Is Your Home Business A Bowl Of Cherries?
Don't Believe the Hype! Business needs proper establishment
Millions of people like you world-wide are now looking more than ever for a new opportunity in a top home-based business. Forbes Magazine, report that seventy million Americans plan to start their own business within the next three years; over forty thousand new business start-ups happen per day in the USA. In spite of a current global recession, the figures are similar for many other nations.
Current economic climates are persuading people to look for alternative sources of income and security beyond their traditional industries. People are looking more for self-reliance and independence in their day job. If anyone tries to tell you that you have reason to be cautious, this does not match up with the statistics. The network marketing business is bucking the recessionary trend. This was a way of working that it seemed to me when I was looking at my options, could offer some real future security.
It’s difficult, however, if you are just starting out or even looking to change your line of business. Increasingly would be small business owners and entrepreneurs are bombarded with opportunities, many seeming alike, in terms of ‘get rich quick’ offers. In the on-line world of business, it is difficult to know what are the indicators of a top home-based business opportunity; I should know, I wasted time and money on getting involved in an MLM which would take me all my time and energy to just stand still. Well publicised stories of such businesses which can have you spending more money than you will make or which barely allow you to break even give entrepreneurs looking to work from home legitimate cause for scepticism when deciding what is your best investment option.
So if your head is spinning right now, let’s look at your main considerations. You need first off to be assured in your own mind that you have found a strong business model. So take some time comparing different home businesses. Look for a top tier option, a ‘Direct Sales’ model, as opposed to a ‘Multi Level Marketing model’ ( “MLM” ). This way, you will not incur risks of only getting paid on multiple levels of “down-lines” or ‘sign ups’ within your organization. A notorious problem associated with the MLM industry is a high level of attrition in your down-line; i.e. people jumping ship when they become dissatisfied and move onto their next venture. Their leaving your team is a loss of ‘residual’ income for you. Heaven forbid they take a whole sales team with them when they move on.
Within weeks of my joining an MLM, my upline informed me that she was moving to another business and I was to be her last sign up. Ironically, I found out afterwards that the new opportunity was also not all it was cracked up to be; she defected back. Hopping around between MLM businesses seems to be pretty common and with risks and benefits so disproportionate, I am frankly not surprised.
When you are looking to earn from sales as well as residual commissions this threatens a vital stream of income. When you lose team commissions from those leaving ‘below’ you, whilst you do still maintain your income from your own direct sales, your chances of realizing any respectable passive residual income in your business becomes increasingly difficult, even impossible. Your time becomes spent heavily on recruiting and training new people, only to have them quit within an average of three months. (Make no mistake this is the average attrition rate with MLM’s).
By choosing a more exclusive or top level business, you will find that the buy in cost is higher, but your rewards are in the bigger commissions paid. That being said, it’s worth bearing in mind that there are lucrative direct sales businesses out there which cost much less than traditional ‘bricks and mortar’ businesses or franchises, (yet this is how an average entrepreneur still invests).
A good home-based business opportunity will operate on a model which pays well on sales made. Lack of positive cash flow is one of the major stumbling blocks for people starting out in a new business, and knowing that you will be paid well on sales you make will help to ensure you are able to continue to operate your business.
Another consideration should be a dual income business system, meaning that you will receive a commission for each sale up front, but there is also a generous residual income component built in at the back end. The reason this is important, is that your business sponsor must have a financial incentive for assisting you to get up and running. Otherwise, after you have signed on the dotted line, you may be left to your own devices to learn how to set up and operate your business. Again, this ‘sink or swim’ process is common to many MLM’s. Find out about what training and support may be on offer before you make the financial investment.
The last (but certainly not least) feature of a powerful business opportunity is if it offers an automated, <strong>duplicatable</strong> online marketing system. OK, that sounds a little like jargon. But what it means is that you need to investigate how much of a back-office support system your business offers? You do not want to be spending any more time than necessary on training new team members. Can you out-source elements of the business, if so, do you know the legalities and costs involved?
There are some truly amazing products out there, but if you have no systems of advertising and selling them, then you simply don’t have a great business. Using systems that harness the power and reach of the internet, and are easily duplicatable will create a very strong foundation for a long term, lucrative business.
Your Business Will Bear Fruit Given the Right Growing Conditions
This brings me to my final point. Remember, you are in a business for the long-term. Direct sales for instance, is a relationship-based business. Most of your customers are likely to be return buyers (on average more than 80% of sales). It is important you understand this from the beginning and do not get disheartened if you do not get immediate results. A reason many MLM businesses fail is a lack of commitment to the long term. Find a business which will weather all of the seasons and the product is of value and sustainable over time and internationally.
This may seem a lot to consider, but if you are prepared to invest your time and energy into your future, establishing your check-list early on in your search could be crucial to your long-term success and could save you a lot of heart and head-ache, to say nothing of cash in the long run.
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