If you have a burning desire to work from home, you’re not alone. I joined the nearly 4 million Americans who have made a living working in home businesses about a year ago. It was literally overwhelming to see the endless possibilities in the field of home business. To make matters worse, 99.9% of the people you will meet are likely trying to sell you their “amazing” opportunity. Choose wisely my friends. Over 95% of home based entrepreneurs fail. I think this is because they are thrown into a business that does not suit them. Read this article to get started.
If you’re looking for specific ideas, I have hundreds listed in some of my other articles. In this article, I’ll stick to a critical overview of the five basic business structures that cover about 99 percent of home-based businesses. By choosing a category to research, you can narrow down your search and hopefully start to hone in on what will work for you.
The question to ask is not how good an opportunity looks, but is it really right for you? Does it fit your time? Does it fit your skills? Does it fit your passions? Does it fit your realistic investment money and required income? You need to put on your critical thinking hat and view the process as a type of reverse job interview. There are currently over 2,700 MLMs in the US and over 10,000 home-based franchises, affiliate opportunities, and other home-based businesses. Anyone can find a business that allows them to earn a decent living from home, if they do their due diligence to find a true “good fit.”
Below are the top 5 categories that home-based businesses fall under. I have listed them with the main pros and cons of each structure.
1) Affiliate Marketing
Pros: Good earning potential – proven past products and some branding
Cons: Some have little to no ongoing training or mentoring – affiliate marketing is just that “marketing”
2) Home-Based Franchise
Pros: Franchises often have very well-developed products, services, and marketing plans: Many leave plenty of room for people to run their business the way they choose: Some provide comprehensive training
Cons: Initial cost of franchising is significantly higher than other forms of business – many franchises require a specialized skill set to function effectively
3) MLM (Network Marketer)
Pros: Compared to other forms of business, MLMs have a low cost to join: They have very flexible hours: Almost everyone has a pre-existing plan to follow
Cons: Most MLMs have ongoing financial commitments – Only about 1% of people in MLM make a living in the industry – It typically takes several months to build a large enough downline to see significant ongoing cash flow : Of the more than 10,000 MLMs that have been created in the last 60 years, only 50 have lived to see their 10-year anniversary
4) Online business (all other ways can be worked online)
Pros: Working online provides unlimited income opportunity: Flexible hours: Can easily work in current job need: Fits almost any niche
Cons – 97% of people trying to make a living fail due to lack of ongoing training and mentoring – there are specific skills and knowledge that need to be learned to make money online
5) Unique Original Ideas
Pros: Starting a business from scratch can be a very rewarding experience personally – if a new business is created, marketed and branded, it can create significant wealth for the owner
Cons: It takes a lot of skills to successfully run a business as a start-up: There can be large start-up costs: Many underestimate the time commitment needed to get a new business up and running
Take a good look at the pros and cons of the different structures. Over the years, I have successfully owned and operated several businesses; however, it was honestly an affiliate that allowed me to earn enough money for my “day job” and work entirely from my home office. That being said, I know many people who successfully run businesses from home. Many work in the MLM industry, own franchises, and some have started their businesses from scratch.