There are many reasons that starting a home based business might be right for you. Here are some of the reasons why I started my own real estate company and got involved in network marketing 15 years ago.
Ask your self these questions:
Are you not getting paid what you are worth at your current job?
Are you tired of working for someone else? Don’t like your boss?
Are you currently out of a job and need to make money?
Are you looking for the freedom to work when, where, and how you want?
Do you want to spend more time with their family?
Well if you said YES to anyone of these questions then take control of your financial future NOW! I recommend you strongly consider starting your own home based business in the network or affiliate marketing and the direct sales industry!
Most people that start their own home based business are trying to achieve Three Things:
1) Residual Income
Residual income is recurring income that continues to come to you long after the work you’ve done to produce it has ended. There are lots of ways to produce residual income. But many people don’t understand it. Others have never thought about or been exposed to it. And unfortunately, many ways of producing it are out of reach for ‘average’ people.
2) Leverage (of Time and Money)
Every successful person or business (in or out of Network Marketing) takes advantage of leverage. There’s only 24 hours in a day! And no matter how talented you are or how much you get paid per hour, if you don’t take advantage of leverage you’re limited by the number of hours in a day. By learning to leverage your time, you can also benefit from a percentage of other people’s efforts, and dramatically increase your income and freedom.
If you’re reading this article on the Internet (on my website or someone else’s), or in a magazine, that’s one simple example of leverage. I don’t have to be physically present to teach you something. I may be sleeping, or vacationing on the other side of the world while you are learning or sharing this information.
Unfortunately in most traditional businesses, the only ones who benefit from leverage are the owners or stockholders. The loyal, hard-working employees do most of the work. The unique and wonderful thing about the Network Marketing business model, is that everyone has the same opportunity to become the ‘owner’ of their own business – with a fraction of the investment of time and money of a traditional business or franchise.
And instead of worrying about training people to become your competitors, in network marketing the people at the top have a vested interest in helping others on their team succeed.
Again, the question I ask prospects here is:
“If you had the choice to receive 100% of one person’s efforts, or 5% of 100 peoples’, which would you choose?”
And again, if they answer 100%, either: 1) they’re not a good prospect or, 2) they need a remedial math class or additional education.
Many talented people would rather just depend on themselves, and have difficulty grasping the importance of this concept.
Obviously 100% of one is always only one. But 5% of 100 is five. That’s a 500% increase and is significant! And with synergy, sometimes it can be even more!
Not only will the total result with leverage almost always be a lot more, but your income is not dependent on only one person. If it is, and that person gets sick or injured, disabled, dies, quits working, or decides to go on a long vacation, your income could stop!
Learning to leverage your time (and money) is an important step toward gaining Financial Independence and Time freedom.
3) Duplicability or Geometric Growth
The best illustration I’ve seen of geometric growth is the penny-a-day example. It’s also frequently used to illustrate the benefits of tax free compound interest.
If you haven’t heard this before or don’t remember, go ahead and take a guess. Day two you’d have 2 cents; day three you’d have 4 cents, then 8, 16, and so on. How much at the end of 30 days?
I’ve never had anyone who hadn’t heard this before come close. So don’t feel bad if you don’t, and I promise not to laugh. Ready? Did you pick a number?
Would you believe over FIVE MILLION DOLLARS?! ($5,368,708 to be exact!) That’s right! Most people don’t believe it until they punch it out on a calculator. And even then it’s sometimes hard to fathom. But it’s true. Isn’t that amazing?
That’s a simple illustration of how networking can work. If I can teach you, I’ve doubled myself. If we each teach someone else, we’ve doubled again. And as this goes on and on it can produce amazing results in a relatively short period of time, just like the penny example.
The easier your program is to do and the lower the cost to get involved, the more people you can appeal to and the more potential for geometric progression to work. Programs that are too complicated or expensive for ‘average’ people to do will always hinder your growth.
Create your own residual income stream and NEVER have to worry about the state of the economy or your job again!
Another reason that you want to start a home business is the TAX BENEFITS! Congress has approved a number of tax breaks as incentives for small businesses. Owning a home based Network Marketing business is the best way for the average guy to take advantage of these tax breaks.
As a business owner you are entitled to claim business expenses that can potentially SAVE you $3,000 to $9,000 in taxes every year.
Here is a list of some of the items you can claim:
- The initial investment you paid to start your business
- Operating and depreciation costs of your business equipment (eg office equipment such as computers, faxes, furniture etc.)
- Phone and communications, including internet expenses
- Car expenses-including depreciation, mileage, fuel, repairs and maintenance
- Business operating software and management tools, which also includes webpages etc.
- Marketing material (this is a really good one in network marketing if you know how to use it)
- Prospecting expenses such as buying leads or lead generation costs
- A percentage of rent or mortgage costs (for the space you use to operate your business)
- A percentage of utility bills such as gas, electricity, water
- Household maintenance or improvement costs such as repairs or structural changes (eg air conditioning)
- Travel and accommodation – Did you do any work on that holiday?!
- Property taxes and insurance
- Restaurant meals, entertainment and dinner parties (make sure you know the guidelines for this one)
- Education and training also includes books, software, annual conferences or weekly meetings
- Security systems
- Moving expenses
- Tax preparation, accounting and record keeping fees
- Health insurance (mainly in the US)
- And if you are in it for the long term, in some areas across the world you can also pay two of your children, tax free, if they are involved with the business.
I AM NOT A TAX CONSULTANT, bare in mind that every state and country has different tax laws, so before assuming all of the above are applicable to your business I strongly recommend that you discuss these with your local tax representative or accountant.
In summary, there are many benefits to operating a home based business, in which enjoying the tax advantages is just one, but if you can learn to take advantage of these tax breaks as much as I have you’d be surprised how much it can add to your income!
Start A Home Based Business Today!
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P.S. Would you like to earn while you learn? I’ll show you how you can make money online while learning how to build a profitable internet home business, click here to see my system.