(In Part One of this series–Can I Start A Home-Based Internet Marketing Business With a Zero Budget?–Thia discussed one category of business start-up called Capital expenses. Part Two, which follows, addresses Operating Expenses…and more.)

Q: What are “Operating Expenses?”

A: Operating Expenses are ongoing, recurring costs

that go along with keeping a business tooled up and functioning to generate profits (which then go back into the business to grow it even more, etc).

Some operating expenses to work online from home might include the following:

Marketing–The actual promotion of the product, service, or opportunity will sometimes cost money. There are lots of ways to market online, and the options range from free (YES-much can be done with little or no cost whatsoever) to…well, not free.

Marketing costs can include such things as paid advertising (you can set the ceiling cost); subscriptions to list-building services; lead purchasing (not recommended by this business owner); domain/URL registration costs; website hosting; and such.

Communications systems–
You’ll need to maintain a high-speed Internet connection, phone service with voice mail and unlimited long distance, and perhaps an international calling plan (if you market globally).

Professional/support services–A merchant account is needed to take payments online); you may want subscriptions to various kinds of syndication (automated distribution) services, to ensure that your valuable content/offer is reaching the greatest number of potential customers; you may choose to outsource (that is, hire someone else to create or manage) some of your content (article writing, Web 2.0 properties, blogging, etc.); back-office support, including trainingand ongoing skill development.

NOTE: If you don’t invest in becoming an expert, those who do will quickly corner the profits that could have been yours.

Q: How about fees to “buy into” an Internet Marketing business?

A: These will vary, but yes-you can expect that in most cases there will be some kind of application and/or start-up fee. Beware the exceptions because the costs will only be more hidden.

Here are some tips to make sure you don’t get burned:

Anything you pay while you are still gathering information about a company or opportunity should come with a written money back guarantee.
Check to see what period of time the guarantee covers-24 hours? (not so much) 30 days? (much better)-and use that time to learn all you can.
Avoid any company that does NOT provide such a guarantee up front.
With a guarantee in hand you should be able to pay the “start-here” fee confidently-you will have little to lose and perhaps much to gain.

Q: How much is it reasonable to pay up front?

A: As with the previous questions, this one also depends–partly on you, and partly on what is included in the fee. Use your head, along with your heart, on this one. Follow these guidelines:

An application or start-up fee should be modest-affordable for you;
the compensation plan presented to you should thoroughly explain what you would need to do to see both a return on your initial investment and future profits.

If you absolutely do not have the amount of money requested just to open the door, then the chances are good that this opportunity is out of your reach at this time.
Better to walk away than to get in over your head.

Be amazed and amazing!

Thia

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Still scaling the Internet-marketing learning curve, or struggling to get a new online business off the ground? Take Thia’s online Tools For Success survey and qualify for a complimentary 30-minute phone “workout and fitness evaluation” with this Personal Trainer for Internet Marketing Newbies. Learn more about Thia too.

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