Wednesday, September 5, 2007
How important is the initial start-up cost (price point) of an online or home based business opportunity? This is a very delicate subject that is often not credited with enough significance. Hitting the right “sweet spot” with start-up costs can literally make or break your success in the online entrepreneurial world.
Call it what you want – ”price point”, “start-up cost”, “price threshold” (the initial fee to get registered and started in an online opportunity), but it is crucial that this amount is not priced too low, or too high.
TOO High Priced Business Opportunities
The problem with high ticket business opportunities are twofold: 1) your field of prospects is radically reduced, and; 2) most newcomers underestimate the additional costs of getting a business started. Most people who join high ticket business opportunities ($2,000 to $10,000) are not told about the high cost of making each sale (the average cost of acquiring a new customer). Advertising is your most significant ongoing investment. Online beginners hear that an opportunity is… $3,500 (for example) and forget that this amount will only get them started. What about advertising? What about ongoing maintenance fees? (turn-key websites, accounting and training services, etc.) For an opportunity with a flat start-up cost of $3,500, your average cost per sale can range from $1,000 to $4,000. Why you ask? Because, as mentioned above, businesses with higher price points narrow your field of prospects dramatically, so you must advertise more to adjust for the waste, or pay significantly higher rates for upper income prospects. You would be shooting yourself in the foot if you didn’t expect to invest a minimum of $1,500 to $4,000 per sale to advertise it right. So you really need $5,000 to $7,500 to start this business correctly. On top of that, if this business is a 2/up system (where you owe your sponsor your first two sales), you’ll need another $6,000 to $8,000 for these training sales. That’s a total of about $12,000 to $15,000 to get you started right. A brilliant man once said that before you start anything, “count the costs”.
Bottom line, “High Ticket Home Business Opportunities” can be great if you have a lot of money. Again, the problem is that most people do not plan well enough in advance. In fact, they usually don’t know what they don’t know to even ask the right questions.
Here’s something else to consider – when you sell a program that exceeds $1,000 for sign-up fees, you’ll need to be good on the phone (or be a fast learner) since most people will not invest much over $1,000 without talking with someone.
TOO Low Priced Business Opportunities
The problem with business opportunities that cost $10 to $100 is that they’re just so difficult to turn into serious money. Let’s compare $10 to $100 price points. If you stand to earn $10 to $100 per sale, you will invest the same amount of time, energy (and usually advertising costs) to make 1/10 to 1/100 the amount of money. You’ll have to make ten to one hundred TIMES the number of sales to make the same amount of money.
Most people don’t realize that the cost of making a $15 sale is almost as high as making a $500 sale. Especially when you consider one of your best sources of advertising…Google. The average cost per click for the “Business Opportunity” related category cost about $0.75 to $1.50. You would have to sell one in 10 people who come to your site…just to break even (with no net profit). There are free advertising vehicles of course, but these require massive amounts of time and oversight, which ultimately limit you quite a bit.
So what’s the best price point you might ask? In my opinion, it’s somewhere between $300 to $1,000.
The article is brought to you by Peter Grundner at P&T Enterprises
For more information please visit www.myedconline.com or call 818-887-0896
Faux Finishes -- Painting a Room with Flair
To start things off, what exactly is a faux finish? Well Faux finishes are the techniques used by decorative painters to recreate the look and feel of many types of natural materials. These finishes can be seen throughout history, starting with the Egyptians who replicated the wood graining on their walls. Throughout time huge advancements have been made to this process. Now the most common forms of these finishes used today replicate the effects of aged plaster, stained paint, wood, limestone, and marble. In the last decade this “decorative” painting has probably been used in almost every house you see.
You should be using Faux finishes when your budget prevents the use of the real materials like wood and stone, or if the atmosphere you wish to create can only be accomplished by using a faux finish. But using faux finishing is not for everyone, it can be both fun and frustrating. Remember to always experiment with the final outcome before committing to the finish. The skills required for creating many finishes can only come with repetition and practice.
To get you started, here are some simple basic tips for starting your faux finish. Always prepare the surface properly before decorating. Work in small sections, and complete one wall or section, stopping in a corner or natural break. Always use lint-free rags. When choosing your colour the easiest way to do so is by using the take home strips at your local paint store and choosing something that will compliment your furniture, carpet, or wallpaper. If you are still a little skeptical about starting your faux finish there are stores and companies that offer a Faux-finishing course so you can get your practice in before you start on the real thing.
So remember if you are tight on a budget, but love to have a hands-on experience painting your own house, faux finishes are the right way to go.
For more information on this article or on faux painting classes, visit FauxMasters.com
Starting a Business Online? Be Wary of These 3 Common Phrases!
Have you been struggling to get a started with your business online? It’s overwhelming how many online business programs there are out there, isn’t it. Are you concerned about investing in these businesses only to loss your money? How is a person to know which of these offers are legit (yes, there are some) and which are just plain too good to be true?
The following are some phrases which companies use to promote their business online and what these phrases can really mean.
#1 – Easy and Simple
Easy and simple, well, that all depends. Your doctor could tell you not to worry that it is a “simple procedure” but he is not telling you to go ahead and attempt the procedure yourself.
A business online can be quite simple to operate once you understand exactly how it works. But it will take time and experience before you finally get to that point. Once you can find a few legit businesses you may want to give a couple of them a try before you decide which one is easiest for you.
If you are someone who has already learned through experience, you can probably look back and see just how easy it COULD have been only if you had known what it was that you should have done in the first place.
#2 – Almost Anyone Can Do It
Sorry, but starting any type of business requires a learning curve and can be stressful at times. If you’re simply wanting to start a business online with the belief that you will easily make money or if you are doing this out of pure desperation, you will likely face some enormous obstacles. However, if you’re truly looking to start a business online that you can learn, work and make a profit from, you will find something online that will be suitable to your needs.
Studies of many successful business people, show that for those who do make it they have common qualities of patience, persistence, and desire. Do you have these essential qualities required to start your online business?
#3 – It Won’t Cost Anything
Yes, it is possible to set-up a business online without any money, but be prepared, as a very little experience coupled with no money will prevent you from reaching your goals.
Most people starting their business without sufficient money have the experience and knowledge as to how to best use free techniques. They have in the past spent money on businesses; they have been able to spend time learning their chosen industry or market. This has allowed them to see where and how they can cut costs.
If you want to be one of the folks who does it right on the first try, you will be required to do a lot of researching before you even get started with your business online. For the majority of people, you want to expect to pay something towards your online business education before you really start seeing results.
Having a business online certainly has its fair share of work involved, and finding just the right one will have huge payoffs. So are you willing to surrender some of your money and time to attain success? Running your very own business is gratifying and will provide you with more time to do exactly what you really wish to do with your life.
Building a successful business online is possible for nearly anyone if they are willing to stick with it. While facing the task of getting started with your business online, have realistic expectations yet continue to dream big and you will likely just surprise yourself!
Connie McKenzie is a full-time work at home mom who is dedicated to providing detailed information on various subjects including working from home. Learn more about how you can build a profitable online business and work from home. Watch the free video at : => http://www.getqualityresults.com
