How to Evaluate a Home Based Business Opportunity

There are so many companies online now days that offer home based business opportunities. There are several things to look for when thinking about joining a home based business opportunity.

The very first thing you should look for is contact information. Does the website have a contact link or any contact information for the corporate office? Is there a street address and a phone number that you can call?

Anyone can hide behind a website now days. If the company does not offer a phone number it probably means that they don't want to handle any phone calls or answer any questions. Remember you are going to a partnership with these people. Do you want to be in business with a company or with a person you can't even call?

Also lack of a physical or mailing address probably means that they are hiding something. Why would they not want to receive mail? Most likely when a business opportunity website fails to have a corporate address it means that they don't want to be bothered by anyone including mail from government authorities. Ask yourself why would that be?

Many online businesses now days claim they are not a pyramid scheme, because pyramids are illegal. However what they don't realize or tell you is that many of them are Ponzi schemes. A Ponzi scheme is any business scheme that pays people based on the time they get in. Any business that says "first in is the first to get paid" is a ponzi scheme. 99% of all "get paid to" and "autosurf" programs are ponzi schemes. Many ponzi schemes go out of business before they get closed down by the authorities. Most ponzi schemes go out of business within 3 years if not sooner. Ponzi schemes feed off of people's greed, laziness and ignorance.

Currently there is a "social networking global internet business" that is a fairly new startup with a slick website. Their compensation plan to people that join them pays on the basis of a time stamp... in other words the first in move up and get paid and then the next people to get paid depend on others coming a aboard.

Ponzi schemes claim that every one gets paid...(Which is only true in the first several months or years until there is no one left to feed the fire). Any opportunity that claims "the sooner you join the sooner you get paid is a Ponzi scheme.

The next thing you should look for is the product. Is there a real marketable product involved? Is the product quality excellent? Would other people buy the product? Not just you? Would other people buy and use the product even if there was no money making opportunity? Here is a key to look for...Can you easily buy the product first without being involved in the opportunity just to try it? And then convert to a member later?

If the company is only hyping their "money-making" opportunity and not focused on the product then more than likely the company is either a "pyramid", "Ponzi Sheme or both.

Quixtar (Amway) is one of the most famous cases of a business opportunity that has proved through court cases that they are not an illegal pyramid scheme have stood the test of time, and it's because they have real products that people buy and use... like soap, cosmetics and laundry detergent. Many people argue that they are more expensive than what you buy at Costco, but none the less they are real products that people can use every day. You may not agree with their individual distributor practices or the group hotel meeting reputation, but they are an example of a legal and longstanding home based business opportunity. There are many others.

Legit home based business opps have real contact info not just a website or a distributor name and info. They have corporate contact information with a street address and phone number.

They have real products...That regular people would buy from them. Not just for the "revenue opportunity". For example, their products have to have something extra or different to offer to the regular consumer to make them want to try and buy the product.

In the un-named Ponzi scheme opportunity above one of the products they offer is "domain names". So what. You can get a domain name from thousands of other places. What makes getting a domain name from them different? Is it unique? What other products do they have? Are do they have something special, unique or different compared to others? Or are they EXACTLY the same? Is there a special technology? Or are they just re-marketing the exact same something that you can get anywhere else? If they are exactly the same (like in the case of domain names and web hosting), then you should probably look for something else. And if they are charging you money in addition to charging you for the domain name or hosting then they are either a pyramid or Ponzi scheme.

The reason that there are so many nutritional product home based business opportunities is that many (many but not all) nutritional companies have a proprietary formulation that took months or even years to develop. Also many people once they find a reliable nutritional supplement that works for them, they stay on it for years. Nutritional companies that offer a better product than other companies, or compared to what is available at the drug store or super market develop a long term loyal customer and member base that sustains the company. This is in direct opposite of a Ponzi scheme that relies on new people constantly joining to fuel the growth and pay their enrollees.

Another thing you should look for is track record. Does the company have a profitable history of more than 5 years? Most businesses go out of businesses within 5 years? Are they still growing and profitable? Is their product line and customer base growing (not just members)? If the company is a start up, do the founders and owners of the company have a track record in the industry? For example just because you are a successful athlete does not mean you can successfully run a company that sells sports drinks. Or just because the owner of the company is a best selling author does not mean that a book selling company will be successful over the long haul. In other words does the management have a track record in building companies that benefit home based business owners or franchisees or distributors?

Ask yourself what's so special about the company and their product if there was no business opportunity involved. If the company is something you want to be involved with and can still happily use their products or services even without making any money, then the opportunity is probably worth further investigation.