Finding the Perfect Home Business: a painful process
It was a long, painful process coming up with the perfect home business, for a lot of great ideas had to be eliminated along the way. While there were products that were unique, exciting, and satisfied needs, they were either too expensive, not highly profitable, or difficult to ship. I immediately eliminated all manufacturing and processing types of businesses—no cookies and no widgets. Of course I also immediately got rid of all service businesses, no matter how professional because all they did was trade time for money—a horrible business model.
It didn’t take long until I was scraping the bottom of the idea barrel. Franchises were costly and hugely labor intensive. Turnkey business solutions were abundant, but did not meet all of my criteria and had to be crossed off the list.
Naturally, I looked into the typical MLM business model that wants you to recruit all your friends, relatives, and neighbors, buy a bunch of crap and store it in your garage and then ship it out if you can sell it. I wasn’t into selling soap or vitamins. I wasn’t about to bug my friends and neighbors.
Besides, MLM is a dreadful business model. It’s supposed to a wonderful world, an ideal business because you recruit others to work under you who do all the selling. Your job then becomes that of a motivator. But, even if you can build up a nice residual income after a few years, and I stress the YEARS, it can all come crashing down on you because you are ultimately dependent on others under you. People get disenchanted, pull out, and move on. Nope, that’s not a good business for too many reasons to go into here other than to conclude that MLM should be avoided at all costs as a lousy business format.
What about the latest craze in online marketing-- affiliate marketing? I must admit that it has its strong points and really fits most of my criteria. In fact, it is almost a perfect business model because you don’t have to invest in products or create products. The supplier ships for you, collects the money, and pays you. All you have to do is find a worthwhile product in demand and market it properly.
But, therein lies the rub. If you find a great product, probably a lot of others will have found it as well. Accordingly, there’s going to be a lot of competition for search engine placement, and pay per click keywords will be sky high, which drives up advertising costs and lowers profits. Speaking of profits, they usually are not all that high. The most I have ever seen is 75%, and of course those are the ones everyone wants to market and there is a lot of competition lowering your chances of success and high profits.
If the truth be told, most people don’t really make a lot of money with affiliate marketing. But some do, of course, and more power to them. Generally, I did not feel that affiliate marketing filled all my criteria for the perfect business.
The affiliate marketing lesson
But what can we learn from the affiliate marketing model? As I pointed out, there are many attractive aspects of affiliate marketing, and some people have taken advantage of the concept very successfully. Certainly there are people who have used other business formats successfully too. But, they usually end up working their butts off and become prisoners in their own traps.
Remember, I am looking for a business that is highly profitable and frees me from the day to day drudgery, a business that works mostly on autopilot that I can monitor from anywhere in the world while on an adventure. There is a huge difference.
What I learned from affiliate marketing is that the most highly profitable products, the ones that pay those 75% commissions are always information products. These are electronic products that cost almost nothing to produce, reproduce, and ship.
You can market these products online at little expense. You can even use an affiliate marketing structure to help you market the electronic products. What can be better than having other people spending their money to market your products? That is the real power of affiliate marketing. In general, use it to market your own products, don’t market other people’s products. We'll discuss affiliate marketing in more detail in the Internet Marketing section.
Be in charge of your own destiny by controlling the information you sell. It is all right to use others to help you market, but don’t become dependent on them as in the MLM model. I think the difference should be abundantly clear, however, because you are getting paid right now, upfront, and not waiting for an MLM residual income to build up that might never happen.
Joint ventures are another exciting format for Internet marketing and offer an ideal plan. The only problem is that you must find someone willing to work with you, and that can be difficult if you are a newbie. I do have a solution that I will discuss in detail in the Joint Venture section of this site. Be sure to visit that sector for a breath of fresh air for home business marketing solutions.
The perfect home business is one that creates and sells an information product that solves a problem, serves a need, and is in reasonably high demand. Obviously you have to do some market research to find a niche. Then you need to create the product. If you are a lousy writer, you can easily outsource an eBook for relatively little money. You can even create a whole line of products and eventually bundle them into a package.
With Websites, blogs, squeeze pages, newsletters, autoresponders, shopping carts, electronic payments and electronic shipping or downloading, an electronic information business can be put on autopilot and easily monitored remotely for tweaking and introducing new products from time to time.
There is one exception to the rule about creating your own information product, and that is if you find one that is amazing in the information that it provides and hugely profitable, then don’t reinvent the wheel. I have found an excellent example of such a program. Check it out here.
Now that we have isolated the criteria for the perfect home business and identified a class of products that qualify, we need to turn our attention to the creation of the products and ultimately how to market them. But those are not within the scope of this article. For information on these subjects, go to the Internet Marketing section of this site.
Joint ventures are a fruitful format for Internet marketing. Be certain to read more about in that section of the site.
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If you have found what you consider to be a perfect home business, I would love to hear about it. Perhaps I will feature it in my blog and newsletter. Please contact me.
Please contact me.
P.S. If you have a joint venture idea you would like to explore with me, drop me a line. I have a massive list for this purpose, and it could give you a catapult launch into cyberspace where you could be making online income instantly.