What you need to know about home based businesses

Types of home based businesses:

·      Work for others- signing up with an existing company where you usually sign up under someone else

and they receive a commission on your sales.

·      Work for yourself (new business)- start your own business from scratch.

 3 types of Selling:

1.  Products- items customers purchase

2.  Service- time or skills

3.  Membership- membership to a website, club or organization

Inventory vs. orders:

·      Inventory- You have to have products on hand to sell to customers. 

o  Pro’s- easy sell to those in a rush for their product, samples on hand to show/display

o  Con’s- needs a large amount of money up front to purchase the inventory items, requires storage space (some may be heat/cold sensitive), if items don’t sell and expire you lose your money.

·      Orders- You take the money and orders from customers and submit them for products.

o  Commissions paid afterwards- example: $100 in orders, when you submit them you pay $100 and the company will send you your commission check at a later date.

o  Instant Commissions- example: $100 in orders, when you submit them you pay the total minus your commission. (so if your commission is 25% you’d pay $75 for $100 order)