The PROBLEM with Home-Based Consultant Businesses PDF Print E-mail
Written by Graydon   
Saturday, 17 June 2006
If you are thinking about getting into one of those home-based businesses where you work as a "consultant" at a "host's" "party", then take a bit of warning...
They are not god-sends of exponential revenue growth (with few exceptions).
Let's look at some examples... 
Mary Kay - THE long time leader and rewarder of pink Cadillacs... but what community doesn't have 15 others trying to sell the same stuff?
Home Interiors / Southern Living / Better Homes and Garden / etc... - Maybe you could be the first in your neighborhod... but how many serving bowls do your friends need?  Plus, they are getting overloaded with different companies.  Unless you have access to people that change their utinsils every year... then your market will quickly dwindle.  And if you live in an area where people change serving bowls every season, I'm betting that you don't need to work.
Sex Toys (sorry, novelty items) (i.e Girls Night Out) - Again, how many of your neighbors need to keep upgrading their vibrators and pleasure items?  Sure, it beats going to the "24 Hour Video" store (have you seen the inside of those places)... but once they get the stuff they like, KY can be purchased at the local Wal-Mart without being embarrasing.
Pampered Chef and other cooking items - Another example of dwindling market.
HomeMade Gourmet - Similar to Mary Kay... this and other pre-mixed food products is getting overloaded with consultants and companies.  However, they are the one of the only ones that can provide a long term customer base since the main item you are selling is used up on an ongoing basis.
Creative Memories (Scrapbooking) - I'll admit that this one is like the food stuff above, the items you sell get used and need to be replinished... but you are competing with the digital photography era... and until people start seeing photo albums as a great family history builder (about a generatioin away) then it's going to be hard to find long term clients that can devote the time and effort to creating the family heirlooms. 
This is only  a short list of the ones I've seen around my area... but it covers the general realm of what's out there.
Now, if you are still convinced that this is the type of home-based consultant business for you then take into account the following... 
Trend - Are you on the  leading edge, mainstream or trailing.  Catch the leading edge and drive to be the area rep... thus profiting from the others that you can bring in (kinda like a pyramid scheme).
Longevity - Are you selling items that have a long live span?  If so, hope you are on the leading edge so that you can recruit others.  Short lifespan items... maybe you can build a "consumer" base of loyal people.
Saturation - Maybe it's still on the leading edge of the trend... maybe it has the possible recurring sales... but if you are the 20th person in your neighborhood to do it,.. good luck.  Maybe you will move to the one town that it hasn't hit yet?
Personal Use - Finally, if you use the product and have some good friends that also use the product, then maybe it's worth doing it just to get the discounts for you and cover some costs with your customers.  You won't be the first to do this (and I think that it's something that the offering companies bank on).
So, go forth open-eyed on your quest for a home-based business consultant job. 
Last Updated ( Saturday, 17 June 2006 )
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