This article rates a home business opportunity using my “New Approach for Rating Home Business Opportunities,” of 11 major and 7 minor attributes. Each major attribute can be worth 7 points, while apiece minor attribute can be worth 3 points, with 98 points as a perfect score. Of course, there are no perfect scores for home business opportunities. The 11 major attributes are-

* Product or service
* Product price and market competition
* Company
* Proven business system
* Available Support system
* Available training and resources
* Compensation system
* Profitability – has good profit margins
* Costs involved – both start and recurring costs
* Will I have full control over my business?
* Can I work this business at my own pace?

The 7 minor attributes are-

* How is the product delivered to the customer?
* Does the product/service have an automated delivery capability?
* Is the Company “On the Net” and E-Commerce enabled?
* Are you supplied with business tools to make your life easier?
* What level of administration is required?
* Think about whether you will be ahead of or behind the trends?
* How great is the potential to make money in this business?

The Company is Sensaria, a Washington say private company that sells Natural Body Care products. The product line includes Skin Care, Body Care, Sun Care, Home Care, and Hair Care products, all of which are sold by individual representatives. There are about 3,600 representatives. The Skin Care and Hair Care products (not makeup) are naturally based with no chemicals, which many people prefer, are consumable and representatives have individualized web sites which customers might go to for repeat product purchases. Sensaria is a member of the Direct Selling Organization, which is a significant consideration. The company is about 20 years old, but has been using direct income for the last five years.

Representatives schedule and hold Spa Celebrations where products are sampled and introduced, used and sold. The celebrations are fun events for women and those in attending have a good time. Representatives plan for product sales, to book additional celebrations with those in attendance, and to recruit new representatives for the company, with individuals seeking to acquire additional income. The cost to become a representative is $180, and another $50 for items that representatives use at Spa celebrations and for office supplies. Even though apiece representative has a individualized web site for product re-orders, this business opportunity is an offline opportunity, as compared to an online world wide web business opportunity.

Eleven Major Attributes

* Products are very well received. Women love these products and buy them eagerly. Samples used at the Spa celebrations are very effective in producing product sales. This major attribute is the crucially important one for this home-based opportunity. Because the products are consumable, this is a very favorable situation for a representative. This attribute gets a 7 rating.
* Product pricing is competitive in the market place and market competition is moderate. In this instance, a 5 is awarded for this attribute.
* The company is well respected, stable, and can be counted on to deliver on promises made. So this consideration gets a 7 rating.
* Proven business system. Sensaria has a very effective business system for beginning reps that includes getting Spa celebrations scheduled, presentations for the party, securing bookings for additional celebrations at apiece party, and prospecting for potential new representatives. Free products wage good motivation for individuals concurring to host a party. After a Spa party, apiece rep has a business suite installed on their individualized personal which grants the rep to transmit the orders to the company for efficient order processing. This consideration gets a 7 rating.
* The acquirable support system is generally good, as apiece new rep has an upline mortal for questions and problems that might arise. This consideration gets a 5 rating.
* Available training and support is good for this company. New reps attend teleclasses to learn the ropes as beginning home-business entrepreneurs. Teleclasses are one hour in length and about 50 individuals might be involved in apiece call. More experienced representatives conduct these teleclasses.
This consideration gets a 6 rating.
* The Compensation system is a good one. Each rep earns 30% of the product income value for apiece party, and has the chance for bonus amounts apiece month based on their total product sales. These bonus amounts vary from 6% to 9% of product income for the month. In addition, a rep earns a 5% override for any reps they have recruited. After 3 recruits, the overrides go four levels deep. For any checks received at the parties, the rep deposits them to her bank account, and remits 70% of the income value to the company via credit card payments. So rep earnings accumulate swiftly during apiece month, and are acquirable immediately. This consideration gets a 6 rating.
* Costs involved are $180 for the beginning product kit, and approximately $50 for supplies, most of which can be bought at low-cost at Wal-Mart. The rep will have travel costs to and from apiece Spa party, and office supplies will be needed for record keeping purchases.
* Will I have full control over my business? The answer here is an unequivocal yes. There are no monthly income quotas, but buys of $75 wholesale are necessary to remain active. A rep can go inactive periodically without penalties. This attribute gets a 6 rating.
* Can I work this business at my own pace? The answer is yes, and this attribute gets a 6 rating.

Seven Minor Attributes

* How is the product delivered? The products sold at a Spa celebration are shipped to the hostess for that celebration and she delivers the products to customers who purchased. This consideration gets a 2 rating.
* Does the product/service have an automated delivery capability? Not in the sense that e-Books and software can be delivered immediately as downloads after purchase. Each rep has a web site for customer re-orders and they are shipped to their home address. This consideration gets a 2 rating.
* Is the company “On the Net” and E-Commerce enabled? Yes, this consideration gets a 3 rating.
* Are you supplied with business tools to make your life easier? Yes, apiece rep gets a business suite for submitting orders and other tools as well. This attribute gets a 2 rating.
* What level of administration is required? Keeping customer records, celebration records, contact records are required for a rep to be effective, and to acquire as much as possible. This attribute gets a 2.
* Think about whether you will be ahead of or behind the trends. I don’t know the answer for this one, so I am not assigning any number for this consideration.
* How great is the potential to make money in this business? It has very good potential, a new rep can acquire from $800 to $1,000 in their first month. Downlines can be willed to family heirs. This attribute gets a 3 rating.

Total Score

The Company has scored a total of 66 points on the 11 major attributes, and 14 points for the 7 minor attributes, yielding a grand total score of 80. This rating approach requires a 90+ for an Excellent rating, 70+ for a Good rating, 50+ for an Average rating, 30+ for a Poor rating, with fix for an opportunity considered to be a scam. Based on this approach, this is a GOOD home business opportunity.

By : Roger Staubus CPA

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