Best (and Worst) Ways to Make Money Working From Home
I cannot count how many times in a single day I see women posting in entrepreneur Facebook groups asking how they can make money from home in a way that will fit their lifestyle. Whether you're a mom at home with your kids, a fresh-out-of-college gal looking to pay down those loans with a side hustle, or someone sick of the corporate grind and ready for something new - here's a breakdown of all the suggestions you're going to get when you post that question, and the pros and cons of each one:
Join a Pyramid Scheme Multilevel Marketing Company
Note: If you already aren't interested in MLMs, skip ahead to the next one! But if you do think an MLM might be right for you, please read on before considering joining one - I'm not in an MLM of any kind so don't worry, not trying to sell you on one here. Just providing information.
The most common answer you'll get to work from home inquiries (unless you explicitly say you're not interested in this option) is to join this or that MLM. Multilevel marketing companies are large corporations that are run primarily through having third-party, individual sellers promote and sell their product while making the real money recruiting more individual sellers underneath them.
I've known one person in my life who has been extremely successful building a business around multi-level marketing, and she does so by being really engaging and good at recruiting others to the MLM, and when she recognizes that she has gone as far as she can with a specific company, she exits and finds the next big thing. MLMs tend to explode for a season and then fizzle out, so you have to go into it prepared to jump ship at the right moment if you want to make good money.
Pros:
MLM companies often have a really fun community built around hype, so it can be really exciting and make you feel like you're a part of something bigger.
You don't have to create the product yourself - you just sell it.
If you're in the top 1-2% of sellers, you really can make good money.
Cons:
Most people lose money or, at best, come out not much better off than when they started.
If you want to make money, you have to bring in people under you. So even if you're one of the top sellers, your success is ultimately at their expense.
You eat the cost of anything you don't sell. You have to purchase the product from the MLM company before you can sell it, so they don't suffer if sales don't happen - but you do.
Startup Cost:
Around $100 plus any products you buy at start and in the future with the hopes to sell. See a full breakdown of the most popular MLMs and their startup costs + commissions here.
Basically, if you really want to be successful in an MLM, you need strong networking and marketing skills. But personally, I think those could be better applied to a business that is completely your own, which brings me to the next option…
Start a Product-based Business
If you really love the idea of focusing your business around a specific product or creating your own brand, a product-based business is a great way to go! I haven't delved into this personally, but I've worked as a social media manager for product-based businesses before and have found them the easiest to grow organically.
When you're promoting a product, it's obvious what you're promoting. There is built-in trust between you and your customers that just isn't there with an MLM where you're not personally researching and designing the product yourself. It can become less salesy and more focused on you sharing an amazing thing you created and are passionate about!
Pros:
You get to design the business however you want around whatever product has meaning for you.
You're not tied to the success of a larger company, and you don't have to onboard others to sell underneath you in order to be successful.
Organic growth via social media is extremely natural and easy if you have a marketable product that creates satisfied customers.
Cons:
You have to do all the work yourself, from product design and implementation to marketing and sales (or at least hire and pay other employees to do so)
Profits may be inconsistent and unreliable depending on how many sales you get in a given week/month/year.
Startup Cost:
Varies by product/business and often is anywhere from $2,000-5,000 to really get going, but there are many small business grants and loans out there to help you get started without having to cover it all up front!
If you want more insight into creating your own product-based business, my favorite expert on the matter is Alison Prince, who literally started selling online by selling junk from her garage! I first heard her on the Goal Digger Podcast last year and she's AMAZING!
Start a Service-based Business
Alright, now we're in my wheelhouse! The primary way I personally make money working from home is through my service-based business offering social media strategy, coaching, and copywriting to entrepreneurs and businesses. To give you a little perspective, I initially started out making $350/month with one client and now make $5,000/month with five amazing clients I love! You can read more about how I went from stay-at-home mom to legit money-making entrepreneur here, with my only financial investment being $300 in a friend's online course!
Pros:
Start-up cost is next to nothing, especially if you have experience in your area of interest already.
Many services can be ongoing contracts, meaning more consistent income on a month-to-month basis.
The more expertise you get, the easier it is to find clients interested in working with you (and the more you can charge because you're bringing more value).
Instead of needing to be the creative and strategic mind behind an entire company, you get to niche down to offer services in your areas of expertise.
Cons:
Since all income is in exchange for a service you're offering, you're ultimately selling your time (there's only so far you can scale this given limited hours in a day).
Startup Cost:
Only the price of any courses or certifications you find useful to increase your marketability to potential clients! I had zero startup cost as a copyeditor, and then took a $300 course before I started pitching to clients for social media management. There are also many free courses and resources out there for basically anything!
If you're looking to get your feet wet without putting any money down yet, join my Facebook group! I share social media and copywriting tips that can be useful for any business along with job opportunities and places to look for clients! Join here.
Create Passive Income Streams
One of my favorite ideas for making money online is to create passive income streams. These are modes of making money online that, once set up, make money literally in your sleep! You're not actively "clocking in" to work for a business or a client, you're just putting these opportunities out there and making money as customers come. It's very similar to a product-based business, but even more relaxed on your end. Here are a few passive income ideas:
Affiliate Marketing: Share affiliate links with your followers for clothes, skincare products, apps, etc. that you use and love. When they buy, you get a commission!
Merch: This is sort of a simplified product-based business. Just design and sell some stickers or t-shirts based around your brand or something you love. Less work than a whole product line, but still a great way to make a little extra money on the side. You can even go through a platform like Teespring, which will manage your entire merch end-to-end so all you have to do is put up your designs.
Digital Product: This is a great option for service providers - it's a way to sell your expertise passively, so you aren't limited to the time you have available to work with clients. Take your expertise and turn it into a course, e-book, or guide.
Pros:
It's in the title: make money passively!
Not limited to the time available in the day. The more income you can make passively, the less active time you have to spend working for others.
Cons:
It takes time to build trust with your followers, community, and potential customers.
You have to put in a good amount of work up front and be willing to put yourself out there!
Still Not Sure Where to Start?
I'm officially offering business coaching for women looking to start their own work from home business, and I'd love to help you figure out the path that’s right for you!
To learn more, shoot me an email here and let's see if I'm the gal to help you figure out your business path!
