11 Things to Look for in a Legitimate Home Based Business

Simply put, think "Value." Look for value by ensuring the business your considering has the following:

1. The company is reputable.

If the company has not been in business very long - wait until it establishes a reputation before you get involved. What is the company's track record with the Better Business Bureau? For example, have any complaints been filed against this company? Also do a search on the Internet for the company and its owners to see what information you receive. What value is this company providing to people?

2. A legitimate home based business does not promise instant wealth.

Legitimate programs offer a steady income stream that can increase gradually. As with any business, it takes time to build a successful home business. Do you have realistic expectations about what you're going to achieve with your home-based business?

3. Is the product or service the company offers something that you would feel good about promoting?

Remember your reputation is important as well. You can only represent, with confidence, a product or service about which you feel good. If you're not promoting something with confidence, well, then, you're wasting your time. Think in terms of what value you will be offering people with your legitimate home based business product or service. Ask yourself: Does your product have value in and of itself?

Meaning, is there a significant number of people who will want the product or service? Is the market for the product or service large enough such that your financial goals are attainable? For example, if the product is really obscure, possibly too exotic, the chances of a lot of people being interested in buying it will be slim - no matter how "cool" you think the product is.

5. How much does it cost to get started and for you to remain involved?

While there is not a set amount of money you should or should not spend to start a legitimate home based business, make sure that you're getting value for what you're paying. For example, are you paying for a start-up kit that seems completely over-priced? Or, are you shelling out hundreds, even thousands of dollars that will simply go in the person's pocket that is recruiting you? Avoid these types of business arrangements. They lack integrity, rarely deliver on what is promised, and are void of any value.

What is going to be your monthly costs? Meaning, is there a monthly charge to continue in the business? If so, what do you get for that monthly cost? Again, do you think you are getting a lot of value for your money?

6. Are there any hidden costs to running the business?

Legitimate home based business programs do not include any hidden costs. You should not have to carry large amounts of inventory, pay for information that you will not use, go to seminars you are not interested in attending, or spend additional money on anything that you do not need to effectively run your business. If someone is employing pressure tactics to get you to spend money on something related to you business, say "thanks, but no thanks" to that home business because either it is not a legitimate home-based business or the person is a fraud.

7. How will you be compensated?

Before you choose a home business review the compensation plan in detail. If you do not completely understand the terminology being used, don't worry. Simply ask questions:

What can I expect to make after a month/6 months/a year?
What is the average amount of money that I can earn at certain levels of performance?
What is the range?
How long does it take for people to achieve that level?
What kind of effort does it take?

A legitimate home based business program will have a compensation plan that you think is fair.

8. Will you receive training, support, and business tools to help you with marketing, sales, and business administration?

In order to remain competitive, most legitimate home based business programs today have state-of-the art resources. These resources often are fully automated with professional websites and Internet tools that do all the promoting and background work for you.

9. What is the company's refund policy?

Legitimate home based businesses make it easy for people to do business with them. They also provide good customer service. Typically, such companies offer a no-questions-asked, money-back, satisfaction guarantee. Look for that. Again, look for value.

10. What is the average amount of an order and how often do customers reorder?

The answer to this question will be a clear indication of what you're going to have to do to make the kind of money that you want to make. The answer also will indicate how stable the company is. If customers are not ordering frequently, the company might have cash flow problems - which means that you will at some point if you get involved.

11. Know what to look for if it's network marketing (MLM):

There are many legitimate home based business programs that are also network marketing, or multi level marketing (MLM) businesses.

Often people equate network marketing (MLM) with the phrase "pyramid scheme." I have two things to point out regarding this unfortunate tendency:

First, every viable organization takes on the shape of a pyramid. The president at the top has several department heads under him, who each have several managers, who supervise teams of employees, etc.

Second, and more important, pyramid schemes are illegal. By law, any company delivering their products to market via a network marketing distribution channel must include a retail program to avoid being a pyramid scheme.

A retail program is where any person who wants to become a distributor can do so by way of selling product at a retail price point without having to recruit distributors.

To summarize about network marketing home based businesses: Look for value. Make sure that the program pays according to a matrix (2X2, 4X4, etc.), the product is a good value for the money, and each distributor is being compensated fairly. And, consider these twelve things to look for in a network marketing business.

There is an entire section on this site about network marketing. Please visit it to find out more: Network Marketing.

Are you looking for a legitimate home based business that you could start building within the next 30 days?

If so, then I can provide you with information about specific based businesses - businesses that I know are legitimate and from which people are making money.

Contact me directly for more information. I am not here to "sell" you on anything - I am simply here to help you find the right home based business for yourself.

Return from Legitimate Home Based Business to all-about-home-business home page