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Monday, December 11, 2006

Network Marketing Home Based Business Opportunity Indicators

Evaluating home based business opportunities, especially those of the Network Marketing variety like evaluating the stock market is not always an exact science. If it were so you would only pick winners. However, while you can't always be right I have found over the past 11 years that certain indicators are fairly accurate in terms of predicting current and future success.

Notice I said current and future success. This may not seem like to much but it really quite huge. I don't know how many companies brag about how many records they set or how much their growth was in their first years.

This is nice history but there is a saying in the stockmarket: - Past performance is not an indicator of future success. Ask yourself this question, since a number of people became quite wealthy investing in Microsoft in the early 80's why couldn't I inivest today in Microsoft and become just as wealthy? I think you will agree it's because of timing.

The same thing is true of home business. The next time someone tries to tempt you with getting rich in some home business opportunity by telling you what they did in their first few years simply ask them. What is your rate of sales growth currently, or what was your rate of sales growth last year, or in the past couple years?

Now I will say this - past performance if it has been great is usually an indicator that the company isn't going to go out of business anytime soon, but it's certainly not an indicator of the current strength of an opportunity.

If someone made a lot of money when a company was going through hyper growth of 300% a year, why would you expect to make the same money if the company was only currently growing at 5% per year?

In my next post I'll discuss several of the key indicators to look for in evaluating a network marketing home business opportunity.


At 9:16 PM , Blogger susan said...

Hey,I'd like to start out and say that your bulletins are very interesting some of the things you talk about I never knew of.My husband had his own business and over the years it took a nose dive.Keep posting and I'll keep reading.Thanks.


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