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about Business Opportunities and Home Based Businesses:

Business Opportunities: A business opportunity, or bizopp, involves the sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee. This is different from the sale of an independent business, in which there is no continued relationship required by the seller.


Examples of biz-opps classified advertisements are:
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The use of a toll-free telephone number makes it difficult for customers to immediately identify the company's geographical location. Moreover, a company can own many 1-800 numbers, using a different one for each area in which it advertises. In the event of consumer complaints, this thwarts investigators from recognizing the connection between biz-ops listings in various newspapers.


A common type of business opportunity involves a company that sells bulk vending machines and promises to secure suitable locations for the machines. The purchaser is counting on the company to find locations where sales will be high enough to enable him to recoup his expenses and make a profit. Because of the many cases of fraudulent biz-ops in which companies have not followed through on their promises, or in which profits were much less than what the company led the investor to believe, governments closely regulate these operations.
Multi-level marketing is often presented as a business opportunity, such as the phrase, "Let me tell you about an incredible ground-level business opportunity."


In the United States, the Federal Trade Commission receives complaints and helps coordinate enforcement action against fraudulent business opportunities.

Multi-level marketing (MLM):
Multi-level marketing (MLM) also referred to as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

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Independent unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.


Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company?s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.


see also: >> Earning on Adwords      >> Affiliatemarketing

 

 

 

 

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