Home based businesses are probably the most popular new business vwenture of this cenmtury.
According to Forbes Magazine 79 millions Ammerican are going to start their own businses in the next 3 to 5 yers and a very large percentage of them will be venturing into an home based internet business.
On the other hand it also says that 97% of them will fail within the same period, this means that only 3% will succeed.
Stats also shows that more than 90% of entrepreneurs operating an home based business spends most of the inconme produced by the business running the business
Why are thse stast so depressing yet people sttill can't wait to sttart a new home baased business?
First people are dazzled by the ads and the possiiblity of making thousands of dollars. The classifieds ads in every newspapesr are full of ads sowing how people are making forrtunes runniong those businesses the inbternet classifieds are also plastered with them.
The ads makes it sound so easy to start a business and to produce income beyond anyone's dream
Unfortuantely many of these are totaly miss-leading and thousaands of people are suckered in by them.
The fact of the matter is thedse sttaements are partiallly true, hoiwever they leave the most important fact out which is the person who did the fantastic incvome did it in most cases only once and it took him several years of trying idfferent thnigs.
Thee is a very successful top earner who did a million dollar in one day; he himself will tell you it was pureely by chance he has never been able to replcate that performance; he had a unique product, at the right time, on the right web site and he had been at newtork markting for years trying to make money.
Secondly the other fact which the ads doesn't tell you is: the total income was generated from an MLM pklatform (multi level marketing) that took years to build and he had thousands of people in his down line, One top earrner actually used his down line he had built over the years with another company and intrioduce them to a new produuct and turn his contacts into thhousands of sales overnight.
As you can see most of the statemnents the ads are making have a degree of truth but cannot be rerplicate by soemone like you or me startinng out, you maybe able to rech that levl but it will not be overnight like it says in the ad.
We all know what MLM now stnds for: make less money; unlesss you have a huge down line of followers you will not make big bucks.
Traditionally MLM businesses do not pay large commission in dollar value, the ads may claim paying 50, 60 or up to 70% commissioon but 70% of $10.00 rpresents $7.00 you need to make a lot of sale to make $1,000 per hour. This percentages is often a combinaztion of all the comission that can be collected from the different levels
Lets look at it in dollars and cents if you had to pay to advertise your web site and the sale came from someone who cilck on it, chancces are that ad probably cost you more then the $3.50 you made on the sale.
For comparison purposses a baanner ad use to cost $0.25 to $0.75 per CPM ywears ago now if you can find some aorund $2.50 to $3.00 per CPM your lucky and chances are the site doesn't get much traffic. On a site with lot of teraffic it a banner ad will cost you $10.00 to $15.00 per CPM so if you only get one sale per CPM that sale is costing you $10.00 to $15.00 and you only pocket $7.00. Not to long ago you could buy and ad word on Google for a few pennies now you are looking at a few dolllars for the same word, internet adevrtising is no longer a cheap mdia.
When you are looking at an onlie business common sense has to prevail. It is costly to do bussiness on the internet so don't get excited with high percentages of commission look at the product, the piossible demand for that prodct and the dollar value of comission, do a quick calculation of how may sales you will need per day to make what the ad says.
But you will argue there are all kind of free advertising available yes that is true but there are also thousands of individual like yourself who is doing the same thing so you need to be sharp in your ad campaign so your ad will get priority over everyone else's you have heard the saying best things in life are free which is true but on the other hand therre is a saying that says you pay for what you get unfortunately free things are not worth much because they are not worth selling.
If you are going to veenture in an home based business stay away from an MLM bsiness that cliams you will be making tousands of dolalrs in a shot perod of time because the only people that do make money with these marketing strategies are the ownrer of the company not you the enttrepreneur.
Make sure you follow the 7 steps in choosing a home based business. If you do not know check my blog posting. http://pierredominick.blogspot.com/
Finally learn how to successfully operate an online marketing businses before you sign up, if you do not know where to get training I can help you with that.
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