The "new" trend of our economy is Home Based Businesses

Ok, so I admit that I get curious when someone posts an ad offering $250K income potential or some other 6 figure income biz. I'm sure you've peeked at some of these sites and wondered what's the catch?

I love reading some of those sites that sound like they are selling medicine by asking questions like - would you like more cash? Is the economy affecting you? - This valium like business will solve those problems.  Consult your doctor if this is right for you. Common side effects include bankruptcy and more stress.

Anyways, here's what's behind all these sites. Some are just straight up scams and you can only make money if you recruit half the continent - So called MLM programs. Others are legit programs, but they are still businesses and like any other business you need to run it like one.

The model

When you visit these sites they'll direct you to some meeting or a phone call where they explain the business. They are direct sales companies and your job as an entrepreneur is to move their products. This is no different than Wal-Mart buying a ton of cereal for $2 dollars and selling it to you for $3 and make a profit (they are moving products.) Your job when you join these programs is to move their products which vary from personal development books to seminars or wholesale vacation packages. They leverage their business by having you purchase the product and have you pass on the first 1-6 sales (depending on the company) meaning you don't make money on those sales. That's all that they are. Anything after that you keep all the profits.

Here's the thing with these businesses. Even if you buy the product, you won't make money unless you advertise. It's no different than running this real estate business. I often hear agents say that the only agents having success are the ones that spend thousands of dollars on advertising.... well no kidding, how else can you get so many people to talk to you?

This is how you should see advertising. Think about what you tell people when you know they are looking to buy a home? example - 'would you like a list of the 10 best buys in ________ (area)'? I'm sure any agent who knows their area can come up with such a list and keep the promise.

Now instead of you going out to the mall or the store to ask 100 people this very same question, why not write it down, and post an ad where you know that people who are looking to buy homes go? (e.g. newpaper, online, etc.) You can get as many leads, but the difference is that it only takes 15 minutes to talk to the newspaper rep and it takes an entire day to talk to the people yourself.... this is called leverage.

You see most people don't understand this simple concept or many times are afraid to spend the money and think they are just wasting the money, and it's why many of these home based businesses fail.

Well hopefully I just saved you some time or at least eased your curiosity for what these programs are and if they work. My answer is 'Yes', but only if you run it like a business. I won't endorse any specific company, but I did join one because many people are turning to home businesses as they are losing their jobs and need to find a way to keep food on the table. I'm doing it part time and it seems it may outperform my current real estate business (and I'm doing pretty well). Ok I'm off, I got a closing to take care of.