Avon Primer
Avon Primer
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Homebased Business Opportunity: A Critique Of 2 Basic Business Models
If you are in the market for a homebased business opportunity, then you will likely run across two common, but different, business models to choose from. Each one differs as to how much money, time, and commitment are needed to make the business a success. Some people opt to piggyback these two types of businesses to maximize their earning potential. However, critics caution that these models may be too good to be true. Consider this your basic primer for choosing a work from home opportunity:
1. Direct Sales
Direct sales are a highly-common industry for work at home professionals. In direct sales, you are employed by a company to sell their products. You earn a commission based upon every sale you make. You can find a direct sales company that markets almost any product you could want to buy, from candles to soap to kitchenware. Two of the oldest direct sales firms, Avon and Mary Kay, began as companies that employed stay at home moms almost exclusively.
These companies are so ubiquitous; chances are you have purchased a product via direct sales some time in the past year. This career works best for people who have an extroverted personality and enjoy the prospect of seeking out new clients.
Critics of direct sales point out that this method does not help create financial security, as your income is always tied to another entity--in this case, the success of the company as a whole. Other critics add that direct sales can put a great deal of pressure on an entrepreneur to sell to family and friends, which can potentially strain these relationships.
2. Multi-Level Marketing
Multi-level marketing, also known as MLM, is another common industry for homebased career professionals. In MLM, you act as a salesperson for a company and also actively recruit others to the same employer. You earn a commission on your sales as well as the sales of your recruits, your recruits' recruits, and so on.
This is called a "downline," and the idea is that you will generate enough of a downline to create residual income. This income will eventually grow large enough that you will be able to rely on it as a steady source of cash flow. Often, direct sales companies will incorporate MLM strategies as an incentive for sellers to grow their businesses.
Critics of MLM point out that, much like direct sales, you will put pressure on family and friends in an effort to recruit a downline and engage in wealth creation for your business. In addition, your financial security is directly tied to the success of other sellers and the company as a whole. They argue that by implementing a smaller downline with an emphasis on selecting top-tier recruits, such as in the Get Paid Today (GPT) marketing model, you can earn far more income in a shorter period of time.
About the Author
Are you looking for a homebased business opportunity that fits your lifestyle and leads to financial freedom? For a proven guide to achieving financial independence, please visit Mark Stewart's website at http://createmylifeonline.com/.