Financial Freedom Radio talks about Home Business
Financial Freedom Radio is dedicating many shows to teaching people how to understand and create a home business. The title of the shows "Why You Should Be Rich" will share with you many insights to assist you in running a home business. We have researched the reasons why home business fail and have discovered that many home business are started without having a proper structure in place. Many start a home business not knowing how to start or run the business. They begin their business without having a plan of what the business is, what the structure will be, and how to run the business.
When starting a home business it is essential that the business owner understands the business they are beginning and has full product knowledge of the products they are selling. They usually believe the information [Hype] that they are told by the home business opportunity sales people [Usually on line movies that present the home business opportunity company.] without doing their due diligence.
Home business payment structures
One of the most misunderstood areas of the new home business operator is the pay structure and whether the pay structure makes sense or not. There is a movie on business compensation from a very popular home business that explains a pay structure to the potential business owner, who would be paid on a "one up" pay system. It explained that they would be paid on people they sold into the system, and then they would be paid on the people that those people brought into the system. [If you are still following good, but if you are not that's ok because the whole thing is confusing.] If you do the math this would be impossible to pay people they way the movie explained it, since the only person that made money in the movie would be the viewer. When I did the math there would not be enough money to pay everyone the way they explained it.
This is what they said, "the first two sales would roll up to the person who brought them into the home business then the next sale would be kept by them. But the movie continued to say that the person viewing the movie would receive money from all the others that their down line legs would sell, and that the pay line would go to infinity".
If it were a true "one up system" then the pay line would end after the second sale by the people below them, unless they continued to sell new people. Every sale would result in the actual sale and then the first sale of the person they sold. There is no infinity payment otherwise the people that sold the others would not make any money. There is only so much to go around, and any hint of infinity payment is simply false in a "one up system".
Everyone should do their due diligence when it comes to how the payment schedules of their home business works because sometimes the explanation is not what will happen in actuality. If the dollars are diluted down through any payment structure that extends above you then your income will be less. If sales from people below you are to be paid up to you then the people below you will have their incomes diluted. And if it is a one up system than there can't be any payments due you from infinity otherwise the people below you will make no money or very little.
There are only a few true "one up" payment structures in the home business arena that will produce substantial income for the home business owner. A true "one up system" is like a mini franchise. Lets assume that the home business owner purchases a home business that is based on a "one up" payment system. The way a "one up system" works is when the system owner purchases the system the purchase price goes to the person who sold them the business. After the purchase the person who sold the business to the new home business owner must send a fee to the developers of the system so the new home business owner can have access to their new business system.
Now the new home business owner sells their first system or product to a person they cultivate. The money from this first sale goes to the person above them who sold them their new home business. Then there is no more commitment to pay anyone except the main company who developed the product. Usually the company who developed the product or service gets a piece of every sale. For their efforts they provide customer service and training along with any other support unique to the particular home business. If you want to look at a true "one up" pay system and a home business that comes with mentoring and guidance, Dr. Raymond Jewell's Jaguar Marketing System will give you information about the tools needed to achieve a home business success.
Doing due diligence is very important and must be attempted with an open mind. You have to cut through the hype and the useless information on the websites of the home business opportunities that abound on the internet. The particular home business pay system that I referred to above had a website that was full of misinformation and statements that would woo the unsuspecting newbie home business owner. Learning good questions to ask when doing your due diligence is very important. Here is a place [ click here] where you can read and hear audios about how to find a good home business. Running a home business can be exciting and successful if done properly, but you have to find the right home business. Do your due diligence! Tune in to http://FinancialFreedomRadio.info and listen to "Why you should be rich", every Friday 9:00 AM EST or download past shows. You can also download to your i-Pod from i-Tunes.
Thanks for reading.
Dr. Raymond Jewell
http://financialfreedomradio.info
http://10kweekhomebusiness.com
http://blogfather.net/blogs/lerouxhouse.xml
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Raymond Jewell PhD
610-637-4884
Skype: rbjewell
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