Estimates indicate 95-98% of the people starting their home business to make money fail. This is an extremely high percentage which is not found in any other sector in the real “brick-and-mortar” world.
Any attempt to try to improve this need to be based on a thorough analysis of the causes. In this blog post I will highlight some but in no way am attempting to be complete or scientifically correct. Very few, if any (?), studies have been made about this issue. So the issues I will mention are based on my personal experiences.
1 The background of the “newbie’s”;
From our experiences people who are starting their home business are from a wide, almost universal, background. This ranges from professionals to (almost) illiterates persons; from a large variety of professional offices; till people who never ever worked before; of all ages, races and religions. It probably is correct to state that most have no previous experience with setting up and managing a business, let alone a home business. The general idea that setting up a home business is easy which requires (almost) no money is widespread and at the same time mistaken.
2 The Get-Rich-Quick programs which abound on the internet.
So many programs on the Internet promise “heaven on earth”, “become a millionaire in just 3 months (or less…), earn a “six figure income for life” and many others that people easily fall prey to. While the Internet is generally speaking not so much “scientifically based”, one issue has been well studied which is HOW TO persuade people to buy what I am selling. Based on a thorough psychological knowledge of how people think, feel, perceive and take decisions, many promo campaigns are using exactly the results of this. My feeling is that the SCAM programs are really experts in this!
3 The “You Don’t Have To Do Anything” programs.
This is another phenomenon which abounds and, more often than not, directly related with the “get-rich-quick” programs mentioned before. They are very attractive to people who don’t know well how the internet works and appeal directly to the most widely spread human feeling of “greed”. Every “newbie” should be aware that those programs do NOT work. Just ask yourself a very simple question: If you don’t have to do any work, why in the first place do they need you? You think there is some person behind the program who just wants you to make a huge amount of money without any work? My grandmother used to say: “Only the sun rises every day for free!”. Combine this wisdom with the general accepted statement that if something seems to be too good to be true, it usually is exactly that!
4 Lack of Focus which leads to program “hopping”.
Especially people who have little knowledge about running a home business start joining a program they like (many of them from the categories 2 and 3 above) but don’t know how to effectively promote them. As a result income is very low or even they loose money and join another program.