Archive for January 17th, 2009

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• Saturday, January 17th, 2009

Home-based businesses come in many forms. 

One type of home-based business is when you simply run a business, using your existing skills, from your home.  Examples include a home-based hairdresser, a home-based day care center, or a web designer working from home.  In this type of business, you can probably set your own hours and be your own boss.  The downside is that if you don’t work, you don’t get paid.  You also have to consider all of the issues involved with a business – sales, marketing, financials, possibly employees.  It’s not just you and your skill anymore. Much like a regular job, you exchange time for money.  The upside of running a business is that you can potentially expand, hiring people to do the work, handle the books, deal with the headaches.  Then, you only have to manage your well-oiled machine, which requires leadership and superior management skills to succeed.

Another way to make money from home is as a virtual body.  Examples include a telemarketer based at home, a virtual assistant working for an executive through the internet, or a researcher working from home on a project.  This type of job typically has less flexibility because you’re working for someone else; you just happen to do your work at home.  This type of job is not a business at all, but a JOB.  The upside is that you can work from home in your fuzzy slippers.  The downside is that there’s little upward mobility or expansion.  Just like a regular job, you’re exchanging time for money.

Another type of home-based business is joining a company, usually in a sales capacity, to market products or services by word of mouth.  This type of business might be known as Direct Sales, Network Marketing, or Multilevel Marketing.  You sell products or services and also let others know of the potential business opportunity available by joining your team, training them to do the same things you do.  Typically, these companies offer very high quality products.  Many, many well-known companies market and distribute products and services via this method.  Well known ones include Tupperware, Mary Kay, and Herbalife.  Many of these companies are excellent business opportunities; some of them are not; do your research.  This type of business typically offers the benefits of a flexible schedule and being your own boss, just like other businesses.

A significant benefit offered by network marketing companies which is not offered by other business models is the ability to build residual income by building a team.  Once you build a team, you begin earning money from the efforts of your team as well as your own.  The larger your team, the greater percentage of your income comes from your team’s efforts rather than your own.  This concept is called leverage.  You leverage the efforts of your team for increased income without the need to manage an increased infrastructure.

Another significant benefit is team work.  Although all compensation plans differ, most of them are structured to foster team work. Your upline benefits by helping you be successful.  The perfect win-win.  You know that you’re in business for yourself, but not by yourself.  You still make the ultimate decision of doing the work or not, but you know that someone is there to guide and encourage you if you want to be successful.

You need to decide for yourself which business model would work best for you.  What skills do you bring to the table and how would they serve you best?  Think about it before rushing into a decision.

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