3 Types of Business Models – Home Based, Network Marketing & Direct Sales! post image

3 Types of Business Models – Home Based, Network Marketing & Direct Sales!


What are the Differences between a Home Based Business, Network Marketing, & Direct Sales.

There are several types of businesses in the world. Three of these types of businesses are a:) A home based business b:) A Network Marketing business and c:) A Direct Sales business.

A home based business involves the retailing of a product from a person’s personal residence or home based office. A license may be required for this type of business depending on where you are in the world. You can have an office in your home and sell the product that you represent from there. However, you will need to keep accurate records of any business income and expenses. Typical expenses would include heat, lights, office supplies, phones, what the value of the room you are operating your home based business out of is worth.

You will also need to keep track of the hours you work, the amount of your net sales and retail sales so that it is easy to figure out your income taxes at the end of the year. If you keep accurate, up to date records, you will be ready and able to file your income taxes when the time arrives.

When it comes to a network marketing business, this is made up of independent, nonsalaried salespeople who are referred to as distributors or associates who represent the chosen company that produces the services and or products that they sell. These “associates” are then awarded a commission based on how much of these products or services they sell as well as that of any of their own salespeople in their own downline.

A good example here would be a financial services company. This business model allows them to access many areas that many companies would not even consider. Another benefit to these companies is that they do not have to pay any salaries or benefits to these sales people unless actual sales are made.
Network Marketing associates can work out of their homes too. Many are on the phone several hours out of every day or on the internet promoting their products or services to family, friends, relatives, their friend’s acquaintances, etc. This type of business also requires the business owner to accurately record any and all income and expenses for tax purposes.

The Direct Sales model is best defined as selling the consumer a product away from the store where it is sold or ordered from. A good example of this would be an Make-Up or beauty products salesperson. They come to your home or work place, show the product that is available and write up your order. When the item comes in, they will deliver it to you at your home or work. These direct sales people are available in person or by telephone.

There are now many Network Marketing businesses that now have elements of direct sales as part of their day to day operations. The direct sales part functions as the initial buy in to the company for any new prospect that wishes to try out this type of business model and also offers a way to gain a very quick return on any investment made to get started.

Whatever type of business model you opt to try, whether that be home based, network marketing or direct sales, you do not have to go to some distant destination in crazy traffic or gridlock. You do not have to find a parking spot or pay a parking lot fee. Best of all, you get to dictate what type of day you get to have, because all these business models have one thing in common, they are all home based and you are an Entrepreneur, a self employed person who gets to dictate his/her own schedule.

A recommended source for the training, education, skills and tools that you will require to run your own home based business is Carbon Copy Pro. Their training platform for teaching new entrepreneurs the skill of marketing online is second to none.

All the best


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• Meet the Author ➞ Alan

The Internet for me represents freedom. Freedom from the 8 - 5, or the cubicle as some people call it. The internet offers a form of financial freedom that was not available to our Grandparents and in many cases, our own parents. I myself am a father, a husband and an Entrepreneur. I invite you to join me on this amazing journey to lead a life filled with love, hope and miracles, and the freedom to go anywhere and do anything!

1 comment… add one

  • Beneficial info and excellent design you got here! I want to thank you for sharing your ideas and putting the time into the stuff you publish! Great work!


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