OK. Would you like to do something about them? I bet you would. And here’s the first thing you need to know:

These challenges are not your fault!

***The cards were stacked against you right from the start!***

You just didn’t know it. You didn’t realize it. And here is why they were stacked against you.

Let’s take a very close look at the network marketing business model, because that’s where you find the reason for network marketing business failure. You’re an entrepreneur, you’re here to make money, you’re in business. So it makes sense to look at the business model, doesn’t it?

What I’ve seen is that very often it’s your company’s business model that causes your problems, not you. Let me give you an example. I’m sure you’ve seen network marketing companies that brag about having a huge, multi-million dollar home office. They have pictures of it on the website, flash presentations, it’s on all the brochures. But the millions of dollars that paid for that building is money that you will never get back in your compensation plan.

In network marketing, the ONLY place that money is made, whether by the distributors or the company, is from the compensation plan. Your MLM company does not have another stream of income that generates money for them.

***Company Income Always And Only Comes From YOUR Compensation Plan***

So whatever spending you see, that is money that will not come back to you in the compensation plan.

But here’s where it really gets ugly. Your company’s beautiful building requires maintenance. They need a cleaning staff. It has to be painted, windows have to be maintained, bathrooms have to be maintained, these buildings get cleaned every night. They have a water bill, an electric bill, heating, air conditioning. They do everything necessary to make that building a showplace for the company.

***Who Is Paying That Monthly Bill?***

Where’s the money coming from?

Correct – it’s coming from your compensation plan. That is money that you will never receive in your check. It’s gone. That “stolen” income is a big reason for network marketing business failure.

Now … when do YOU plan on using that building?

Did I hear you say, “Never!”?

Exactly. You will never use that building, yet you are paying for it. And that’s not all. These bloated network marketing companies brag about their call center, and the hundreds of employees they have sitting there, ready to take your order, giving you the best possible customer service.

But every one of those people is a salaried employee. They get health benefits, maternity leave, vacation leave, sick leave. The company has sexual harrassment insurance. Those employees get bonuses over the years, raises. Each one works in an office at a desk, with a phone and computer.

That is a monthly bill.

***Who Is Paying THIS Bill?***

Exactly. YOU are! (Are you beginning to notice a nasty trend?) That’s more money again that will never come back to you in the compensation plan.

Now … where do you think THIS business model will go in the future? Do you think your company will have less expenses or more expenses?

Sure. It’ll be more. As the building gets older, it needs more maintenance. The longer people work there, the more salary they expect. As the business builds, they’ll outgrow the building … and, of course, build another new building!

Another good indicator of the heart of a company is, where is the warehouse located? Most cities have a warehouse district, very low-rent, low cost. It makes sense for businesses to keep their stock there. But most MLM companies have the warehouse right next to their big new building. Why? Because it’s more impressive, and they can say, “Look at us! Look what we’ve done!”

***Who Pays For That Extra Expense?***

Yes, of course. It is you.

So what’s the solution? The key is to find a streamlined MLM business … one that doesn’t feel the need to put on a gaudy show with YOUR money! I’ll talk more about that in just a moment.

First, let me give you an example of how this high-overhead business model affects YOUR ability to build your business.

I’m thinking of 3 different companies right now. They all market the same product, a multi-vitamin pack. It’s an awesome product, flat-out works, and all 3 companies market the identical formula, identical raw ingredients. Except Company #3 has also added to the formula a chelated enzyme to allow you to digest & absorb nutrients better.

Now would you agree with me, that to produce that product, same quantity, same quality, same formula, the cost of production for those companies is within pennies of each other?

Of course it is.

Well, Company #1 markets the 30-day supply of that vitamin pack for $117. So do you think you’re going to be able to retail that to someone? Do you know anybody who would gladly pay you $117 for a 30-day supply of a multi-vitamin pack, regardless of how great it is?

I’ll bet you don’t. It’ll be tough, for sure. So therefore, you’re going to have a challenge to retail that product.

Company #2 sells the same formula for $108. It’s still expensive. You’re still going to have a challenge retailing that.

Company #3, which has the same formula, with the added chelated enzyme, so you can digest & absorb it better, sells it for $39.95. Now, I ask you, is that affordable? Do you think you know people who may purchase that product from you?

Absolutely.

***The Business Model Drives The Behavior***

So what kind of behavior do these different business models create in the field? Here’s what happens.

People who market the more expensive products spend their time recruiting. This is where the money is made for them. There’s no money in retailing for them, because nobody’s going to pay that high price for that product.

So what do they have to do? They have to recruit, recruit, recruit.

And what happens after you join them? When they sponsor you into the business, they have no time to work with you! You’re in, they got the commission, and they have to move on to recruit the next person. They don’t have time to work with you because their business is built on recruiting, since they can’t possibly retail products. This is a big reason for your network marketing business failure.

Now, do you have any idea why Company #3 can afford to sell the same formula, with the added chelated enzyme for better digestion, better absorption, at $39.95? Why do you think they can do that?

“They must not have the overhead.”

Exactly. They have way less overhead than the other 2 companies. Their warehouse is in the warehouse district. No multi-million dollar home office. They take 97% of their orders automated over the internet, so they need very few actual employees.

***Company 3 Has Just a Small Fraction of The Overhead of Company 1 or Company 2***

So it’s a more distributor-friendly business model.

I’ve found that 92% of the population doesn’t like to sell and doesn’t want to be sold to. How aggressive do you think you have to be to move a box of a 30-day supply of a multi-vitamin pack at $117 each?

Pretty darned aggressive, don’t you think?

And let me ask you this. Who do you think is buying this? You don’t know anybody who’d buy it. I sure don’t know anybody who’d spend $117 for it. But they sell plenty of it. Who do you think is buying it?

It’s the distributors. The distributors are buying it. Why? Because they have to qualify to get their bonus check. That’s the only reason they’re buying it. This pricing doesn’t create a retailing behavior.

***A Real Example Of How To Use An MLM Product***

Do you know anybody who suffers from a blood-sugar disorder like hypoglycemia or diabetes?

OK. This person that you know, do you think they might know 5 or 10 other people who also suffer from diabetes?

Yes, they probably would.

OK. Well, do you think they might be interested in a product that could help them rebuild the pancreas and possibly take them off insulin or at least cut down their insulin? Do you think they’d be interested in a product like that?

I bet they would. Do you think they can afford to pay $19.95 for that product?

Sure they could. In fact, if you had that product, you could even afford to gift that to the right people, using it more or less as advertising, couldn’t you?

OK. Now what would you rather have? Would you rather have people coming to your website, purchasing this product for $19.95, all these different people sharing with each other, or would you rather be in one of those first 2 companies, trying to market a $117 multi-vitamin pack? Which one makes sense to you?

Sure. The diabetic product. And look again, why can this company afford to do this?

Because they’re streamlined. It creates a retailing behavior. You can do business this way. Anybody can purchase products at this price, because it’s affordable. Does that make sense?

Of course.

***But There’s Another Big Surprise!***

This is really interesting – guess which company of those 3 pays more to the distributor in the compensation plan and requires fewer people to get yourself to a $10,000 a month income?

Yes, it’s Company #3. How is it they can do that?

That’s right. Less overhead. And now you’re starting to get the picture. You’re understanding why it’s so tough for you to make money in network marketing.

Next question. As time goes on and the bloated business model of Company 1 & 2 continues, what is going to happen?”

Let me tell you what MUST happen. They’ll have to raise the price of the products and pay less in the compensation plan. It has to happen. There’s no other source of money for them, so there’s no other way to pay for increased expenses. They’ve created a monster that they can’t control. The only thing they can do to keep it going is to keep feeding it.

And this is where you’ll end up paying $4 for a bar of soap, $20 for a bottle of shampoo, $100 for some liquid nutritional. There are MLM companies out there right now where you can find those prices.

***Where Have The MLM Giants Gone?***

And it will get worse & worse over time. That’s why companies flat-line. You know the famous names of the big-time, old-line companies … they are flatlined.

So what do they do? They go into new countries. They open new countries, because they cannot compete in the US anymore. Their product prices are too high, their pay plan is too inadequate. Their US business & distributor base just falls by the wayside.

I recently read about a well-known nutrition juice. The article had a lot of stories of people making money. The company has an absolutely gorgeous building, all decorated in Tahitian motif. The building temperature is maintained high to be the same temperature as it is in Tahiti! They have a beautiful waterfall, a fountain in the foyer with their nutrition juice pouring out of it!

And what is this company doing to make money? They’re opening up restaurants where they’ll serve food & their juice. Now where is THAT money coming from? It’s coming out of the compensation plan, and distributors are paying for it.

They say they’re doing it to generate leads which will go to certain leaders in the company … which means that if any reps benefit, it will be the heavy hitters – the ones who’ve already built big. It’s just a way of transferring money from the part-time rep to the company and the heavy hitters … leading to many more people experiencing network marketing business failure.

You can look for product prices to increase and rep compensation to decrease. That’s the problem when your overhead is sky-high.

The network marketing business model truly does drive the behavior in the field.

Michael Dlouhy is the expert on network marketing business models and compensation plans. You need to start in the right position in MLM, and Michael will show you how. Visit AskMichaelDlouhydotcom .

Working from home is a dream for many – but actually going ahead and starting a home business is very difficult. So what makes so many people want to do it, and why would you ever try such a crazy thing? Here are some common reasons, and some things to consider.

Easily Build Your Great Idea.

It suddenly hit you like a bolt of lightning: you’ve thought of a great business idea. This is perhaps the number one reason that people go into business from home: they’ve come up with something great that they really believe in, but can’t afford to rent any business premises. It does depend on what the business is, but working from home is often ideal in these situations.

Remember, though, that even the best ideas take hard work to become a reality. The kind of ideas that are good for a home-based business are ones that can become at least partly real quickly, and start bringing in an income – you shouldn’t sit at home for a year working on something that’s making you nothing whatsoever.

Making Your Hobby a Job.

Most people have something that they’re really passionate about, and would spend the rest of their life doing if they could, just for the enjoyment of it. Getting paid for doing what you love is obviously appealing – even if you only earn a living wage, it’d be your idea of paradise.

Make sure, though, that you’d be able to take it if you had to make a living from your passion. It’s the things we’re closest to that hurt us the most – think of how you might feel if no-one buys what you’ve made, or if they send it back and with a note saying “what rubbish, I demand a refund!” Can you cope with your hobby becoming commercial?

Tired of Your Boss?

It seems like everyone hates their boss. They try to pretend like they’re your friend, but they’re not fooling anyone, are they? You’re forced to work to pointless deadlines and targets. Anytime you spot a better way of doing something you’re
told that it’s impractical, or, worse, that it’s great but the stupid way of doing things is already ‘established’ and ‘policy’.

What you might not realize is that ‘being your own boss’ requires quite a lot of willpower. If there was no-one to make you get up in the morning and do any work, would you? Your home is supposed to be a place of rest and entertainment – and when it’s full of the equipment and temptation to do anything but work, working there can be hard.

Spending More Time with Your Family.

You feel like all you do is go to work, come home, and then sit around, too tired to do anything fun with your family. If you have children, they seem to be growing up so fast, and you’re missing it all – all because you have to go out and work.

Of course, the flip side here is that you might just end up spending too much time with your family, while you’re trying to work. When everyone knows you’ll be in the house all day, they’ll probably ask you to do all sorts of unimportant things, just because you’re available. It’s hard to say no, and before you know it, you’re doing the job of a full-time ‘housewife’ instead of what you set out to do.

You Don’t Like Wasting Time and Money Commuting.

After all, once you get to the office, what is there anyway? Offices are dreary environments, and terrible to work in – travelling for hours there and back and spending a significant proportion of your wages to do it seems completely pointless (especially if you live in the middle of nowhere). If you could work from home, think of the time you’d save… and time is money, isn’t it?

Don’t be surprised, however, if you start to feel trapped in your home, since you never leave it. Can you find good ways to get away from it all?

But Don’t Be Put Off.

While the list of warnings for working at home might look long, a list of warnings about working in an office would surely be longer. As long as you stay on your guard, you can get all the benefits of working from home without falling into any of the traps.

David Mclauchlan
Turning Dreams into Reality. Many of his followers are already achieveing six figure incomes
with no real start up capital – Take a look at his latest work –
article-cash-creatordotcom

1. Set Up Your New Business
When you first decide to start your business online, there are several things you need to do.

First, you need to choose an accounting system and open a bank account. You need to keep your money for your business separate from your personal accounts for purposes of accountability.

You can choose either a single entry or double entry accounting program. If you live in the US, single entry is recommended.

2. Choose Your Product
The products or services you choose to market on the internet will depend on what your interests are, how much money you have to get started, and whether or not there is a market for what you want to sell.

You can choose to create your own product, join an MLM, promote affiliate products, or offer your services.

3. Write Your Unique Selling Proposition
You want to make your business different from your competitors. The easiest way to do this is to decide what makes your business different.

When writing your USP, decide who your ideal customer is, how your product will benefit that customer, and what makes your product better than your competitors.

If you understand these things, you’ll have a stronger focus in your business, and you’re more likely to make the sale because you’ll focus your energies where your actual market is.

4. Build a Website
Once you’ve taken the first three steps, it’s time to build a website.

Do your keyword research. Focus on keywords that are popular but don’t have a lot of competition.

You can build either a direct response site or a content site.

With a direct response site, you’ll basically build a website that’s a sales letter.

A content site will be more varied. You can include news, product reviews, articles, a FAQ, and interactive elements like a forum or discussion group.

The possibilities with this type of site are endless. Since the internet is an information driven media, you’re more likely to find success with a site that is tightly targeted to a niche, with lots of content and interactivity.

5. Write Your Marketing Plan
Once you’ve built your website, it’s time to decide how you want to market your new site.

During this stage, you’ll gather your marketing tools, as well as decide what methods you use.

Examples of ways to market your website are: press releases, writing articles, posting on forums, posting to safelists, etc.

Once you’ve decided how you want to market, bookmark those sites where you will market.

6. Promote your new business
Once you’ve written your marketing plan, you’ll need to write your promotional materials and then send them out.

Testing and tracking are key here to see how your marketing is doing.

This way, you can make adjustments and discard marketing methods that don’t work for you.

Consistency is also important, and you’ll need to market on a regular basis.

7. Maintain your new business
Once you’ve completed the first six steps, you’ll want to apply the 60/30/10 rule of maintaining your new business.

If you sell products, sixty percent of your time will be spent marketing. Thirty percent will be spent on product development, and ten percent will be spent doing administrative tasks like answering email and keeping your business records.

If you sell services, you’ll spend sixty percent of your time doing your service and thirty percent of your time marketing.

Keep in mind that regardless of whether you sell products or services, marketing is an integral part of your success.

Once you’ve created a successful business, then repeat the steps. You’ll see more success for years to come.

Jinger Jarrett is the “Internet Marketing for Free” lady. She will show you how to use free techniques to market your business. Get thousands of dollars in free internet marketing stuff when you Visit her blog at askjingerdotcom

Have something to offer.

The first step in starting a business online is to have something that your potential customers want. You may already have an existing business service or product which you need to promote, or an idea in mind for your website. In that case you only need to establish a web presence and begin your marketing.

However, the biggest hurdle for many aspiring home business operators is finding something worthwhile to sell. If this is your problem, one of the quickest solutions is to become an affiliate. An online affiliate is basically a salesman for someone else’s product. Good affiliate programs do exist, and most are free to join.

Find a good web host

Once you have your product in mind, you then need a internet hosting service. Depending on the nature of your business, it may need to be specific to your country or location. If so, you are looking for a hosting service with that in mind.

If location is irrelevant, price and standard of service will be of prime importance. For some, a site build it type of service may be the priority, as they lack the initial understanding necessary to build their own website. Others may be looking at creating multiple websites & therefore want multiple hosting capacity with the one provider. Email services, database capacity, or secure transaction services are all options that are available.

Whatever your requirements have a good look around & select a web hosting service based on your needs.

Select an appropriate domain name.

Your domain name is important. Ideally it should reflect your product, and contain the words your customers are searching for. It is a good idea to register your domain name with a paid hosting service rather than getting a free domain as part of a membership site. Having an independent domain will stand a better chance of being indexed in the search engines.

Build your website

Building your website will take time & practice to get right. If this is something you don’t have, you might consider a service such as site build it that can do this step for you. Otherwise get an HTML editor and some templates and go for your life. Take some time with this step as it will save you from needing to make big changes later. Design your pages with good on page optimization strategies in mind. For additional website revenue, you might like to sell advertising space on your pages.

Promote your site

Once you have your site published, the real work begins. Unfortunately, not everyone out there has been waiting for your new site to become available. In fact, you will be lucky if you even get visited by a few stray people who appear to be lost.

Website promotion is either big money or hard work, sometimes both. You should be prepared to part with a little of your hard earned cash in the short term for some sort of paid promotion such as good third party traffic generation services or pay per click programs, A word of caution, when using paid promotion programs, monitor your operating cost closely, otherwise things can get expensive. These kinds of services will help with immediate traffic, but independent linking is essential for search engine rankings, and longer term free traffic.

Obtaining links from other content relevant websites will bring in repeat visitors from those sites. Not only that, but quality inbound links will help lift your site’s placement in the search engine index. The better placed with search engines those site are, that link to you, the more valuable the link to your site becomes.

Linking strategies alone form the basis for huge business on the web these days. Link exchange programs, article writing, press releases and blogging all form part of the gigantic search engine optimization industry. Take the time & make the effort necessary to learn how to work these strategies, and they will in turn work for you.

If owning a successful home based internet business is your dream, then there is nothing to stop you. Don’t get distracted and put off by promises of instant riches, rather concentrate on building a lasting business based on quality products and good optimization techniques. Spend time promoting and linking your site, and enjoy the learning curve. The financial rewards will then be assured.

Bluey Johnson (the little Aussie Battler), is from The Australian home business website. A leading resource with infomation of the utmost integrity on SEO, web hosting and affiliate marketing. Visit at australia home business