I’ve heard it said that people buy with emotion and justify with logic.  Throughout virtually the entire spectrum of products and prices, emotions play a role in our purchasing decisions that cannot be overstated; it doesn’t matter if we’re considering a new color shirt, a new television set, or a new car–  our emotions often take over and we become almost obsessed thinking about how happy we’re going to be with that new purchase. 

It is to be expected, then, that emotions can and often do become a major factor for people joining a network marketing opportunity.  Network marketing opportunity presentations  do a great job at getting the average ordinary folks to imagine themselves in a situation far more attractive to the one they’re in now.  In case you’ve never attended an opportunity meeting, you hear stories about nutritional products that have performed near miracles, personal incomes that are set to increase exponentially, and early retirement for anyone willing to put a little work and effort into it.

One of the common patterns I’ve noticed that I’ve found rather troubling is the “testimonials” from men and women who get up and literally end up weeping at the prospects of their new opportunity.  People have literally stood up at MLM opportunity meetings and choked back the tears at the thoughts of spending more time with their kids.  They’ve spoken about the awesome opportunity that’s been presented to them that’s going to allow them to travel the world with their loved ones.  Of course– they are also profusely thankful that their friend/neighbor/business associate took the time to “share” the opportunity with them.

In NO way do I wish to belittle these people for their new hopes for the future.  With today’s economic conditions being what they are, it’s perfectly understandable for someone to grasp onto the first, and possibly only, bright spot he/she sees regarding a financial improvement.  The reason I cringe when I hear people speaking this way is that it gives me the impression that someone forgot to tell them that they have to WORK.  Yes– it is true that residual income may somewhere down the line allow an individual to work less and spend more time with his/her family, but for the forseeable future that new rep is going to have to bust his/her arse to build a business that will produce such a flow of residual dollars.  In other words, if you’re joining a network marketing company, and all you can see is yourself living the high life with endless vacations and an even more endless bank account, you would be wise to seriously take another look.

The stats do not lie; generating income with an MLM or network marketing company is an extremely difficult endeavor, and a huge majority of people getting into a network marketing venture end up losing money.  It may be that new independant representatives don’t realize the work that’s involved, and it may be that emotions cloud judgement.  Starting any business is not something that should be done on impulse; taking the time to learn about the company you’re considering and the industry in general will likely prevent much heartache down the road.

The other day I was reading a blogpost that asked the following question:  “Why do so many look down on network marketing?”  This question comes up quite frequently amongst those running a home based business, and these cliches are often offered as answers–  “People give up too easily,”  “People aren’t willing to do what it takes,” and the “sour-grapes” argument that goes something like “Reps look for an excuse for failure.”  As I was pondering this, I came across the video above that– at least for me– summed up several reasons for the disdain many have for network marketing.

One of the qualities that network marketing companies claim is necessary for success is a clear focus on the goal.  Whether someone’s goal is more money, more freedom, or getting filthy stinking rich, MLM companies and uplines like to impress upon prospects that “clear vision” on that goal is a prerequisite for success, and that distractions can derail someone’s path to that success. 

While determination and persistence can be admiral qualities, the above video illustrates how simply being persistent without regard for consequences can lead to unintended and destructive results.  We have at least two gentlemen who are absolutely focused on getting a plowing vehicle out of a “stuck” situation, and they aren’t really careful enough to see how their “recovery process” is wreaking havoc on other vehicles in the area.

Likewise– some in the network marketing industry can have a tendency to take it a little too far– so much so that they resemble the characters in the video.  I’m reminded  of a network marketing “heavy hitter” who would literally admonish prospects for asking the “wrong” questions.  His admitted attitude was that a “tough” question was evidence of someone being negative, and he didn’t feel he needed those people is his business.  Interestingly enough, he would discuss this philosophy during his opportunity presentation, and you can bet that many questions that would come up in prospects’ minds would never get asked for fear of getting admonished for “being negative.”

Of course– this resulted in multitudes of prospects getting into the business opportunity almost blind, and while the “heavy hitter” described above could boast about the huge numbers of people he recruited, he also dealt with huge number of cancellations and damaged relationships with people who ended up losing their money.   His focus was all about was his goal of recruiting; however, his lack of concern regarding the effects of his “hard-sell” tactics made it virtually impossible for him to duplicate his success.

This lack of concern for others is a huge contributor to the disdain many feel towards network marketing.  Many of us have witnessed individuals who have time and time again been focused on recruiting, and once they have the money from the recruit, feel the job is done.  Much like the snowplow debacle in the video, failure to consider consequences can have destructive effects on the surrounding environment– and subsequently the industry in general.  I would encourage anyone evaluating an MLM opportunity to ask as many questions as he/she needs to get a clear picture; failure to ask the right questions– as well as discouraging people from getting those questions answered– will only continue to harm the industry and those who seek success through it. 

Why Best Intentions Aren’t Enough to be Considered Successful

As we all approach the end of the current calender year and prepare to begin a fresh one, many individuals and businesses alike choose this time of the year to create new goals and objectives for the coming 12 months.   Some people create a goal to lose 20 pounds of bodyweight, others may wish to earn $20,000 more than the previous year, and still others may wish to devote an additional 20 minutes per day to their spouse.  Regardless of the specific goal, this is the time of year when people’s best intentions really come into focus.

Unfortunately, many of these best intentions never materialize into reality.  I witness this phenomenon personally at the health club every year.  January and February see a huge increase in membership sales and club usage, but by March the volume of people using the club drops back down to pre-Christmas levels.   This pattern is not unique to the fitness industry; many intentions regarding finances and general lifestyle aspirations simply never get realized.

Although setting goals and having admirable intentions is a positive start, mere good intentions are not enough to create success.  There simply needs to be more fundamentals present to create accomplishments; having a step-by-step plan, acquiring some knowledge about a given subject matter, and getting support from others are all necessary ingredients to turn intentions into reality. 

Because there’s such focus on intentions this time of year, I’m reminded of a peculiar aspect of the network marketing industry I’ve seen all too often.  One of the common sales methods of MLM opportunity meetings is to have independant reps stand up and tell their ”success stories” regarding the given company’s product and/or opportunity.   This sounds like a reasonable process; however, what’s caught my attention over the years is that many of these “success stories” are based on intentions!!  “I know this company’s going to make me rich,” “This is going to be my Microsoft,” and “I’m going to retire young” are all phrases I’ve heard repeatedly by MLM reps trying to sell their opportunity to a given prospect.   

Even some network marketing company websites post testimonials from reps that are based on good intentions.  I’ve seen quotes raving about possible future results that are positioned as some type of testimonial designed to get a prospect excited about “signing up.” 

While I believe that the usage of product testimonials is an incredibly effective marketing tool, I do find it odd that so many network marketing companies offer someone’s intentions and wrap them up as a testimonial.  For example, many late-night infomercials are broadcast on T.V. to sell some type of weight-loss supplement, and perhaps the most important selling point during these infomercials is the testimonials of consumers that have used the highlighted product and lost the weight they wanted to lose.  Imagine, if you will, how goofy these infomercials would sound if these testimonials were made up of people talking about how much weight they hoped to lose!!  The fact that the consumers doing the speaking have successfully lost the weight is what makes these infomercials so convincing.

 The point to take away from this example is this:  If you’re considering joining some type of home based business opportunity, pay special attention to the testimonials of others in that given business.  If you can “partner-up” with someone who is honestly making a living through that business, that opportunity should be considered much more carefully compared with joining a group whose only success is a genuine desire for success.  Although a positive outlook is important, take the time to find out if these “positive people” have a step-by-step plan, some knowledge about the subject, and support from others.  The sad reality is that nearly EVERYONE gets into business with great intentions; take the time to sort through the dreamers to find someone with a genuine plan for network marketing success.

How the Powers of Pain make Writing More Persuasive

Although I’m beginning this by alluding to a couple of my favorite pro wrestlers from “way back in the day,”  I am not going to go through a collection of writings by Warlord and Barbarian.   Rather– this is an attempt to highlight what’s lacking in so much written copy and responsible for its ineffectiveness; specifically, good copywriting effectively uses the “powers of pain” to motivate the reader.  

As previously discussed, there are several steps that are essential to creating effective ad copy; the first is getting a handle on specific characteristics of the target audience.  However, once a writer has got a firm grasp on who he/she is writing for, one of the main objectives then becomes figuring out how to bring out something the reader is uncomfortable with.  This is something that is still not done in most advertising copy.  Ad copy still spends a great deal of time rattling off cliches, such as “We care about quality,” “Family-owned since 1974,” and “We’re the best.”  Although it may be understandable why a client would want to emphasize any of these characteristics, none of these “slogans” are exactly going to fire up anyone’s adrenal glands.

Some time ago, I was reading an article which offered an appropriate synopsis of this problem; too much copywriting  fails the “I would certainly hope so” test.   The “I would certainly hope so” test gages how effective or how dismal a piece of ad copy may be; if you find yourself saying “I would certainly hope so“  to a magazine, television, or radio ad, that’s a clear sign of poor copywriting.  A pizza place promoting itself as using “quality ingredients” would be an example of failing the “I would certainly hope so” test.

 One industry that is almost a poster child for online copywriting tips is the Home Based Business industry.  Many writers in this arena are quite skilled at focusing on the reader’s pain; rather than focus the reader’s attention on the awesome product, much of the copy centers on problems that the reader is experiencing.   Take the time to read through the sales copy, and you’ll see lots of focus on the reader’s credit card debt, inadequate income that doesn’t keep up with spending, and lack of free time.  People read this sales copy, and they can’t help but get extremely uncomfortable about their current situation.  The discomfort often grows so intense that they are reaching for their credit card and purchasing the advertised product without really looking into what the product actually is!!!

Since I don’t want to appear biased and focused only on the Home Based Business industry, here’s another example I read about some years ago.   A moving company was trying to come up with a persuasive ad campaign– something other than the usual “We care about safety,” “Family-owned,” and “Quality is our business” — blah, blah, blah.  The ad writer did a little research and was able to find out how much time and money was spent on lawsuits against moving companies in that state for a particular year.  When a person is reading about how many moving companies messed up moving jobs and wrecked clients’ furniture, that reader can’t help but think twice about being careful regarding hiring someone.  THAT is what’s called effective ad copywriting.

There are books upon books dedicated to good ad copywriting and good sales copy;  I am not going to attempt to cover everything in one article.  However, one simple thing you can remember if you’re in the process of writing sales copy is to keep the “I would certainly hope so” test in mind.  You will find that avoiding the “blah-blah-blah’s” of most ad copywriting will make your writing more persuasive and make you more successful at keeping your reader’s attention.
 

Who’s to Blame for Giving MLM a Bad Name

I was talking with a friend of mine last week who’s a local business owner, and after the usual exchange of pleasantries he began telling me an almost-unbelievable true story about his recent experience at a network marketing opportunity presentation.   He had apparently accepted an invitation out of courtesy (amazing how many of us do this!!) and sat through a roughly 90-minute presentation of an MLM opportunity that was going to make him rich– or in his case– richer.  After the presentation he was hit with the predictable “hard-close”, and he responded by saying he wasn’t interested.  The presenter’s response still had his blood boiling– “What’s the matter; aren’t  you a Christian?”

There is so much that bothered me about this story I have a rough time seperating them, but I’ll make an attempt.  First & foremost, this demonstrates a desperation tactic that paints all MLM companies as MLM scams.   There are still a number of network marketing companies that use the old “ambush” technique; they train their reps to recruit by telling prospects as little as possible (or nothing if they can get away with it) and get these prospects to a meeting.  Once at a meeting, the prospects will get so caught up in the emotion of the moment that they’ll whip out their credit cards and sign on the dotted line without reading a contract, a policies & procedures statement, or even a description of the products they’re supposed to be buying.   

If a network marketing company wants to operate that way, that’s its business; this is a free country.  However, if I’m a rep practicing this type of recruiting tactic and not telling anyone anything, I really have no business getting defensive if my prospect isn’t interested.  So many companies claim to promote this idea of  ”SOME WILL, SOME WON’T, SO WHAT”, but at the same time they do everything but waterboard someone to get him/her to “sign up.”  If you believe in ”SOME WILL, SOME WON’T, SO WHAT,”  then you should respect those who won’t just as much as those who will.    

What’s even more troubling about this example is the tactic of bringing Christianity into the sales pitch in an attempt to get money out of someone.   There is absolutely NO WAY that you can put a positive spin on this backhanded approach; questioning someone’s religious beliefs because he/she isn’t buying what you’re selling is offensive and once again painting network marketing as a scam.  I realize that many individuals in network marketing companies have a strong sense of faith, and someone even made the comment to me a while back– “If Jesus were here, would He want His followers to get involved in a business where 99% of them lose all the money they invested?”   Regardless of the strength of someone’s religious beliefs, however, calling them into question to get another recruit will do nothing but damage the image of the network marketing industry.

Of course, as stated in previous articles, this example demonstrates the obvious lack of training that still plagues network marketing.   Rather than find qualified prospects through a logical and intelligent marketing process, the majority of reps are still taught that everyone’s a prospect, anyone can do it, and no special skills are needed.   The results that we see from this teaching lead to frustration to the point of possibly questioning an individual’s religious belief.   

As the industry continues to suffer from a serious public image problem, perhaps the only possibility of turning around this trend is for individual reps to take the time to get better trained.  The image of the network marketing scam can only be overcome through better sales training, more honest recruiting methods, and maybe even an admission from MLM companies that their businesses are NOT for everyone.   The above example about questioning someone’s Christianity represents an absolute LOW in sales and recruiting tactics; anyone interested in a career in network marketing would be wise to get the skills to insure that no dirty tricks are necessary to grow his/her business.

How To Lead Your Reader

As stated in previous article, I find myself often astounded at the changes I see in the perception of copywriting since the days I took copywriting classes in college.   The days of  emphasizing frequency and reach have been replaced by online sales pages seemingly designed to get someone to whip out his/her credit card immediately.   Despite the shift in the expectations of effective sales copy, there are a few similarities which have not, and may never not, change.  

One lesson about effective sales copy that has remained consistent is the notion that you, as a copywriter, need to establish exactly who it is that you’re writing for.  Back in school my instructors referred to this as the “target market,” and it referred to the demographics, psychographics, habits, and as many details as possible of your intended audience.   Even today the importance of this remains the same; before you write one word of sales copy, the primary task at hand is research– finding out as much as you can about the type of person you hope will buy from you.

It may be instructive to compare copywriting to a sales presentation, or sales call, to illustrate why this research is so important.  When a salesperson is meeting a potential client, one of the salesperson’s goals is to establish some type of personal connection with this client.  If the salesperson and potential client don’t like each other on a personal level, the salesperson’s chance of selling anything to this man/woman are extremely slim, or to put it another way– It just ain’t happenin’.

Likewise– if a copywriter and a reader are unable to connect on a personal level, any transaction is all but impossible.  There needs to be some type of connection personally between the two parties, and that connection is much easier to attain if the writer takes the time to understand the reader.    Once an understanding of the intended audience is reached, writing an appropriate piece of copy becomes much more natural and logical.

For example, during the summer, my kids absolutely love to draw with colored chalk on the driveway.  They draw houses, animals, people, and plenty of unidentifiable blobs.  When my wife buys chalk, she’s generally looking for product that contains plenty of different colors; her goal here is to keep the kids entertained for as long as possible. 

However, if I want to write an ad to sell chalk to weightlifters, I’m going to have a terrible time making a personal connection with my audience if I’m writing about the color of the chalk and how great it’s going to look on the driveway.  The problem here is obvious; weightlifters do NOT buy chalk because of the pretty colors.

Understanding WHY weightlifters buy chalk and learning how to communicate that “WHY” is a step that cannot be skipped if an effective ad is going to be written for the purposes of selling chalk.  The above example shows how two products with extremely similar FEATURES can have completely different BENEFITS for different groups of buyers.  Understanding the buyers becomes equally important– if not more-so– to explaining how great a particular brand of chalk is and why.   

There are numerous resources available that offer valuable copywriting tips; ironically, copywriting is a subject that inspires quite a bit of writing.   The Copywriter’s Guild is available online and offers free instruction through a series of videos; you can click here and have info sent to you via e-mail. 

Regardless of what resources you choose, you will find that putting an initial priority on understanding a reader’s situation and problems will enhance your abilities in writing copy and generating income.

The surge in home business opportunities, and in particular network marketing opportunities, over the past several years has brought an undeniable phenomenon to public light–  There are a whole lotta citizens out there who desire to do more and be more than just an employee, a 9-to-5′er, or a statistical part of the middle class.  I’ve heard it theorized that this trend can be blamed on television; people spend so much time watching wealthy and famous people on T.V. that they can’t help but build up an urge to emulate those they see.  Regardless of the cause, the desire to “Do more/Be more” has become increasingly pervasive in recent years.

Although many individuals have a strong desire to improve certain aspects of their lives, that desire is often in a wrestling match with the reluctance to leave the comfort zone.   Although most W-2′d employees don’t necessarily feel their 9-5 job is particularly glamorous or inspiring, for most the idea of leaving such a job is unthinkable; they are “locked in” by the comfort of paid health insurance, a “guaranteed” steady paycheck, and a paid vacation.  This comfort zone is what can keep many potential home based business owners from living the life they desire.

Because I like to spend so much time in the gym, the above scenario reminds me of the first time I walked into a weight room.  I had just graduated high school, and at that time I was your stereotypical 90-lb weakling.  Although I had desired throughout school to join a gym, it wasn’t until I graduated that I finally “bit the bullet” and started working out. 

Of course, the gym I joined happened to resemble a powerlifting club; lots of 300-lb monsters were there moving around more weight than I could’ve imagined at the time.  Was this uncomfortable for me?  YOU BETTER BELIEVE IT WAS!!!   I specifically remember trying the bench press for the first time; I was only able to press the barbell– I couldn’t even put any weights on the bar!!!  Was this intimidating?? YES!!   Was it uncomfortable??  YES!!   Did I continue to workout every day until I improved??  YES!!   And wouldn’t you know it–  Just a few short years later I was lifting at the same level as those  ”monsters.”

There were two factors that prevented me from walking out of that gym and never coming back.   To start out with– I had a strong desire to improve my physical stature and strength.  This was something that was simply a priority for me; it was something I had thought about for quite some time, and now that I was in the gym, I felt a strong push to continue there and get HUGE!!

Secondly– even though I was probably out-of-place working out with these huge guys, nearly every one of them was incredibly supportive and encouraging.  There were literally workouts where I would be benching-pressing 95 pounds, and a 400-pound bencher would comment on how much stronger I was getting.   This was incredibly reassuring to me at the time; even though I was extremely motivated to get bigger and stronger, I often wonder if my determination would have been wrecked if the other guys in the gym were demeaning and insulting.

To me there are two factors about this example that are instructive for anyone starting a home business.  For one– you need to know what you want.  For me at the gym, it was simple– get bigger and stronger.   For your home based business, it may be more money, more freedom, more time with the kids; in any case, you need to be clear on that. 

Secondly, I can’t overstate the importance of being surrounded by encouraging individuals who understand your purpose.   Those guys in the gym were in a total different league from me, yet they knew why I was there, and they understood what I wanted.  I specifically remember one comment from one of the “big guys”:  “We’re all here for the same reason.”  The encouragement and support you get from others who understand you and know what you want is monumentally important and is an almost essential factor to the equation.

 Although working from home does give an image of independence and self-reliance, anyone starting a home business would be extremely wise to associate with others who share a purpose and provide encouragement.  There are numerous places to go in this regard both online and offline;  I have personally made numerous valuable contacts through the Renegade Professional network.  Although Renegade Pro is designed primarily to help those in network marketing, the resources available provide awesome insight to anyone running a home business opportunity.  You can click here to access the network, but remember there is no magic; you can find all the encouragement you need, but you still need to take some uncomfortable steps to achieve the results you’re seeking.

The above quote has been attributed to several sources and has been interpreted numerous ways, but its applications to the home based business owner are obvious and profound.  There are several reasons why anyone starting or already running a home based business should write this phrase down on a 3 by 5 notecard and tape it to the rear-view mirror of his/her Mercedes.

Periodically I’ll read comments from someone hoping to start some type of home based business, and often these comments indicate a lot of indecision and confusion about what to do first or what to do next.   There’s a sense of fear and anxiety about making a mistake– a condition I like to call “Analysis Paralysis.”   Analysis Paralysis is devastating for a home based business; because of the fear of taking the wrong course of action, the home business owner takes no action, and subsequently ends up with no results.

If you as a home business owner are unsure about what action to take– JUST DO SOMETHING!!  Doing SOMETHING has several positive effects on your business– some of which may be not immediately apparent.  For one– action breaks the negative cycle of inaction.  This may sound completely pointless, but it demonstrates the law of intertia in marketing– a stationary object will stay stationary until a more powerful force moves it, and a moving object will stay moving until a more powerful force stops it.  Likewise, if you are doing nothing, you are more likely to remain doing nothing, and if you are actively moving forward to improve your home based business, you will likely continue to move forward.   There are times where a simple action is needed to simply get the ball rolling.

Secondly– the world of the home based business, network marketing, and home business opportunitiesis truly the Land of the Blind.   The vast majority of individuals who decide to run a business from home end up doing absolutely NOTHING; you can get a great example of this in a previous article.  People get excited about a training video they saw or a webinar they listened to, they buy some type of training material, and they follow up by following a path of total inactivity.  Simply deciding on some course of action and following through transforms you into a one-eyed man in the Land of the Blind; even though your action may not be perfect, they very fact you’re doing something puts you way ahead of your competitors.

If you have not done so already, find yourself a good source of training material (you can click here for an excellent one) and put the advice of the material into action!  Perhaps the most important investment you can make for yourself early on is a pocket-sized daily planner.  Each and every evening think about some activity you can participate in to improve your home based business, and write it down as a goal for the following day.  You will find that simply writing down your future courses of activity will make these tasks easier to remember and accomplish, and you’ll get a heightened sense of accomplishment once you have completed a given course of action.

By no means is this post intended to promote the idea of mindless activity; there should always be an overview and strategy in mind when starting any given task.  However, realizing that perfection is not necessary for every course of action will free you up to start doing SOMETHING, which is a step in the right direction and one that your competitors will never take.

One of the topics I see debated from time to time on various blogs concerns the online marketing of e-books and other types of information products;  this subject seems to stir up emotions specifically when discussing the best way to use ebook marketing to build a network marketing business.  There are essentially two schools of thought here; one theory promotes the idea of giving away free information products to attract new customers and/or distributors, and the other supports the notion of selling these information products to not only attract qualified prospects, but also generate an additional stream of revenue for a given MLM business (a process sometimes known as a funded proposal.)

 This debate is of particular interest to me, for I began having these types of conversations nearly 20 years ago when consulting and marketing for my “brick & mortar” clients.  I would hear arguments like “We don’t need to do this; we already give out plenty of free product,” or “Our customers love the free services we offer.”  There should be no doubt about that– consumers love free stuff, but is it the most efficient and profitable way to operate a home based business?

Interestingly enough, the pros and cons of giving out free stuff remain pretty consistent when comparing online marketing to marketing more ”traditional” types of businesses.  Any business owner is going to be able to distribute far more FREE giveaway items regardless of business category, but there are 3 reasons why I would discourage anyone from marketing using strictly ”free” customer acquistion strategies. 

1) Perhaps most importantly– if a business owner continues to give out free product as a method of attracting new customers, it’s only a matter of time before he/she completely devalues his/her product.  I’m reminded of an auto service shop that employed a marketing strategy of distributing FREE OIL CHANGE coupons every three months to the surrounding residential areas.  After some time, the homeowners who lived in the area of the shop got so used to the idea of getting free oil changes, there was no way on God’s green earth they were ever going to pay for an oil change again.  The owner of the shop found himself in the unfortunate position of being unable to charge for a service that other shops perform regularly for a nominal fee.

2)  When someone accepts a free anything, he/she is demonstrating no commitment whatsoever.  It’s a sad fact of life that people’s words, thoughts, and actions are often totally inconsistent, to say the least.  It’s extremely difficult to judge a person’s intentions based on his/her acceptance of anything offered free.  Ask someone if he/she would like to go to a movie sometime, you’ll undoubtedly get a “Yes”; follow that up by asking that same person if he/she would like to purchase a ticket for a future showing, and you get indecision, hesitation, and back-peddling.  As a home based business owner, offering e-books and information for a fee is a much more accurate and efficient way to judge a potential customer’s level of interest, intention, and ability to commit.

3)  Although this may sound awfully simplistic, I don’t know how to phrase this any other way– by giving away valuable information, a home based business owner is litereally throwing away a stream of revenue.   Just like the auto repair shop that gave away free oil changes, the home business owner is forfeiting an income opportunity by giving away info that others receive payment for.   This needlessly increases the pressure to earn additional income from the other products the business has to offer.

A “Free Giveaway” has been used time and again to attract new customers–  both with ebook marketing and more “traditional” business models.  You also have probably noticed that this blog is entitled the FREE Home Biz Review.  However, before any home business owner starts diving in head first and begins giving out free stuff all over the place, he/she need to take a good look at the other options that may be more effective at attracting new customers.

One of the better tutorials on using funded proposals and affiliate marketing is available here; it’s a 7-part video series that’s an explanation of how offering information for a fee can effectively add new prospects and cash to your business.  Click here to access the video, and to add a bit of irony to this topic– the info is FREE.

First and Foremost– let me emphasize at the start that I am NOT an accountant, nor am I a tax expert.  The following info is intended to be a general guide; I would encourage anyone starting a home based business to consult his/her accountant or tax professional to clarify any tax advice you receive from anyone.   Having made that point, if you are thinking about working from home, the following is a brief list of expenses you should be keeping track of; you may be able to deduct some of these expenses from your annual income.

If you are working from home, you are likely using a portion of that home for some type of home office.  This can be factored in as a business expense; you should determine the amount of space you’re using for your office and compare it to the total square footage of your home.  For example, if your home is 3000 square feet, and you are using 150 square feet for your home office, that amounts to 5% of the area of your home.  You should be able to claim a business expense in several areas here– mortgage payment, utilities, any repairs on the home, and insurance.  Anything relating to expenses for your home should be kept track of throughout the year.

It’s likely that you’re using a desktop or laptop computer for your home business; it’s important to keep track of those expenses associated with it, such as Internet service costs, printer cartridges, and any hardware or software you need to purchase for it.  You should also keep track of phone expenses– either landline or cellular– and maintain a determination of the percentage of business use to personal use.

Transportation costs can also be considered at tax-time; even though you’re working from home, you may find yourself traveling to/from meetings, appointments, or even workshops.  I’ve known some home business owners who have kept track of all receipts associated with their cars, trucks, and/or SUV’s, sush as gas station receipts, new tires, oil changes.  Another method to keep track of such expenses is to simply record all mileage driven while traveling to and from business functions.   Simply keeping a small notebook in your glovebox and keeping track of mileage driven, date, and destination is an easy way to calculate auto expenses.

Other expenses may be incurred during the operation of your business and should be noted, as well.  Meals and entertainment may be deductible if you’re meeting with clients or prospects, health insurance costs can be deducted if they constitute a certain percentage of your income, and business cards and other printing costs are also costs of doing business that your accountant would want to know about.

Once again– I would strongly advise consulting with an accountant or tax professional when trying to determine what qualifies as a business expense.  I’ve certainly heard some claims at various MLM opportunity presentations that have been– shall I say– extremely questionable.    It IS true that running a home based business can provide certain tax savings you could not take advantage of as a W-2′d employee, but a home business owner would be wise to double-check, and then maybe even check again, to make sure he/she is playing within the rules.