There are 5 Pillars to every successful Home Based Business.

Every effective Home Based Business has 5 solid supports upon which it stands.

#1: The goods and services being sold

There must be a clearly identifiable product or service being offered for sale to the public. If this is absent it may be a Pyramid Scheme or a similar type of Scam.

If there’s no product or service being offered for sale through the Home Based Business, the company cannot genuinely generate a profit. How will they pay their members?

If they’re not making a profit from sale to the end consumer they’ve got to make money from the distributers themselves recruiting other distributers everyone paying some ridiculous Registration Fee to start the program.

Eventually someone’s going to get the short end of the stick!

#2: The Company’s Strength

The average MLM company fails before 5 years are up.

The ideal company is going to be running a Home Based business for over 10 years making sure that most of the kinks are already worked out of the system and they’ve got a smooth running operation.

In checking out the company you’ll want to find out how long they’ve been in business and where their headquarters is located. You’ll want to ask about any other Companies they’re affiliated with, like their Parent Company, Sister Companies or Subsidiaries if there are any.

There’s an old adage that goes; “Show me your friends and I’ll show you who you are.”

That applies here.

You can tell a lot about a company by the company it keeps (pun intended).

One word of caution; a particular program might be brand new but the Parent Company backing that program might have been in business for many years, giving it the stability it needs to succeed.

Don’t throw out the baby with the bath water.

#3: Effective Leaders

Dr John C. Maxwell, international Speaker, Motivator and Best-selling Author says, “Everything rises or falls on leadership.”

Companies usually take on the characteristics of their leader(s) so, if you want to know about a company, chech out it’s leaders.

The business acumen of the person or people in charge is also vitally important because they’re the ones making the decisions that’ll chart the company’s course.

#4: The Pay Plan

Here are the salient points:

a) What percentage of the income is being paid back into the field?

Too little and it’s not worth your time, too much and the company might not retain enough profits to sustain its continued growth and expansion.

The experts say about 65% being paid out in commissions is the acceptable norm.

b) Commissions vs. Bonuses.

Commissions ordinarily form part of the ongoing residual income. Bonuses are usually temporary financial increases, paid on a specific action, performance or fulfilled quota and as such do not form part of the regular ongoing income. The successful company will focus more on good commissions as opposed to bonuses!

c) Passive, Residual Income.

This is the kind of income you keep getting long after you’ve stop working. An author writes a book once and keeps getting royalties from sales years after she stops writing.

The Harry Potter Series made J. K. Rowling a billionaire and now here comes Stephanie Meyer with the Twilight Series.

With a Network Marketing business the same thing is possible.

You can do the work once and keep getting paid forever once you’ve selected a stable Company with good Leadership, the right Compensation Plan with an easily Duplicated System.

#5: An Easily Duplicated System

Even if the company has everything mentioned above, if the system CANNOT be easily duplicated it’s not going to work.

The average person’s attempt at building such a Home-Based Business will fail and here’s why:

J. Paul Getty said, “I would rather earn 1% of the efforts of 100 people than earn 100% of my own efforts.”

This is the axiom upon which Network Marketing, MLM’s and Affiliate Programs are built. Zig Ziglar said it this way, “If you help enough people get what they want, you will get what you want.”

Either way you look at it, it’s going to take a team. Teamwork makes the dream work. So, if the system cannot be easily duplicated, building a team is going to be very difficult.

There are over 475,000 people worldwide starting a Home-Based Business every week, 175,000 in the USA alone. Most of them don’t know how to build a Home Based Business so if the system isn’t user friendly most likely, they’ll find one that is.

Duplication is the key!

And there you have it; the 5 pillars upon which a successful Home-Based Business is built.

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