Business Structures

On this page I will be going through different kinds of businesses. On this site, I will only be focusing on completely home based businesses that can be started (that’s right ) FREE. Hopefully, this will make it easier to follow and get you started. Although many may fall into different types, for simplicity, I will list them in a way that is most relevant to getting Started.

If you are already up and running and looking to add to your success please feel free to check my other links. You should always check with a legal or tax professional when considering the business type, ie: sole proprietor, LLC, C Corp, etc.

FRANCHISES

  •  Franchise Stores
    Like it sounds these are physical locations, essentially duplicates of already successful businesses. (McDonald’s, pizza hut, 7-eleven, super cuts, etc.) Every franchise has cost associated with it. I will not focus much here.

Pros

  1.  Proven Business Model (cookie cutter)
  2.  name recognition
  3.  Specific training

Cons

  1. High start up cost
  2. Impersonal (has to be set up and run like all the others)
  3. Usually very limited help after start up
  • Expandable Franchises

These are franchises which can be run from home and if you choose you can open up a store front.  They include distributorships. Some expandable franchises are low cost and I do have some recommendations you can look at further if that is a direction you wish to go. Again, I will not focus much on it here but you can check my other links. (typically vitamin/supplements, appliance repair, home services, etc.)

Pros

  1. Proven Business Model
  2. name recognition
  3. specific training
  4. expand at your own speed

Cons

  1. Start up cost ( some can be a bit expensive)
  2. personalizing ( some a strictly cookie cutter)
  3. warehousing
  4. Help after start up ( again, this applies to some)

SELF EMPLOYED CONTRACTING

Most people in the service industry want this in some extent.  This can be like the franchise, either a fixed store front or from home. Now, many professions can do this in some extent but most successful would be, painters, plumbers, electricians, home inspectors, etc. I will not be covering this too much here due to the vast differences and start up costs.

PROS

  1. No boss to answer to
  2. You are in direct control of your income potential
  3. Typically you already have the required experience
  4. You are in control of your hours of operation

CONS

  1. You must build your client base and relationships with them
  2. Competition – There are many options for workers like this
  3. Start up costs can be pricey
  4. You must be and stay self motivated

 

AFFILIATE PROGRAMS

In my opinion, this is the best way for newbies to get started. We were all newbies as some point and in one way or another, weather we realized it or not, an affiliate program is likely how we got started.

An affiliate program simply put is putting what people need or are already using in front of them. You do this all the time without getting paid for it, think about it.

  • you hear from a friend       Ugh! my phone service is terrible!   problem
  • you say      I have XYZ service, I never have a problem.  solution

You just gave XYZ service a referral and possible sale. Basically an affiliate program does the same thing but you get paid. Simply point people in the right direction for what they need, no buying, no hard sell, no warehousing. I am a big fan or networking and relationship building so I am on social media a lot. If I see someone looking for something I simply post a link where to find it. Now, not only that person but everyone else looking at that post or blog sees the link, if they go there and buy anything connected to that company I get paid. The best part, most are FREE or free to start, after which they pay for themselves. Here is a great one to get you started.

Not all affiliate programs are great, I will continue to investigate them for you and hope you leave feedback if you have experience with any.

Some of the main things to consider are what I call the 3 R’s :

  1. Retention
    • Is it a one time sale or over some period of time?
    • Is it product specific or company wide?
  2.  Reputable
    • Is it a company that has been in business?
    • Is it a company that has good customer service and/or training?
    • Would or do you use the service yourself?
  3. Reasonable
    • Are the services they offer priced reasonable? (competitive, affordable,etc.)
    • Are the companies policies reasonable? ( refunds, support,etc.)
    • Is the payout times reasonable? (amounts, time, limits, etc.)

If you have questions feel free to comment or email me at wolf@wolfsbusinessbuildingtips.com

Pros

  1. Free or free to start
  2. Vast number of programs
  3. Many have residual income
  4. Many have great compensation
  5. Work from home
  6. Flexible hours

Cons

  1. You’re the boss, you have to push yourself to get things done.
  2. Research, the vast number of programs out there give you a bit more work in this area. Sites like this one can help
  3. Flexible hours at home, easy to get side tracked ( kids, chores, etc.)

You may notice that some of the pros and cons are alike. I will get more in-depth with this and how to overcome any setbacks in my Pros and Cons page.

Pay Per Click 

Just as it sounds, these are programs that pay when someone clicks on a banner or link you have posted. The amount paid varies, usually a few cents ( .02- .08 )per click.

Pros

  1. simply post the link or banners to get traffic
  2. no minimal sales
  3. low or no cost

Cons

  1. must post to high traffic sites
  2. low payout, no retention
  3. Slow to profit from on a small scale
  4. More limited amount of companies

My opinion, pay per click affiliate programs are not the best way to get started. These can always be something for you to look at at a later time when you are up and running or have a large following.

I love feedback, if you have any comments or recommendations please leave them below.

Wishing you the best success

Jim

10 Comments

    • Thank you for your input, I will try to continue adding relevant and informative content.

  1. I have been a WA member for a month plus and I can say WA is the best. Just to share a bit here, I have made a small achievement here. I have successfully made the first referral at this month but he has not signed up for the premium member yet. This is important to me as this has given me some form of reassurance and I am an inch closer to the path of success. Anyway, thanks for sharing.

    • Thank you for your comment. Each step forward is one in the right direction, congratulations on that step.

  2. Hello and thanks for sharing, when you think about it online business is far more easy to start up and run, unlike the traditional business. online business is so great and the good part is that you can work at your own paste, while making a good living.

    • Thank you for your reply Norman,
      I believe it is much easier to start a online business then most people think. There are great companies out there like Wealthy Affiliate who have paved the way. They can learn more on my getting started page .
      Jim

  3. I really enjoy reading your post about starting home business. My main focus is affiliate marketing as you have mention it is good for newbies. can you point me in the direction of where I can learn more?

    • Thank you Mo, I would be happy to assist in any way I can. What part are you looking for more detailed information?

  4. Good information, Jim. Good delineation of pros and cons.
    I have had several businesses over the years, and even operated as a business broker, helping people buy and sell their own businesses. With the exposure to many many types of businesses, my own and others I represented, I can attest that none of them compare to the affiliate program through Wealthy Affiliate.

  5. Dear Jim,
    Thanks for this post and I do agree with you when you said “My opinion, pay per click affiliate programs are not the best way to get started. These can always be something for you to look at at a later time when you are up and running or have a large following.” because I was working with many paid to click site and making money is really a big challenge. Although I was working with many ptc sites not able to make one dollar by working 8 hours.

    Your Friend,
    Paul

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