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Frequently Asked Questions

 

What is Network Marketing?

To become a successful home business, network marketing is a must.

Warm Market - family, friends, business associates and contacts.  These are people you know from work, church, clubs, etc.  You will want to talk up your home business to everyone you know.  You might consider these people your 'test' market.  You practice with people you know, asking for feedback, so you can develop your 2 minute sales speech.  Your hope is that they will mention your business to their families, friends, business associates and contacts.

Cold Market - as you advertise on the internet, through newspapers, flyers, brochures and by passing out business cards, you introduce your business to 'strangers'.  Again, your hope is that these people will share your business with their families, friends, business associates and contacts.  You want to use your 'practiced' sales approach with these people.

What is MLM (Multi-Level Marketing)?

Many home businesses depend on down-lines.  This is essentially building an organization of similar businesses with you as their sponsor.  You become a team, providing encouragement and support for each other.  You would also be part of a larger organization through your up-line and sponsor.  Don't confuse this with a pyramid.  A pyramid looks like MLM except there is no product or service involved.  Pyramids are illegal!  Your business must offer products or services.  Remember that your business is also considered a 'product'.

Will I need internet access?

YES

How would you expect to manage an internet business without internet access?  If high-speed access (cable or DSL) is available - get it!  You will want to have the ability to use your telephone while on the internet.  Another alternative would be installing a second telephone line, although I think you will soon learn that this will hamper your success.

How much money will I earn?

Home business opportunities are often enticing by listing the 'potential' earnings.  This is usually a scenario with a big IF attached.  It all depends on you.  Basically, the amount of energy, effort, time and money you invest in your business is the only indicator for anticipated results.  IF you want a BIG income, replace your 9-5 job, become independently wealthy, etc., you will have to think BIG and work HARD.  It typically takes 3-5 years for a 'new' business start to become profitable.  That means that the first 3-5 years will be costing more than the earnings.  Those are your business building years.  As the old saying goes, "Don't quit your day job!" - at least not at first.

Can I do it?

Answer the following questions honestly to learn if you have what it takes . . .

1.  Can I be an Entrepreneur? 
An entrepreneur is someone who is willing to take risks - it takes money, time, energy and effort to create and build a business.  It's not easy, so it has to be something you believe in and want to do.

2.  Do I have the Resources? 
MONEY - there are startup costs, advertising costs, and other business related costs such as internet service, long distance telephone service, business cards, training, etc.  There may also be monthly service fees. 
TIME - building a business will require lots of time.  Sure, you can do it part-time, but don't expect the same results as someone doing it full-time.  You have to 'network' -- talk to friends, family, associates, etc. about your business.  It's somewhat normal to feel uncomfortable about this.  Network Marketing is an essential part of building a successful home business.
You should also plan on joining conference training and coaching calls.  The frequency, duration and format of these calls depends on the company that you affiliate with.  You can miss out on a lot of important updates and helpful information by choosing not to participate.

3.  How do I run a business from my home?

Run an Efficient Home Office
 
by Terry Thomas
Those of us who work out of our homes realize that it can be a double edged sword. Yes, we enjoy the freedom of a home-office, no commuting and a totally flexible schedule. But this also means that we must budget our time, work efficiently and commit ourselves to working smart.

First of all, "home-business" does not necessarily mean "small" business in terms of revenue. There are many home businesses which are multi-million dollar corporations. I know, because I run one from my home. IMC, Inc. is an import/export company, which I own 100% and run from my home. It grosses over one million dollars in sales per year! Sure, I have a separate warehouse, but the business is RUN from my home!

Operating two companies from home is not always easy, but the benefits easily outweigh the negative aspects. I have learned to work effectively from home and want to share some things that I feel will enable you to get the most out of your home-based business or office.

First of all, you must create a totally separate room or area to be used exclusively for business. If you do not have a basement, garage or spare room, partition an area in one of the other rooms. Designate this as your "office", and treat it as such. Do not use it for anything but work! And, even more importantly, do not go in there unless you are going to "work". Why? Because if you treat the office area as a separate entity you will be more productive. Make sure that your family members know it is an "office" and as such is off limits to them! The more separate you can make your office area, the better off you will be and the more professional a business you can run.

There are some things that I feel are absolutely necessary to outfit a home office. First of all is space. As I mentioned, do the best you can with what is available. A spare room, garage, attic, or basement is best. But, if this is not feasible a partitioned area of a room will do.

Depending on your business, you should have a separate phone line installed. This will make it easier for customers to reach you and will project a more professional image. A fax machine is certainly a must for some businesses. For example, my import/export company could not function without one. You do not need a separate phone line for your fax. I just use a telephone sharing device which automatically routes calls to a phone, fax or modem. These are readily available and eliminate the need to have a dedicated fax line. Of course, if you receive a high volume of phone calls or faxes you will need a couple of phone lines. You might even want to lease a multi-line phone system from the telephone company.

Next, a personal computer is a must. It is difficult to run any sort of successful business without a computer. Invest in the best one that you can afford. Computer prices are dropping every day and it is possible to get a very powerful system for under $1,500. If you cannot afford a new one look for a used one or lease one. You will also need a printer capable of printing legible correspondence. If you want to create your own brochures, ads, or high quality correspondence you will need a laser printer.

As far as furniture is concerned, make sure you have a desk that is large enough to handle your needs, and a file cabinet or two for your files. Most importantly, get a good, comfortable chair. Yes, this can be your most important office tool! Get the best chair you can afford. Many back and neck problems and fatigue are caused by a cheaply made chair.

Finally, if feasible purchase or lease an office copier. This is not absolutely necessary as there are numerous copy places in every community. If you are going to do a lot of copying you should invest in your own copier to save time and money. One that will handle everyday copying is fine. Any larger jobs can still be done at your local print or copy shop.

Be sure to set up a regular working schedule. All of us entrepreneurs know we work at all hours of the day and night. Still, just like if you had to go to a regular job, set up some "business hours". If you are going to have hours from 9:00 AM to 5:00 PM, then stick to that schedule! Go into your office from 9 to 5, every day, just as if you were going to a regular place of employment.

Take normal breaks, including lunch, but it is important that you establish a regular habit of being "in the office" on a set schedule every day. Of course there will be times you must leave the office to make sales calls, run errands or for other reasons. When you are out make sure that there is an answering machine or service to answer any incoming calls, and that you return the calls as soon as you return.

Be certain that your family and friends are aware of your regular "business" hours. Ask them to respect that time, just as if you were at work. They should not expect you to be "free" all the time just because you are at home. Most of all, make sure that you yourself respect those office hours! Of course there will be times when you might want to play golf, take some time to yourself or just relax. After all, that is one of the benefits of working from home, but you must realize that time is money! Judge your leisure time accordingly! If you take too much leisure time you will not be successful - no matter what type of home business you have!

When you get up in the morning, act as if you are going to work!
Shower, and get dressed as if you are going to a place of employment. Many people actually wear a tie or business suit to make them feel more professional. You do not have to go to this extreme, but you should not work in ragged shorts and a tank top either. If you dress like you are going to work you will feel more like working! Also, if you ever have customers or vendors visit you at your ''office'' you want to appear as professional as possible.

In conclusion, outfit your office as best you can within your budget. Treat it as a business, and work regular hours. Your business or office may be at home but it is still an ''office''! Treat it like a professionally run place of business!


About the Author Terry Thomas
Terry Thomas has owned his own businesses since 1987. He is the publisher of the innovative and provocative newsletter, Mail-Order Marketing News. This newsletter provides a continuing education in mail order, along with success tips, strategies and moneymaking opportunities. For a FREE sample issue and mail order catalog, send 3 loose First Class Stamps, or $1.00 to: TJT Publications, P.O. Box 55685, Valencia, CA 91385.