My Rules For Evaluating An Internet Business
| by Coach Hamilton | November 24, 2007
Every 11 seconds a new person starts a home based business in hopes to get their share of the profits being made from internet business. There are hundreds, if not thousands of companies more than willing to let you in on their action. Their websites are spectacular and their promises of wealth lure you in before you can blink an eye.
Beware of the Hype and the Fluff. They seem like great companies, they have a good sales pitch and their comp plan looks awesome. They have fancy corporate offices and have been around for years. That's a good thing, right?
Any company out there proclaiming to sell the greatest products like lotions, potions, pills, miracle juices or miracle gas saving products usually doesn't work for the average person for a few reasons with the number one reason being, "people can get them cheaper at Walmart."
Then you have those companies that claim to have valuable e-books or training videos that promise to make you wealthy simply by reading or watching them and you make money by selling these products to others. There are a few of these companies coming under some scrutiny because the products are not as valuable as the prices people are paying for them and it is quite simply a money game.
It seems like there are so many junk companies on the internet, how do you know which ones are good and which ones are not? Some of the companies listed above actually have a good product, but I would never go in business with them. So, how do I choose a business that I can profit from and that I can be proud to represent?
When I evaluate a company, I look for the following key points. Keep in mind, when I join a company, my #1 goal is to make money and to do it legitimately. I do not want to hurt anyone or rip anyone off. Following is what Ive learned and I hope these guidelines will help you determine what company is right for you.
If you are not making at least 75% of the upfront commission when you make a sale, forget it. This means that you are doing all the work and the company and/or the person above you is making all the money. When you figure you Return On Investment (ROI) with the cost of advertising and profit from sales, you have to have a high commission.
If you have to have 1000, 10,000 or 20,000 people in your organization before you make any real money. DO NOT Join. Most people will NEVER get there. They will get frustrated with those that don't work and drop out and continually have to recruit others to stay in the game.
If they teach you to hold home parties and invite all your friends and family, get out of there fast. You need a company that provides the training and tools to advertise to the masses through various channels.
When they have a motivational sales pitch 2-3 times a day and only 2-3 training classes per week this means that the company is more interested in selling you on the business rather than training you how to build a business and make long term money.
If you cant break even or get into profit within the first 3 sales, forget it. People do not want to operate in the red for more than a couple of months. If they continually spend more money than they make, they will drop out. Choose a company known for getting distributors into profit quickly.
If you can't speak with the owners or the corporate office via phone or webinar, forget it. I like to know who I am doing business with before I will do business with them. Don't participate with those companies that hide behind a website.
If it is a start up or in pre launch, forget it. The chances of these companies becoming the next Amway is about as good as winning the lottery. At least with the lottery, you have a chance to win once or twice a week. You might as well go to Vegas and blow your money on a good time. At least you'll have some great memories, see a great show and have a great meal.
These are not all the rules for success on the internet, but it is a great start as a guideline to follow when evaluating an internet company. There are good companies out there and with proper research and action you can have your piece of the internet business success pie.
Beware of the Hype and the Fluff. They seem like great companies, they have a good sales pitch and their comp plan looks awesome. They have fancy corporate offices and have been around for years. That's a good thing, right?
Any company out there proclaiming to sell the greatest products like lotions, potions, pills, miracle juices or miracle gas saving products usually doesn't work for the average person for a few reasons with the number one reason being, "people can get them cheaper at Walmart."
Then you have those companies that claim to have valuable e-books or training videos that promise to make you wealthy simply by reading or watching them and you make money by selling these products to others. There are a few of these companies coming under some scrutiny because the products are not as valuable as the prices people are paying for them and it is quite simply a money game.
It seems like there are so many junk companies on the internet, how do you know which ones are good and which ones are not? Some of the companies listed above actually have a good product, but I would never go in business with them. So, how do I choose a business that I can profit from and that I can be proud to represent?
When I evaluate a company, I look for the following key points. Keep in mind, when I join a company, my #1 goal is to make money and to do it legitimately. I do not want to hurt anyone or rip anyone off. Following is what Ive learned and I hope these guidelines will help you determine what company is right for you.
If you are not making at least 75% of the upfront commission when you make a sale, forget it. This means that you are doing all the work and the company and/or the person above you is making all the money. When you figure you Return On Investment (ROI) with the cost of advertising and profit from sales, you have to have a high commission.
If you have to have 1000, 10,000 or 20,000 people in your organization before you make any real money. DO NOT Join. Most people will NEVER get there. They will get frustrated with those that don't work and drop out and continually have to recruit others to stay in the game.
If they teach you to hold home parties and invite all your friends and family, get out of there fast. You need a company that provides the training and tools to advertise to the masses through various channels.
When they have a motivational sales pitch 2-3 times a day and only 2-3 training classes per week this means that the company is more interested in selling you on the business rather than training you how to build a business and make long term money.
If you cant break even or get into profit within the first 3 sales, forget it. People do not want to operate in the red for more than a couple of months. If they continually spend more money than they make, they will drop out. Choose a company known for getting distributors into profit quickly.
If you can't speak with the owners or the corporate office via phone or webinar, forget it. I like to know who I am doing business with before I will do business with them. Don't participate with those companies that hide behind a website.
If it is a start up or in pre launch, forget it. The chances of these companies becoming the next Amway is about as good as winning the lottery. At least with the lottery, you have a chance to win once or twice a week. You might as well go to Vegas and blow your money on a good time. At least you'll have some great memories, see a great show and have a great meal.
These are not all the rules for success on the internet, but it is a great start as a guideline to follow when evaluating an internet company. There are good companies out there and with proper research and action you can have your piece of the internet business success pie.
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