Earning an income from home has become a big goal for many families. A lot of women desire to become stay at home moms after having children, but also have a desire to contribute financially. Many of these women are opting to earn that income from home one of two ways. People often use the terms "work from home" and "home based business" thinking they mean the same thing, when in fact they can be two separate concepts. Working from home more often than not simply implies seeking employment from home. Usually there are no fees associated with working from home, when you are working for a legitimate company. Instead of going outside of the home to a job, you have created or have accepted a job from home. Work from home jobs usually consist of: customer service call center work, completing surveys, mystery shopping, assembling products, freelance projects, website design, outsourcing through major corporations, to just name a few. Such jobs basically give you the freedom to work at your own pace, and of course offer the freedom to work from your home. Long term effects of working from home are very similar to those of working outside of the home. You have to work to earn an income. If you don't work, you don't get paid. In many cases, you even get paid less to work from home because you are given an important benefit that regular employees aren't given - the freedom to work from your home. Starting a home-based business on the other hand implies exactly that - a business that is operated from home. As with most businesses, there usually is an investment involved in starting your business. The investment could be $10, or it could be a few hundred dollars. Typically the investment to start a home-based business is a lot less than starting a traditional franchise type business. With a home-based business, you are typically paid through commissions from a product you are selling or a service you are offering. The commissions you earn through selling a product or offering a service can vary from a few dollars to a few hundred dollars. And in most home-based businesses you can also earn additional income by helping others to start their own home-based business. The long term effects of starting a home based business are quite different than those of having a home-based job. Remember, when you simply work from home, if you don't work, you don't earn an income. In most home-based businesses you can earn an ongoing type of income called residual income. This means that you are not only paid once for each sale, but you are paid on a continuous basis for that one sale, typically, every month. So it is very possible to create an income that increases each month with the same amount of effort or even less effort. Many home based business owners have developed incomes over time and no longer have the end to work, because of the residual income they have produced. Both options offer the freedom to work from your home, but it is very important to know the bottom line when it comes to your earning potential and leverage over time. |
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