Sunday, October 30, 2011

Analyze the Mechanism of Business

Browsing the Internet or checking emails daily shows many so-called business opportunities. Many of these opportunities advertise, "No experience, no skills, and no knowledge is necessary." However, I have not found one that states, "No time, no effort, and no brains are required." One day, some advertisements might start saying that. Unfortunately, I do not think any opportunity can bring in money without doing any work.

People's behavior consists of complex patterns. Their buying patterns seem relatively simple and can be categorized based on the following three reasons:

1. People buy things because of necessity (Need).

2. People buy things to provide better advantages (Advantage).

3. People buy things to get help (Help).

All legitimate businesses, both Internet-based firms and the legacy types, have developed the mechanism needed to meet these buying behaviors. Many opportunities do not show participants the mechanism for making money. In fact, they do not show participants the entire business picture, although they may explain how a participant can make money. A participant needs to look at all of the elements of the opportunity and analyze how the host makes money. If the host does not make money, there is no reason for the host to provide the opportunity.

The host of an opportunity requires a participant to pay for joining. People need to stop and think at this point. This type of host wants a participant to work as part of his or her sales team. If it was a legacy business, the host would need to pay to recruit a salesperson.

If you were hired to send 100 emails a day, you would not pay to send them, the host would.

Many opportunities require people to pay a fee to join. The host makes money by charging this participation fee. He earns money from you if you buy a product or a service from him. He also earns money on any sales that you make. The host's income is usually more than three times what you make. If a participant does not make money and quits, the host is not affected at all. He will simply find a replacement. When you come across a business opportunity, the best approach is to examine the following three points:

1. Who will make the most money?

2. What is the mechanism for creating business profits?

3. What is the whole business picture?

Are there opportunities to earn real money? Yes, there are. Some programs enable participants to grow and eventually host their own businesses. They may provide the only chance for some people to run their own businesses. The best way to build a profitable business is not to join another person's program, but to build one's own.

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