Four Home-Based Business Myths

Published November 29, 2010 | WomenEntrepreneur.com

The home-based business industry is buzzing with new startups, products and services. If you are considering launching a home-based company, it's a good idea to have all the facts. There are a lot of misconceptions about what it takes to run a successful business from home.

Separate fact from fiction, and find out whether these oft-repeated notions are just myths.

Anyone can start a home-based business.
While anyone can launch a home-based business at virtually any time, not everyone will succeed. It's not as easy as you might think. So before you jump in head first, make sure you're in touch with reality. First of all, building a business from the ground up is a slow and sometimes tedious process. You will not become a millionaire overnight.

There is a lot of information to take in and a lot of junk to filter out. The truth is that running a home-based business is, in most cases, a trial by fire. Lots of people throw in the towel before they ever see any real money.

It doesn't cost anything to start a home-based business.
If you are offering a service, this might be true. Emily Suess, a freelance writer in Indianapolis, launched her business virtually overnight without any startup fees. "I already had a laptop and a high-speed internet connection," says Suess. "The only thing I needed was to find my first client."

On the other hand, if you are selling a product, you will have to front the money for materials and supplies. In some instances, services -- take catering, for example -- require special equipment you'll have to purchase in advance.

In any event, you will need to invest in your business in order for it to grow. As Suess points out, "It can take a long time to become established if no one knows about you. After only a few jobs, I was putting money back into my business to build a website, create business cards and market myself."

The trick is promoting and marketing your business wisely. To make it, you will need the presence of mind to determine who the real experts are and who is just trying to make a quick sale. Not every kind of business should spend money on Facebook advertising, for example. And not every self-professed marketing guru can turn leads into sales. Do your homework before you start throwing money at vendors.

If I build an online business, I can make money while I'm sleeping.
Actually, this can be true. But -- and it's a big but -- getting to this point usually requires years of hard work. You have to establish your business, build your reputation (and web traffic), and offer a product or service that sells itself. The best way to approach your home business is to accept the fact that you will get out of it exactly what you put into it.

I can quit my day job in just a few weeks.
This isn't likely at all. Do not rely on your newly established business to pay the bills the moment you start it. If you have a day job, keep it. Lots of people build a home-based business while still working full time or part time at another job. This allows you to grow slowly and build stability. Plus, if you make a mistake or two along the way, you can recover without giving up your home or filing for bankruptcy.

If you're serious about building a home-based business, none of these things should deter you from your dream. However, you need a plan and the ability to see through all the hype. Starting your own business can be tough, but it can also be very worthwhile.

 

www.foxbusiness.com/personal-finance/2010/11/29/home-based-business-myths/

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Regards,

 

Charles C. Primas

 

http://www.charlesprimas.com

 

Get PAID for products and services you use EVERYDAY. Let me show you how.

 

 "Those who do not move, do not notice their chains." - Rosa Luxemburg

 

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What is Network Marketing? – The Basics

Posted on November 21, 2010 by Brian Summers

http://iarticle.org/freepress/

Network marketing is a business form that is based on a company distributing products and services through a network of independent contractors. Network marketing is as well popularly known as multi-level marketing (MLM), affiliate marketing, and tiered marketing. Some of the most well known network marketing companies worldwide are Shaklee, Amway Corporation, Tupperware, Mary Kay and Avon.

To understand how network marketing works, it may be helpful to think of a business model that nearly all consumers are familiar with, franchising. In a franchise, an owner pays a company for the right to do business using that company’s products, services, and name. The parent company agrees to provide the owner with education, development, advertising and marketing support. While the name on the outside of the building is that of the parent company, the actual location is privately owned by an independent business owner.

While networking marketing is not actually a franchising model of business, it does work in a similar fashion. In fact some large MLM companies refer to its business plan informally as “private franchising”. In network marketing, a company distributes its products and services through independent business owners (IBO) who in turn market these products and services to customers of their own.

The key factor that has made network marketing so attractive is that independent business owners not only have the ability to sell products and services to retail customers they are also able to expand their business by setting up others in their own businesses as well. This is generally known as “sponsoring” in the MLM industry. Sponsoring others allow a business owner to not only profit from what he directly sells, but also allows him to profit from the sales production of those he has sponsored.

Here is an example of how an MLM business works: let’s say that Owner One is an existing IBO who sells $100 US Dollars (USD) worth of goods each month. In addition to any retail profit he earns he also receives a monthly bonus for his sales volume. Owner One decides to expand his business and sponsors Owner Two.

Owner Two develops a business that also sells $100 USD worth of goods every month. Like Owner One, Owner Two receives a bonus for his sales volume on top of any retail profit he has made. By sponsoring Owner Two, Owner One who has generated $100 USD of sales, is also credited for the $100 USD produced by Owner Two. Therefore Owner One’s total business sales volume is considered to be $200 USD.

If Owner Two decided to expand his business and sponsors Owner Three, Owner Two would be credited for any sales volume that Owner Three produces. Lastly, because Owner One sponsored Owner Two, Owner One would also be credited for the sales volume of both Owner Two and Owner Three. It is this ability to generate revenue streams from multiple sources that has made network marketing a popular and profitable business for many.

Because of the structure of a network marketing business, many people mistakenly believe that all MLM companies are illegal pyramid schemes. In actuality legitimate network marketing companies are not pyramids. The belief that MLM companies are illegal pyramid schemes may have popularly taken root in 1975, when the United States Federal Trade Commission (FTC) accused Amway Corporation of being an illegal pyramid. However in 1979 a US Federal Judge determined that the networking marketing plan used by Amway was indeed a legitimate business model. This decision in turn helped to legitimize other MLM companies.

This does not mean however that every companies who purport to be legitimate businesses, are. The entrepreneur who is considering network marketing should consider these factors:

• The length of time the company has been in business. – The up-front investment to start the business. Many reputable companies do not require a large start-up fee. – The product return policy of the company. Legitimate companies generally allow for the return of products. – The amount of training and development available to IBOs.

Finally, check out this Free video serie called Magnetic Sponsoring. It’s run by a guy named Mike Dillard, He’s a legend in Network Marketing and will show you exactly what to say and do to get people to want to hear what you have to say.

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