What to Look for When Starting Your Own Business - Scam Or Legit?

Starting a home based business can be a very exciting time, an adventure that makes you feel in control of your destiny, empowered and in control of your future finances, and hopeful for the future. There are unfortunately, traps out there that look very legitimate, however you later find out that your business adventure didn't work for you, or worse yet, that you had been scammed.

Let me give you some background. I have been involved in home based business opportunities for 28 years. I have not really been scammed, because I knew what to look out for. I had a gut feeling that something didn't seem to "add up". Were all of the businesses legitimate? Yes, they were...however not all of them worked for me. There are various reasons for this, which will be mentioned later, but let's first look at what is, and is not, a legitimate opportunity.

You may have heard the term MLM, or multi-level marketing, and you may have been told to avoid it. I cannot disagree more with this. Multi-level marketing is NOT a pyramid scheme, which is what you may have heard. Avon, Mary Kay,Slumber Parties, Herbalife, Meleleuca, and other legitimate companies work with either multi-level marketing or consumer direct marketing models, all of which are legitimate. They have product to offer, and you quite often can do very well with them, in fact, it's possible to make more income than the person who sponsored you. This doesn't hold true with a pyramid scheme, as there is not a product involved, and the only person making money are the few at the top of the pyramid. Don't let the term multi-level marketing or consumer direct marketing frighten you into not affiliating with a company.

So what do you need to look for in an opportunity? The best advice is to thoroughly research, and not to make a snap decision. Never do anything spur of the moment....there are way too many people out there that are specifically coached to convince you to join with very vague promises, promising you that you will get rich quick. This should throw up a red flag right away....there is no such thing as getting rich quick, or making money for nothing. If there were truly such an amazing deal, this country wouldn't be in the shape it is now in. The sooner you realize this, you will begin to understand what DOES work.
Looking for a company with a minimum investment to start up is essential, and necessary. You couldn't start a business from scratch with nothing, so what would make you think you should be able to join for free? Starting up fees are common and standard in the industry. You couldn't open a franchise for free, and basically you are starting your own business. Base the signup fee on earning potential, looking at the commission schedule of the company. This should be openly shared with you. You wouldn't pay $250.00 startup if you would only get a 10% commission for your efforts, but a 40% commission would sweeten the pot enough to put that money out there.

Look for a company that has a valuable commodity to exchange. If you live in Alaska, you really don't want to sell air conditioners. Put forth your best effort to choose a company that is recession proof, in other words, something that will always be in demand regardless of the economy. Beauty and Adult industry items seem to survive quite well in weak economic times. People tend to cut back on other items, such as electronic toys, and luxuries..including expensive cleaning and laundry products that can be purchased at the dollar store. Jewelry can also be purchased at the mall on clearance, so unless you are certain the economy is getting better, there are business opportunities you may wish to avoid.

Look for a company that hasn't completely oversaturated the market. Check to see how many consultants you can find in your area for the business you wish to start. If your friends all know at least one other person that already sells the item you are selling, you may wish to look into another option.
Check to see if the business is listed with the better business bureau, and google to see that there isn't a class action lawsuit or several people complaining about being scammed. I avoided a huge scam by simply doing a websearch on the company, which promised a lot, and apparently didn't deliver to a whole lot of people.

Be aware that just because you love a product and know a lot about it, does NOT mean you can sell it. I love toilet paper, and I know a lot about it. I have had experience with it. This by no means qualifies me to sell it, nor does it qualify be to be the best toilet paper salesperson in the land. Don't let people (another consultant) try repeatedly to convince you to sell the product that they are selling. Allow them to present the information, and tell them you will take it into consideration. If they call you every day thereafter, this is a red flag! They are simply looking for recruits, and the daily phone calls sound desparate. Call the person who doesn't bug you....they don't need to be a pest, they know that you will come to them because they have something of value.

Things you should ask before signing up:
*What is the cost to sign up? (This could be anywhere from 25-1000 dollars, make sure your commission matches the startup fee. In other words, make sure it's worth the cost to start up)
*What is included in the starter kit? (Should be at least the value of the price of what you pay to sign up)
*Is there a monthly minimum of product that I must purchase? (beware of this....they simply want to ensure someone buys something)
*Is there a monthly minimum of what I must sell? (This is okay, but make sure you can swing it, or purchase it for self use)
*Is there a yearly fee that I need to pay to continue to be a consultant?
*Do I get free training?? (If not, look elsewhere, free training is a MUST)
*What is your corporate customer service and consultant support number? (call it, see how long it takes you to get through, or if you get through at all. If you don't, this is a BIG red flag)

So you ask what I do now that is working for me? Something I never in a million years thought that I could do, or would do. I am doing something I avoided at all cost for years, to my detriment. I was simply not well enough informed that I COULD be successful, so I completely disregarded it. There is something out there for all of us, we simply have to find our niche. Working from home is WORK-I spend numerous hours preparing, filing, advertising, shipping, following up, and organizing. But the work is rewarding because I do it at my own pace, choose my own hours, and have the responsibility of disciplining myself to succeed. It isn't about getting rich quick...it's about freedom, the one thing they can't take from us!

Wishing you luck in your business adventures!