When looking for a Home Based Business there are 5 very important questions you must ask.
Question #1: What is the product or service being sold?
If you cannot clearly identify a specific product or service being offered for sale through the Home Based Business, it may be a Pyramid Scheme or a similar type of Scam. kms auto
Here’s the reasoning behind it:
If there’s no product or service being offered to the public for sale, how can the company promoting the Home Based Business generate a profit? dryer repair san diego Where’s the money coming from to pay you a commission or a bonus?
If they’re not making a profit from sale to the end consumer then they’ve got to generate that income from you and other members like you just recruiting other people who are usually asked to pay some outrageous Application/ Registration Fee, fancy name even if they call it by a fancy name.
This is nothing more than a Pyramid Scheme and NOT a legitimate Home-Based Business. A popular example is Gifting Programs, there are no Goods or Services being sold, it’s just people exchanging money with other people. Sooner or later somebody is bound to get hurt!
Question #2: How stable is the company?
Why is this important?
Well suppose you found what seemed like a really great garten company and started building a Home-Based Business with them only to find out 2 to 3 years later that the FTC swooped down on them for illegal practices and shut them down for good?
This actually happened with one company I was working with many years ago.
People became millionaires with this company in a matter of months. It was the fastest money I’d ever made in Network Marketing up to that time, cat house but within months of joining the company it all came crashing down because of problems with the structure of the company and certain practices that displeased the FTC.
I learnt my lesson.
In checking out the company you’ll want to find out how long they’ve been in business and where their headquarters is located. You’ll want to ask about any other Companies they’re affiliated with, SEO like their Parent Company, Sister Companies or Subsidiaries if there are any.
There’s an old adage that goes; “Show me your friends and I’ll show you who you are.”
That applies here.
You can tell something about a Home deco company by the company it keeps (pun intended).
In looking at how long a Company’s been in business be careful not to throw away the good with the bad, for instance, a particular program might be brand new but the Parent Company backing that program might have been in business for many years, giving it the stability you’re looking for. Look deep and don’t be afraid to check behind the curtains.
Question #3: What is the quality of the company’s leadership?
Dr John C. Maxwell, international Speaker, Motivator and Best-selling Author says, “Everything rises or falls on leadership.”
It has been my experience that a Company usually takes on the characteristics of its leader(s) so, if you want to know what kind of business you’re about to join, look at the leadership.
Practically speaking, you’ll also want to check out the business acumen of the person or people in charge because they’re the ones making the decisions that’ll impact the future of the Company – Your Company.
Question #4: How good is the compensation plan?
I think The O’Jays said it best; Money, money, money, money… monney!!!
You’re going in business to make money not to look good in a business suit.
And if you have a real Home-Based Business then you won’t be wearing a business suit in the first place, Right?
There are so many different types of Compensation Plans; from the sublime to the laughable. There are 2-Ups, 1-Ups, Binaries, Unilevels, 5×7 Expanding Matrices. There are Spillovers, Powerlines, Breakaways and on, and on, and on.
Here’s what to focus on:
How much is being paid out in commissions?
Too little and it’s not worth your time, too much and the company might not retain enough profit to sustain its continued growth and expansion.
The experts say about 65% being paid out in commissions is the acceptable norm.
Understand the difference between Bonuses and Commissions.
Commissions usually form part of your ongoing residual income. Bonuses are usually temporary financial increases, paid on a specific action, performance or fulfilled quota and as such; do not form part of your regular ongoing income. Focus on good commissions as opposed to bonuses!
Look for passive, residual income.
This is the kind of income wise people seek after. It’s the type of income you keep getting long after you’ve stop working. An author writes a book once and keeps getting royalties from sales years after she stops writing.
With a Home based Business the same thing is possible.
You can do the work once and keep getting paid forever once you’ve selected a stable Company with good Leadership and the right Compensation Plan with an easily Duplicatable System.