|
It is important for you to know the difference between a business
opportunity, a dealership and a home business program. That is because all
three operate differently and each produce different results. If you don’t
know the difference, you will wind up feeling disappointed because your goal
might not be to spend much out-of-pocket money for start-up costs and a
business opportunity normally requires a larger start-up cost than you may
realize.
(article continued below ...)
Business Opportunity
Let’s start by examining what a business opportunity “normally” is.
It is an opportunity for you to “buy” into a business. That normally
means that you will have to purchase some inventory, or commit to a regular
monthly purchase of the product the company sells. For instance, VendStar (www.vendstar.com)
provides a business opportunity where you purchase vending machines filled
with their product (M&M’s, peanuts, etc.). You make your money back
when you place the vending machines in high-traffic areas and people use
them.
Companies set up business opportunities like this for several reasons.
The main obvious reason is that the company is assured of selling their
product, including the vending machine they may also manufacture. But the
bottom line is you have to put up some money for inventory before you can
actually make any money of your own.
Other reasons companies offer business opportunities is to expand their
business, increase their name recognition, and market their products in
areas they could never reach. For instance, if Jane Doe sells VendStar’s
products in Hazard, Kentucky this would be an area that VendStar would
normally never reach. Therefore, sales are increased overall.
Dealership
A dealership is something most of us are familiar with. There is little
or no cost involved when you sign up to be a dealer, but you are going to
have to lay out some out-of-pocket expense to print, mail and distribute the
flyer or sales circular. The whole basis of this method is based upon the
premise of the “print and mail” concept. Dealerships are primarily used
by companies who sell typesetting, printing, mailing lists, publications and
authors of “how-to” materials that are very cheap to reproduce and
resell.
Although participating in dealerships has never been my “cup of tea,”
there are plenty of people who truly love them regardless of the expense of
printing and mailing. They dearly love making copies of flyers, buying a
mailing list, stuffing envelopes and hauling everything to the post office.
Once they have accomplished this goal, they will wonder to themselves, “Is
this the big one where I will make lots of money?” In this light,
dealerships are similar to gambling, which is why I personally do not prefer
them, although many of you reading this article will disagree.
In a dealership, you make your money when people place an order from one
of the flyers you mailed out. The majority of the time, you keep a portion
of the money from the order, and send the order and remaining money to the
prime source, who fills the customer’s order.
Unfortunately, the people that make money with dealerships are those that
can afford to do 1,000’s of mailing a month. To prove this, I have
developed many dealerships in the past where I was the prime source. One
program I developed back in 1988, the “No Fail Stamp Program” was ran
completely honest and I had over 7,000 dealers. Out of those 7,000, the only
people who made money were publishers mailing 15,000 or more tabloids a
month. Those who only mailed 100 or 200 a month never earned one single
commission, and naturally they dropped out within a month or two.
Home Business Program
A home business program is probably the least known of the previous
methods we have already uncovered. In fact, you may not even really know
what one is because they are rare gems to find. A true home business program
is one in which you resell a product for the company but there is virtually
NO start-up costs. This method will certainly appeal to a greater percentage
of people and prompt more people to join. Although not everyone signing up
will participate in the program, there will still be more active
participants due to the larger number of people originally signing up.
You should immediately be able to see the difference now between a “home
business program” and a “business opportunity” as discussed
previously. The difference is the cost to start-up your business. In a
business opportunity, a company forces you to purchase their product so you
can resell it. A home business program does not require you to commit to
purchasing their product before you resell it. Therefore, with a home
business program, you have virtually no up-front, out-of-pocket costs.
Why would a company take a chance and offer a method like this for
selling their products versus the business opportunity method? Most
companies probably wouldn’t; but the home business program method works
excellent for companies who sell service products.
For instance, my company offers a home business program that costs
absolutely nothing to sign-up. If you decide to participate, you sell our
product (Client Intake Forms) for $200, $300 or $400. Our paralegals prepare
the actual bankruptcy petition for only $99.95 and you keep the rest of the
money as pure profit! Within the first week of introducing the home business
program, 135 people signed up. A few months after developing the program, my
business has dramatically increased so the results of using this method
are almost immediate.
How do you locate true home business opportunities? The internet is
filled with them. Below are a few you may want to check out:
http://www.homebusinessonline.com
http://www.money-at-home.com
http://www.homeworkingmom.com
http://www.starting-work-at-home-businesses.com
http://www.elance.com
http://www.homebiztools.com
http://www.ushomebusiness.com
and my program, http://www.bankruptcyparalegalservices.com/work_at_home.html
Advertising
The final topic we have not covered in this article is the out-of-pocket
cost you will spend in advertising the product or service you are selling so
you can attract new customers. This is probably the only time you will have
to endure some patience in the start of any new business because it takes
time to get your first customer. However, I have found the cheapest and
quickest way to product results is with classified advertising. Did you know
that you can advertise in 1,000’s of newspapers across the country for as
little as $5.00 for a 15-word ad to 20,000 or more circulation?
In fact, I have set up access to my home business program members, three
(3) national classified ad websites that I will share with you in this
article:
Nationwide Newspaper Classifieds (prices as low as $2.00 each) http://store.yahoo.com/cgi-bin/clink?classifieds+4744AG+index.html+
American Classifieds (prices as low as $5.00 each) http://www.advertisingresults.com/usrpages/victoriaring.html
Nationwide Classifieds (prices as low as $7.00 each) http://www.nationwideclassifieds.com/usrpages/victoriaring.html
Try these out. Place ads directly online and instantly see your ad
published within days not months. These places are fantastic for testing
your ads, experimenting with your ad headline, determining what price is
best to sell at, etc.
Summary
I hope this article has helped you to put things in better perspective,
or to point out something that you already knew but had forgotten about. In
business, there are millions of different combinations of marketing methods
employed by companies. The trick is not to be disappointed when something
doesn’t work out for you personally. Perhaps you had a different goal in
mind than the company had, and the reason the opportunity, dealership or
program didn’t work for you was the lack of understanding the method in
which the company chose to market their products. I wish you my best.
About the Author:
Victoria Ring is the owner of
Bankruptcy Paralegal Services; a company specializing in preparing
bankruptcy petitions for debtors filing a Chapter 7 or Chapter 13
bankruptcy.
Bankruptcy Paralegal Services and a sister company, The Lawyer Assistant employs several
experienced bankruptcy paralegals who work out of their home as independent
contractors. If you are interested in learning more about the home business
program discussed above, please review all the details online at http://www.bankruptcyparalegalservices.com/work_at_home.html
|