Start Your Own Work At Home Business
This is my favorite: Starting your own “ home based business” or “work at home” business, or “work at home internet business”.
This section is a little long as I wanted to cover as much as possible, and give you enough information to make an educated decision if you are looking at a home based business. This type of business can change your life,...if you have the right information.
Here are some recent statistics:
• The average annual income of an employee in the USA is $26,000. - Entrepreneur Magazine
• The average annual income of a successful home based business in the USA is $50,250. - Entrepreneur Magazine
• 20% of home entrepreneurs reported that their home based businesses grossed between $100,000 and $500,000 last year.
• Every 10 seconds in the USA someone starts a home based business - that's 8,493 new home based businesses a day! - Home Incorporated
• Working From Home - A $500 Billion a year industry.....and GrowingThe work at home, or, network marketing industry has been around for a really long time. Some people remember when they were kids in the 1950’s selling Watkins™ products, and some other products door to door, some stuff that was advertised in the back of the comic books. Fuller brush is an old home business, as is Amway™ (or “QuickStar™”), Mary Kay™, Avon™, and many more.
Some people feel that the home based business industry actually started in the 1940’s, with a vitamin company, but, if you think about it, way back to the colonial times, there were home based businesses that involved everything from candle making, butter churning, sewing, vegetable raising and sales, and more. The main problem with the home business industry is very similar to what happened to the peddlers who used to drive around the country in their wagons selling items that most people needed, like pots and pans, knives, and so forth.
Farmers, their families, and small towns, all looked forward to the peddler coming around……. Until the snake oil salesmen showed up, selling every kind of concoction under the sun, some of which were downright dangerous, like 100 proof alcohol.
They claimed their product would cure absolutely everything. Of course, it wasn’t true, but the damage was done, and pretty soon, anyone who drove around in a wagon, even if they were honest, shared the negative name of a “snake oil salesman.”
Today, the current home based business industry involves over 20 million people in the United States alone! And, that number is growing every single day, especially as the economy worsens. Just like in traditional business, in the home based business arena, there are people losing money, people making money, and people making a LOT of money. There are people, and companies who are honest, and there are still the snake oil salesmen and women.
I have personally been involved in this industry, and with the same company, for around 9 years, and I know that I was very fortunate to get hooked up with one of the few good companies out there. Click for more information Not For The Faint Hearted!
After 9 years of research about all of the other home based businesses out there, my conclusion is that you can pretty much “choose your own adventure” in the home based business area, and it can be like a financial mine field if you don’t know the company, or if you believe some of the hype that you may be fed.
There are over 1500 home based businesses, the last time I counted, from stuffing envelopes, assembling products, selling vitamins that don’t work, candles (huge liability), medical billing, “magic juices” most of which are no better than grape juice, to selling vacation memberships.
How Is A Home Based Business Different Than A Traditional Business?
There are big differences between a traditional business and a home business.
Here are just a few:
• You are the C.E.O.: The “buck stops with you!”;
• Low start up cost (usually);
• You set your own goals;
• You decide how much you want to make;
• Virtually no overhead, since you are working from your own home;
• No inventory—at least there shouldn’t be;
• No boss;
• YOU get to choose who you work with!;
• No employees;
• You work when you want, take breaks when you want, stop when you want;
• You really can earn as much, or as little as you want—with the right company;
• You can spend more quality time with your family;
• No one can fire you, except for you;
• You create your own future;
• What you make or don’t make is up to you, not someone else.How Is A Home Business Similar To A Traditional Business?
Some similarities between traditional and home businesses are:
• They both can take some time to be successful and make a profit (depending on the home based business):
• You have a learning curve before you become really good at what you are doing. This can sometimes be a stumbling block for some people:
• You HAVE to do your homework and pick the business that is right for YOU, not for the person who is trying to talk you into his or her “deal.”
It IS A Business
And, since it is a business, there are some initial expenses involved. And, it WILL take work! Don’t ever let anyone tell you that all you have to do is sign up, and they will build it for you, and you will be rich by this time next week!
You eventually really can “make money while you sleep”, if your business is in other countries, or in different time zones. But you have to build it first. The best way is with a team or an individual who sincerely cares whether or not you are successful, not for their own gain, but for yours.
Do Your Research First
This is really important! Treat your decision like you would a career change, because that’s exactly what it is. Ask yourself some questions, don’t ask your friends, unless they are making a six figure income at their job already, or they have a successful home business where they are making 6 figures.
I have seen more people pass up a really good home based business opportunity, that they desperately needed, because they listened to their broke, negative “friends”. "Misery loves company", and some people will talk about things they know absolutely nothing about, like business. They know ALL the answers, even though they are working for minimum wage, and have never gone beyond that.
Make a list of questions to ask both yourself, before you go to look at a potential home based business, and the person presenting the business to you. Feel free to copy the following ones, and add to them if you like. Tell the person who is talking to you, that you have some questions, and take out your list, or you may get most of them answered during the business presentation.
If not, ask at the end, before you sign anything. And when you are looking at a potential business, don’t get blinded by the “glitz”. If there is anything that is making you uncomfortable, ask more questions, or sleep on it.
You can also check out the company on line before you go to the presentation. However, DO NOT make your decision based on what you see on some non-credible website. Just write down what you have found that concerns you, form your questions, and ask the person who is introducing you to their company. If the answers are not satisfactory, or it seems like they are avoiding the question, you might want to be a little more suspicious, or you might just want to leave.Some questions you may want to ask:
• Do I want to sell products?
• If the answer is yes, what kinds of products do I want to sell: candles, cosmetics, vitamins, jewelry, health products, children’s books, toys, etc?
• Are they priced competitively with what’s available at the local stores?
• What about inventory?
• Will I need a business license?
• If I am selling products, how much will liability insurance cost to cover me if someone has a problem with a product or gets hurt with a product I sell them?
• Do I need to collect sales tax?
• Do I want to have parties to get folks together?
• Do I want to work more on line?
• How much can I invest?
• When will I see my first total net profit?
• How many people are actually successful with the company?
• Is the person you are talking to willing to tell you how much he or she is making? If they say it is against the law to tell you, run, don’t walk, away from them! It is actually illegal NOT to tell someone who is considering getting started in a business you are promoting.
• If it is cooking products, like Pampered Chef™, what happens if someone gets sick from what I make at the demo., will my insurance cover that?
How do I Choose a Company?
One of the most important decisions you will need to make is what company you want to work with. As I mentioned earlier, there are over 1500 of them. Always remember: it is YOUR decision not the person trying to “slick sell” you into their company so they can make a bonus.
It is all about you, and you have the power, not them. They want you, you don’t need them. That may seem a little cold, but once you get started on your search, you will understand.
So, some more questions to ask and research about the products should be questions like:
• What kind of market are they in? For example: vacation clubs; candle sales; health and wellness, etc;
• Is there actually a good market for these products or services, especially in a shaky economy? For example, the travel industry is a definite “gong show” candidate, as are most of the magic juices.
• Do they make their own products or buy them and resell them?
• Is it a one product magic juice type of company with a very limited buyer group, or does the product line have a wide range of potential buyers?
• Are the products available in retail stores, or just through distributors? (if you are selling products), like Tupperware™, which is available in many retail stores, but still offers a “home based business opportunity.”
• What about product returns? Who is responsible for those, and do you get the full credit, or is there a charge to return products?
• Do I have to take orders, pay for the products, deliver them, and then get reimbursed?
• Would I actually use the products, more importantly: would my friends?Downsides
Of course, there are also some downsides, you knew that was coming, right?Some of those business "land mines" are:
• Getting started with the wrong company because you didn’t do your homework, and finding out thousands of dollars later that you made a mistake;
• Buying inventory, and selling products at higher than normal prices (I hope you have a big garage!)
• Buying inventory, having to stock items, do collections, and be responsible for returns;
• Going into debt to get started, putting it all on the credit card that is almost maxed out, or worse, borrowing the money from a friend;
• Being stuck in an oversold, or highly competitive market, like the travel industry, or the magic juice industry;
• Getting in on “the ground floor”, (what happens to the people who come in later? They lose, and they may be your friends or family);
• Not being self motivated;
• Getting discouraged by people who say no to your home based business;
• Not being coachable, and willing to listen to the right way to get started;
• Being required to buy a bunch of expensive marketing materials;
• And, lastly, but the most important, well, maybe number 2 after the right company, is expecting to make a lot of money right away.
When I started, I did make $850 in profit in my first 10 days, and grew each month from there, but not everyone will experience the same. It all depends on YOU, how teachable you are, how self-motivated you are, and how serious you are.
Remember that I said "it is all about YOU"? That goes for your success as well.
People I have worked with in the last 9 years who did follow what I did when I started, made the same amount or more in their first month to six months that I did.
“Why,…This Is The Best Thing Since Sliced Bread!!”
Most people who will approach you about a home business will be doing their best to “sell you” on how great their company is, how you will make money just as soon as you sign on the dotted line, that they have “already built your down line”, all you have to do is get started RIGHT NOW, and that you will make $10,000 a month within 5 months, in other words: “get rich quick”.
Don’t get me wrong, there are people who do make that kind of money in 3 or 4 months, but it is very rare, maybe ¼ of 1% of the total people involved in the home business industry.
If you are just a “normal” person, like most people are, it is definitely possible to make $10,000; $20,000 or even more per month, it may just take you a little longer.
Just like an investment of your money in the stock market, you can’t expect to buy some stock, and realistically expect to cash a check for $10,000 the next day, you need to be in it for the long haul. To expect instant wealth in any business, especially a home based business, is not reality.
However, if you are persistent, listen to instructions, work on personal development, and do the right activities, you will get better at what you do in your business, and your income will increase, sometimes substantially, over the next 12 months.
One thing to always keep in mind is that there have been more millionaires created in the Home Business type of business model, than in ANY other financial area!
It's Just The Way Business Is
In a way, it’s just like traditional business where there is a high failure rate for new businesses. This should not discourage you, it should empower you, since you will set sensible goals for your new home business, and if you reach them before you thought you would, re-set them.
Also, you may not be the “super star” in your new home business, but, if you work, you will achieve some level of financial success, and the bonus is you don’t have a store with inventory, or some other “brick and mortar” type of business to be concerned with.
One of the worst things you can do is compare yourself to the highest achievers in the company you are with. It can lead to discouragement. You can use them as examples of what is possible, and I would encourage you to do that, but you need to know what you are capable of, and what you are not capable of.
Don’t Settle For Mediocre
Set your sights and goals high enough that you will be challenging yourself every single day that you work your home based business. You will amaze yourself!
It Can Be A Little “Slimey”
The danger lies in listening to the snake oil salesmen. Just like in the “old days” when they had this magic tonic (you can substitute “magic juice” today) that would cure everything, there are people whose only goal is to sign you up, get the check, and drive their wagon down the road to the next unsuspecting farmer.
Just like you wouldn’t, or hopefully you wouldn’t start a traditional business and expect to compete with WalMart™, and make a fortune overnight, you should not listen to someone who tells you that you’re going to be rich in a couple of months.
If it were that easy, everyone would be rich.
Sing It Again Sam
It’s interesting that some of the “pitches” used by some people in the home business industry today, bear a strong resemblance to the days of snake oil pitches. You can just see the huckster standing on the back of his wagon, holding up a bottle and exclaiming: “It will heal anything, even cancer, just drink it 3 times a day and you will see results really fast!” Or, “Our product is made with rare, exotic ingredients from the remote rain forests of the world using recipes that have been lost for thousands of years.” Uh-huh, WOW! I didn’t know there was a CURE for cancer!! And all I have to do is drink juice?!! Sign me up!!
Be Honest, And You Will Never Have Regrets: The Truth Is Good Enough!
It should be obvious that I have issues with people who are building up the hopes of people who are desperate, especially where their health, or their family's health is concerned, with information that is not true. Just think about it: if there was a simple cure for ANY type of cancer, or some of the other major diseases, don’t you think it would be all over the news, in every country?
Some facts about a few of the most popular juices, have been proven by independent scientific analysis of the ORAC value of them. The ORAC value is basically the measurement of the antioxidant abilities of a product, or, the amount of protection it provides to you, and is one of the main selling pitches that people use who are falsely promoting these juices.
Out of 10 juices, including Tahitian Noni™, GoChi™, Xango™, MonaVie™, and…… Welch’s™ 100% grape juice, can you guess which one came out with the highest ORAC value?
Welch’s™ 100% grape juice, MonaVie™ was second, the rest were really not in the running. There was a grape seed, grape skin product, produced by the company I have been with for 9 years that was 6 times more effective than any of the juices tested, including the grape juice.
If you have any questions about the study, or about the product that came out on top of all of the rest, . Click here for more information The testing was done by Brunswick Labs, a well known independent laboratory.We Need To Help Each Other, Not Take Advantage Of Each Other
Another reason that I really like a good, honest home based business is that you can help and empower people. When you are with the right company, that has a company mission statement that has to do with helping people---and they really mean it, its not just an advertising gimmick, like so many of the companies are doing now, you can impact people’s lives and their health in a way that is almost impossible to do in most traditional business areas.
Rather than "giving people a fish so they can eat today", you are teaching them to fish, so that they can not only eat for the rest of their lives, but they can teach others to do the same. How cool is that?!
How Do I Begin?
So, how do you even start to look for a home business? This is a good question, and one that most people don’t ask, even though they have never been in any kind of business before.
There are some key factors that you want to be aware of, I know, more questions!
Here are just a few:
• How long has the company been in business? You do not want new “ground floor opportunities”, unless you are into taking major risks, and facing a 90+% chance of losing.
• Are they members of the Better Business Bureau, in good standing? This means that even though they have some customer complaints, as all companies do, that they resolve them. Beware of the companies that have consistent customer service, product, or refund issues that they don’t resolve.
• Are they publicly traded (on the stock exchange) or privately held? If they are publicly traded, the company’s FIRST loyalty is to the stockholders making a profit, even if they have to sacrifice product quality to get the profit. It is not to you or your business. Privately held companies are not under that type of stress.
• What about the management, who are they, slick men and women with expensive flashy clothes and pie in the sky promises or down to earth business types? Check their credentials on line, if you find that the head of the company has a work history of surfing the world, or “surfing” the home business industry, you may want to reconsider!
• Is There A Lot Of “High Energy Hype”? If people are jumping up and down, holding hands and praying for prosperity, or activities like that, I would calmly walk away.
• Do you understand the compensation plan? This is important! This is how you get paid for your efforts. If it is so complicated that the person you are talking to can’t explain it to you, so that you understand it, there could be a problem with the people you will be talking to being able to understand it as well, which absolutely will affect your business success.
Broken down, there should be no “breakaways”, which is when the company moves high producers in your business so that you are below them, and you don’t make as much, even if they are people you have personally enrolled:
The compensation plan should be simple enough that a 10 year old can understand it. I’m serious.
A great example of a simple compensation plan is like the one for the company I am with: “All we do is show people how they can save money every month, just by being a customer with our company; using better, safer, less expensive products in their homes, and for those who are interested, we show them how they can create an extra $500; $1000; $3000 or more each month without interfering with their day job. The more you do this, the more you make.”
• What kind of “actual” growth has the company had? This is not the artificial growth from stock sales, or investors, but from actual sales of products and services.
This is also NOT growth from sales of promotional materials.
• What Is The Reorder Rate For Their Customers?
Oh,oh, this is a question that the slicks absolutely HATE for you to ask!
Remember: Any business is only as strong as it’s repeat customers, whether it is a restaurant, retail store, or a home based business. Most of the companies that you will find out there have a reorder rate between 10% (really!) and 35%.
What does that mean to you? Let’s say that you sign up 100 people in a month (GREAT JOB!!!). If you have a 10% reorder rate, by the time the next month rolls around, 90 of your customers will be gone!
You can do the math with the other figures. You absolutely CAN build a home based business with dismal reorder rates, but it is really a chore, and very frustrating.
FYI, our company has had a 95% average reorder rate for the last 24 years. (Are you beginning to see why I stuck with them! I have customers who I signed up the first week I started, who have been ordering every single month…for 9 years, and I make 20% every time they order!)
Please don’t think that “OK, here it comes, the sales pitch!” Not happening, just passing along information for you to chew on and remember. My goal is to help you be informed, and make the best decision, for YOU no matter what company you decide to go with.
• Are the products or services competitive in the marketplace? In other words, can you buy a similar, or identical—or better product for less at a local store?
• Is the science behind the products “real science” done by scientists who have real degrees in their field, or “junk science” done by someone who got an online degree, or doesn't even have one?
In other words, look at it as if you were starting your own business in partnership with the company, because that is exactly what you are doing. You are investing money and time. Your time, especially as you get older, or if you have a family, has more value than dollars, so make sure that you are listening to your instincts and not the "pie in the sky sales pitch".Thanks for reading! I hope that what you read was interesting and helpful for you, and that I wasn’t too repetitive or micro-detailed! It should be obvious that I am serious, and passionate about the home based business industry, and equally serious about people not getting ripped off by not having enough of the right information.
There is incredible potential for you or anyone else in the home based business industry, and it may be one of the only answers for some kind of financial stability for the future.....for any of us.
You really can change your future…..if you choose to.
For more information about the 29 year old company I am working with, click here. You will not see any pop ups, hype or anything like that. We will not sell or misuse any of your information.(
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