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In Part 1 I provided an overview of the current online marketing landscape as well as some of the criteria I use to choose which businesses to join. In Part 2 I dive into an age old method of evaluating a potential business – the two-filter test.
Keep in mind I only have a handful of businesses so I am describing here my own unique experiences and the steps I take to evaluate a business but I have found the average unsuccessful online marketer today has usually tried between 10-15 different small online businesses within 12-18 months in their search for the right one (core businesses, affiliate relationships, referral programs, etc…). In Part 2 of this article, I cover more specific questions you should ask when evaluating any business but particularly when considering an online marketing business.
TIP: With the wide selection available and depending on your budget and available start up capital, it is important to determine if you want to invest in top tier programs such as those that pay high commissions of more than $1000 per sale or low to mid tier programs that pay considerably less. This will further define the list of available businesses out there for you to consider but remember that you cannot keep the right type of person out of the right business so keep an open mind.
To start, there are two filters and three dimensions or test areas you should use to determine what business to invest your money in. The filters are Common Sense and Proof and the test areas are Company, Product and Compensation.
If these three areas can pass the two-filter test then the odds are extremely high that you have found a business worth your effort and attention and you should seriously considering investing your money in this business.
Company
How long has the company been in business?
Have the owners ever been sued, been to jail or shut down?
Can you contact the owners?
Does the company have a headquarters?
How many offices do they have?
Is the company financially stable?
What kind of support does the company provide?
It is amazing how many startups are being run out of a basement or a garage with some down line software and a white label product…ask the right questions and you will get the right answers. It is equally amazing how many company owners have records of convictions in their past.
Product
How much competition is there?
Is it the 25th new product of its kind this month?
How long have they manufactured the product/provided the service?
Do they have any proof or credentials for the product or service?
Do they make their own product or is it made for them and hundreds of other companies like them?
How big is the target market?
How many people actually need or want your product?
Ask yourself why you want to start an online business in the first place? Is it for financial freedom, more time for you or your family, do you like the product, something fun you like to do? Why don’t we have all of this with most companies?
Compensation
How long does it take to explain the compensation plan?
Do you have to read a 30 page manual or attend a two hour comp plan training session?
Do you need an accountant, a lawyer or an actuary to understand the business?
Do you get knocked out of your position in the company if you don’t maintain your monthly quota?
Do you need to understand PV, BV, CV and dozens of other cryptic acronyms?
Many companies make the compensation plans difficult to understand because if you actually knew how little you made, you would never join in the first place.
Hopefully you have found the criteria I use to be useful and helpful in stopping the insanity in your search to find the right business for you.
Best of luck in your search!
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