Low Risk Businesses To Start From Home
- 1 Start An Online Business Free
- 2 Low Risk Businesses To Start From Home
- 3 Freelance Sites
- 4 Product Production vs Affiliate Marketing
- 5 Low Risk Businesses To Start From Home
- 6 Is Network Marketing Risky?
- 7 Why Do Distributors Quit MLM?
- 8 Is There A Better Part-time Business Model?
- 9 Premier Cashback Is A Better Business Model
- 10 Business Risk Warning
- 11 Team Leaders Needed
- 12 Conclusion
Start An Online Business Free
Do you still get emails promising low risk businesses to start from home? Promising that you can start for free, for no effort!
Wow – sounds a dream.
Which is precisely what it is – a dream fantasy. A minute’s analysis will dispel the myth. Because for profit to be generated, money must come from somewhere. If you want to build an online business, you must expect there to be costs involved.
OK, strictly speaking I know there are sites where you can build an income doing micro-tasks, but I wouldn’t like to guess how long it takes. I was thinking of “SixFigureIncome”, but I can’t actually find it any more – if anyone is a happy member, please feel free to share your experiences in the comments.
The idea that you can “start a free business online” is flawed, and therefore risky. I am firmly of the opinion that for any business to be profitable you need to spend a little bit of money to work smart instead of hard.
Low Risk Businesses To Start From Home
Of course when you decide to start a business, to make money online, the last thing you want to do is SPEND more money than you make. The idea is to make a profit, and – given your need to make money – it’s fairly likely that you’re not wanting to put any significant sums of money at risk – especially on a repeat basis.
Putting this in the context of buying a retail shop (quoted only because this is my family business background), you might buy a shop and outlay some money to put stock into it. So far so good.
But if at the end of the month you hadn’t sold your original stock, it would seem rather risky to go out and buy MORE stock, hoping that next month you will sell both sets of stock.
So when choosing a full-time or part-time business, you should only risk money you can afford to lose in the worst case.
Never put at risk money you need for food or accomodation. Instead, fund your business venture by cutting back on luxuries such as nights out. And don’t commit yourself to regular costs where you “lose everything” if things don’t work out as planned and you have to put the business on hold temporarily.
That’s a simplistic approach to managing the risks of a home based business.
Of course, those of us who work from home are lucky, because we reduce our risks (costs) by having no additional premises to fund. We reduce travel costs, and we can reduce start-up risks by starting a business part-time while continuing any additional job or business.
So let’s look briefly at some low risk / low cost businesses you can start part-time or full-time.
If you have a particular skill you can market (e.g. copy-writing, web-design, proof-reading) there are many reputable freelance sites where you can register for work. Here are just a few – in no particular order:
Even if you have no particular skill, I encourage you to register on these sites and look at the tasks being offered. They range from $1,000+ jobs so complicated I don’t know what’s being requested, right down to $5 bit parts in videos where someone is needed to say just a few words.
Fiverr in particular is noted for outlandish requests!
In the “Fun and Bizarre” sectron, there are ladies who will “Pop 12 inch balloons” for you, and also those who will “Chat to you on any subject”. There’s even people you can insult, or be insulted by, for specific time periods. Weird.
Please note – I am suggesting places where you can find work. I am NOT recommending certain services – especially the “chatting” ones, or those where you can buy Facbook Likes, Twitter Followers, etc.
Some people have discovered, to their cost, that certain purchased Likes / Followers are fake.
The secret to success with freelance sites like these is to start by offering your services inexpensively, build yourself a good reputation, and you can then charge for add-ons as your repeat customer base expands.
Of course the main income limitation of sites like these is that you are still selling your time by the hour or minute. If you are unable to work for any reason (good, e.g. holiday, or bad e.g. illness), your income stops too. You may be wiser to build a low risk business that can carry on generating income even when you’re not physically working at it yourself.
The previous paragraph is one of the main reasons I began to look for an online business to supplement my poor pension provisions.
As well as an extra income, I wanted more free time. You’ll see why on the right, as my visiting Dad settles down to a serious game of Bingo with the younger members of the family.
Here are the two low risk businesses I am building – two, because the first business is equipping me with skills that I need to build the second.
Product Production vs Affiliate Marketing
Having tried this a few times (oops), I consider producing your own product a high risk strategy, because you need to learn so many skills to get started, but have no guarantee of sales.
On each occasion I produced and marketed my own digital product I never even recovered my costs – let alone making a profit 🙁
I prefer affiliate marketing where you choose from a vast range of ready-made products, and just learn the skills necessary to market them.
This earlier post gives a more detail comparison between affiliate marketing vs producing your own product.
Low Risk Businesses To Start From Home
There is no guarantee of sales in Affiliate Marketing, but at least you won’t have risked time and money developing a product, and any marketing skills you will have learned are transferable to any other digital product, or any other online business.
The training (and ready-made products) I recommend and follow are part of “Affiliate Club”. Click HERE for a free training video. The start-up cost is low, there’s no long-term commitment, and the skills you learn will help you to earn in any business venture.
Affiliate Club training covers a ton of different online marketing strategies and you’ll be encouraged to choose one (or two) to focus on. Following the training myself, I have chosen blogging but you may choose a completely different strategy to follow. As many as you like in fact!
So, are there other types of low risk businesses to start from home? Certainly!
Is Network Marketing Risky?
Another style of business said to be low risk is network marketing (multi-level-marketing aka MLM), where – for a low cost start – you receive a ready-made business with none of the traditional overheads (premises, stock, etc). All you are required to do is market a company’s products to your own extended network of contacts.
It’s low risk because everyone starts on a level playing field with everyone else, and you make of it what you can.
Network marketing has the advantage that it can be undertaken offline or online, so you can either learn Internet Marketing – or you can make your sales face-to-face.
But be under no illusion – with traditional network marketing you will be expected to make sales. Where else will profits come from?
Because the start-up cost is low, the financial risk is low – but that can be a danger in itself, because with a low start-up cost you may be tempted to give up easily when the going gets tough – so the drop-out rate is high for all recruits.
Why Do Distributors Quit MLM?
Unfortunately MLM has a reputation for failure due to a high drop-out rate and the constant need to replace distributors who quit.
Often it turns out NOT to be the “easy option” that the “leaders” would have you believe, and some still expect you to apply the 3-foot rule (tell everyone within 3-feet of you about your products.)
What fun – NOT!
Other downsides of some plans are:
- You must make regularly monthly purchases – whether you need products or not
- You may need to meet high sales targets
- You may be encouraged to give away trial samples – often quite high value
- After attaining a particular qualification level you can be demoted if you are inactive for a while
Is There A Better Part-time Business Model?
I, and many others, believe so, and we have joined a “loyalty points purchasing club” that has been running since 2008 and never once missed a member payout.
Instead of earning a free coffee, you receive cashback rewards. Instead of these being based on your own purchases, the rewards are based on purchases of any product the club offers, and helped by any sale world-wide – NOT just your own team’s. This means that even passive members can receive cashback rewards.
Still working full-time to “supplement” inadequate pension planning, it’s too late to do anything about my pension, but it’s not too late to have a business that I can build part-time so that it will eventually replace or supplement my current full-time income.
My life is already full even without the extra involvement of a part-time business, so I don’t want the hassle of admin, spending money on products I already have, the need to meet sales targets plus the spectre of demotion.
I need a genuinely part-time business I can “pick up and put down” as time permits. Something with the “admin and technical stuff” ready done for me – such as product deliveries, money handling, sales literature and videos.
Premier Cashback Is A Better Business Model
I have been building a business called Premier Cashback, part-time, since the summer of 2015. Because I’m still very busy with my current work I have only introduced eight new distributors. Just one of those has successfully marketed the business. The other seven made one or more personal purchases, between them introduced a total of TWO new members. (Not two each, two introduced by a total of seven other members.)
This is typically what will happen when you recruit distributors to a Network Marketing business, however much your potential sponsors will tell you “Find just three who find three who find three etc etc”.
Rubbish – for the average MLM-er that’s extremely unlikely! Most will be either completely passive or – if the plan allows it – semi-passive (like I am).
Despite my sporadic Premier Cashback activity, because I am in a large worldwide team all helping each other, I have received cashback and team supprt bonuses on more than one occasion, and some of the completely passive members I introduced have benefited from cashback rewards.
It’s not technically an MLM program, but here’s an article showing how Premier Cashback compares to Network Marketing.
You can start in Premier Cashback with a one-off purchase as low as £75 plus P&P.
(Update May 2017: The company has recently launched a fully fledged eCommerce product site, and now pays a certain amount of cash up-front, which is ideal for marketing the business to health professionals.)
Business Risk Warning
With most businesses (online or offline), if you do nothing, you earn nothing. However hard you may protest, that seems fair to me.
So with most of the businesses I have mentioned above – all things being equal – your rewards will be in some proportion to your efforts.
With Premier Cashback – if you work hard you will earn well, even if you periodically “go passive”. If you are permanently passive (i.e. do nothing) you will still earn cashback rewards eventually, but based on other people’s efforts – so no complaining if it takes a long time!! You can even earn cashback rewards based solely on your own regular (optional) purchases, but again, this takes time.
Team Leaders Needed
My potential and actual cashback rewards are not typical. I have worked hard, and some of the people in my team have also worked hard, which has helped those cashback rewards. People in my team who earned cashback rewards for doing nothing are pretty pleased – some are even thinking of promoting, now they’ve seen the plan in action.
Going forward, world-wide growth is accelerating beyond anything I ever imagined when I joined last summer. There’s an unconfirmed rumour that a large team from a new country will be joining us soon – our nutritional products have just been approved for entry.
We are mostly based in the UK so loads of countries still need to come on board and YOU could lead your country. If you’d like to be a team-leader, or a passive member, contact me.
Above you have seen a variety of low risk businesses to start from home. What do you think about each of these models? How do they compare to what YOU are doing – with particular reference to cost and input of time?
Please tell me in the comments below.