How to Analyze Home-Based-Business Models

When an individual first starts to think about jumping on the home-based-business bandwagon, there are typically many questions that need answering. Unfortunately, the source of information that presents itself is usually someone that is trying to recruit for his or her specific opportunity...not a particularly objective point of view.

There are three main types of business models to consider. First, the sale of products and the business opportunity to friends, family, co-workers, acquaintances, and even strangers. Second, there is the pure network marketing model that entails selling mostly services (and again, the business opportunity) to the same set of potential clients. Lastly, there is affiliate marketing, which revolves around advertising others' products and services and receiving commissions.

While all three models are valid, and can result in enough income to substantially augment or even replace one's current income, the activities involved in successfully implementing any of these models vary to a great degree.

The sale of physical products via network marketing or MLM, (multi-level marketing) has gained popularity over the last few years, especially with the advent of the Internet making the ordering of these products quick and easy. The problem that most people face when trying to start this type of business is that it relies heavily on traditional sales techniques - real-time, personal contact with prospects for both the product and the opportunity.

Most people are uncomfortable with trying to sell to people they know, and even more uncomfortable pitching their wares to strangers. Industry studies show that a little less than 3% of these businesses result in a viable income.