9 Pointers for Evaluating a Business Proposal
Finding a business opportunity on the net is easy. But evaluating the right one for you, takes a little knowledge. With so many scams, takers and failed ventures you need a little more than the, "highest dollar for the least amount of work" approach. So, what should you look for when evaluating an opportunity? Here are 9 pointers.
1. Is it legal?
Do they have a product? Many programs on the net are simply "money movers" with no real products. If this is the case, then it's probably illegal simple as that. If you are serious about developing an online reputation for quality and reliability, then don't even entertain the idea of quick easy money. It will catch up with you!
Do they know and follow the law concerning matters such as CAN SPAM and other website legalities? There is no excuse for ignorance on the net! Do your homework and check out:
Do a search on the names of the owners and founders of the products.
2. Does their product have value and advantage?
Is the product something that people want with the potential for repeat sales giving value for money at a competitive price? Do your homework. Search the net for equivalent products and do a price comparison. Does it offer a marketing advantage of some kind? What are the selling benefits of the product over their competitors? If they don't have a marketing advantage why would anyone buy their products?
3. Is it residual?
The best opportunities are the ones that have a growing industry and ideally repeat sales. Make sure if you are marketing a product that you get the benefit of the repeat sales. This is called residual income. If you are expected to find customers but only get the benefit of the first sale, this is unethical and unfair. It is a good idea to evaluate what % is paid back in commissions for the cost of the product or service. All good opportunities pay back an absolute minimum of 20%. Decide you are worth at least that much to them.
4. How long will it pay?
The world is a fast changing place. The cyberworld is even faster! Ask yourself where will the product be in 12 months, 2, and 5 years down the track? This is particularly important for digital and information products. Ask yourself the same about the company. Are they around for a quick buck or do they have a plan to establish long term commerce? Will they develop or keep up with new technologies to maintain a competitive edge? If this information is not readily available on their website, ask them. If they are not planners, then they will not survive
5. How long will it take?
Take a long hard look at their compensation plan and compare it to your own goals. Is it cost effective on an hourly basis for the final outcome. You may have to make a decision by balancing time for outcome. You may consider it worthwhile putting in 20 hours work over and above a regular 40 hour job for a small return initially, if the final outcome is say 10 hours per week total for a 5 fold income. Of course, you will have to decide first of all exactly how much time you are willing to work on the proposal then ask yourself is their program sufficiently automated to be worth your while?
6. Do they want your success as much as their own?
What is their commitment to you in terms of training and support? If they are not willing to train and support you for your success, are you willing to carry the responsibility of training yourself and dealing with product problems? In my opinion you must have online support and training for whatever you need to do for the mutual success of both you and the company. This can be in the form of email support, forums and a FAQ (frequently asked questions) page on their website.
7. What are the hidden costs?
Ask yourself, "What do I need over and above their proposal in order to achieve my goals", then factor this in to your decision-making process. In this you should include things like further study, tools, web hosting expenses, stationary, travel expenses, accommodation etc. It is also important with some businesses to find out if you have a minimum purchase requirement, frequency of compensation and the time period between sales and commission. All these will affect your cash flow. You should then work out exactly what it takes to firstly break even, then become profitable and finally achieve your goals.
8. Is their a lead generation system?
What assistance is given for approaching potential customers through to closing the deal? This is often nonexistent with you left to do it all. The best opportunities are fully automated for efficiency but flexible enough to have the essential personal touch. It can be hard work sifting through the opportunities to find your "Ticket2Success".
9. Do they have a money back guarantee?
Whether the product is digital or hardware people will expect a guarantee. Are you able to return and refund products quickly and easily without problem? Is it clear who handles the finances and complaints in the event of an unhappy customer? You don't want to be left with egg on your face after creating a good online reputation!