Finding a Low Risk Internet Business

When you talk to people about internet business, there are two concerns that are the most common. The first and most ill-informed question is, how do I know this isn't some pyramid of Ponzi Scheme? The vast majority of people who raise this concern are unable to even define what a pyramid or Ponzi scheme is, and are simply parroting catch phrases they have have heard in the news. In reality, every business involving more than two people is in the shape of a pyramid, and working for corporate America is the worst pyramid scheme out there. Think about it, the CEO of a company makes much more money than the average employee. The latest statistic I heard is about 400 times more, and that has been rising fast since the end of the 1980's.

Even though this question is rarely well founded, I will answer it quickly. A pyramid 'scheme' is one where the company offers no product or service, and the people at the top make the vast majority of the money at the expense of the people below them. Pyramid schemes were all over the news in the 1980's and today's regulations all but guarantee any predatory schemes will be shut down.

However, the second question is much more legitimate; how risky is it? This is perhaps the most important question you can ask about any financial venture you are considering undertaking.

So let's talk about risk. Anyone serious about making money knows that the more risk in a financial venture, the bigger the pay-out for its success. The stock market for example, is is a fairly high risk system that has the potential to make people a lot of money if they play it right. Looking at marketing businesses, it's important to figure out how much risk you are willing to take. The difference between risk in something like the stock market and risk in internet business is that with internet commerce you have almost complete control over your risk. The quality of your decisions directly effect your chances of success.

No internet business is without risk, but neither is any other way of making money. Consider this; if you have a job working for a large corporation, the risks are no less, and you have almost zero control over them. You might be laid off, your job could be shipped to China where people will work for a fraction of what you were paid, the company could go under, or you could be fired for unfair reasons. It's no stretch to say that these things are all too common in today's job market.

With all of the risks facing workers these days, are they being fairly compensated for these risks? Absolutely not! Wages adjusted for inflation have been on the decline since the 70's. For example, if the minimum wage had kept up with inflation, it would be well over $10 an hour. CEO wages on the other hand, have been skyrocketing fast. They are taking much more while the average employee is working more and making less. Not only are we being paid less, but workers are paying more and more for healthcare than ever before. The days of employers providing full benefits to workers and their families is becoming a thing of a past.

So how do you assess the risks of a particular business? One of the best ways to get unbiased opinions is by searching for personal testimonials. A great resource for this is youtube. Try doing a search for 'name of your business' review, or 'name of your business' scam. If there are no videos about a business, it probably means there aren't many people in it excited about it enough to market it aggressively. If people are marketing a business like crazy and seem genuinely exited about it, chances are they are doing well with it. You can also check social networking sites like myspace, facebook, twitter, and marketing forums. Also, blogs can be an invaluable source of good information on an opportunity.

I have to say that if you are afraid of a little risk, you may not want to get into internet business. In some ways it is still a jungle out there. But, if you do your homework and research an opportunity well, you can minimize your risk to a level far below that of working a 9-5 job. Perhaps because of the risk, the potential pay-out of working from home and being your own boss is much greater than the vast majority of jobs out there today. Beyond just money, the personal satisfaction of being in control of your own financial destiny is worth its weight in gold as far as freedom and personal satisfaction.

I wish everyone luck in their search for financial freedom and personal satisfaction. Remember that the longer and harder the climb, the better the view from the top.