Success In Your Home Based Business #3 The Right Product For Your Home Business by:Chris Call
As a current or prospective home based business owner, you are no doubt well aware of the value of having a strong product or service to offer. This is true of all home based businesses, whether you are operating an online retail store, a network marketing or multi-level marketing company, or an internet based business. If you dont have a strong product, you will never get your home business off the ground.
However, having a strong product is simply not enough. To really be successful in your home based business endeavor, you must have a strong product that will stand on its own. A product that you, or one of your clients, would actually purchase in the store for the price that you are selling it for. Especially in the world of network or multi-level marketing, product prices are notoriously over inflated. Why? Because these companies have to build in an enormous incentive into the price of the product in order to pay the giant pyramids or downlines of distributors.
Most people involved in network marketing are familiar with the various health juices companies circulating around. Or, as they like to call themselves, the liquid dietary supplement companies. How many people, if they werent actively involved in the business side of these companies, would actually pay $30 - $60 per BOTTLE for these products? Ask around, and I am confident that you will find there are very, very few. While they may be excellent products, they are still over priced, because they HAVE to be, to support the compensation structure.
What this means is the products offered by many network marketing companies cannot generally stand on their own. They couldnt be sold at retail for the price that you pay for them direct from the company as part of your auto ship requirements. And not only that, its hard to convince yourself that these products are a good deal, and thus is becomes hard to sell to others that these products are a good deal, and thus it is extremely hard to grow your business (believe me, I know Ive been involved with one of these juice companies, and quickly discovered what Im sharing with you now). Well come back to this point in a moment.
Going back to the network marketing example, in most MLM companies, you only earn a small commission from each person involved in your organization. Maybe you earn $5 or $10 per month from each person, and if you can get enough of them, say over 1000 active in your organization, then you can earn a solid income. However, anyone who has every tried to build a multi-level or network marketing company knows just how difficult it is to get people into the business, and then to KEEP them in the business! You expend an enormous amount of effort (and in some cases, money) to bring each person into the business, and then you have to constantly work to keep most of them motivated. Very few people (less than 3%) ever actually achieve real success in these kinds of companies.
This same concept holds for online retailers. You can spend a substantial sum of money in advertising for each sale that might net you $5, $10, or $20. In most cases, you are lucky to break even. Whether you are importing items from China, or you found a local company willing to drop-ship, your advertising costs will quickly eat up all your profits, leaving you with little cash to show for your efforts.
So what is the answer? How do you work around the two above scenarios, and ultimately achieve success in your home based business? By finding big ticket products or services to promote. A big ticket item is generally defined as something that costs $1000 or more to purchase. The advantage of selling big ticket items is that you spend approximately the same amount of time marketing the product or business as you do for a small ticket item (like a few bottles of juice or a pair of shoes), but because of the price of the product, there is room for a great deal of commission. Rather than hoping to pick up $5 or $10 from each new enrollee into your company, or each new order on your website, you can earn hundreds or even thousands of dollars in commissions on each sale.
There are hundreds or thousands of big ticket items that you can market through a home-based business. But you cannot expect to simply find any big ticket item then achieve immediate success. Going back to our first point, the product or service must stand on its own. It must have real value at the offering price. A prospective buyer must be willing to buy the product FOR the product, and not simply to get involved in the business opportunity.
For example, I am the Founding Member of a new network marketing company that is marketing a big ticket product. This product is an online securities trading educational program. This big ticket item costs initially about $2000 to get into, and has an ongoing $150/month obligation to stay in. But the product stands on its own. Many people, maybe even most people, initially get involved because of the product. This product has tremendous value for your investment, you get ongoing training in effective securities trading practices, and advice on how to use this training to be successful. You also receive real time data to use to make quick trades ahead of the market. In a nut shell, this is a big ticket product that has tremendous value OUTSIDE of the business opportunity. I am very excited about where this new business is going. And I never would have gotten involved in this company were it not for the quality of the product. No business opportunity is strong enough to really jump into unless it is backed by an outstanding product or service. For details, fill out the contact for here - http://www.alliedentrepreneurs.com/opportunity.php
In summary, no product or service that does not stand on its own at its acquisition price will ever ultimately lead you to success in your home based business venture. And the bigger ticket the product or service that you are selling is, the more likely you are to be successful.
About the author
Chris Call recently became the founding member of a new Network Marketing company. This company is currently in "pre-launch" phase, and is beginning to accept interested party's enrollment information. This company provides online education and training for successful securities trading on an ongoing basis. In addition, the company provide real-time market data and news that allows participants the opportunity to react before the market.
For more information, fill out the contact form here: http://www.alliedentrepreneurs.com/opportunity.php
Did you know that over 95% of all home based businesses FAIL within one year? Find out why here http://www.alliedentrepreneurs.com
http://www.articlecity.com/articles/business_and_finance/article_10842.shtml LEAVE A REPLY? =>> REPLY
- Take Time for a Credit Self Check by:Mark S. Zuckerberg
- How To Work A Christian Business At Home And Succeed
- Internet Home Business- How to Succeed by:Laura Cosse
- Home Business- Look Before You Leap by:Laura Cosse
- Home Business- Finding the Best Opportunity for You by:Laura Cosse
- The 4 Methods For Selling Your House by:Steve Teta
- 12 Tips For A Quick House Sale by:Steve Teta
- Bank of America Mortgage Modification New Program For Homeowners by:Bobby Mason
- Learn How to Refinance Your Home Mortgage by:Ryan Anderson
- Toronto Real Estate: Should You Hire an Agent or Sell Your Home Alone? by:Robert Kennedy