9 Pointers for Evaluating a Business Proposal

by
Ray Burton

Finding a business opportunity on the net is easy. But evaluating the
right one for you, takes a little knowledge. With so many scams,
takers and failed ventures you need a little more than the, "highest
dollar for the least amount of work" approach. So what should you
look for when evaluating an opportunity? Here are 9 pointers.

1. Is it legal?
Do they have a product? Many programs on the net are
simply "money movers" with no real products. If this is the case then
it's probably illegal simple as that. If you are serious about
developing an online reputation for quality and reliability, then
don't even entertain the idea of quick easy money. It will catch up
with you!
Do they know and follow the law concerning matters such as
CAN SPAM and other website legalities? There is no excuse for
ignorance on the net! Do your home work and check out:
http://www.wilsonweb.com/wmt9/canspam_comply.htm
http://www.ipcgold.com/ad/112/CD996
Do a search on the names of the owners and founders of the
products.

2. Does their product have value and advantage?
Is the product something that people want with the potential
for repeat sales giving value for money at a competitive price? Do
your homework. Search the net for equivalent products and do a price
comparison. Does it offer a marketing advantage of some kind? What
are the selling benefits of the product over their competitors? If
they don't have a marketing advantage why would anyone buy their
products?

3. Is it residual?
The best opportunities are the ones that have a growing
industry and ideally repeat sales. Make sure if you are marketing a
product that you get the benefit of the repeat sales. This is called
residual income. If you are expected to find customers but only get
the benefit of the first sale, this is unethical and unfair. It is a
good idea to evaluate what % is paid back in commissions for the cost
of the product or service. All good opportunities pay back an
absolute minimum of 20%. Decide you are worth at least that much to
them.

4. How long will it pay?
The world is a fast changing place. The cyberworld is even
faster! Ask yourself where will the product be in 12 months, 2, and 5
years down the track? This is particularly important for digital and
information products. Ask yourself the same about the company. Are
they around for a quick buck or do they have a plan to establish long
term commerce? Will they develop or keep up with new technologies to
maintain a competitive edge? If this information is not readily
available on their website, ask them. If they are not planners then
they will not survive

5. How long will it take?
Take a long hard look at their compensation plan and compare
it to your own goals. Is it cost effective on an hourly basis for the
final outcome. You may have to make a decision by balancing time for
outcome. You may consider it worthwhile putting in 20 hours work over
and above a regular 40 hour job for a small return initially, if the
final outcome is say 10 hours per week total for a 5 fold income. Of
course you will have to decide first of all exactly how much time you
are willing to work on the proposal then ask yourself is their
program sufficiently automated to be worth your while?

6. Do they want your success as much as their own?
What is their commitment to you in terms of training and
support? If they are not willing to train and support you for your
success, are you willing to carry the responsibility of training
yourself and dealing with product problems? In my opinion you must
have online support and training for whatever you need to do for the
mutual success of both you and the company. This can be in the form
of email support, forums and a FAQ (frequently asked questions) page
on their website.

7. What are the hidden costs?
Ask yourself, "What do I need over and above their proposal
in order to achieve my goals", then factor this in to your decision
making process. In this you should include things like further study,
tools, web hosting expenses, stationary,
travel expenses, accommodation etc. It is also important with some
businesses to find out if you have a minimum purchase requirement,
frequency of compensation and the time period between sales and
commission. All these will affect your cash flow. You should then
work out exactly what it takes to firstly break even, then become
profitable and finally achieve your goals.

8. Is their a lead generation system ?
What assistance is given for approaching potential customers
through to closing the deal? This is often non existent with you left
to do it all. The best opportunities are fully automated for
efficiency but flexible enough to have the essential personal touch.
It can be hard work sifting through the opportunities to find
your "Ticket2Success".

9. Do they have a money back guarantee?
Whether the product is digital or hardware people will expect
a guarantee. Are you able to return and refund products quickly and
easily with out problem? Is it clear who handles the finances and
complaints in the event of an unhappy customer? You don't want to be
left with egg on your face after creating a good online reputation!

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Ray Burton is an internet marketer specializing in affiliate
programs, business opportunities, joint ventures and resources to
create your online success. He has paid special attention to online
training programs for new marketers. You can visit his store and
collect a "ticket2success" at http://www.cyberchoices.net The mini
site - mega store.

© R.Burton Jan 2004 All rights reserved