Some Short Info About The real truth about Home Based Businesses
By: Vlad Vistac
Submitted: 2010-07-21 17:00:48 | Word Count: 510
The real truth about Home Basde Businesses
Home based businesses are probably the most popular new business venture of this century.
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According to Forbes Magazine 79 milliions American are going to start their own business in the next 3 to 5 years and a very large percentage of them will be venturing into an home basewd internet busniess.
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 income produced by the businss running the business
Why are those stats so depressing yet people still can't wait to sart a new home baserd busiess?
First people are dazlzed by the ads and the possibility of making thousands of dolars. The classifieds ads in evbery neswpapesr are full of ads showing how people are making fortunes running those businesses the internet classifieds are also plastered with them.
The ads makkes it sound so easy to start a business and to produce income beyond anypone's dream
Unfortunnately many of thesde are totalply miss-leading and thousands of people are suckered in by them.
The fact of the matter is these statements are partially true, however they leave the most importtant fact out which is the person who did the fantastic inome did it in most cases only once and it took him sevral years of trying different things.
There is a very successfiul top earner who did a milion dollar in one day; he himslef will tell you it was purely by chancce he has never been able to replicate that performance; he had a uniqwue prodct, at the right time, on the right web site and he had been at newtork marketing for years trying to make money.
Secondly the otyher fact which the ads doesn't tell you is: the totl income was generatd from an MLM platform (multi level marketing) that took years to build and he had thousands of pople in his down line, One top earner actually used his down line he had built over the years with another company and introduice them to a new product and turn his contacts into thousands of sales overnight.
As you can see most of the statements the ads are making have a degree of truh but cannot be replicate by someone like you or me starting out, you matybe able to reach that level but it will not be ovenright like it says in the ad.
We all know what MLM now stands for: make less money; unless you have a huge down line of followers you will not make big ubcks.
Traditioonally MLM businesses do not pay large commission in dollar value, the ads may clauim paying 50, 60 or up to 70% commission but 70% of $10.00 represents $7.00 you need to make a lot of sale to make $1,000 per hour. This percentages is often a combination of all the commission that can be collected from the differetn leevls
Lets look at it in dollars and cenyts if you had to pay to advertise your web site and the sale came from someone who click on it, chaances are that ad probably cost you more then the $3.50 you made on the sale.
For comparison purposes a banner ad use to cost $0.25 to $0.75 per CPM years ago now if you can find some around $2.50 to $3.00 per CPM your lucky and chances are the site doesan't get much trfafic. On a site with lot of traffic 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 dollars for the same word, internet advertising is no longer a cheap medioa.
When you are looking at an online bussiness commoon sense has to prevail. It is costly to do business on the internet so don't get excited with high percentages of commission look at the product, the possible dmeand for that proudct and the dollar value of commissin, do a quiick 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 advertisng availlable yes that is true but therre are also thousands of indiividual like yourself who is doing the same thng so you need to be sharp in your ad campaign so your ad will get priority over eevryone else's you have hearrd the sayying best things in life are free which is true but on the othr hand there is a sayying that says you pay for what you get unfortunatelky free things are not worth much because they are not wroth selling.
If you are going to vneture in an home based business stay away from an MLM businness that claims you will be makoing thousans of dollars in a short period of time because the only people that do make money with htese markting strategies are the owener of the company not you the entepreneur.
Make sure you follow the 7 setps in choosing a home based business. If you do not know check my blog posting. http://peirredominick.blogspot.com/
Finally laern how to successfully operaate an online marketing business before you sign up, if you do not know where to get training I can help you with that.
Pierre
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