If you get the right residual income business opportunity, there is no doubt that you will make serious money from your home based business. So, we are all on the same page, a residual income business is one that continues to pay you for the lifetime value of the customer in the business and is based on the principle of repeat business.
In this article, we want to look at three residual business opportunities and decide the best one to start and make some profits from home.
The very first residual income business opportunity is where you create your own product or service to sell. Such product or service must be a repeat business item thereby generating residual income. While this is a highly feasible plan, the key difficulty is that product or service creation is a process with no guarantees. In fact, research indicates that only 10 percent of products ever make it in the world of business.
What this means is that, when you create a new product, you are taking a very high level of risk. The chances that you will fail are significantly higher than those of success. However, if your product or service succeeds on the market, you will definitely be on the road to some serious profits.
The second residual business opportunity to look at is starting your own online store based on the drop shipping model. This is a highly profitable business model especially if you are able to find genuine wholesalers to sell the products to you at truly wholesale prices.
The downside to a drop shipping business is the administrative burden that comes with processing orders and at times refunds. Indeed, beyond certain levels of sales, you may realize that you need to employ staff to keep up with the administrative overload.
The third residual income business opportunity to consider is based on the affiliate marketing model. Affiliate marketing has indeed taken the online business world by storm and has created a few millionaires. With affiliate marketing, you simply promote someone else’s product and receive payment from it.
If the product is a residual income product, as it should be, you will quickly increase your earnings to very high levels. The major downside with affiliate marketing is that you do not own the product and, a decision from the merchant can wipe off your business.
So, which of these three will make you the most money with the least of hassles as you start out in the world of business?
While all three are very solid and, the final choice is based on individual preferences, l personally believe that affiliate marketing is the way to go for a beginning entrepreneur. With affiliate marketing, you don’t have to battle over product creation decisions. All you simply do is to plug onto a successful product or service and start making money.
In addition, the best affiliate programs come with a complete marketing support system, thereby eliminating your chances of failure. This includes ads, banners, eBook that you can customize and distribute and so on.
The best strategy is to first master the online business world through affiliate marketing and then proceed to create your own products. You then have the best of both worlds because, if your product fails, your affiliate business will keep you afloat and, if it succeeds, why, just enjoy the ride.