Have you ever thought about investing in a home based business opportunity? Perhaps you’ve seen some of the ads: “Moms Work from Home” or “Get in On the Ground Floor” or “Earn Six Figures from Home.” As work at home businesses become more and more popular, there are many things to consider in order not to be taken advantage of. Legitimate home based business companies score high in four key areas: products, company, compensation and training and support systems.
The Products –
When evaluating whether the opportunity is legitimate, one of the most important things to consider is the product line. To successfully grow your own home based business, you’re going to have to believe in the products and effectively promote them. So ask yourself:
1) Will you personally use the products? If so, you’ll have real, personal experiences to share with your prospective customers. You can even go one step further; would you buy these products if you weren’t working with this business opportunity?
2) Are they high quality products? If the answer is no, it will be very difficult to build a stable business, because repeat purchases are very important.
3) Is the product line affordable? If the average person can’t afford the products, the quality alone won’t be enough to attract long term customers.
Finally, if the products are consumable or necessity products that have to be purchased on a regular basis, you can develop a loyal base who will purchase from you month after month versus you having to consistently work to find new customers.
The Company-
Next, take a good look at the company. The failure rate of direct marketing companies is extremely high. Over 90% go under within their first three years in business. So before you sign up, find out:
1) How long the company has been in business and if they’re still growing. I wouldn’t recommend joining any organization that has been around less than 5 years.
2) What type of awards have they received? Generally, if they have a positive rating from the Better Business Bureau the business model is viable.
3) Does the company provide good customer service? There should be a sound return policy that allows customers to receive a 100% money back guarantee if dissatisfied.
4) Are they committed to their products? The most successful home based business companies allow customers to order directly from the manufacturer and they ship the products directly to the customers. Be leery of businesses that expect “distributors” to stock inventory, take orders, and make deliveries.
The Compensation Plan –
The next area to evaluate when selecting a legitimate business system is their compensation plan. Keep in mind you will more than likely have to spend some money to make money with most businesses. Find out –
1) What is the initial investment and what are the ongoing financial requirements to remain active? Start up cost should be minimal, ranging from $50 to $500. And ongoing expenses should be reasonable.
2) If the compensation plan is fair? Is the income potential realistic? Remember the old adage, “If it sounds too good to be true, it probably is.”
3) Do they have part time business builders? The majority of the people you will attract to your business will be customers and part-timers. This group should be able to benefit from being in your organization.
4) Are commissions and bonuses paid directly to you? Some companies pay out to groups and allow them to disburse checks. This is a big NO-NO.
The Training and Support –
Once you’ve found a home based business model with products you can believe in that’s run by a stable, long-term company with an ethical compensation plan, it’s important to ensure there is a good training platform and a support team in place to assist you. The platform should be duplicative to follow. It shouldn’t rely on hype or personality to be successful.
Many companies offer various types of support mechanisms –team meetings, websites, conference calls, videos, DVDs etc. The training material should be affordable, if not free.
Lastly, you want to connect with a team that has good leadership. Therefore, use your instincts and judgment to make the final decision.