Home based businesses
64Have you or someone you know signed up for a free home based business?
I have yet to hear of anyone who started their own business without a single investment. Just as a traditional business requires an initial investment, so too does a home based business, but cost is far lower. The Federal Trade Commission mandates that the start up fee can be no more than $500 to start.
And a home based business is totally different from a JOB. The advantages of a home based business are that, unlike a traditional business where you would need a building for employees, liability insurance, bookkeepers, have utility bills, permits, etc ... with a home based business you do not have that same overhead. There are also great tax advantages in having a home based business.
On the down side, having a home based business WILL NOT make you instantly rich and those claiming it will are not telling you the truth. Having a home based business takes some time to build; however on the UP side if you build it right, have a decent compensation plan working for YOU, the rewards can be VERY substantial.
Recently I have been inundated with offers to join these ‘free’ shopping mall type programs. There is the promise that all you have to do is get others to shop and you can earn up to, let’s say 28% of their purchases. The key word here is UP TO. What they don’t explain is that you won’t earn the 28% until you have over 10,000 shoppers purchasing at least $xxx per month. AND you TOO must purchase that much yourself. Let me ask a real quick question here. If it is free to join, then why do you have to purchase products to get paid any commission? What kind of a ‘free’ home based business is that?
I was in something like this before and it is the same old story, this is NOT an MLM but a direct to the consumer shopping experience. Well, all I can say is if you are building customers or distributors under you, it’s MULTI-LEVEL and their terminology is just semantics because MLM has gotten a bad wrap over the years by unscrupulous companies, poorly managed companies or just out and out scams. In my opinion, the people who claim it is not an MLM are lying to you just to get you in to the program and hoping that you will swallow the ‘brain washing’ that it is not MLM. There is nothing wrong with MLM, so why do they have to lie.
If you are looking at start a home based business and don’t know what to look for or how to protect yourself from being scammed, I offer this…. Send me two things… the compensation plan and Policies and Procedures BEFORE you sign up. If the person you are dealing with cannot provide these documents prior to your joining, then you don’t need to be in that opp – because obviously they have something to hide.
Be smart, do your homework and you too can be financially free. But don’t think money is just going to flow into your account. It’s going to take an investment, it’s going to take some sweat equity and you may not make any money right up front like so many claim, so don’t quit your day job – YET.
To your success - Best to you in 2008.
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Bonnie Ramsey says:
11 months ago
Excellent hub! It never ceases to amaze me how many people expect to start their own business "FREE" and make an unreal amount of money overnight!
I have also tried these types of programs and have never had any of them to pay out on the "free" level. Many programs say "free to join" and that fact is true. But what they fail to tell you is that unless you upgrade, there is no commission to be made. Most of these programs are affiliate type MLM businesses in which they claim they aren't MLM because they don't offer a compensation plan to go with the retail commissions. You still have to recruit members to earn your commissions. You just don't get paid for that effort. I am grateful that a TRUE MLM business operates differently.
The compensation plan is so important and most people aren't sure how it works and what they should be looking for. One of the oldest MLM businesses around boasts excellent retail profits and the best compensation plan around. I am here to tell you that if you aren't sure what it will take to reach those compensation levels, this may not be true. Since joining that company over 20 years ago, I have seen many changes in the compensation plans of other companies and I must say that the younger companies are beginning to realize that changes have been necessary in order to maintain their members and keep the compensation plan achievable. While the percentages may look great at each level, the important thing to ask is how achievable is that level? I found this out the hard way! Also, if the retail profits that you will make your immediate income with aren't sufficient, you will end up going backwards before going forwards. That was another hurdle I dealt with in that same company. They had great products and I sold the snickers out of them. But I found that the retail barely paid for the gas to deliver them.
It is very important for anyone considering a home based business to learn how to look for the right opportunity and familiarize themselves with different compensation plans and how achievable they will be.
Thanks so much for this hub! This is one of the topics I cover in my hubs and hopefully can help teach people the right things to look for! Keep up the great work!
Bonnie Ramsey