Home Based Businesses


What Is A Home Based Business?

Are you interested in taking control of your work life and having greater flexibility? A home based business could be exactly what you’re looking for.

 

There are two broad types of home based businesses:

  1. Starting a small business from a home office in your area of expertise; or
  2. Becoming a member or distributor of a business network, such as a multi-level marketing business. To find out more about this type of structure, commonly referred to as ‘network marketing’, read on.

 

Network Marketing

As the name implies, network marketing is a way of selling products and/or services based on the idea of ‘networking’. This means that rather than selling from a traditional shop front, individuals can market products by joining a business group and promoting the products to their friends and friends of friends. As more people spread the word and buy products, the network grows and profits are shared amongst the distributors.

 

These types of home based businesses are different to traditional jobs because there are no employers and employees. Distributors are sponsored into a particular network, generally after viewing a sales and marketing presentation. A sponsor is also knows as an upline and anyone sponsored into the group becomes their downline.

 

Is Network Marketing the same as Pyramid Selling?

This simple answer is NO.  During the 1980’s many pyramid selling schemes came about in an attempt to copy the multi-level marketing model. Pyramid schemes had some common features such as: significant joining fees paid directly to the sponsor and sponsors earning a fixed percentage of all downline sales regardless of their own effort.

 

Network marketing generally pays individuals based on a reward for effort principle. This means that a newly sponsored person can potentially earn a greater income than anyone in their line of sponsorship if they are prepared to work harder and generate more business.

 

How to choose a MLM business

There are many options to choose from when it comes to multi level marketing businesses. Some of the guidelines to consider before joining are:


  • Making sure you are interested in the product or service
  • Making sure you understand the bonus and retail commission structure
  • Finding a sponsor who is committed to your success
  • Finding out what level of support is available to help you with your business
  • Finding out the recommended time commitment
  • Ensuring that the time and location of business meetings is suitable for you
  • Finding out whether personal development resources are available
  • Being honest with yourself about your level of motivation and commitment

 

Our biggest recommendation when it comes to choosing a home based business is to make sure that you’re comfortable with what you’re doing and that you like the people you’ll be working with. You will potentially be spending a lot of time with your business group so mutual like and trust is a must!

 

Anther tip is to not let your doubts hold you back. Even if you have no prior sales experience, most networking groups will teach you everything you need to know – as long as you’re prepared to put in the work.

 

Now that you know the basics about home based businesses, the next step is to take a look at some real life examples on offer. The more research you do, the better prepared you’ll be to choose the business that’s right for you.