Advise On Work From Home Business Opportunities

by WorkFromHome on December 6, 2011

The explosion in the amount of retail trade now conducted over the Internet has generated a huge increase in advertisements for home based business opportunities. While some of these opportunities are legitimate, the vast majority are scams or structures that will provide you very little return for your time and efforts. Whether you are looking for a work at home service, retail or product-based opportunity, it is important to know how they work and how your income will be generated. Here is some information to keep in mind when evaluating a work from home business opportunity.

Know The Scams

If a business opportunity is promising thousands of dollars in income with very little work involved it is probably a scam. In the real world that is not going to happen. The reality is that it takes time, hard work and determination to succeed in any business whether it is located in the home or elsewhere. Most of the companies promoting these exorbitant claims are merely fronts for scam artists seeking to steal your money, personal information or both. You should never provide an upfront payment or give out extensive personal information just to be considered for an opportunity. Some types of home businesss do require you to purchase inventory to get started, but there is no reason you should be required to purchase large amounts before they will allow you to start selling your stock. If the initial payment to take advantage of a business opportunity seems out of line, take another look at the company before making your decision.

Understanding Multilevel Marketing

It is important to understand that the majority of work from home opportunities for selling products are multilevel marketing structures. Companies provide you the opportunity to sell their candles, gift baskets or other products with the promise of growing incomes. The only problem is that the only real money to be made is through you signing on other new distributors. That way, you earn a percentage of what you sell, what they sell, a percentage of what their new distributors sell plus a percentage from new distributors signed up in the future. The lucky person above you gets to keep an even higher percentage from all of this cash flow. The downside is that this type of structure creates an environment that becomes more and more saturated with distributors who are all competing for the same customers. Since the profit margins on product sales are so slim and the customer base so small, the only way for you to continually make money is through signing on new distributors.

There are many multilevel marketing business opportunities where people working from home are making money. However, these are usually early start-ups who have yet to saturate the market with their product or companies that limit the number of distributors that can be working at the same time within a given area. Be sure to understand what you will need to do for generating a reasonable income through selling a product or service and how many others are already competing for your potential customer base.


It has never been easier to thoroughly research both the legitimacy and reputation of the company behind any business opportunity you are considering. To not do so could lead you into disappointment and the possible loss of your money. Scam artists are now creating some of the most sophisticated websites around, so don’t be fooled by an opportunity just through relying on the information on its website alone. Run the company name and the name of their products through a web engine search. You may be shocked at what you discover.

Check Local Regulations

When considering any home based work opportunity, it is always wise to check how local ordinances and regulations may impact your business. In some cases, local regulations may severely limit what type of product or service you can sell from your home or may outright prohibit the operation of any form of business in your neighborhood. You will also need to know if a business license is required and how sales taxes may come into play. It is always better to know this information upfront than learn about them the hard way after you have violated a local ordinance.

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