What To Expect From A Part-Time Home Based Business |
Posted: June 8, 2012 |
Direct Sales is the perfect home based business model for the part-timer. Selling clothing, housewares, beauty products, nutritional products, and other goods through in-home parties, one-on-one consultations, and online can be big business done on a part time basis. Last year, the 16.1 million direct sales representatives working in the United States generated $28.3 billion in revenue, according to the Direct Selling Association (DSA). With 90% of direct sellers working their home based business part-time, there's no wonder this is a very lucrative home business model for the moonlighter. So what can a newbie expect when looking for home business opportunities? Be Realistic about Sales – Typically direct sales companies pay representatives commission on their own sales and on the sales of any reps they recruit (as well as the sales of their recruits’ recruits) — hence the nickname “multilevel marketing,” or “MLM.” As a result, a common complaint is that representatives, in their zeal to sign up new recruits, skew toward the hyperbolic, promising five- and six-figure revenues that multiply exponentially while you sleep. But that’s usually not the reality. Set Your Own Hours – To be fair, many people don’t enter the direct sales market looking for a full-time job. Instead, most are moonlighters who are looking for supplemental income and usually work their home based business about 10-20 hours per week. This kind of flexibility allows more time with kids and family unlike getting a part-time job. Unlike a job where you go to work and always make the same amount of money, as a direct seller you can you create residual income and leverage the efforts of your sales team to work smarter, not harder. Researching Direct Sales Opportunities – Make sure to research companies before investing any money. A few online resources can help you learn more about MLMs and help you stay clear of any scams. A few to get you started are the Direct Selling Association, Direct Selling 411, and World Federation of Direct Selling Associations. All these resources are great sources for U.S. direct selling practices and ethics, helpful FAQs, glossary, and reputable associations and accreditations for legitimate home based business opportunities. Weed Out the Scams – Be careful. Not all direct sales companies are honest. Pyramid schemes and other bogus opportunities are common. Watch out for opportunities that are exclusively dependent on recruiting people instead of selling products. Another warning sign is recruiters who are unwilling to share details of the compensation plan. Likewise, your initial investment should immediately yield something tangible, be it product samples or training and marketing materials. Getting started shouldn’t cost you thousands of dollars. Make sure you read the company's policies and procedures. Perhaps the biggest misconception with home based businesses is that you can get rich in a matter of weeks or months without lifting a finger or selling anything in your home based business. Nothing could be further from the truth. Like any honest business, you have to work hard for each and every dollar you make. Run Your Business Like a Business, Not A Hobby – There are many tax savings advantages to owning your own home based business, but you must comply with the rules of the IRS related to business expenses vs expenses of a hobby. If you need help with the accounting and tax related areas of your home based business, consult with The Network Marketer's CPA. If you keep your options open with regard to making any money outside what you are currently doing, start your own home based business today. Visit this video opportunity presentation to learn more about an exciting opportunity in the direct sales industry.
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