How to Pick The Best Online Business- Part 3 of Series

This is part 3 of the series on How To Pick The Best Online Business

In the first article we compared traditional bricks and mortar businesses with online and home based businesses in general. Read Part 1 – Click Here

In the second article we compared Shopping Cart website businesses and Drop Sipping business models.  Read Part 2 – Click Here

First Lets Look at Opportunity Types of Money Making Schemes and Programs.

There are so, so many and the majority are here today and gone tomorrow and normally with your money. Some Opportunities (not all) have a passive income aspect, plus a referral side. Some just are straight referral commission based. Other more risky schemes involve betting, getting paid for clicking adverts for other opportunities. Many of these schemes, look very much like a ‘Ponzi Scheme’. Were you make money from introducing other people and no real products are sold.

The latest tread in Money Making Opportunities is with Crypto Currencies. And trust me I learnt this the hard way. I’m a slow learner, early in 2017,
I got stung more than once.

Anyway with lots of research, meeting and talking with the owners and head distributors the best Crypto Currency Company and opportunity. I have found to date is  http://cryptosmadeeasy.com as it meets the 7 Key Business Factors, I have listed below.

However this is NOT the Best Home Based, Online Business, I intend to reveal… It is however a very good investment opportunity with Bitcoin, which can also be networked.

Here is a check list, that I use now!

The 7 Key Factors, that any company (behind an opportunity) needs to be equally strong in all 7 sectors. Imagine that these a 7 spokes of a wheel, one weak spot, makes that company very vulnerable to failure.

1/ Trends; The company needs to be at the start or at least the front of trend, ever the end of a trend.

2/ Products; The products need to be well placed in the market place for value for money, which includes the perceived value of money.

3/ Company; The company needs to be well structured and funded. Including effective and efficient systems, plus checks and balances for all departments.

4/ Income; It need to generate good cash flow and maintain a healthy gross profit.

5/ People; The company need to have the a good team spirit, the right people, doing the right jobs and to be paid what they expect, so they stay loyal.

6/ Support; The company need to have an efficient customer and staff support systems. Including feedback and it needs to be easy to get issues solved in a timely manner.

7/ Stewardship; The business needs good leadership. It has to be strong, with defended strategies and goals. These also need to be clear to employees and customers.

Lets Look at MLM and Network Marketing Business Models

MLM (Multi Level Marketing) companies need to have the 7 Key Factors equally strong. Before you should even thinking of joining as a distributor.

The Disadvantages having a MLM Distributorship;

1. The MLM Companies are very product focused, rather than systems. Look at a McDonalds (not MLM, just an example) it focuses on systems and not on the hamburger. Yes you can get a better hamburger, however you will struggle to find a better system.
2. A distributor needs to be a product expert. Understanding the benefits of the product. They need to sell the product as a superior product compared to all other similar products.
3. Products sold through MLM are normally much dearer than competitors products. The reason for this is that the company needs to pay to so many levels, in the distributor network.
4. As a distributor you need to continually purchase the company’s products, to get paid a commission. Commissions are also paid on (your downline) those people that you introduce or are introduced by others in your organisation. Normally you are buying more product every month, than you can use.
5. You are constantly chasing friends and family to be customers or distributors
6. Normally the ROI, Return On Investment is low. Unless you are a superstar sales person.
7. You are heavily reliant on the company doing the right thing.
8. You are also very reliant on your downline (the people you sponsored into the program) to keep on buying and sponsoring.

The Benefits of  being an MLM distributor;

1. You have a business that uses leverage. Leveraging the company’s staff and systems
2. Being an active MLM distributor, is that it teaches you have to be a good networker and sales person. However this takes time and many people quit before they master the basics.

Normal Affiliate Marketing as a Business Model

Like all companies, Affiliate marketing companies need to have the 7 Key Factor, equally strong.

Affiliate marketing is were you as an affiliate, are promoting/selling certain products. Were you get paid a commission for each sale. It can be very similar to drop shipping. However normally you don’t need a website the sales adverts are done for you to post or promote all over the internet.

The Benefits are;

1. Affiliate marketing can be done online or off line.
2. You don’t need to have a garage full of products
3. The company does the invoicing and customer support
4. The company deals with product warranty issues
5. The graphical adds, banners (banner adverts) are done for you.
6. Low outlay normally to start
7. Do it any time from anywhere.
8. You have a business that uses leverage. Leveraging the company’s staff and systems
9. In many cases (depending on the product and company) you can scale up, a sales funnel that is working. Making more money in proportionally less time.
10. Sometimes there are follow up products that you and sell to existing customers.

Disadvantages You May Have with Some Affiliate Marketing Companies is;

1. Many normal affiliate programs have low value products.  Although the percentage of the sale price may be high like 30% or 50% the commissions are a lower dollar value per sale. Which means you need a lot more sales to make a good living
2. The CPA (Cost Per Acquisition) of a sale can be close to the commission made on some products, if a low priced product. This also depends on the platform you are selling the products on. For instance there is a very low return to do affiliate marketing sales on Ebay or Amazon.
3. You don’t get the larger back end sales with a lot of Affiliate companies. The company re-markets to the customers, you brought them. So that means the big commissions you miss out on, although you found the customer for the company.
4. Teaching yourself, you don’t get coaching and mentors with normal affiliate marketing companies. Having a coach or mentors that has done it before can save you from wasting a lot of time and money.
5. Most affiliates are not profitable, as it takes a lot of time and mistakes to lean how to market effectively. That is why not all Affiliate Marketing Companies are the same.

So the Best Home Based, Online Business that you can be involved in has all the good points of most types of business. But doesn’t have all the disadvantages and pitfall of most businesses.

In the final article in this series I will show you why the Best Home Based, Online Business is just that, The Best.

If you don’t have a Plan B, or you want a better Plan B you need to seriously read the next article.

Talk soon,

Dave Cane