7 Things Every Entrepreneur Should Know Before Starting an Online Home Business

You got to know these 7 things before you start an online business. It’s 2010 and many people are looking for that right home business for them to be successful at. Now, many believe that online businesses and offline businesses are different. They are not. Both have a lot of similarities. Here are the 7 things you need to understand before starting an online business.

1. You have to have a product that is UNIQUE and that is in high demand in the marketplace. My advice is to get away from the home businesses that sell only health and household products, lotions and juices. The marketplace is saturated with these typed of products and very hard to market correctly. There are so many of these types of home businesses out on the internet promising this is “the next best thing”.

2. Look for a lucrative compensation plan. The smartest thing to do is to find a company that pays big up front and pays big residual incomes. Most companies may have high upfront and low residual and visa versa. You need this big up front payout to start building momentum to more back into your marketing efforts to increase your sales even more. Not just to pocket the commissions and go on a nice vacation. Look for a compensation plan that will pay out at least 50% or more. My advice is to stay away from the smaller companies that only pay out $50-$100 up front (most companies do). I hope your financial thermostat is a little higher than that! Besides, what’s $50-$100 going to do for your continuing marketing?

3. A marketing system is a must! Most companies don’t do this well. They don’t know how to correctly market their products and services. Without a marketing system, no one will see your selling! A great marketing system will have costumers coming to you. You then become the hunted instead of the hunter. A marketing system will teach you how to go about getting traffic to your online business, and how to make money off those people who aren’t interested in your business.

4. How is the company run? How is it managed? Make sure you do your research on the potential companies credentials. Find out how successful they are, how long has the company been around? What are their goals? Many companies on the internet are all hype, claiming their the best company you can join. In my opinion, this doesn’t exist. Some people will succeed in an online home business, most will fail – we all know that.

5. Will the company expand globally? If there is no room for expansion, sooner or later the company will just stop because of competition. Make sure the company has room to go over seas. We’re not the only country in a economic decline. Smart companies that offer informational and educational products are going to become more profitable if expansion is in their future. This is the type of business you should be looking for.

6. Find out if the company gives back. This is very important because this company is concerned with the future of our country. Things like giving to charities and helping other countries in their time of need is something that is very crucial for the state of our country. This will not only better our country, but better the entire world! I believe one person CAN change the world. How about being that one person?

7. Is the company well established with a staff and support? Most companies are sponsor dependent, meaning everyone in the downline is depending on the person who “signed them up”. A sponsor is not always going to be there. Many successful sponsors end of leaving for a bigger and better company. Instead, look for a company that is more system dependent, one that has a support team. A company that has something in place for members to help other member share ideas and strategies will help out most of the company to be a success.

So here are the 7 things every entrepreneur should know before starting an online home business. Hopefully you have understood these points. Many people try multiple online businesses before finding the right one. They have no idea what goes into a online home business. Don’t be like most people and you will be a success!

I appreciate the opportunity to serve you today,

Greg Schmidt
Internet Marketer