Why Do Most Home Business Fail?

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What separates the top 3% of Home Business owners who will make 80% of the money in Home Business from the rest of us?

Why do most home business fail while many hit super stardom? Let’s start by talking facts.

  • Fact, taking a look at the thousands of faces on Apsense today, 90% will make little or no money online.
  • Fact, 97% will achieve less than their goals and may never be able to leave their job to work 100% from home.

Sorry, this is the reality of online marketing and home business, but landing in the top 10% who at least earn a second income, and grabbing a place in the top 3% who make it big in Home Business is something that comes from recognition of certain factors and making a choice to grab your spot.

Why Do 90% of Home Business owners Fail

Before we go too far in discussing why home business fail let me tell you I was a top 10%, with a business headed to the top 3% and failed due to a personal injury that sidelined me for 3 months, and not planning ahead and working with a team. When I went down there was nobody that could be me and keep my business growing and with me offline, my business eroded and I had to sell before it took our personal finances with it to someone who could work the business. I now have a growing home business team and have lost the go it alone mentality which is a vital step to success.

Take a Russel Brunson home business launch and look at the people who offer testimonials on every launch. Look at the team of programmers and support staff working with him in his home business each time he makes a move. His videos show a developed team that can continue even if he were personally gone tomorrow. Corey Rudl had that with Internet Marketing Center. When God called and Corey went on to greener pastures his legacy lived on in the work of his team. (editor’s note: Since the original posts Russell has moved all operations of his Home Business to an office offline)

Teamwork alone though will not save your Home Business!

  • Fact is that a team is only as good as what it offers in terms of value. There are failing teams out there program hopping, there are teams built behind bad leaders and bad battle plans. I see teams come and go, my first team went because without me there was no leader, no direction, and no motivation.
  • Fact is most marketers fail because instead of following the money they follow people!

Look again at Russel or take a look at Mike Filsaime and such. They have made their fortunes off people following them blindly, and most of the followers have made a very small fraction of what these leaders have earned in Home Business. Often the only money they have earned is by recruiting new followers of that guru. They struggle, underperform, and fail because they follow people instead of the money.

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See the money is in the information and systems, not the author. You buy a product such as an e-book and the system or information is bad, you don’t follow it, don’t read it, are just there for the quick buck of the launch, or God forbid, you do well but have nothing to follow it up with. These things keep you down in the 97% of Home Business Owners instead of tapping the 3% bracket and saying let me in.

Product choice shouldn’t be about things like the ad I saw the other day which said Tissa G was starting something new, we don’t know what it is, but it’s got to be great because it’s Tissa, and look at what Tissa has done in his GDI Home Business.

Hmmm yeah, I went for that one, didn’t even know what the product would be. (sic)

Tissa is always among the leaders of the Global Domains International leader board but that can be as simple as being in at the top of a program such as GDI, an advertising Co-Op, or help from their upline, etc.. Fact is it may have nothing to do with anything Tissa does directly. Tissa could have thrown a ton of money you don’t have at GDI. Acme People Search, another Tissa launch is pure trash in my books, Tissa doesn’t impress me enough to sell Jack based on his name alone, sight unseen, product not known. Sorry, Tissa I say the same about Obama, Mike Filsaime, Russel Brunson, etc..

The product is the money, not the who is in it in Home Business Marketing.

A good product needs to hold a value greater than the cost. It needs to be consumable, work well, and be something you will use daily personally. E-book authors fail all the time by nailing a one hit wonder and having no follow-up. You need to pre-plan how to bring the next must have to the market and it must expand on or continue what was started in the first big thing. Thus I tell people e-books need to be a sideline income, not your sole business you must build a passive income.

Mike, Russel, Corey Rudl, Joel Comm, etc.. all have passive income. You look at their systems and they have memberships and advertising sales, offer other people’s residual commission paying systems and tools, etc.. They build them in on the back end. Joel does our number with PPC Advertising because not only can he ensure traffic which makes clicks an almost sure deal too but it’s a consumable budget that must be replenished with new money constantly.

The 3% who earn real money online in a home business all follow the money and not people. They lead instead of following. They build back end residual income, and they take less stock in the who and focus on what while building a multiple stream income home business using a team or Co-Op approach.

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6 thoughts on “Why Do Most Home Business Fail?”

  1. It is really unfortunate but the truth must be told. Most people that start an online business would end up not making much from it because of their way of thinking. That is just the sad truth. The way we approach our online business can make a huge difference in the amount of money we make.

    One of the reasons some people fail is because they always look at the present in their online business and not at the future. They never create a plan that would make their business survive for a very long time. Most of us follow mentors that we hope can show us one or two things but have we really looked into the lives of these people to see exactly how they run their online businesses?

    If we do we would realize that we still have a long way to go on planning how exactly we can make our businesses succeed and actually turn it into a passive online business which is what most of us in this line of work strive to achieve.

    • Jay, you have one of the best comments yet on this post. Vision is a must for the budding entrepreneur because guaranteed you will start with investment and turn up red ink on the ledger for some time before you make a profit but stick with it and profits will come.

  2. Something which  is present in your article is to be realistic and not to think you’re living in a utopia. At the end of the day I think it boils down to constantly providing quality content. Like you said, you can’t just be a one hit wonder. You need to have a proper business mindset thought out. Knowing where your business stands, where it is heading, and having the what-if’s covered.

    • Faheem you have perfectly summarized my intent with that portion of the article. You can’t focus on monetizing traffic if you don’t have a steady stream of it and even once you do you can always scale up and do more.

  3. Very good info of what it takes to avoid the pitfalls and embrace the key ingredients to building a successful home-based business.  You make some very good points of the advantages of a team-based approach.

    Providing value is of utmost importance and discovering what people need and are willing to purchase instead of just trying to sell stuff.  You also make a good point that it is about the product and not the person.

    Back-end residual income is defintely the way to go.  Thanks for this informative article.

    • Residual income is by far the best chance of having a sustainable income for a long time after you retire from your business but more so is sustainable traffic such as comes from blogging. Be sure to check out our Wealthy Affiliate Review.


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