A home based business is a good thing - no overhead, no employees, flexible schedule. Network marketing is growing steadily right now and it's about the only field that is. The trick is to choose a) an excellent company b) a product that is consumable so that people need to re-order every month, and c) a product people need in tough economic times. Jewelry and pocketbooks are not things that people NEED. I have a friend who does a particular jewelry company, and my stepdaughter used to do it as well. It's a great company but you have up-front costs (inventory) and you have to book parties all the time. People DO feel pressured to buy if they come, unless you have a table at a bazaar of some sort. Then they can pass by after they look at your stuff - but you also don't have their undivided attention, and of course you have a table fee. It's a lot of work. My stepdaughter also did a food company - fun foods but she thought it was a ton of work. Again, she had to stockpile products. And, while the food is consumable (which is good so people use up what they purchased from you, some of it lasts a long time (like the herbs & spices), so people don't need to re-order the next month. You might do very well at a party and make $300, but then what are you going to do for income next month? You must have a fantastic network of friends. My stepdaughter says people don't want to see her coming now.
The other thing is, if these friends also have a business, they'll expect you to buy their products, which will eat up your income. You buy my jewelry, then I'll come to your party to buy your pocketbook. You're also both inviting the same group of women to come. Another friend does kitchen gadgets - great stuff, high quality - but again, once people buy, they are all set for a while. Another friend did toys - and her business went up and down, with a big push before Christmas but then nothing at all in January, you know? Also, all of these products appeal primarily to women, except maybe for the food - but still, you don't see men or children at these parties, and you therefore don't have them as prospective customers.
Because of the above factors, I chose do top-notch nutritional products that are giving people life-changing results. Health & wellness doesn't go down in a recession - especially if the products help counteract some things in your grocery bill. For example, people who get great health results don't' get sick and have prescription & office co-payments, cough & cold medicine, antibiotics, lost time from work, or even cravings for junk food. So they are putting their money into YOUR pocket instead of into the drug store and the supermarket. Products that are consumable and high demand create repeat business, which creates regular income.
Any home based business requires work, and you will get out of it what you put into it. Everything takes good follow-up to create good customers. But I find that, if I do good work for 2 months with someone, I create repeat business. You have to really find the right company, really do the training, make sure there are very low start-up costs and that there is a guarantee. If they don't guarantee their products, you could be stuck with a lot of inventory. Also find out what the renewal fee is every year. Make sure you have really solid support from the people above you (more than one) and make absolutely sure that you get paid every month by the COMPANY, and not the people above you. Even if you know and like the person immediately above you, if your monthly check has to come from 4 layers up, and the first person is late paying the second, the second will be late paying the third, and so on, until it gets down to you.
All companies will give you a great pitch about how easy it is, how nice the person above you is, and list how many people just got a bonus or took a cruise. The question is, is it duplicatable? Can you do this again and again, and do a lot of people have the potential to get these bonuses?
I chose my company because the start up costs were minimal, I don't have to carry inventory (although I can to get a better profit - but there is a buy-back, no questions asked), I make between 20% and 40%, I have 2 venues every week to which I can take prospective customers so they are hearing this info from others besides me (which really helps lend credibility), and I really am motivated by helping people. My company is well-regarded by business magazines, is a member of the Direct Selling Association (a watchdog group that only invites a few hundred of the very best, our of 5,000+ network marketing companies in the country), has been honored for its humanitarian work, and has squeaky clean ethics. It's so open, it even allows prospective distributors to attend the training sessions - how many companies open their training to "outsiders" and even competitors? Make sure your company does the same. My company is growing and added 5000 new distributors in January - make sure your company is growing steadily. Also find out what their distributor retention rate is - are they in the higher percentages among all network marketing companies, or do people do the business for a year or two, not make any money, and then quit? If they won't give you these figures, walk away.
I would not bother too much researching companies on the internet other than their official websites. If you just Google the name of the company, you will always find something good and something bad, but you can't determine the reliability of the sources. For example, is a dissatisfied person out there on the internet just badmouthing a company because they work for a competitor? Did they have a bad experience because they didn't follow the system and do things in a way to achieve success? Is their complaint credible? Or are they just venting and blaming their failure on the company? It's just not a reliable way to research things - you have to talk to a lot of people in that company, so make sure they have a way for you to do that. If you get in front of people, you can get a better sense of who they are - they are the ones you will be working with too.
Evaluate the company's profitability and history. Do they have a stable management structure, or are their CEOs moving around and bailing out after they make their millions? Do they have distributors who make more than the CEO? If so, that's good! Have they been profitable from the beginning? Are they publicly traded? You don't have to be a stock market whiz or an MBA - I'm certainly not. But I definitely did not want a company that is just like corporate America - the top guys get the spa treatments and the bonuses, and the people at the bottom do all the work before getting laid off!
Finally, make sure it's a company whose product you believe in. If you can't figure out why someone needs what you're selling, especially in a rough economy, you won't be successful. You'll lose your investment and be stuck with a lot of inventory which you'll either use yourself or give away to relatives for gifts!
These are some of the factors I think you should evaluate before you get locked into anything. Then you have to be sure you can and will work at it.
Good luck! Network marketing IS the way to go though, because you are not at the mercy of a company doing cutbacks. Just do your homework and don't jump into anything until you really assess the company's mission and your own goals.