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So you want to earn some extra money on the side of your full time job, but don’t know where to start. In another case you may have been approached by a friend about joining a business opportunity but you’re just not sure if it’s right for you.
These are the very concerns I had when I was looking at joining a business opportunity, and no matter if it’s Avon or Amway there are always things we may not consider before we join and would have been nice to know beforehand.
So in this article I’m going to cover several things I learned when I joined a financial services business opportunity called World Financial Group (WFG) and what you should know before you get started.
Is The Company Legit
The first thing you may be wondering is this business opportunity even legit? If the company is Amway, or some other name brand company you’ll be pretty safe. However, if you’ve never heard of the company before you may want to do a little bit more digging.
The first thing I did was asked my friend, the person that introduced me World Financial Group, about the company. By knowing someone who already works with the business opportunity you are looking to join allows you to ask more detailed question and get more honest answers.
Another thing I did was checked out what others were saying on the internet. However I should warn you when it comes to the internet I wouldn’t put as much weight on what some people are posting simply because I’ve found some things to be completely false.
For example, when you type something like World Financial Group fraud into the search engines, you are more than likely going to get a webpage with a fairly negative result simply because the term itself is negative by definition.
Finally, take some time and look for any credentials. If you see things like rated A+ by the BBB or top 100 companies, it’s a pretty good chance this company is legit. However if you are looking at a business opportunity and you can’t identify the product they are selling I suggest you stay away because this is usually a good sign of a pyramid scheme.
How Much Will It Really Cost You
The second thing you need to consider is how much will it cost you to get started? Almost all business opportunities will charge some sort of fee. When I joined World Financial Group it cost a $100 to get started.
However, this isn’t all the cost. In order to get paid by WFG you must be a licensed associate which means I had to have my life and health insurance licenses and my securities license to sell investments. When it comes down to it these licenses cost money, but they also cost money to maintain. Altogether it cost me $1000 to get my licenses and around $1500 a year to maintain them.
I know that sounds like a lot of money when you considered the type of business opportunity I was getting involved in it was actually very inexpensive since I didn’t have to maintain the cost of running an office and holding a branch managers license as well.
So before you get started make sure you investigate what the true cost of getting involved with a business opportunity are and also to stay with it over the long term.
How Much Time Will You Have To Give Up
Another factor you need to consider is how much time you will have to give up? One of the big selling points people will use to get you to join a business opportunity is that you will have complete freedom over your time and how much you want to do.
For me I wanted a simple work from home job but this actually ended up being the exact opposite for me. In fact, there were many nights were I didn’t get home until 11pm or later. Whether it was training or stopping by a client’s house most of what I did was done either on appointments or at the office.
Secondly, when it comes to running a financial business like I did there was a lot of paperwork involved to open even just one account such as a mutual fund. While I did most of this work at home it did cut into my family time quite a bit.
Finally, one of the biggest factors that ate up a lot of my time was travel. My office typically had training meetings once a week and a typical drive ranged from a half hour to an hour and a half, depending on where the meeting was held. So if my training meeting was being held an hour and a half away I would lose a total of 3 hours just for travel in one night.
So consider the amount of time the business opportunity will take out of your schedule. In most cases if you can’t commit at least 10 hours or more per week it may not be for you.
What Kind Of Task Will You Have To Preform
Finally, the last thing you need to consider is the type of task you will have to perform. When I first got started I thought all I had to do was get licensed tell a few people about what I was doing the clients would come flooding in.
The reality was I couldn’t be further from the truth. One of the main task you will have to perform is contacting people, and for me this meant calling people I knew very closely to schedule an appointment. This made me very uncomfortable at first but I got use to it after a while.
On top of that you don’t just contact a few people but a lot of people. When I was working in World Financial Group I knew people who contacted over 50 new prospects a week to set appoints. So if your someone who in more of an introvert rather than an extravert and don’t like to hear the word no a hundred times over joining a business opportunity may not be the right thing for you.
Once you’ve considered the cost to get started, the task you have to perform, and the time you will have to give up, you might just be cut out to join a business opportunity. The reality is though, business opportunities have very high turnover rates and almost 80% or more of the people who join them quit before the first month is up.
However, don’t let this stop you. There are plenty of businesses out there that can offer you earning opportunities. You can franchise, be a direct seller, etc. The important thing is to be smart about where you invest your money in.
So what are your thoughts on joining a business opportunity? Is it worth it or is it not?
Author Bio: This article was written by Chris Holdheide a personal finance blogger for StumbleForward.com whose goal is to help others avoid life’s financial mistakes and live a higher quality financial life.