Cost of Starting a Home Based Business

When dealing with a new prospect looking to start a home based business, I know very quickly how serious they are based on their concern (or lack thereof) over the cost of getting started. The truth is there is nowhere else that I know where you can start a legitimate business for what it costs to get involved in a network marketing opportunity. Ever looked into starting a franchise business such as McDonald’s? You’ll pay over $10,000 just for the right to have a franchise, start up costs (building, equipment, etc.) will most likely cost upwards to $250,000, then you have your monthly overhead for food, labor and utilities. By comparison, a network marketing company’s startup cost shouldn’t be a major concern, just how good the opportunity itself is.

Start-up Costs

Most network marketing companies will offer those interested in starting a business several choices on how to get started, usually referred to as “start-up packages”. The lower package may be around a couple hundred dollars, while the upper is usually around a thousand. As packages get larger, you get more in return, as in more products to sample, more business building tools, etc. For the cost, I highly recommend you start with the highest package you can at the time, as the benefits you get, that will help you hit the ground running, are well worth the cost (which we’ve already established is minimal compared to traditional business start-up costs).

Monthly Overhead

When you become part of a network marketing opportunity you will be required to maintain a monthly shipment of products (usually around $75-$100). This is referred to as an “autoship,” because it is sent to you automatically each month. You will have the opportunity to customize your shipment each month to receive the products you want, and these can be used personally or resold at retail prices (you will be paying wholesale). The only other overhead you would have for your business will be if you choose to market it through ads, or the elect to purchase leads looking for a business opportunity. You totally control how much you spend on this type of activity and I recommend you keep it small until you are seeing a steady income from your business.

Tax Benefits

One of the things that many people don’t consider are the tax benefits associated with owning a home based business can be significant, and many economic advisers, like New York Times Best Selling Author Robert Kiyosaki, (Rich Dad, Poor Dad) highly recommend them. Your startup cost for the package you select will be tax deductible. You will be using your phone (both landline and cell) and the internet to build your business, which makes both of these costs now tax deductible. If you have the ability to set up a home office in a dedicated portion of your house (not a corner of your spare bedroom), the percentage of your house that the office occupies is tax deductible for that cost of your rent or mortgage and monthly utilities. Be sure to consult your tax attorney or CPA to make sure that you are taking legitimate deductions, but a home business can have very significant tax advantages.


While there are a number of things you should look for when selecting a network marketing opportunity to get involved with; management team, compensation plan, and quality products, the cost should be way down the list of considerations. The truth is, most people can pull together all the things sitting unused in their house, hold a one-day garage sale and put together the cost of getting started in a network marketing business at the highest costing package available. There simply isn’t another avenue for you to become the owner of a business at so minimal a cost that can make you serious income, give you the freedom to live your life on your terms, and be an asset that you can pass on to your children or grandchildren.