Home Based Business - Products vs. Services

When considering a home based business to earn extra income from home, it's important to understand the difference between service based companies, and product based companies. This article will help you to decide which one is more suitable for your needs.


Service Based Home Business Opportunities:

These types of distributor opportunities come in all types of services including; communications, web based services, legal services, insurance services, home security, and so on.

Most work at home services typically offer people a lower rates to a service you already use at home, or at work. They are able to offer lower rates because the company is able to offer a huge group plan that is determined on the number of people using the services.

Pros:

* - Lower rate services
* - Better insurance, legal, or protection service plans
* - Everyone uses these services
* - No need to explain what the service is for

Cons:

* - Switching people is not always easy depending on loyalty
* - Some services are extremely technical
* - A great deal of time is spend on educating people
* - Some services are not always a better deal
* - You will need to use all the services yourself

I've personally had experience with a service based company that offered cheaper long distance rates, pager rates, etc. The problem I noticed is that not a great deal of people were willing to switch their existing provider due to years of company loyal, and the quality of services. In some cases as well, people needed a great deal of technical information that required extensive industry knowledge on my part.


Product Based Home Business Opportunities:

Here you will be required to use, and promote some form of product. Whether it be health drugs, vitamins, juices, entertainment equipment, water filters, beauty products, and so on.

Many product based companies offer specific industry products that are common household items that everyone can use. Some products are very specialized which gives you access to a smaller market. There are other products that are so cutting edge, you can't buy these products anywhere else thus giving you a unique product that people want, like, and talk about.

The key with products is to go with an industry that is high in demand like the health industry, and to also find a product that is extremely unique not found on shelves within super markets.

Pros:

* - Everyone uses the products
* - Most products are cheaper than in stores
* - Convenient home delivery
* - Revolutionary advances within the industry
* - Not found anywhere else
* - Gives you a discount on everyday purchases
* - Sometimes easy to sell

Cons:

* - You must use the product
* - Your team will have to use the product
* - Sometimes have a required monthly sales minimum
* - Some products are not that great
* - Not everyone may be able to sell the product
* - Some products can be expensive

Products can either be easy to sell with a high re-buy rate, or products may be extremely expensive that are reliant on distributors to use themselves.

The key is to partner up with companies that offer products which are in high demand and have a unique twist within the given market. This will help you to easily sell to people. Many people will buy into a product based company if the costs and monthly requirements are not too high.


What Do I Recommend?
I've personally worked with both products and services and have found that products can be a lot easier for people to sell to their friends and family. Again, it's entirely up to you, but just make sure to get into a business that is easy for you to believe in, promote, and tell others about.

http://www.martinlemieux.ca/posts/?blog=66

"The product businesses usually offer a better chance of leverage and scalability. But you have to invest more too, and if you go down, you lose more. Its really up to you."