Back to the sharks. When you get your returned phone call(s), you have no idea is calling you. But be sure of one thing, they are doing it in the hope of getting paid. Nothing wrong with getting paid, but not everyone conducts business with the same ethical standards. In fact there are way too many individuals in the industry that will tell you whatever they think you want to hear to get you to move forward with their business.
The process is simple - they call you - tell you how busy they are - then give you some websites to go see and a conference call to attend. Easy enough, anyone can learn to do that right? Then they insist that they are professionals, insist that you be the same and be at either of a couple of choices of "appointments" with them to get your questions answered. You agree on a time and then you are off to do your research.
So you go to that call, check out the website - everything looks so good, but as a normal person you have some questions; and you should. You are about to make a decision that is important, and your time and energy is the #1 resource you are risking, not the money. Money is replaceable. Your time and your emotional state and health is not.
You are really interested so you keep your follow up appointment with what seems like your harmless tour guide.. You have so many questions, and you are excited. Here's where you can be vulnerable to the seasoned professional you are about to meet. You are about to be 3-wayed to someone that has more experience at "closing". They intend to "close" you, which means, have you pull out your credit card or you get sent to the bank to get certified funds.
Meanwhile you are thinking you are just trying to get questions answered so you can consider your options.
The call comes as scheduled, the person that you first spoke with then tells you they are new to the business (in most cases) or says that they want to show you what kind of up line support you are going to get when you join, "so if you don't mind, I'd like to bring in John Hammerhead into the conversation. He's a great guy, a lot of fun to work with, and very successful. He's teaching me the ins and outs of this business, and will be teaching you".
Now in your mind something is a bit amiss right? The yellow caution light is flashing in your mind, and your original contact person can sense new resistance developing in you; and he/she should. You built rapport with that first person that called you. You wanted to speak with them more, and now here comes someone you don't know. You are about to experience the home based business shark bite.
Of course John Hammerhead is very busy so as you ask questions, he gives you short answers, and says "don't worry - you'll learn all of that when you get started". Get started you are thinking? I'm just still learning about all of this home business stuff, your brain shouts at you.
Then it happens, John Hammerhead goes for the "BITE" (close) - "well let's get you started?"
If John Hammerhead has done his job, all along the way, he has painted the picture that this is easy, just follow the "SYSTEM", and we'll be here to help all along the way.
Meanwhile you have not had enough time to Google the company or research any other businesses. You are not ready ... John Hammerhead is ready and expects you to be too because " he's looking for decisive people". Who is this all about anyway? It's about you, your life, your goals, your dreams - not John Hammerhead.
For so many people that is the first experience, you pull out your credit card and go to the website and sign up. You just signed up for your first home based business. It will probably not be your last.
At the end of the call you are congratulated for being decisive and committed to your future, etc. Meanwhile, John Hammerhead just bit a chuck out of your checking account. And you can be guaranteed that, if you enrolled in your home business this way, then you will almost certainly regret it at some point, and write it off as lesson 1 at some point in your not to distant future.
My first experience at learning about home business was from watching a TV commercial late at night. I went to the website, put my information in, and almost immediately my phone rang. People from about 8 different companies called me. I connected with one particular guy that seemed honest enough.
I had very specific criteria. No selling to friends and family and drop ship completely from Internet ordering were the headlines. Jim the "Vitamin salesman" was not resonating with me, but I figured IF it was totally turnkey online, it would just be another stream of income. After all, people buy lots of vitamins.
Jack Greatwhite just kept saying yes. I went to their call. Everyone was making all this money, it sounded great. When Jack Greatwhite called me back, he already had Bill Thebullshark on the phone with him. I was instantly in a 2 on 1. I re-capped my criteria, and told them that if everything I heard was true I was in. They said yes again. I ordered the "IPB decision kit" for $500. They got me to go ahead and signup for the marketing system, for a year (big mistake), but I felt these guys were being honest with me.
When I got my kit, the first thing I did was read the "manual" that came with it (very unusual for me), but I wanted to see their marketing model. And there is it was, on page 3 "circle of Influence", friends and family, blah, blah, blah. Right about the time I finished reading the manual, I was packing up everything to ship back, and Jack Greatwhite just happened to call. I questioned him on the "drop ship" program and then he said I needed to either sell X dollars in product first (of course by having them all shipped to my house first) for a couple of thousand dollars, or buy my way in at a higher level.
I confronted him, and essentially politely called him a liar. He back peddled and got Bill Thebullshark back on the phone, and they settled me down a little bit. At the time I didn't realize they were trying to get me past the 72 hour period with which I could get a refund (which they successfully did).
A week later, I called to cancel everything, request my refund (that's when I found out that the 10 day period began when I put my credit card in the website, not when I received my product evaluation kit. It was now day 11. I wanted a refund on the marketing system. Of course I had clicked on an agreement that said it was non-refundable. So it was a $750 lesson and introduction into the world of the dangerous shark infested waters of MLM. One year later the old wound was opened and salted when the company that provides that company's marketing system started charging my credit card without my permission. After an hour or so of my time on the phone, I finally got the charges reversed. Unbelievable.
Are all people in network marketing and home based business sharks and pilferers? Absolutely not. In fact, when 4 months later I looked again after responding to what I thought was a job ad in the newspaper. I saw the sharks coming and got back in the boat fast.
This whole exercise though led me to find a business that was legitimate, and I was able to do very well at. But I swore to myself on day 1 that if I ever had to resort to those tactics to make money, I would quit the business. (which I did in February 2007).
The best advice is take your time looking, don't let a seasoned "Networker" (shark) bully you or make you feel inadequate because you want to "think" about a particular business. Thinking about it is exactly what you should do along with some Serious Due Diligence (Research). How to go about this is the subject of another article.
I was taken advantage of because at the time I was moving "away" from a situation, and everything sounded better than where I was. By the time I picked my right business, I was moving "towards" a goal, and therefore no one was able to push or bully me.
Either you or someone you know has been the victim of a GUMP (Good Unsuspecting Money People) hunter in MLM or direct sales, creating much of the negative view of the industry.
Some network marketing, direct sales, MLM companies or other home based business opportunities in many cases have tremendous value propositions. Most do not, and they are populated with lots of hungry sharks.
Here's 8 of the Big Truths or Realities that every aspiring Home Business Owner needs to know before they start their Home Business.
Why you start a Home Business will dramatically effect your success chances along with dozens of other factors, some within your control, some not. But for the purposes of this article lets assume you have found that "Can't Miss" Opportunity; you're excited; you've sent your money, here comes your millions right? Wrong!
There is much you must do to find success no matter what your background is going in to be successful. This article will explain some of the main reasons people fail. It by no means is the complete list, but be sure you understand these basics and are OK with the challenges ahead before you start that new Home Business ... or don't get started or signup!
Let's put the TRUTH on the table ... there is a very high failure rate in home businesses. Less than 2% actually find the financial freedom they seek (ie. The big money). Another 3% make some money, perhaps enough to earn a living. Everyone else strikes out.
Society looks at home business, and more in particular at Network Marketing or MLM as an almost less than noble way to earn a living. The truth is that many people have completely changed their lives in very positive ways in Network Marketing or MLM. However, the more frequent truth about MLM is that almost everyone fails.
It is the very few and highly publicized success stories (like mine) that bring people in droves looking for a low cost (low risk) path to riches. Behind every success story though is some serious work, experience, and the absence of the Failure modalities outlined herein.
The real questions is WHY do so many people not succeed? Why do so many people fail in home business?
It comes down to the fact that each and every person is different coming in. Take my case, I came to the home business arena with 17 years of mostly successful entrepreneurial experience. I negotiated deals, sweat payrolls on Fridays, traveled to get customers, lost big customers, etc. I ran the gauntlet of success long before I got in this industry.
So would it be fair to say that someone that is working at Home Depot can pull off what I did as fast as I did? Probably not? Does that mean that people without experience have no shot at success in Home Based Business? Not at all. It just means that they have obstacles to overcome which any successful entrepreneur and/or upper management individual already has overcome in their own careers and lives.
Here are 8 realities, hurdles, or obstacles that any and all successful entrepreneurs have jumped, and the reasons that so many people don't make it in Home Based Business, Free Enterprise, Network Marketing, Direct Sales, MLM, and even small business.
Reality #1 - Lack of Mental Toughness Many people entering free enterprise for the first time have no-clue as to what real mental toughness is. That's why mindset training is so important to the new Home Business owner's success. Acquire the mindset that you are going to do whatever it takes to succeed and you are way more likely to join the ranks of the successful. In fact I would almost guarantee that you'll make it with this key mindset element.
Reality #2 - Choosing the Wrong Sponsor / Up line / Mentor Un-Ethical Marketers are abound. Unfortunately, many Home Business marketers see their responsibility is to simply "show" someone the opportunity and get paid for just that. Here's the typical line "if I could show you a way to accomplish your goals would you ... [pay me]" is still widely used in network marketing sales pitches. (Not by this author).
If you break that sentence down, it clearly shows that the marketer expects to get paid for "introducing" the aspiring Home Business owner to the business, and nothing more. Because of this, be sure you are going to work with the right person with the right opportunity. Your up line/sponsor should be able to give you references of happy customers that they are working with, not just Power 3-ways with Up line Sales Masters. The secret to big success in Networking Businesses is this team building and nurturing, and the Home Based entrepreneurs that are willing to make this commitment to adequate support in training for their teams are few and far between.
Reality #3 - Unrealistic Expectations So many new business opportunity operators have fallen for the HYPE. They believe the "perfect" scenario or something close to it is going to happen to them. They are so excited, and think as soon as they start talking to people or they get their website up, money is just around the corner. After a week or two reality sets in. Within 30 - 60 days it will hit you ... your success is going to take some effort. And in most cases it's not anything wrong with your opportunity, it's your lack of skills, focus, and/or effort. Go look at a mirror because the problem AND the solution are looking right back at you. (ouch)
Reality #4 - Lack of Focused Effort Many new Home Business owners fall victim to the idea that as soon as they start their home business, they can start living the lifestyle of a successful home business operator. This is a business killer for sure.
I remember coaching a young man that enrolled in a high dollar Direct Sales Program who was coming to all of the training calls, and after 2 months he still was not in profits. I asked him how much prospecting he was doing and his reply was that he gets around to it a few days a week because he was living the "life style". I then asked him if he was already rich, to which he said no, and he was starting to get worried about the fact that no money was coming in yet. Sounds incredible, but this is a true story.
The bottom line is that starting a business, any business takes big effort. It's like you are starting to roll a huge boulder. You're going to push at it, pull at it, then figure out how to move it a little, then eventually get it to roll, and once it starts rolling, well it's not so hard to keep it rolling. That is the same with a Business. It takes great commitment of time and effort to start a Home Business, especially your first. Many of the most successful people in Home Business, or any type of business really, failed several times before they got it right. It took them a while to figure out how to make the boulder roll consistently.
Reality #5 - Lack of Adequate Funding The costs to get started in a Home Business ranges from less than $100 on up to $25,000 or more. The key phrase here is "Get Started". Those are just the entry costs. The reality is that unless you are going to build your business with "Warm Market" (the archaic MLM practice of selling to friends and family, whether they want to be sold to or not), you are going to need consistent funding for advertising and marketing expenses. No business can make it without customers and you have to acquire them to be successful; and that will likely cost some money. In some cases thousands of dollars.
The best prospects to have are targeted prospects, like those you can generate through expensive Pay Per Click Internet Advertising. The higher the sales price of the "products" you are selling, the more money you will need for marketing. Also, the less experience in "Selling" or "People Skills" you have, the more money you will need. Under funding is the #1 reason Businesses fail across the board.
Reality #6 - Lack of Business Knowledge This is a huge factor in the Home Business failure rate. First, many Network Marketing companies pitch their "System" and how just plugging into this "System" is going make all of this money for you. The part they leave out is that YOU are the most important part of that system. Your sales/people skills is the lubricant for the machine in the system. In fact these skills are the most important part of that "System" and your ability to generate leads is the second most important part.
Keep in mind that most Home Business operators are coming from the 9-5 paycheck on Friday mentality, and not having to learn and do every aspect of running their business. They have to get used to doing work now, and not getting paid now for it, until perhaps much later. And of course they have to make those mistakes that create lessons, important lessons in the climb to success.
If you polled successful Home Business owners, you would find that they invested heavily in their personal development and tactical skills education in order to find success. In most cases these costs dwarf the costs of the initial startup cost in the business.
Reality #7 - Lack of True Commitment to Success. Most people that drop out of their home businesses do so within the first 90 days. It doesn't take long before the "Honeymoon" ends and the real work starts. The 9-5 mentality employee is not accustomed to an 80 hour or more work week, the kind of commitment it takes to get a business off the ground. When you are starting something new, giving it a complete focus effort is going to greatly enhance your chances of success while you are learning. In fact if you are doing it right, you will be in a major time compression mode, at least for the first few months.
For so many though, once they see that owning a business takes serious work, many re-consider ... after they have invested a handsome amount of money. Many MLM's know this and try to plug you for your warm market or get you to upgrade to the expensive packages fast, before you are most likely to quit.
Reality #8 - Up Line Support Can Vary Drastically Big Home Business income earners like myself have figured out that providing Fortune 500 company caliber support and training is the key to success in building a highly leveraged and high income producing organization. However, most Home Business operators have not figured this out, and rely on their company to provide all training and support. This typically leaves some vacuums in the knowledge and wisdom department adding further to the challenge of the new Home Business Operator.
In summary, Home Based Free Enterprise is on the rise, and many Great opportunities continue to immerge. The Internet has made acquiring information about scams and dis-reputable businesses easy to find. There is a very Darwinian process that goes on because of the speed of communications over the Internet.
Don't believe everything you read on the Internet though. Many posts have been placed there by competitors posing as ex-customers, trying to tear down their competition instead of building their own tower. If you are researching a particular sponsor, watch for patterns, and study testimonials.
And by all means ask for references.
So if you are contemplating starting a new Home Business, or you are already in one trying to figure things out, be sure you account for the 8 realities covered in this article. Are they they only challenges you will have? Absolutely not, but I believe they are the biggest and account for 80% of the failures of not more.
Home Based Free Enterprise is very rewarding, even if just for the education. Success will require that you take personal responsibility for your thoughts and actions. Since most people can't or never will go borrow or risk hundreds of thousands of dollars to start a traditional business, Home Based Businesses is the only way for the masses to have even a shot at significantly improving the quality of their lives.
Is it worth the effort and risk? You have to decide that for yourself, but to this author, the rewards of success make the climb worth it.
James Rivas has sinced written about articles on various topics from Home Based Business, Online Marketing and Home Based Business. Jim Rivas spent17 years owning traditional businesses, mostly selling big tickettechnology solution products to Fortune 500 Companies before bursting on the Home Business Scene in late 2004. He knows the Secrets to Success. Canyou say 7 Figu. James Rivas's top article generates over 8100 views. to your Favourites.