Why an Internet Home Business Anyway?

For starters, most of the opportunities available on the web are relatively inexpensive, and therefore provide little risk to your financial future.  You can spend between $20 and $20,000 (and up) to join some of these programs.  But these costs pale in comparison to other bricks-and-mortar business investments.  Try these franchise start-up costs:

• Dippin’ Dots (novelty ice cream): $80,000 – $235,000
• Express Oil Change (automotive services): $225,000 – $1.5 million
• Direct Buy (consumer buying program): $500,000 – $1.2 million
• McDonald’s (I think you know): $950,000 – $1.791 million
• Golden Corral Buffet & Grill (buffet-style restaurant): $2.067 – $5.937 million

These are financially out of reach for most people; or require such an investment of time that many people will pass on the opportunity.  Not to mention that they require financing, insurance, employees, inventory, generally take years to reach profitability, and ultimately provide only linear income if successful.  So if you believe that an internet home-based business is the most viable option for the average entrepreneur, which ones are for real?  Where are the real no scam internet business opportunities?

Finding the Gems in the World’s Biggest Flea Market

You can buy anything on the internet – and I do mean anything!  From Pez Dispensers to multi-million dollar estates, someone is selling it.  And many entrepreneurs (and scam artists) have come up with systems or programs that they market to others who want to be in business for themselves.  You can start a T-shirt business, a dating service, sell products on ebay, take online surveys, make money from blogging, or become an affiliate marketer.  And then there are the multitudes of multi-level marketing or direct sales opportunities that you will see as you search the web.  Of course there are the big guys like Amway, Pampered Chef, and Mary Kay, but not all of these are focused on the internet to drive sales.  And the upstarts like Carbon Copy Pro, XanGo, and Global Resorts Network, which are focused on the internet, but have their own limitations.  To be fair, all of these are legitimate businesses with opportunities to make real money, but with their own pros and cons to consider when looking for a solid six-figure income.

So What Now?

My recommendation is to search until you find a business that offers these key ingredients to your online success.  Make sure that you partner with a company that:

• has a sustainable system
• has a viable product
• is positioned for growth
• and teaches you to leverage the power of the internet to create success online

And maybe most importantly, find someone that has achieved the level of success that you desire and — as a wise business partner once told me — do what they do! If you find a mentor that has a genuine interest in helping you, then that mentor can take months or years off of your learning curve.  So there are many valid business opportunities available.  Just keep looking until you find the company that is the right fit for you and your family.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company

XanGo is a privately-owned company started in 2002 by six entrepreneurs who learned of the healing properties of the mangosteen fruit – and became the first company to develop and market world-wide a drink made to share its benefits.  The company started in Utah with 14 employees and now operates in 20 international markets with over 750 employees and a million distributors in its global network.  XanGo is intent on being a leader in nutrition and wellness-based products.

The Products

The premier product of XanGo is its namesake XanGo juice, made primarily from the mangosteen fruit that grows in tropical Southeast Asia.  The small, purplish fruit has numerous beneficial properties because of the xanthones found in its pericarp, or rind.  Xanthones are natural chemical substances that demonstrate a number of pharmaceutical properties.  Some claim that xanthones may help maintain intestinal health, support the immune system, and neutralize free radicals in the body.  Xango juice contains all parts of the mangosteen fruit plus several other fruit juices (and a preservative) to enhance its taste.  XanGo now sells multi-vitamins and a line of natural, personal-care products along with the juice.

The Program and Compensation

The XanGo business opportunity is a standard multi-level marketing program that pays out 50% of all profits to the distributors.  These commissions are paid on the products you sell and on products sold by those you have recruited (down to nine levels) in addition to other bonuses for volume, etc.  For $35 you can become an independent distributor and buy the product at the wholesale price to sell at the retail price.  For this you get a Distributor Kit with sales tools and support materials, plus access to a basic back office for reports, etc.

Analysis

So have there been problems with XanGo juice?  The answer is yes and no.  In 2006 the US Food and Drug Administration warned the makers of XanGo juice to stop making health claims because of “serious concerns” about those statements.  XanGo responded that the brochures in question that made the misleading claims were produced and promoted by a third party, and not by the company itself.  XanGo now states on its website that the beneficial properties of the juice have not been evaluated by the FDA.  Whether Xango juice has healing properties or not — like the FDA — I have serious concerns about the business opportunity involved with the product.  While the health and wellness industry is still booming and XanGo has a very impressive website, the chance for a distributor to make a solid six-figure income from these products is not promising.

One reason for this is the cost involved with the juice itself.  To make any money you are going to have to sell a heavy volume of this expensive juice.  XanGo retails for $39.99 for a 25-ounce bottle, while other companies sell similar products with higher mangosteen content and no preservatives for less than half that price.  And while the initial investment is low, to get the Premium Back Office, which gives you a replicated website, you will pay a monthly fee.  And to get their recommended training system you will pay another $30 per month for CDs and videos.  And, of course, you will need to buy cases and cases of juice to sell.  But the biggest drawback to this opportunity is the ultra-traditional marketing system from such a seemingly cutting-edge company.  To promote your business you are asked to give away samples, have home meetings, go to conventions, sell to family and friends, and drink lots of juice so others will ask you about it.  So if these methods appeal to you and you are natural salesperson, then XanGo may be the right fit for you.  If you are more interested in a business that will not require selling to family and friends, will mentor you to create success, and will rely on the Internet to drive global demand, then continue your home business search.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company and Products

This company began as Melaleuca Oil, selling one wellness product made from the oil of the melaleuca tree, commonly known as tea tree oil.  After running into trouble with exaggerated claims of effectiveness, the business was taken over in 1985 by Frank L. Vandersloot – and everything changed.  Under his leadership the company experienced major growth, a re-focused marketing plan, and created quality products that have the respect of the industry.  Melaleuca Inc., as it is now known, develops, manufactures, and sells over 350 health and wellness products that claim to be more effective, safer, and greener than similar products available in stores.  Company sales reached $859 million in 2007.

The Program and Compensation

Melaleuca is set up as a traditional multi-level marketing program where members are paid commissions on the products they sell and commissions on products sold by their down-line.  For less than $100 you can become not just a customer but a partner (or Marketing Executive as Vandersloot calls them) in the business and begin earning 7% commissions on all of the Melaleuca products you sell.  Distributors also earn 7% on the sales of their down-line – or other distributors that they have recruited – down to seven levels.

Analysis

The answer to who is selling Melaleuca would be stay-at-home moms, people wanting a supplemental income, and customers that want to pass along a product to others that they are passionate about.  There is no doubt that the Melaleuca line is made up of high quality products, and loyal customers rave about the effectiveness of these products as well.  But as a business opportunity the case for Melaleuca is weaker.  One reason for this is the standard MLM practice of requiring the distributors to purchase a monthly amount of product to remain active in the business.  To earn the necessary 35 points, you need to purchase around $80 worth of products each and every month.  This does allow you to receive the 30-40% discount on those products, but the line is generally more costly than similar products you would buy in stores.  Another reason to doubt the program is that the marketing methods are very traditional with a focus on selling to and recruiting family and friends, handing out samples and brochures, and posting flyers to attract customers.  There are approximately 150,000 active Melaleuca distributors – with the vast majority making less than $200 per month.  In order to make any significant income you will need to have hundreds and hundreds of distributors in your down-line who remain active month after month.  So if you love the products and want to make a little extra money each month, and do not mind talking to friends and family about your business opportunity, then Melaleuca might be a good choice.  If you are more interested in making significant income, want to avoid selling to family and friends, and want to find a business that utilizes the global reach of the Internet, I recommend that you look elsewhere.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company and Products

Nu Skin was formed in 1984 by three entrepreneurs who wanted to build a company that would combine high quality personal care products with a direct sales business opportunity that would attract high-caliber salespeople.  With their signature ageLOC line of anti-aging products along with other skin-care and nutritional offerings, they have propelled the company to $1.25 billion in sales in 2008.  Nu Skin’s line is generally considered to be high quality, but comes with a higher price tag than other similar products on the market.  Approximately 800,000 independent distributors sell their products in more than 40 countries.

The Program and Compensation

Nu Skin is operated as a traditional multi-level marketing or direct sales organization, where the distributors make money two ways: from the retail markup of the products that they buy wholesale and from commissions they earn on sales from their recruited down-line.  To become a distributor you purchase a Business Kit for a small fee and then you are able to purchase the products at wholesale prices, which in turn you can sell at a Nu Skin-recommended 30% markup.  There is a fairly complicated commission/bonus plan for the different levels as a distributor climbs the ranks in the company.

Analysis

By 2012, approximately 26% (80.6 million) of the US population will be aged 55 and over.  This aging US and world population means that there is a growing market of people desiring anti-aging products and able to pay the premium prices they command.  And the quality of the Nu Skin product line will keep this company around for years to come.  But the average distributor will face several challenges with this home business opportunity.  The first will be that even with the most expensive products in the Nu Skin line, the retail markups (what the distributor keeps as profit) will be small – meaning that they will need to sell major volume to make significant money.  This need for volume can be accomplished by recruiting many people into their down-line, but then they face the age-old MLM problem of recruiting family and friends in order to make their business profitable.  This is a difficult and uncomfortable proposition for most distributors, and once they work through their warm market list, most will have very few ideas for targeted leads to expand their business.  Hosting home and hotel presentations to recruit strangers is even less desirable for many.  And without a superior mentor in the business, most will fail within a few months.  In fact, the 2008 average monthly commission for US Active Distributors was $814.50 or $9,774 annualized.  Not a bad supplemental income, but hardly a full-time income for the effort that you will need to put into the business.  So if you are looking to earn a supplemental income by selling quality products from a solid company, Nu Skin is a nice choice for your home business.  But if you want to create financial freedom by earning a higher commission, avoid recruiting friends and family, and find a mentor that will teach you to have a global reach through the Internet, I would continue my home business search.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

There are numerous Herbalife diet success stories that can be found on the company’s web site or across the internet.  “I lost weight and, at 65 years old, biked 200 miles in two days,” or “I set out to lose 25 pounds, and I lost 40.”  But can Herbalife’s health and wellness products fatten your bank account?

The Company and Products

Herbalife was created in 1980 by entrepreneur Mark Hughes, who started selling the products out of the trunk of his car.  He was inspired by the passing of his mother, who had struggled with health and weight issues all of her life, to create a healthy way to lose weight.  Herbalife now offers a wide range of nutrition, weight-management, and personal care products that focus on a balanced diet and total health.

The Program and Compensation

Herbalife sells its products through a traditional multi-level marketing system that uses 1.9 million independent distributors to market their products in 70 countries.  The distributors receive retail and wholesale profits on the products, plus royalties and bonuses depending on the level they have achieved in the company.  There are basically two ways to make money: by selling the products and by recruiting more distributors to your down-line to earn commissions off of their sales.  To enter as a distributor the cost of entry is low (buying around $240 of products to sell), while starting as a Supervisor is more costly (approximately $2000 worth of merchandise).  The company offers training and motivation online, conventions, and partnerships with their up-line to learn the business and market effectively.

Analysis

Despite a down economy, the wellness industry is still a viable opportunity with $44 billion in nutrition and weight loss sales in 2008.  People can and do make money with the Herbalife system and it has an almost-30-year track record that shows that the company is stable and will continue to make effective products for years to come.  But as a business opportunity the program is aged and ineffective in today’s global internet-driven economy.  Their traditional MLM system that uses buttons, posters, bumper stickers, and flyers is not a useful way to reach those needing nutritional products.  And the fact that this industry is saturated with numerous competitors with huge advertising budgets and more prevalent distribution channels also hurts the distributor’s ability to succeed.  The average annual gross compensation paid by Herbalife to Active Leaders in 2008 was $5,200 (not including profits earned on resale of products).  To make more than this in a year you will need to sell the products and the business opportunity to your warm market first (your friends, family, and acquaintances); and this is something many people are uncomfortable doing.  Secondly you will need to find a way to market to the masses of people you do not know, and this is an even bigger challenge with the tools provided.  So if you believe that you can sell enough weight management and health care products to your warm market, and can beat the odds in reaching others to join the business, then the Herbalife diet success stories might propel you to a winning home business.  If you are looking for a company that pays out higher commissions, offers better training and support, and a mentoring program that will show you how to market on the internet for success, then I recommend that you keep searching for another home-based business opportunity.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company and Products

Univera is the central piece of a larger global organization called ECONET, started in 1976 to integrate the research and development, manufacturing, and sales of health and wellness products for consumers.  It was created by YunHo Lee, a successful Korean businessman who had suffered from poor health and had found no relief from traditional medicine.  When he was given the juice of an aloe vera plant he had a “miraculous” recovery, and decided to use his financial success to extract the best of nature and bring the benefits to the world – by investing in the ethnobotanical properties of the plant kingdom.

The Program and Compensation

Univera decided to market their products with a direct sales approach through a traditional multi-level marketing system.  Commissions are paid on sales generated by customers, down-line commissions of 15% on people you personally enroll, 10% on those they enroll, and commissions paid up to four levels deep, plus other bonuses and incentives.  To become an associate you must purchase a starter kit ($40), sign up for a Convenience Plan (personal monthly product order that is automatically delivered to you), and order the number of Renewal Gift Packs you desire (product samples plus Univera overview literature — $125 to $750 and up).  The chosen business model is called Relationship Marketing, which is basically using your warm market of friends and family for product sales and prospecting.  They call their particular method the Gift-Team-Enroll model.  Associates give a gift pack to a prospect, then follow up with them if they are interested in becoming an associate (watch a DVD or attend a party), and then enroll those who choose to join.

Analysis

The Health and Wellness industry continues to thrive despite a down global economy, and the Univera products are well regarded in the industry, especially with the emphasis on natural healing.  The cost of entry is relatively low as well, so this opportunity is something that is financially within reach of the average person.  But the model of Relationship Marketing is dated and minimally effective in a global economy powered by the Internet.  Many people are uncomfortable selling to and prospecting their friends and family, and the warm market is extremely finite even for those skilled in sales.  Also, members are required to buy a rather substantial amount of the product monthly for personal use, so this must be a consideration.  Finally, aside from some conferences, training and mentoring is generally left up to the associates — so those who have an up-line that chooses to help you may find greater success than the average member.  If you are a skilled sales person who doesn’t mind selling to your friends and family, attending home and hotel meetings, and buying and using the Univera products on a monthly basis, then this opportunity might be the answer to your home-business search.  If you are looking for a more modern marketing method, personal coaching and training, and a step-by-step process to build success, then you should continue your research.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

Global Resorts Network is a travel business that has existed since 1986, selling discount luxury travel. The product is a membership that has been sold, up until recently, only to customers who attended a personal sales presentation. This membership enables the clients to book week-long vacations at time-shares and resorts around the world at discount rates, ranging from $298 to $798 per week. The Gold membership is $1495 (for three years) and the Platinum is $2995 (lifetime); the only other difference being that the Gold members pay a slightly higher price per week stay.

The Program and Compensation

There are currently three approved marketing systems that you can get involved with to run your online business for Global Resorts Network. The first two are standard marketing systems used to promote your website and the third is a Reverse Funnel System that is a funded proposal system. This means basically that the prospect must pay a fee to get any information about the business in order to weed out non-serious buyers. This was revolutionary when it debuted, but has now been copied by others in the direct sales home business industry. After joining at the Gold or Platinum level you then need to pay a $100 Global Resorts Network site fee and $29.95 to $300 per month, depending on which marketing system you choose. Advertising costs are not included, so this will add to your monthly cost. Global Resorts Network uses a perpetual one-up compensation plan, which means that your first sale is passed up to your sponsor to activate your first level. After that you receive a commission on each sale and your sponsor also receives a commission for that sale, and so on.

Analysis

This company seems to provide a good quality product that has a 20-year track record of providing discount luxury travel. However, by shifting their sales to network marketing they have dramatically increased their memberships, decreasing the available inventory. And as ever-increasing numbers of clients utilize their member benefits, the quality of the product diminishes since there is a relatively finite number of resorts. Secondly, the travel industry is highly competitive and there are many internet companies that offer competitive travel deals that can be customized for specific needs, e.g. — shorter weekend stays or different booking days. Additionally, this type of business is very hard to market in a down economy, as people tend to cut back on things like luxury travel when money is tight. Lastly the training, coaching, and other company help appears to be minimal. So if you enjoy travel and want to make some affiliate money from the opportunity as well, than this business might be for you. If you want a better marketing system, more personal coaching and help with your business, and a product that is less dependent upon a healthy economy, then continue your investigation.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company and Products

Developed by Jay Kubassek, a rags-to-riches entrepreneur and online marketer, this company offers a replicated website that advertises a business opportunity, but then charges $49 (that is the “funded” part) for prospects to find out information about the business. Once a prospect pays the $49 they receive a DVD — an interview with Kubassek that gives an overview of the company — and 30 days access to their website. During this one-month period the company calls the prospect to sign them up for the Business in a Box ($400), which is a set of 3 DVDs and two marketing manuals that teach personal development and online marketing techniques. To keep the membership active you will need to pay a $150 subscription fee at the end of the 30 days (and every month thereafter) for access to the back office where their other training is located. Once you have your BiB, then the company wants you to purchase the products that Wealth Masters International sells: DVDs, courses, and seminars on personal development, tax strategies, asset protection, and other investing topics. These are M1 ($1,995 for another set of DVDs), M2 ($8,995 for a wealth conference), and M3 ($12,995 for a special wealth group); but are generally sold as packages. The Platinum Package includes M1 and M2 and is $8995, and the Platinum Plus includes M1, M2, and M3 and is $19,995.

The Program and Compensation

When you are set up and paid you have a replicated website and the ability to earn commissions off of the sales your website makes. All Carbon Copy Pro asks you to do is advertise your website and drive as much traffic there as possible to start the cycle over again. They have a call center that then takes your applicants and attempts to sell them these same products. The company advertises that you will never have to speak to a prospect to make a sale. The compensation plan is multi-tiered so that the commissions you earn depend upon the level that you joined. For example, you can’t make a commission on a M2 or M3 sale if you joined at only an M1.

Analysis

Carbon Copy Pro offers a respectable product and people are making money with it. The positives for the opportunity are that you get an automated business that you don’t have to create, and it takes the fear of selling out of the equation since you never have to have contact with any prospect. However, I see several flaws in the system. The first and most obvious is the cost. The average person looking for an online opportunity will not have the $3000 to $20,000-plus to get involved and market this opportunity. Secondly, while the products can definitely help the online marketer learn more of the trade, they are standard financial advice and personal development tools that are available other places on the web for much less — and would not stand alone outside of the business opportunity. Also, while taking the personal touch out can be helpful to some, I think that you will always need some follow-up to build your business. Lastly, by getting the “carbon copy” website, you have now thrown yourself into a sea of thousands of identical sites on the internet, all selling the same thing. There is no personal branding at all, except for branding Jay Kubassek. To market anything online I believe that you need to stand out, and personal branding is an essential part of this. If you are looking for an opportunity with a more desirable product, branding that will set you apart, and a lower entry cost I suggest that you continue your search.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

The Company and Products

Founded in Vermont in 1997, Green Mountain Energy is the leading retail provider of “cleaner” electricity products in the US. Now based in Texas, this company formed to change the way power was made after deregulation of the public utilities in many states. Since electricity generation is the number one form of industrial pollution in the US, Green Mountain Energy is positioned to take advantage of the Green movement going on today. Green Mountain Energy offers electricity 100% generated from new renewable wind resources and sells Residential and Commercial Electricity plus Carbon Offsets (that allow commercial sector clients to improve their environmental position).

The Program and Compensation

Green Mountain Energy Network is a traditional network or Multi-Level Marketing program that pays to seven levels. For a fee of between $329 (plus $25/month) to $999 you can become an independent representative and market the product and the program. The goal is to register yourself, then get ten electricity customers and three business partners (down-line), and then teach your down-line to replicate that to seven levels. The company provides an online back office to help you keep track of your business. Each representative receives a one-time commission on all recruited down-line reps and a very small percentage of all electricity customers’ monthly bills. The company claims that with just three reps and two customers each down to seven levels you can make $10,000 in one-time bonuses and $12,000 per month in residual income from the electricity customers. This amount grows as you add more reps/customers per level.

Analysis

The method for attracting representatives to your down-line is apparently passing a DVD presentation along to your warm market (friends, family, and acquaintances) or getting an independent website that can draw other prospects. The method for attracting electricity customers is talking to that same warm market and using other tactics like trying to recruit customers outside of shopping malls, etc. The reps seem to be on their own once they sign up, with no apparent training from the company — relying instead on the reps to train their own down-line. One downside to the opportunity is that Green Mountain Energy is one of the more expensive options for retail electricity, and you must keep all of your customers through your down-line in order to make the 5-figure residual income per month claimed. Another ironic point that the company reveals is that even if you pay for Green Mountain Energy, the majority of your personal electricity still comes from traditional fossil-fuel production. This is because of the nature of electricity delivery, as all of the capacity produced goes into one bucket (the grid) and is distributed evenly to all customers. While the product that Green Mountain Energy sells is a positive for the environment and would make any rep feel that they were making a difference, I believe that the average person will struggle with this system. The big money makers will be seasoned professionals that can sell to anyone. If you are passionate about the environment or enjoy talking to friends, family, and strangers about changing their electricity or joining you in a business opportunity, this might be right for you. If you believe that you would need more extensive training or a better support system, I suggest you look elsewhere.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.