According to the U.S. Department of Labor and industry the work from home business marketplace was over 2.5 trillion dollars in 2005 and was growing at an astounding 17.4% annual rate. The projected market for 2008 is 4.4 trillion dollars of which 80% begin with a Google search. Your work from home online business can provide you with an opportunity to cash in on a piece of the action, if you understand a few simple rules.
What do you want, lowest price point or maximum profit?
Most people want to spend the least and earn the most and that is just good business sense however the most important question to ask is not how much does it cost to buy into that opportunity but how much does it cost you to operate that particular work from home business?
Consider these parameters. The work from home business you have chosen is a traditional MLM type. You attended a work from home business webinar and they showed you how easy it was to make $10,000 per month. You were told that you could be in business for $50.00 if you signed up now.
That's not a difficult decision, I mean who wouldn't part with $50 to work from home and enjoy all of the benefits of owning a home-based business and cash a $10,000 check each month? It's not rocket science - sign me up!
After you sign up you run home excitedly and call everyone of your friends and family to share the wealth and let them know first hand just how easy it is to become a work from home mom or dad or grandma or grandpa. They get as excited as you about becoming the next group of work from home millionaires and then what? Who do you sign up next? Where do your next set of victims come from and even more importantly what happens to all of those who you signed up and aren't making money?
Let's talk about your chosen work from home business. It really is a work from home distributorship. This means that everyone under you are distributors. Distributors is an upscale term for salesman, sales person, re-seller's etc. What this means is that you have no real customers - no real consumers. Your distributorship has a very limited growth potential.
Just how limited? Industry statistics tell us several things about a distributor based work from home business opportunities.
a) A distributor based work from home business is more like a work from home job than it is a business because it is comprised of sales people, not real customers.
b) Distributors remain in your organization only a short time if they cannot recruit effectively. If they can't recruit well then they can't make any money. They average life span of a new distributor is about 6-8 weeks.
Now calculate the amount of time it will take you to recruit new people to fill the holes in your organization times your hourly rate. If your hourly rate is $100.00 per hour and you need an 90 minutes to present and close each new distributor then your cost to add a new distributor into your work from home business is $150.00.
However...
That is kind of the cart before the horse because we have not discussed how you are going to bring the prospects to look at your business.
Exactly how are you going to find people interested in your work from home business?
Well you do have a company generated web site that they gave you for free or maybe you pay a monthly fee for them to host it. Yeah a flashy company replicated web site that works, right? Not exactly.... A study of replicated company web sites are rarely properly configured for search engine optimization (SEO). Few of them have proper keywords or meta tags which means that most of these web sites will never be seen by the search engines or your targeted traffic.
How do you get traffic to your work from home company's replicated web site?
There are SEO work around to bring in the traffic but they are not cheap. A basic 1 page search engine optimized page to drive traffic to your site will cost upwards of $1,000 - $5,000. I don't exactly thing you had that kind of expense in mind when you fell in love with that $50 work from home business so let's talk about less expensive ways to bring your web site some visitors.
You can start with banner ads for as little as $1 per day coupled with PPC (Pay Per Click) links that cost a minimum of $3.00 per click for a good keyword means that your $30 per month advertising budget can balloon into more than $1000 per month with only a little over 30 clicks per day.
If that isn't bad enough did you know that some of your competitors hire click teams in foreign countries to purposely blow your work from home opportunity advertising budget right out of the water. Is this how you want to spend your money?
What about purchasing leads?
You can find top quality leads for your work at home business opportunity by searching on Google. You will find companies claiming to have hot, real-time exclusive leads for your business anywhere from $2-$15 dollars each. Most people buy 100 leads at a time so at the minimum expend to spend $200 per month. A realistic rate of return on these leads is 2%-3%. This means that out of every $100 spent you have the opportunity to talk to 2-3 prospects about why they should join your work at home business. The cost to have these conversations is roughly calculated as Cost of leads divided by the number of prospects received multiplied by your hourly rate. Using the parameters above this cost would equal over $200 per prospect and we haven't even made a sale. Even if you close all 3 you are still in the hole. (3 prospects x $200 =$600 minus total sales = negative $450)
The end result is that you have ticked off your friends and family - they all quit. You become frustrated but you can't quit because you have invested a year's worth of your money and time that grew from wealth at $50 to heartache at $3,000.
You are angry and say working from home is a scam.
No so, according to another study by the US Department of Labor and Industry in 2005 over 20,000 work from home entrepreneurs grossed over $1 million dollars a year with the average work at home bread winner either supplementing or replacing their primary income by $63,000 per year. Remember those results were from a 2005 report and the work from home business industry had been growing at 17.4 percent.
How much money have you missed out on?
Like anything else working successfully on the Internet requires an education. In most cases getting that education isn't cheap however getting a quality education into the proper way to create and market an online work from home business does not have to be expensive.
There is only one business I have ever found on the Internet that I have ever made any real money with and that is It's Good Business dot net. The opportunity costs $1750.00 but it is less and that $50 business that caught you eye and here is why.
At first you may be a bit frightened by the price however when I paid the $1750 that was all I needed to spend because with the initial price point I received 25 real customers. These are people who are already buying my product. These are not distributors or re sellers. My customers are consumers. They re-order products not because they have to but rather because they want, enjoy and receive benefits from my products.
I don't advertise. The parent company spends their money on advertising and marketing to my customers.
Aside from sending a short e-mail welcoming my customers to my business or thanking them for their recent order, I don't send them anything. I don't even call them. They just re-order.
I don't buy leads or spend my time trying to get them interested in reselling my products or work from home opportunity.
If I want a larger business I spend $50 and buy another customer (I can buy 5 real customers for about the same money it costs for you to talk to 1 prospect). When I do that I am buying the customer for the life of my business. I don't need every customer to re-order every month either. I can earn $10,000 per month if only 15% of my customers order. (Right now I am experiencing a 22% re-order rate)
Added bonus is that I didn't have to annoy friend or family - they still like me.
It is a fact you are either going to spend a couple of thousand dollars to get started on the head end and have a real business or you are going to spend a couple of thousand dollars realizing that $50 price point was no bargain. The question is on which end do you want to pay?
If you are serious about working from home in a real business with flexible hours then I highly recommend that you attend one of the free itsgoodbusiness.net webinars If you prefer to flush your hard earned dollar down the drain then don't. After all it is your choice.
Any questions?
RH Sterling - Case Statement Copywriter
570.972.1245
570.655.0522
Skype: rhsterling
- "Strive not to be a success but rather to be of value" Albert Einstein -