There is no doubt that you have seen all the advertisements on the internet that promise you “unicorns and rainbows” or “get rich quick” results. The truth behind it all is that they really do not want to tell you the cold hard facts associated with a home business. It is in their best interest not to tell you the facts until after you have joined them. This is done for 1 reason and 1 reason only; most home based businesses make their money through the mass amount of people that join.
Home based businesses make money through the large number of members or distributors that have joined. The reason that they have to have such a large amount of distributors is due to attrition rates and low cost products. Having hundreds of different low cost products requires a great amount of sales through distributors in order to be viable. These low cost and low profit products make it much more difficult for business owners to earn the “microwave result” income that was advertised and attracted them to the business in the first place. The average attrition rate for the majority of home based businesses is around 75%. This rate is due to the frustration of new members not being able to earn the promised potential.
One cold hard fact about most home businesses that really stands out is the high number of direct down line that you must maintain in order to have 5 figure months. In my research on this topic I have found that the average direct down line a successful entrepreneur must maintain is between 4,000 and 25,000 team members. That is an astonishing rate to maintain which only means that these up line individuals spend most of their time adding to and maintaining their team instead of enjoying their high income and time freedom that they originally desired.
Another fact that you will not hear about or be told is that 97% of all new entrepreneurs give up within 90 days of starting because they get frustrated. Their frustration stems from the lack of support and the lack of the advertised “winning lottery ticket” income. When these individuals quit this business they do not keep their results to themselves. They tell their neighbors, friends and family, people at church and anybody else that will listen to them. All this grief talking causes serious skepticism among the people that may be considering getting involved.
The amount of hours worked is one of the biggest myths. It may be true that the top income earners only need to and actually work 3 to 4 hours a day. The entrepreneurs that are just getting started or working their ways up through the ranks are working their butts off usually around 8 to 12 hours a day. This may not be true for some but it is most definitely true for the majority. Some opportunities state that they will show you how to “fire your boss” in 90 days or less. If these new business owners still have a full time job, how many are going to want to work another 40 to 50 hours per week? Some individuals will and some will not be willing to do this. It will ultimately be their drive and determination that will get them through the learning process and on to the bigger money.
The learning process is another fact that may not be told to you. Home based businesses are relying on advertising methods such as pay per click (PPC), pay per view (PPV) and pay for impression (CPI) on the internet search engines, social media sites and advertising agencies. These skills can take some time to learn. One can and will waste a lot of money if they decide to jump right in and start advertising. There are techniques that you must use in order to optimize your campaigns and depending on your ability to learn can take some time.
Another aspect of the learning process is the business itself. Most individuals that start their own entrepreneurship have just left their jobs where they did not have to make the day to day decisions of running a business. They are use to showing up for work, doing what they are told and when they are told to do it and then go home. Now that they are their own boss, they are responsible for making the decisions and taking responsibility for those decisions. This simple lack of direction can be the reason for the downfall of 75% of new businesses. The lack of direction leads to frustration, frustration leads to fear and hesitation, fear and hesitation lead to aggravation and aggravation leads to stress and ultimate failure.
There are ways around the hidden facts. Do your research when considering a home based business. View the business presentation webinar several times if you have to in order to make an informed decision. Ask a lot of questions and get the answers that you are looking for. You will want to avoid jumping right in with “ground breaking” opportunities. Ensure that there is a dedicated and qualified support team and system in place. Check to see what kind of training is offered and if the top earners of the company are conducting the training by showing exactly their method of operation and techniques. The product line should be less than 10 and they should be high demand and high profit. This will allow you to make the income that you desire with little marketing and sales time.
The best advice that I can give anyone who is looking to start their own home based business is to keep it simple. You need to understand that you do not have to be a professional salesperson or marketer right out of the gate. Develop your knowledge and skills and put these to work for you, not against you. The most important thing to remember is to have fun with what you are doing. If tasks were all burdens then nothing would ever get done. Look for the best in your business and you will be well on your way to success.