Friday, June 20, 2008

Looking For A Home Based Business?

By John Cosola

Everyday millions of people search the internet for a home business opportunity. The problem is they have no idea which will be the best opportunity for them or where they should focus their search.

Many newbies choose Multilevel marketing as their first taste of home based business. The reason for this is that there is a very small start up cost. The only problem with this type of business is that 95% of the people who succeed in the MLM business are veterans of MLM who have built a large organization of people through many years.

The main problem with MLM is that a few people at the top make all the money while everybody else just fills their pockets making manditory purchases to meet monthly quotas. True there is no big upfront costs, but in the long run you probably spend more than you think.

What normally happens is that the newbie chases his friends and family around begging them to try this or buy that. MLM is a business built on the warm market of friends and family, who normally don't show all that much warmth when approached. After exhausting the warm market most just throw the towel in thinking if I can't get friends and family who can I get.

There is an alternative to the MLM nightmare and that is direct sales. It is quite different and a lot more lucrative then MLM. You see in a traditional MLM business its about building tremendous organizations of people to get to the level where you will be maing 1000's of dollars, but up to that point your are only making small change.

With direct sales you are making 100's and 1000's from your very first sale. Does it cost a lot more to get into direct sales than MLM. Yes it does, normally anywhere from $500 to $3500 on average. but you normally are in profit mode after just one or two sales.

The bottom line is you are looking for a business opportunity and businesses cost money. Go try to open up a deli or a liquor store or buy a franchise. You are looking at investment in the tens and hundreds of thousands of dollars. And the first thing you learn in any small business school is that you can't expect to make a profit for up to FIVE years. Believe me I have been a small businees owner for over 20 years until I got smart and found direct sales as my ticket out.

The question is why invest maybe your life savings to open a business that has a tremendous down side and a failure rate above 70%. The risk to reward doesn't ad up, thats why direct sales is taking off in a big way. And anyone can do this if they just take the time to learn how to market the internet, which costs nothing but time.

When researching an opportunity look for training, training, training. Product matters to a degree but what you are truly selling is a business opportunity to newbies who need training. That is why training is the key to the program. This is also a way to get an instant return on your investment.

Also find a genuine person to sponsor you, one that will be accessible to help you learn the ropes. So take a good look around, surf the net, and find the right fit. I always make myself available to those who might need a little one on one tutoring on the subject.

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