Home Based Businesses are a lot like diet plans. Everybody claims they have the best and that you can lose 100 pounds on Twinkies. So who do you believe? Well here are 10 tips to guide you through those treacherous waters.
1. Look for a home based business in the hot areas – like diet plans and dietary supplements – where there is the huge base of overweight baby boomer customers with income to spend on your product. (Unfortunately, I’m one of them) Don’t be fooled by some startup company with a new, whiz-bang idea that promises you’re going to get in on a ground floor opportunity. It ain’t an opportunity if no one wants the product. Analyze where the market is – there is a reason why millionaires are millionaires – they are able to accurately judge the market. That’s why Trump is “The Donald.” It’s not rocket science or voodoo. You can be “The Donald” in your niche. You just have to do your research.
2. Consider this – the home based business you’re looking at may be in a hot area like diet plans but they may be in a stagnant sub-area of diet plans. You want to look for the sub-areas of diet plans that are the fastest growing – the fastest growing is the nutritional drink or health beverage area. That’s most likely because of the ease of just drinking your diet plan – fast and easy. So following this model the company you select in the dietary field should have a flagship diet drink product.
3. Is it a startup, or an established home based business company? The problem with startups is they way too often don’t live up to their obligations, go out of business, or both. Often, with an established company, you may have missed the best timing to get in with them. The opportunity is over so to speak. What to look for is an established, reputable company poised for explosive growth via the impending release of a hot, new product or service.
4. Look for the integrity and honesty of the home based business company. Lack of established credibility often dooms the company to go under, and you’re left holding the bag and possibly damaging your reputation. One good way to research the company is to find out all you can about the founder. Look for a biography or resume for the owner. If the company doesn’t provide you with a face and a background, how can you evaluate it? A company may not have the celebrity status of a Microsoft or a GE, but they have the platform (their web site) to give you all sorts of background information. I’m skeptical of companies that give you nothing more than a sales pitch. I want to see who I’m dealing with.
5. Discover a hot product before the masses do. This one is big! This element is what often establishes the big money earners and allows people who have never made money before to make some nice income. Find a hot product destined to be a mega-seller before virtually anyone has heard of it. Get in early and ride it for all it’s worth. This one aspect alone is how most heavy hitters came to be millionaires in the Internet marketing industry. It’s not that they are much better at networking than others; you could basically say they were in the right place at the right time and took massive action. However, it’s a little more than that. Their persistence and determination in the industry has allowed them to make some great contacts so that when the right opportunity does come along, they can bring in key players and go from there. Also, these heavy hitters usually have a keen sense of the market which allows them to pick the right opportunity and avoid all the hazards and fools gold of the fledgling companies. Nobody follows someone (even if they are ‘finally right’ about something) if they have used up all their credibility on programs that never succeeded.
6. This can be almost as important as a hot product – The Marketing or Compensation Plan. What should you look for? Does the plan provide extra rewards for the up-line helping those beneath them, such as matching enrollment bonuses where the up-line can enroll people under individuals in their organization and earn a percentage of that person’s revenue as a bonus? This is much better than a forced binary plan, because in a forced binary plan, people that don’t want to work get in the way and drag down the others. You want a situation where you are rewarded for managing your affiliates.
A bonus system like this will allow you to help the people who want a successful home based business and bypass those who are lazy and not interested.
More things to look for in the compensation plan. Does the plan pay a number of levels deep or does it stop after a few levels? Also, how many legs are required to maximize the pay plan? Does the plan require you to have numerous legs to earn the maximum bonuses? The point is this, a plan that only pays a few levels before infinity bonuses and/or requires numerous legs really limits the amount of up-line help you will receive – in other words you’re virtually on your own. This is the case with most MLMs.
7. Get with the right distributors at the right time. Years ago my wife and I sold our house in California and moved to the East Coast. We interviewed Realtors and narrowed the field down to listing the house with this relatively new agent down the street or the hotshot, ‘Million Dollar Club’ guy. We went with the latter – big mistake – he was so busy with his mega-deals that he didn’t have time to be bothered with our little house. It sat for months before selling and we had already moved across the country. The lady down the street would have marketed the heck out of it. The point is, don’t just sign up with some big name distributor because of their name – they could be semi-retired or too busy to give you the attention you deserve. The best scenario for you is to find some knowledgeable key players who, because of a hot product, have just recently started marketing that product and are rapidly building their organization. This basically allows you to not only get in on the ground floor with a hot product, but also with very qualified people looking to build huge organizations. This is a case of being at the right place at the right time. All you have to do is take a ton of action.
8. Does the company have an emotional product? The point here is people talk about two things to other people – things that interest them and things that leave an emotional impression on them. Certain types of products, like diet plan products, can cause an emotional reaction in people much easier than other products. If someone feels much better while following a particular diet plan, they are much more likely to tell others about it than they would some insurance policy or fabric softener, for example. And face it, you want people talking about your product – word of mouth advertising is the most successful form. Even if it’s done via e-mail, forums or chat rooms. People love to share hot URLs.
9. Does the home based business company have exclusive products that you can’t get elsewhere and/or expert marketing to validate their winning products as superior products and in fact a better value than similar products?
10. Reusable products – It’s kind of a given, but any product or service which someone uses and reuses on a monthly basis is best since you continue to earn recurring income on that person month after month.
Bonus Tips: To monitor the strength of a business opportunity here are a couple things to look for:
Is there good support and mentoring available with the opportunity – absence of these items can indicate a ‘dead’ business opportunity or a scam. I recently received an e-mail from a gentleman who had fallen victim to a scam that promised to professionally build three web sites in 3-5 days and host them for him. He was excited and anxious and failed to do his homework. They charged him $ 895 for a Platinum Package and after 90 days, when he tried to get his money back for failure to deliver, they informed him that they had a ‘no refund’ policy. Now, he could have prevented this from happening and he admits that he was skeptical, but he decided to give it a try. Don’t do it! As I said before, get to know who you’re dealing with. If the web site doesn’t give you any insight into the person behind it, they just might be trying to hide something. By the way, I ultimately helped that gentleman get a complete web site, with hosting and products, up and running for the cost of a dinner out. He is now making some real money.
Also find out what’s been going on in the past – both short term and long term. Are people in the program progressing toward their dream? If not, once again, you could be looking at a ‘dead’ business opportunity. That being said, remember that no one can promise you success and wealth. They can provide you with the tools and the products, but you ultimately determine your success. If you work hard – and NEVER GIVE UP – you will be successful.