Free Home Business: Is It Possible To Find A Legitimate Home Based Business That Is Free To Start?

“Home Based Business” will pull millions of hits in an internet search. There are thousands of companies with millions of distributors looking for customers and distributors of their own.

Home business opportunities universally promise substantial income and display the elevated lifestyles of their top achievers to prove the point. Most of these presentations are exciting and inspiring as example after example of ‘ordinary people’ making it big raise our belief that we too can find financial freedom.

The challenge for opportunity seekers comes when they learn it will cost them tens of dollars to thousands of dollars to get started in a work from home business opportunity. Many begin looking for an opportunity seeking one where they can start for free.

Some companies pay their distributors to recruit new prospects and some don’t, but you can universally expect to be asked to pay for the privilege of joining their company.

Is it possible to find a legitimate home based business that is free to start? Probably not, unless you plan on bending the rules a bit.

Here are my suggestions to starting a home business without paying for the privilege:

Do Your Homework

Whether you are approached by a particular company or you are searching for an opportunity you should do your homework. Avoid the forums and reviews by individuals. The sad truth is that most people at too lazy to get out of their own way and too proud to take coaching so they fail. When they tank, they look for someone to blame which usually ends up being the company or their mentor.

Instead, look at the business press. Is the company well established, growing (especially in mature markets) and innovating? It is common for a new company to post impressive growth numbers when it first starts, or opens new markets. The true indicator is how much the company is growing in mature markets, places where they have been for years.

One of the sweetest allures of the network marketing industry, which makes up the overwhelming majority of home based business opportunities, is “Getting In On The Ground Level” which is synonymous with investing your time, effort and resources into a company that is unproven. Like any business, most companies never make it past the five-year mark. Look for a company with some time, about five years, under its belt.

Building a business is hard work. Choose a solid company to invest your time and energy with.

Once you have chosen your company, done your homework, and are ready to get started, you’ll need a sponsor.

How To Get Sponsored For Free

Years ago I wanted a job with a paper company as a sales rep calling on printers for their needs. I had no real experience in this area, but I knew I could do it. My background was in printing plus I could see that these guys made good money and I wanted in.

The company I interviewed with was luke-warm about hiring me. They had a formula for new hires and I didn’t fit their program. I decided to go all out and I made them an offer: If they would hire me and put me on the street I’d work on straight commission. That way I wouldn’t cost them anything.

We finally came to an agreement and I had a great 20-year career. I made lots of money for them and for myself. It was a win-win.

When you decide to start your home business, you are going to need to pitch yourself in a similar way if you want to work around the several hundred dollars it will probably cost you to start with a legitimate company. You need to create that win-win to get them thinking outside the box.

Every distributor wants new customers and distributors. That’s how the business grows and you become one of those people in the videos living the good life. Prospecting is where you will spend most of your time in your business as well as most of your money. When you factor in time, advertising cost and other resources you will be spending a hefty sum for each new person who becomes a customer or joins your business.

Since you are going to have to do it any way, why not start prospecting before you join the business?

If you’ve decided that you want to join ‘Widgets International’ and you have found John Doe, a Widgets International Independent Distributor, then instead of telling him you’ll pay his $250 sign-up fee (hypothetical…varies by opportunity) tell him you’ll put him in front of 10 of your acquaintances for him to make a Widget Demonstration.

All you ask is that the first $250 he clears from any sales go toward your sign-up fee to become a Widgets International Independent Distributor yourself, and that those customers you brought to the presentation will be yours as a distributor.

If you don’t crack the nut in the first go around, meaning you don’t sell enough to cover your distributorship, you simply repeat the process until you do.

How You Sell The Idea: It’s A True Win-Win For Everyone

Your up-line distributor gets to present to a group of people he did not have to spend time or money to assemble. He potentially gets a new, motivated distributor (you) and even if you flame out he now has the people you brought to the table as prospects who he can stay in contact with and convert to customers.

You get a distributorship without writing a check or swiping your card. You even have some new customers and a repeatable model you can use to bring other people to your new business.

A Tale Of Two Widget Salesmen

Many people see sales as an exercise in confrontation. If you’ve ever bought a high ticket item like a car, then you know what I’m talking about. You want to get a cheap price, and the seller wants to make as much money as possible. For the most part, the difficulties in buying and selling aren’t centered around the price, they’re centered around the transaction itself.

Consider somebody who is selling widgets at a booth. Say the booth is at a home show. For every widget he sells, he’ll make a profit of a dollar. Naturally, the more widgets he sells, the more money he takes. If he had his druthers, he’d sell a widget to everybody that passed him by. This is precisely what he tries to do.

He comes up with a huge pitch, designed to lure in as many people as possible. He claims this widget can do anything, so more people will want it. Because he is so good a persuasion, or sales, a lot of people are convinced they want this widget. They get it home, still feeling happy that they’ve bought this widget.

But a few days and weeks pass, and they find they really don’t have much use for this widget. After a while, they wonder why they bought the thing. Soon their friends start asking them why they bought it. They don’t know. They say they were conned into buying it. The salesperson was really pushy. They bought it just to be polite.

Pretty soon this widget seller has developed a reputation as a pushy salesperson. He has to travel to a new city every couple months, because he quickly wears out his welcome. Such is the life of a traveling widget salesman.

Now consider another widget salesman. He doesn’t promise the moon. He just says what the widget does. His reputation is more important to him than anything. Instead of trying to sell his widget to every single person that walks by, he qualifies his customers. He asks them questions to make sure they can get a real use out of the widget. Plenty of people like the widget, think it looks cool, but the widget salesman is clear that they really won’t get much use out of it, unless they really do need it.

So a lot fewer people buy his widgets. But the ones that do, really use it. And enjoy it. And tell all their friends. Pretty soon people that really need this widget are beating down this poor widget salesman’s door trying to buy his product.

Before long, he’s got a huge mail order business, and he doesn’t have to do any more traveling to sell his widgets. He can relax at home, while his business runs itself. He out-sources all the people he needs to handle his orders.

The first widget salesman was worried about not selling anything, and thus created a life of hardship. The second widget salesman was convinced of the quality of his product, and in the interest of his reputation, only wanted to put it in the hands of people who really needed it. As a result, he lives and easy life with easy money.

Which one are you?

Can You Really Make Money By Drop Shipping Products From Home?

Internet retail sales are forecasted to increase to over $245 Billion annually by 2014.

If you choose to select this venue to earn income, internet retail sales could be your answer. Let’s suppose you choose this venue for income and decide this is the way to go and you want to sell Widgets. So you go out and buy 1,000 widgets and stock them in your garage. You expect to sell 1,000 Widgets your first month. Let’s say each widget costs you.50 cents, shipping to you is.25 cents. So far you owe.75 cents X 1,000 or $750.00 you had to prepay.

So you already have your website which is hosted by Google or Yahoo, and the domain is paid for, and you list your widget on your website. Let’s say the annual cost of the prepaid website and template is $120 annually or $12 per month.

So your first month of selling widgets, you decide to list them on your website for $2.00 each shipping included and you have the first month expense of $762.00 (overhead).

Then you get your first order for 10 Widgets. So you earned $20.00 gross income and shipping the 10 Widgets costs $2.00 (.20 cents each bulk lot instead of.25 cents each). So your second order, 3 days later comes in for 990 Widgets at $2.00 each. So your gross income is $1,980.00 and the shipping is $198.00 for the lot (.20 cents each bulk lot instead of.25 cents each).

So, we started out at a monthly gross income on the Widgets at $2,000.00 less your shipping costs to your buyers of $200.00 less your cost of the 1,000 Widgets of $750.00 less your overhead of $12 per month.

So your net profit is $1,038.00 for the month. Not too bad right? Well, let’s say you had to spend 160 hours during the month finding your supplier, ordering Widgets, stocking them in your garage, posting them to your website, answering orders, processing and then packaging them for mailing, and going to and from the post office. (We will assume you already had the other costs prepaid – computer, internet, packing supplies, auto, gas, insurance, etc.). So a net profit of $1.038.00 divided by 160 hours equals you got paid $6.49 per hour of your time.

DROP SHIPPING. Using the above example, let’s suppose you are browsing the internet and you find a drop shipper that will sell you each Widget for.25 cents each and will ship for you for.25 cents each(cost passed on to consumer), so your total costs are.25 cents per Widget before overhead.

Now let’s say the drop shipper offers you a prepaid domain, website template, and up to 1 million products listed on your website. They handle all the inventory, shipping, updating the website, etc. Let’s say the costs are a one-time fee of $149.00 and a monthly hosting fee of $29.99 or for the first 12 months $42.41 per month (overhead) in the first year, then $29.99 per month.

So on the drop ship plan you sold 1,000 Widgets at $2.00 each or $2,000 Gross Income less your cost to the drop shipper of $250 for the 1,000 Widgets and less your monthly overhead of $42.41 equals a net income of $1707.59.

Now, let’s suppose you it took you 60 of your time for the month to monitor the website, change the template, track orders, etc. So $1707.59 divided by 60 equals $28.46 per hour income to you for your time.

So had you rather work for $6.49 per hour or $28.46 per hour?