Home-Based Business Opportunities Can Provide Crucial Secondary Income During Recession

A secondary source of income can be critical to making ends meet in today's uncertain economic times. Unemployment numbers remain very high throughout 2009 and many other Americans are facing pay reductions from their employers as companies try to stay afloat.

During this economic downturn, more and more people are turning to home-based business opportunities and traditional network marketing to provide an additional income source. Direct-selling companies can often do very well financially during a recessionary period, simply because a larger sales force of independent representatives is likely to become active.

Direct Selling News has recently published an article and list of direct selling companies that earn annual revenue of more than $100 million, including 44 companies in the U.S. This growing list of successful network marketing companies provides plenty of opportunities to market all kinds of products.

When you choose a company, it is important to consider the products and services that you will be marketing, particularly during the current economic climate. Your potential customers are very likely to have less discretionary income available for luxury purchases. Your success in direct selling may be dependent upon offering products and services that people are already going to use on a daily basis.

"Services like cell phones, satellite TV and internet will be used regardless of the economic climate.  People just never want to be without their outside communication to the rest of the world," said Debbie Davis, Regional Vice President with ACN, which ranks 20th on Direct Selling News $100 Million Club list.

ACN and a handful of other direct selling companies offering services such as digital phone, wireless phone, satellite television and high-speed internet, could almost be considered "recession proof" businesses because consumers do not consider these services to be optional, but a necessary monthly expense. Approaching your potential customer with a product or service that he or she is already using through a different provider puts you in a much better position. Trying to convince a prospect to try a product they may not want or need is a much greater challenge, particularly during an economic downturn when more and more people are cutting back on expenses.

Approaching a potential customer is difficult enough for those new to a representing a direct selling company. It is important that a new representative experience some early success without too much rejection. Getting a few  customers signed up to use your product or service is a lot easier task to achieve when the customer only has to switch a service they already have.

Another factor to consider regarding network marketing companies can be described in one dreaded word - inventory. Those trying to succeed in network marketing can often find their garages and cars filled with products ranging from vitamins and beauty products to dog food. Why deal with this headache and inconvenience when you can choose a company that is providing essential services with no inventory? Concentrate your efforts on getting customers that merely have to switch an existing service that they are already using. You can always go back to your existing customers and discuss additional services, hopefully after they have a first positive experience with you and your company.

Network marketing companies, that offer solid products and services that people need and use every day, could very well provide the business opportunity and supplemental income needed to get through these tough economic times.

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