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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$3500 Weekly! Work From Home! Free classified homebusiness!
Health supplement home business opportunity !
Real Results Now! $360k 1st Year! No Gimmicks!
$$ Make $1000+ per week... EVERY WEEK! $$
Hottest Opportunity Ever (Numbers don't lie)!!
Get 96 sites for $7,795. Then Retire! Call 1-800-XXX-XXXX.
Many People Earn $36,000/year in Income, But . . . Very Few Earn $30,000/year
working only five-six hours per week.
Access products at below wholesale pricing you can sell for HUGE profits!!
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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