7 Critical Considerations for Home Business Success
Author: earl mann
Having watched some associates of mine build home-based empires from scratch, and make a fortune doing so; I have always been open to the possibility that home based business including network marketing and internet marketing could work. But, having 10 years experience in high technology mostly startups, I could also see some of the inherent problems associated with most “home based opportunities” and why they were likely to fail over time. Over the course of 6 years of participation and experimentation I have come up with 7 things that I believe put the probability of success in your favor, regardless of your background, available time, and level of experience. These criteria are a blend of what I found to be critical in both affiliate marketing plans and traditional business models that work. I have an emphasis on leveraging the internet, but overall I believe these to be good practical suggestions. Some of my considerations may not apply to your business, and others while may. Many of this consideration are “common since” if you do the un- common thing of thinking about what the business is proposing to actually do. What is the message beyond marketing hype? I have not made a zillion dollars in a company that easy, simple fast, Free etc. And I can not help you in that department. But if you looking for some things to consider when choosing a real workable business, with a much better than average chance of success; then you may points may be helpful. 1.Limited perceived competition. It is important not to pick a product in a crowded playing field, because average people working part time will not be willing to take the time and make the effort required in differentiating a product. It is very difficult to do, ask any sales professional. Most people have a tendency to get excited about market size and never really look at competitive market size. A very competitive market changes the characteristics required to be successful. Product differentiation is usually challenging. To be highly successful will unusually require and evolved ability to effectively communicate. For most people this will require time and effort spent on person and professional development. Not a problem for some, a show stopper for others. 2. No “invisible value” services. What is invisible value? That’s a product that you pay for without constantly being reminded that you like what you are buying. Financial, and Insurance products fit this category. Nothing against these businesses, they are needed services. Just realize what you are getting into so that you can plan accordingly. Instant gratification is a powerful component in western culture. Which is why you see people that will pay a cable TV bill, or cell phone bill before they pay health insurance. If you are building a source of long term residual income make sure you’re your product have the chance to being a long term purchase. If there is a disruption in gratification of some sort for non payment. That is insurance against your income going away. 3. No “burden of proof” We call the “Burden of proof “products those that make big claims that are hard to prove. We wanted to avoid these products for two reasons. First, Proving value is a tough thing to do. You have to be an expert or use and expert. This creates the need for a double sale. You have to sell the expert, and then you have to sell the product. Most people are not comfortable making one sale. Many Nutritional companies fall into this category. Want to see something interesting go to your local bookstore pick any fitness magazine and thumb through the pages. You will see multiple products claiming to be the best, all with doctor’s endorsements, back by experiments, with charts and graphs and every thing you can imagine. With competitors maybe on the same page, making the same claims! 4.No third party “Intellectual property” This is the big one. We live in a copy cat world. People are reselling others people’s products as their own. The product with this model is that people join your business and your leadership. Not the leadership of the people that actually make the products you represent. People that own the “IP” determine how good or not good your products will be overtime. Many good people have joined good companies that did not own their products. And many good people fall victim to the owners and creators of a product taking a different direction than the “marketing company”. Do you have to find a company that makes its own products? No you do not, just beware of the liability, know the risk, and ask the hard questions if things do not seem right in the direction a company is taking. 5. Proven and Effective decentralized leadership My simple test for effective leadership. Are they creating leaders out of people that do not have big names and come from big companies with big stories. Have they help someone, perhaps like you, achieve success? Are they trying to motivate you to go “make it happen” or are they teaching you to use systems? Are they taking feedback from the little man in the field? Remember marketing is a very fluid process. Frontline feedback is essential for strategic success on the battlefield and in business. 6. Good compensation- we go into business to make money Pay plans can get complicated, because the good ones are sophisticated. They are designed to drive and reward behavior that is different that most normal companies. You should make money for moving products and services of course. But you should also be compensated for helping someone else be successful. I good litmus test is to take what ever you think is reasonable in terms of product sold and affiliates sponsored by you forecast it out 12 to 24 months and see where the numbers are. This is the best thing about network marketing. you compensation is purely mathematical!. Not personalities or politics! You make what you earn; actually you should make more than you earn because of the built in bonus structures and overrides in must good plans. After you run your 12- 24 month numbers ask your self two questions. 1.What that level of income be worth it. 2. Why do I believe that I can consistently move that much product and recruit that many people. If you can answer number 2 honesty you have given the business the necessary analysis to be successful. 7. Unique market timing – This is the hardness to fine because so many factors are involved. Now this is a tricky one, because this is where the marketing hype machines go crazy! Ask your self what makes NOW, other than you just learning about the business so special. Have there been recent new developments, new emerging markets, changes in legislation? There may not be any unique market timing – and that ok; unless and big part of the Pitch to you is their “unique market timing! Conclusion: As Charles Dickens said in the “Tale of two cites” it was the best of times and the worst of times. We are living in the Gold rush of our generation. The explosion of new technology, the globalization of markets, and the shift in the American psyche from working for a single employer; are all events that are feeding the biggest opportunity to realign wealth that the world’s business community has ever seen! It is also the age of spam, internet scams artist, corporate greed and identity theft. Making the jump across the moat to home business success is not for everyone. It is reserves for those that are willing to learn, grow, and help others do the same. It takes a different type of person willing to follow a different path. That path even in failure, will be to a place better than average. Fear the average, and build a business worth sharing! Expect a great day Earl Mann Keywords: home based business, mlm,network marketing,internet marketing, email marketing About the Author earl mann, earl@earlmann.com http://www.earlmann.com "The best technolgy is indistinguishable from magic"..A.C. Clark Visit Earl's discussion on the Science of Success, Instant achievement, and paths to personal empowerment at http://www.momovideo.com
