THE HOME BASED BUSINESS QUICK START GUIDE
Welcome to the Home Based Business Quick Start Guide. I am your
host, Paul Wilson.
This guide is designed for people who are new to a Home Based
Generally speaking the people who are looking at starting an HBB have
one thing in common, they want to make a good living from home
instead of going out to work for someone else, the traditional way to
make a paycheque.
With all of the attention surrounding the internet over the last decade
or so, it is only natural that people will be looking online to see what
can be done.
There is good news and bad news to this.
The good news is that with so many people turning to the internet,
there is a LOT of opportunities out there to start an HBB. There are
people out there who make a very substantial living working from
home on the internet.
The bad news? 90% of people who start a Home Based
Business (HBB) don’t ever make more than one or two sales
and never actually clear a profit.
How come it works so well for some and not others? Well that is what
we are here to figure out.
I decided to sit down and write this guide after spending several
months trying to find something that my wife could do from home
after she had been diagnosed with Fibromyalgia (a degenerative joint
condition) that we knew would eventually make it so that she could
not work outside the home.
I started hunting and sure enough, not long after that my e-mail inbox
started to fill up with hundreds of wonderful offers of ways to start my
own HBB. Some of these offers were downright amazing. Headlines
that read “Make $30 000 in 30 days” came in at the rate of dozens per
Wait a sec, does that mean if I bought into three of these offers I
would make $90 000 in 30 days?
How does one sort through all if this to find out what offers are real
and what is just smoke? Well sit down, grab a coffee and let me pass
along what I found out. Perhaps I can save you the several months’
worth of hunting and the several (expensive) false starts that I went
Choosing a business
Let’s start with choosing the right HBB opportunity. If you are able to
choose the right business for you right off the bat, you can save
yourself a whole bunch of time and effort. There are three main types
of internet HBB’s.
Let’s have a look at each one and see if we can figure out the pros and
cons for each.
This is where you buy a product, usually in bulk, at one price and sell
it directly to the consumer at a higher price. If you have ever bought a
product from an infomercial or a catalogue, you will have seen this
type of business.
• The money you make from sales goes directly to you and
is not shared with anyone else before you get it.
• You have complete freedom in how you choose to market
and what you choose to say in your advertising.
• Marketing and advertising can be very expensive.
• Taking orders, collecting payment, dealing with customers,
and shipping the product are all your responsibilities.
• In most cases, all of the money for your expenses needs to
come out of your pocket before you have sold anything or
collected any money.
This type of business model can be enormously successful. This is
where all of the truly spectacular success stories that are floating
around the net come from.
The news story of the 25 million dollars worth of orders in 2 hours
from a product launch is very likely completely true and you can bet it
comes from direct sales.
What the news stories tend to not mention is the MANY other product
launches that left the business owner with a garage full of product that
he could not sell and a couple of hundred thousand dollars worth of
investment in advertising costs that he was not able to recover.
The bottom line on this one is that you can be hugely successful at this
type of business if you have a very healthy operating budget and a lot
of marketing experience.
This by the way is the first type of HBB I took a serious look at when I
The potential rewards seemed to be enormous and according to the
marketing hype there was no potential downside.
Well a closer look showed that to be part right at least. As I learned a
bit more, I decided that I did not have deep enough pockets or enough
marketing experience to begin with that type of business.
This is another type pf business that is all over the internet, marketing
everything from health products to satellite systems.
In this business model you have an existing product or service that
you market for someone else in return for a percentage of the profits.
The product supplier usually has a marketing system in place.
• This is generally one of the least expensive businesses to
start and may in fact cost you nothing to “buy into” as the
product supplier has usually taken care of the majority of
• You have no up front costs like shipping or inventory to
• You usually do not even have to deal with the customer
after the purchase has been made.
• In most cases you simply get a cheque mailed to you or
deposited to your Paypal account and don’t have to try to
deal with collecting from customers.
• It is relatively easy to be a member of many different
Affiliate programs at the same time in fact you will find
that most people who are successful with an HBB tend to
be members of multiple programs.
• This tends to be a much less risky type of business to start
• These programs usually do not make you a large income.
It can happen but it is not the norm.
• The percentage you earn can vary a lot from program to
program. You can go from keeping as profit 10% to 90%
of the selling price.
• You are still responsible for all of the advertising and
• You may be very restricted in the type of advertising and
marketing you can do.
I would not be afraid to have a real close look at some of these
They do not tend to create huge incomes individually but if you get
into a half a dozen affiliate programs with good products that each
make you $ 500 per month or so, you could have quite a decent
income from these alone.
There are people out there who use these programs exclusively to
make a good income. These programs tend to work great when they
are used as a sideline business along with another main business.
One thing I would caution about though is be aware of what the
limitations on advertising are before you get into the program.
There are companies out there that let you get into their affiliate
program for very little cash outlay up front, though there is usually a
monthly fee that goes with it. Then once you are into the program you
will get a call from their advertising department who will offer to sell
you ineffective advertising at double the going rate or so.
Once you decline that offer (cause you did your homework before you
started and you know that those advertising rates are outrageous)
they will mention that in the Terms and Conditions you signed it stated
that you can not advertise at all though any other method than their
You are now either out your initial investment as well as your monthly
fees for the whole term, or committed to paying terrible rates for bad
advertising in the hope that you will get something back from it.
Either way, if you have signed for it, it is legal and the company who
sold it to you wins.
I have found that most Affiliate programs out there are genuinely
interested in getting their products sold but as always you really do
have to read the fine print.
Multi level Marketing
Ahh yes the best known and most infamous marketing system out
there. Well believe it or not, most of the incredible offers that come
through your e-mail inbox belong to this type of business model.
This is where you join an existing marketing system with the intent of
selling the business system rather than the product. Again the types of
products sold using this system vary enormously.
One other difference from the other two systems is that all of the
income earned is shared up the line with the people who brought you
into the system.
• The upfront costs to get involved are usually very low.
• There are actually a fair number of people who not only do
it full time but they make a pretty good living at it too.
• There is most often a marketing system in place.
• It is one of the easiest business models to try to explain
because most people have been exposed before.
• Work done by the people below you has a direct effect on
• The business model has a terrible reputation and that can
be difficult to overcome for those trying to sell it.
• People that have had some form of contact with multi level
marketing will most often have an opinion about it.
• There is generally not a lot of profit in the system for a
single product sale. In most cases you would have to sell a
huge amount of product to make a living off of it.
• Running this type of business can be a huge amount of
work. People tend to find that they work a lot of hours for
not a lot of return.
• This type of business can make an income you can retire
on but generally it takes consistent work over the span of
years for that to happen.
This business model is one of the most prevalent on the net. It is also
one of the most poorly executed. It seems that right from the
beginning these business were not run as a business but more as a
One of the first things that you are told when you join a multi level
marketing business is that “anyone that comes within three feet of you
is a potential partner and you should approach them as such. Always
be ready to show the system, sell the system and close the sale.”
Wow could you imagine if a family doctor had such an attitude? Or a
lawyer? Or how about the town undertaker? It makes me very glad
that this attitude has not become widespread.
It makes the people who do own this type of business and have such
an attitude very hard to be around because it becomes all consuming.
I have had a situation where I would go out of my way to avoid such a
person, and this is someone who I previously very much enjoyed
talking to. He went from being someone who had a considered opinion
on a multitude of different topics to someone who only had one topic.
Everything that he talked about came back to his business. There
simply was no room in his head for anything else.
It is because of this type of behaviour that this business model, which
truly can have a lot to recommend it, has such a terrible reputation.
Having said all of that, there are still a lot of people involved in a multi
level business of one form or another and that number grows daily.
With all the people getting into this type of business there are still
plenty of people out there that make a very good living at it.
So, that is a brief overview of the three main business systems which
are the most popular on the net. All of them have their advantages
and any of them if done correctly could provide you with a decent stay
at home income.
So which way did I go? After having taken a close look at all three, I
did not choose any of them. Instead I went with a hybrid business
model which took the pros from all three systems.
Choosing a product
Ok, now you know a bit more about what to look at when you are
looking for a business type that will work for you.
Let’s have a look at how to choose a product.
This is actually a very important step in setting up a HBB that is
far too often completely overlooked.
Chances are that a HBB owner looked far more closely at the potential
income (if everything went according to plan) that at what they were
actually trying to sell.
You may have picked a perfect (for you) type of business but if that
business has a terrible product then you are gonna have a tough time
making a successful business out of it.
Here are some of the pieces that must be in place for a product to be
successful for you. I know that this is going to sound like pretty basic
stuff but you would shocked at how often people do not follow these
simple steps before setting up a business.
Simply put, this is the ability of the company that produces or
distributes the product to get it to you.
Same kinda deal again, you may have a wonderful product but if you
can’t get it to your customers when they order it then you are going
run into problems.
You want to make sure that when you are talking to the person trying
to sell you on the business, that you have a very clear idea of the time
it takes from ordering the product until it is in your customers hands
and ready to use. A note here, I said your customers hands, not
yours. The difference can be huge.
The nice thing about business on the net is that time span is often
very nearly zero especially if the product is a business system or an
This also is a huge help in setting up a successful HBB. You need to
make sure that the product you are selling is something that people
want to buy.
Again, you have this amazing product that does wonders but if people
are not buying it or anything like it you are going to hit a brick wall
when you try to sell it.
One way that you can get an idea of how the market is for your
product is to go to Google, Yahoo, MSN, or any other search engine
and do a search for the product you are researching.
You will want to try to make you’re your search queries as specific as
possible at first.
For example type in the product name or description instead of a
When the search is complete have a look at how many results the
search engine brought back. If you have a product that the market
wants and people want to buy the result will be a LOT. Then take a
look at the top few results on the first page. Are they places you can
buy the product or are they complaints pages?
Once you have gotten an idea of what your specific product market is
then you can expand your search to the actual company that is
supplying it to you and run the same process on them.
You will quickly find out if other people have had good experiences or
bad with that company. This should not necessarily be the only thing
you base your decision on, but it is a great starting point.
Do you do The Twist?
Does your product have something that sets it apart from the rest of
the similar products out there? This could be things like the price, what
you get for that price, or even how it is presented and marketed. Is
there a warranty of any kind? It is very helpful to be able to point out
to your prospects something that lets your product stand out from the
If this sounds like a lot of work to do before you even start to sell a
product, well you are right but it can save you a ton of time and
frustration in trying to sell a product that no one wants.
It is very difficult to create a market for a product. It is a WHOLE lot
easier to find a product that already has a market and sell to that
Getting Past the Marketing B.S
Alright, we are moving a whole lot closer now, by this point in the
process you will likely have picked out a couple of business from all
those amazing offers in your inbox that you think may be good
candidates for you.
Here are some pointers and questions you can ask to help you narrow
it down the rest of the way.
Firstly though the marketing headline that drew your attention may be
true, strictly speaking, it is almost certainly not the norm.
One of my favourites is “I made $ 10 000 my first month” I like this
one because I know someone who made just under $10 000 his first
month. And it wasn’t me.
What gets left out of that headline is this guy’s background. For the
last decade he was a marketing agent for one of the largest car
dealerships we have locally. For the five years before that he was a
salesman for that same dealership.
He already knew sales and marketing. His learning curve was for all
practical purposes zero. Most of us that get into a home based
business don’t have that type of experience to draw on and have to
learn some things as we go.
Another great one is “no selling required, our product sells itself.” Ok
just a thought here. If there is no selling required and your product
sells itself, just what the hell do they need you for?
Sorry folks, the fact of the matter is anyone that owns a business of
any type is a salesman. What type of salesman is up to you, you
certainly do not need to become a used car salesman type to create a
profitable business. In fact I strongly recommend that you don’t. But a
business runs and you get paid when a product or service is
exchanged for money and that to me is the definition of a sale.
People will say a lot of things to get their product sold, it is up
to you to make sure that you have a good idea going in to a business
venture, what exactly is required.
You need to know in advance things like:
• What exactly are you marketing?
• What exactly has to happen before you get paid.
• How do you get paid? Are you paid by cheque or do you need a
Merchant Account, or even something like a PayPal account?
• What marketing tools are already in place for you to use?
• What if any limitations are on how you can market?
• And the big one, what are your total costs? Not only initially, but
on a month to month basis as well.
All operating businesses require an operating budget. Try to
find out what that would reasonably be before you sink money into
One last question I would ask the person who is trying to sell you
on this is, how many people he knows personally that do this
business full time.
Don’t be afraid to ask these questions and if you don’t get straight
answers don’t be afraid to look elsewhere, there are a lot of
opportunities out there.
You also need to know ahead of time what legal and tax issues you
may run into with your business and the person trying to sell you the
opportunity might not be the best person to ask about those issues.
For those issues there is no substitute for professional advice.
Don’t forget to have a little patience.
Most people who are successful at a Home Based Business did not do
very well in their first couple of months at it. They spent their first few
months learning their business and figuring out how to market it.
You need to make sure that you can do this without going so broke
with monthly operating costs that you give up on the business.
This guide is meant to be my advice only. It is not any kind of a HBB
bible nor does it have any legal standing.
Take what advice sounds right to you and leave out what
Also this guide is not meant to be copyrighted. You are welcome to
send it out to whoever you think it may do some good for. All that I
ask is that you do not modify it and that you leave my signature on
Feel free to get in touch with me if you have questions or comments.
Phone: (604) 756-0195
Wishing you the best of luck;