home based income

Home Based Income – A Viable Way For Creating Wealth?

What is Home Based Income – and more importantly will it help you in your goal for creating wealth, for reaching financial freedom?

home based incomeMore and more today you hear of people telecommuting (or working away from the office via telephone or internet), video conferencing (basically talking over the internet via live video, allowing them to meet face to face without having to travel) and having the flexibility to be able to spend a day or two a week being able to work from home.  Usually, the majority of these situations refers to an employment situation, where the company is able to increase productivity, efficiency or reduce their expenses by incorporating one or several of these types of situations.

This, however, is not the type of home based income I’m referring to.  In particular, working for someone else is not a great strategy for creating wealth (the tax code among other things are NOT in your favor as an employee – see my article on Creating Wealth – The Type Of Income You’re Making May Be Costing You The Most).

The type of Home Based Income I’m referring to for creating wealth is income from a residual income business that you build from home, as in a business that can produce passive income (income you no longer have to work for).  This kind of business is not like that of a traditional brick and mortar type business where you need to have a retail shop or kiosk, though nor are we talking about some kind of “lemonade stand” business either.

A residual income business where you can create home based income does not set you back hundreds of thousands or even tens of thousands of dollars to setup to be able to turn a profit; on the contrary, you could get your home based income business setup and operational the same day you complete the application and in many cases may even be able to turn a profit that same day.

So as you can see, there are many advantages for creating wealth via a residual income business, such as the low cost of entry just mentioned, the ability to set your own schedule, determine how much you want to make and who you want to work with, no employees, and virtually no overhead (a marketing website for example – nothing compared to traditional business overhead!) among other things.  It’s no wonder so many people today are choosing home based income as a way for creating wealth, either as a primary income source or as a secondary supplemental income source.  In 2006 alone, over $100 billion in revenue was accounted for from such home based businesses.  It is definitely big business!

Is A Residual Income Business and Home Based Income Right For Everyone?

No. It definitely is NOT for everyone.

First of all, success in a residual income business is not guaranteed; You will be paid what your worth, or rather for the value that bring to the market. If you are not coachable and teachable and willing to learn the system – if you insist on trying to reinvent the wheel so-to-speak – you will likely fail.  Just like with a McDonald’s franchise, there is a certain way of doing things that produces results.  Are there other ways that also work?  Perhaps; just remember Thomas Edison had to find nearly 2,000 ways that would NOT light a light bulb before he could find the one way that would work.  Wouldn’t you rather follow a proven path that works for success now?

Secondly, a home based business does take work to create success. No one can fire you which is both a blessing and a curse.  If you are a self-starter and self-motivated to go after your dreams and goals, then the sky is the limit, no income ceiling or cap here.  On the other hand if you need your boss yelling at you or threatening to fire you for you to take action, you will struggle with a residual income business as you essentially become your own boss.  Certain activities done consistently can yield huge results.  These actions do not necessarily need to be taken at a certain time or even at the same time each day, but do need to be taken a regular basis to achieve the kind of results that will enable you to become financially free.

Lastly, a residual income business is a business and while the cost of entry may be low, it is all the more important to be prepared to spend some money along the way to grow your business, be it education and training to learn new skills, tools or systems or other technology to help you leverage your time and efforts, marketing expenses, etc.  Depending on your business or professional background, you may need to spend more or less, and for those willing to simply put in more time, you may be able to operate from a shoe-string budget.  The most important thing is to remember to treat your residual income business like a million dollar business and it will then pay you accordingly in time, helping you in creating wealth and achieving financial freedom.

What are my thoughts on creating wealth with a home based income business?

In my opinion though, the absolute BEST option today for most people today looking to get ahead – whether that’s to pay off some bills, get out of debt, create a secondary or retirement income – or for those looking at creating wealth and becoming financially free, is creating home based income through a residual income business.

Most people, due to their prior commitments start part-time, just working it around their schedule until their home based income begins to exceed the income of their primary job or business.  And when you’re making more money from your part-time business than your full-time occupation provides, you know you’re doing something right…

Learn more about the home based income business structure, the specific advantages and disadvantages of each and whether a residual income business is the solution you’ve been searching for – just click the following link to view this powerful and educational video I created now: Creating Wealth Video (be ready to take some notes!)

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27 Comments

  • Excellent pieces. Keep posting such kind of information on your blog.

    Im really impressed by it.
    Thanks for sharing your thoughts on home based income.
    Regards

  • unknown says:

    Carry on accomplishing what you undertake when we take pleasure in reading through an individual’s function.

  • Bobbi Prim says:

    Hi Hans! This is really a great article with a lot of information – and you are certainly correct with your point about a homebased business not being for everyone. I, as well as many others, have come across more than just a few people who decide to just “give it a try” to see if they can earn a few quick bucks. One of the biggest challenges is getting people to work these opportunities as a business – and not a hobby.

    Thanks for sharing!

  • Loren says:

    Hi Hans,

    Home based business may not be for everyone, however, there are sure a lot of people out there who work away from their home and would love to have or are thinking about ways they could create extra, residual income and still spend time with their families. I absolutely love the freedom of working from home and I’m so grateful that I’ve developed that opportunity to be as productive, imaginative, creative, and as diversified and successful as I choose. Certainly, there are things to consider or change to make working from home an optimum situation, but often a few simple tweaks along with a burning desire to make it work is all that is required. Great post… keep inspiring us!

  • Vernon says:

    Hello Hans,

    Its really a great post Hans.. I really love it and I gives me more ideas in making this into reality. In my part I’m working with my friend’s netcafe and being an employee. I will try this one. Thanks for the ideas…

  • Great post! You’re absolutely right, a home-based business does not guarantee income but then again, very few business risks do. Taking a risk is part of the path to success as is some failure. Running a home-based business has a lot of perks but takes some real dedication that not everyone is prepared for.

  • Hi Hans,
    Great discussion and I think your article was an honest one. Too many people think a home based business is a fast income maker. But it totally depends on the amount of work you put into it. I look forward to visiting again, thanks!

  • Hi Hans,

    You bring up some really great points. Home businesses do seem to be the way of things these days, and perhaps the only (?) way to generate enough income, for some, at least. I do question how one can get it up and running in one day. I’ve been at this a year and a half, am in the “create content and test it” phase, but even when I put it online as program and product, I still don’t have the market yet (not a huge email list).

    • Hey Sherry, you make a great point. Creating wealth doesn’t happen overnight, it takes time. There is a great deal of leverage available online so you can generate more business faster or generate more traffic, etc but there still is a learning curve and learning takes time. There are many skills needed to market online. That being said, I suggest people building a business from home start to build their business offline as it’s simpler, quicker and easier and can generate faster results for most people, unless they have a prior background or experience in marketing online. I think you definitely want to have an online presence but just know it will take time to build and learn the skills so if you can make money offline in the meantime, you have the best of both worlds. Hope that helps!

  • Hi Hans,

    I am not a self starter, and for many years I thought it was a flaw in me that I did not succeed in network marketing. Yet I was a success as a homeschool mom… and in a number of other key areas. Why could I not make a go of it in my home business?

    Now I know, we are not all alike, and no one can do it alone. Two years ago I found what I needed… a team of mentors, any of whom was willing to lead me by the hand until I was able to do it alone. It made all the difference for me! I also learned that some of us just ARE more self-contained and indirect, and we need help in reaching out to others to share our business with them. And that’s OKAY. It isn’t a flaw… it’s a personality type.

    I have learned a lot in the last two years, and am now mentoring and training others to do the same things I have learned to do. And never alone… always part of a team.

    Willena Flewelling

    • Willena, you make a good point. Just as anyone who’s looking to start a new job or business, you need training and education to be successful. Coaching or mentoring helps by providing feedback and assistance to someone who wants to get there faster, without having to learn my trial and error but rather can learn from someone’s else’s experiences (that’s called wisdom by they way!). That’s really what’s so great about home based income. You’re not out there on your own trying to figure out how to get people to somehow buy this new widget you created. You get to plug into a team, a system, a structure that is tried and true and has successfully worked for many before you. I created a whole video on this subject explaining the different home based income models out there which can be viewed here: Home Based Income

  • noty@Media Release says:

    Hans Schoff u have written a great article i liked it. i think this article is best for housewife and single mommies who can not work. i hope you going to post more articles like these in future.
    cheers

    • Home based income is great for housewives and single mommies as well as house-dads and single dads. Really, home based income is a great solution for anyone looking to get more out of life, something that can be done around an existing schedule. I’ve got a great video you might like that goes into more detail here: Home Based Income

  • Hans –

    I think working from home is definitely a viable source of income if you know what you’re doing, but you are right that it is not for everyone. It is important to truly examine your life and whether or not this kind of program would work for you before taking that leap – you give some great advice here, I appreciate the pointers!

    Natasha

    • Natasha, the key is finding a great mentor or coach that could help you get up to speed. Business and investing are team sports, and creating home based income is no different. Trying to make money from home on your own without any support or coaching is not wise if you’re new to the industry and is a great way to fail. The system is designed to support new people to ensure they too can be successful. I created a video on the topic at http://moreincomelessexpense.com Thanks for your comments!

  • Uri Sheinbaum says:

    Great topic Hans. It’s attractive to say you would like to work from home and have your own schedule, but I have to say that it’s more distracting to work from home than it is in the office. I prefer to work out of the office so I’m definitely the person where “it doesn’t work for everyone”. Great article.

    • Haha, Uri, great point! Working at home is not necessarily an easy walk in the park! In fact, it can be even more difficult with the distractions (if you’ve pets or kids or neighbors or friends…), plus you’ve got to be a self-starter so you don’t just sleep in every day and get nothing done! There’s two sides to every coin! However, with some simple rules and disciplines, you CAN be productive working in your pajamas! Thanks for commenting.

  • Hey Hans. Great information. I like how you listed the pros about home based income, as well as that it’s not for everyone. Although we all like to have our own schedule and work at our own pace, life isn’t fair 🙁 Great information. Thanks!

    • Hey Kris, there’s a tradeoff for anything in life and this is no different. Something costs money, others cost time, etc. There can be some great PROs to home based income, but you must first determine what it is you’re willing to give up in order to be able to initially create home based income. Once you’ve achieved financial freedom then you can do whatever you want – you’ve earned it and you’re on the FAST TRACK, living by a different set of rules. But in the rat race, there’s no such thing as something for nothing! Thanks for the comment Kris!

  • Great post Hans, it’s unfortunate that many people join a HBB out of desperation and don’t understand that it takes a lot of work and some time.

    Unless you have a lot of influence and can refer many friends, it’s usually best to start on a part time basis.

    Thanks for sharing 🙂

    • John, that is one of the biggest mistakes someone can make: trying to jump into a new business and immediately go full time. As Jim Rohn says, earn a living in the day and build your fortune at night. You can’t expect to make a 6 or 7-figure income overnight, especially without any prior training or education. Earn while you learn, and as your knowledge and experience grows, so will your income. Thanks John!

  • Lots of good information in your article Hans – and I was glad to see your point about a homebased business not being for every one. Anyone who’s been in a position to meet with prospects has come across more than a few people who decide more or less on a whim to just “give it a try” to see if they can earn a few quick bucks. One of the biggest challenges early on is getting people to view these opportunities as business.

    • Hey Marty, it’s true, a home business is not for everyone just like not everyone is destined to be a doctor or astronaut or policeman. Not everyone is destined to be wealthy either. Some people prefer to stay where they are. Now that’s not to say you can’t become wealthy without a home based business, just that for most people, a home business presents one of if the BEST way to get ahead and become financially free (aka wealthy!). Thanks for your comments Marty!