Minimum Inventory Requirements?
Often times the real money for the companies involved comes from your required auto-ship. If you are required by the company to buy a large quantity of products on a regular basis to qualify for certain commission levels then it can be difficult to maintain the business.
Often times the real money for the companies involved comes from your required auto-ship. If you are required by the company to buy a large quantity of products on a regular basis to qualify for certain commission levels then it can be difficult to maintain the business.
Are the Products or Services Affordable?
The majority of the population must be able to afford the products or services you are offering. Before you begin your home-based business journey check the prices of your competetion. Know who is offering similar product and know what their prices are. Do some market research.
The majority of the population must be able to afford the products or services you are offering. Before you begin your home-based business journey check the prices of your competetion. Know who is offering similar product and know what their prices are. Do some market research.
Creating a home-based business provided many benefits and opportunities however along with those opportunities come certain challenges. Be informed before you buy.
