Best Home Business

What is the best home business?

Time vs. Money

With most jobs you can have one or the other but not both. You trade your time for money. You work an hour, your company pays you for that hour (and the government takes 15-20 minutes of your time/money in taxes). The formula is simple; 1 hour equals $X dollars. You no work – you no get paid.

Wouldn’t it be great if you could work for an hour and get paid 100x for that same hour?

Sound impossible – well it’s not. Millions of people do it. How?

Think about musicians, authors, and actors. They write a song, sing a song, write a book, or star in a production. That song, book or show is recorded. Thousands, even millions of people purchase a copy of that recording. And the musician, author or actor gets a royalty or a cut of each copy that is purchased.

For example, say you spend 100 hours writing a book. If you are writing the book for someone else, they may pay you $25/hour for your efforts and you make $2500. Not bad.

But what if instead of getting just the $2500, you get just $1 for each copy

What if the book is really popular and sells 100,000 copies, that’s $100,000 for you or $1000/hour. That’s a pretty serious hourly rate. What if the book sells a million copies – that’s right, you just made $1 million dollars! For only 100 hours work, that’s $10,000/hour.

But guess what? Copies of that book can be sold for years and years. So every quarter (4 times a year) you could get a royalty check for more money. As copies of the book continue to be sold, you continue to make money. Without any additional time put in, just your original 100 hours.

A situation like this is often called “residual income.” Residual can mean “extra,” “left over,” or “continuing.” You may also hear an author or actor talk about receiving their “residuals” – which is just another way of saying “royalties.”

But what if you can’t sing a note, are a terrible writer or can’t act your way out of a speeding ticket?

How can you cash in on this residual income concept?

What if…

What if you could develop a source of income that was not directly tied to the hours you put in? What if you could work an hour and keep getting paid for that hour’s effort?

What if you had a product-based business where you sell a product that is used or consumed on a regular basis? Something like a vitamin or a health drink.

Then what if you spent an hour finding a customer who wants to purchase your product every month? And like clockwork, they spend $100 purchasing your product every month. And let’s say after paying the manufacturer for the product you get to keep $25.

You have now set up a residual income situation. Your one hour’s worth of work will now pay you $25 each month.

What if you find 10 customers; 10 hours = $250 per month. After a year, those 10 hours have earned you $3,000. And what do you think will happen next year? That’s right, you make another $3000.

If your original 10 customers continue to purchase your product, you now have a $250 monthly residual income. You can be on the beach in Hawaii or shopping in Paris and you still make your $250 each month.

But wait, don’t you have to ship your product each month? Oh yeah. Well, lets see if we can have the manufacturer ship the product directly to your customer. Great! Then you don’t have to order, receive, stock or ship anything. The product goes directly to your customer.

But wait, don’t you have to collect money from your customer then pay for the product? Oh yeah. Well, what if the customer can pay the manufacturer directly and then the manufacturer can just send you a check at the end of the month for your profits? Great! Now you don’t have to deal with the money – you just get your profits; maybe even deposited directly into your bank account. Perfect!

Now you can be anywhere doing anything and your business is functioning automatically. You have an automatic residual income business.

What could be better?

Well, what if 5 of your customers see what you are doing and decide to do the same thing as you? Now they each find 10 customers and each of them start to make $250 a month. They continue to purchase the product through you so their $250 easily covers the $100 they were spending each month plus gives them an extra $150.

And what if the manufacturer was so grateful for your efforts, that they decide to give you an extra $10 from each of the monthly purchases of the 50 new people? Now you are making $250 from your original 10 customers (and 10 hours of work), plus the manufacturer is giving you a $500 monthly bonus.

Now what if 25 of those 50 new people do that same thing, find 10 customers of their own? They will have found 250 new customers for the manufacturer. And what if the manufacturer pays you another $5 for each of those new customers?

Wow! Now you are making your original $250, plus the extra $500 ($10 x 50 customers) bonus, plus another $1250 ($5 x 250 customers) for a grand total of $2000 each month. All based on the original 10 hours you put into your business.

And all of this is automated - you don’t touch any product, you don’t handle any money (except when you spend your profits), and you keep receiving this money for as long as your customers continue to purchase the product.

But is there such a manufacture that will do this? Is there some company or industry that works like this?

Yes there is! It’s called by various names like network marketing, referral marketing, even multi-level marketing or MLM.

The focus of this industry is to help you create a residual income from a simple, low cost business model that allows you to multiply the income potential of your time. Now your 1 hour of work can generate $100s, $1000s even tens of thousands of dollars.

But there are 100s of network marketing companies, how do you find the best one? What makes for a good network marketing company? of the book that is sold? And what if 10,000 copies are sold? That’s $10,000 or $100/hour.