Researching the Best Home Base Business to Start. Learn to Avoid The Scams by These 6 Red Flags

There are literally millions of home base business out there today.  All of which claim to promise you the ability to quit your job in 30 days, become a millionaire overnight, own 15 houses or more, etc. The problem however is that 99.9% of what is said is never backed up with facts.  You'll more often see pictures of 20 year old kids driving $500,000 cars or the story of the 18 year old who retired.  Behind all the "bait" you never seem to find the actual math of what you would need to do to create that income.  Because 99% of business statistically will fail the average person, it's important to learn the red flags to avoid when researching which home base business is right for you:

RED FLAG #1
Company is less than 10 years old (not enough time to prove it will stand the test of time).  Don't fall for the "get in now" or "ground floor opportunity".  That's bait to get you to think you need to act soon or miss out.  Even if it was true, that would suggest that the business is only profitable for those who start now and later down the road you'll have to lie to people bc it will no longer be profitable.  You want a business that has a great opportunity today, 10 years from now and 50 years from now.  Make sure it's a stable company with over 10 years experience or you may find yourself starting and the company not being around in the near future.
RED FLAG #2
Company pays out less than 40% of it's earnings to distributors.   Most companies pay out as little as 10% and most won't even show you the financials.  You obviously are going into business to make money - not only in sales but in residual income.  Make sure the residual income is over 40%.  Still the highest I've found has been with market america / shop.com - more info at thestackgrp.com
RED FLAG #3
Company doesn't publish a annual report.  Transparency is a must in todays market - if they don't publish a annual audit for you to review - there is something negative they're trying to hide. Get the report or find another company.  
RED FLAG #4
The Company structure is Horizontal or Hybrid Binary (the average person can only build less than 2.8 legs successfully.  Any more than 2 legs and the average person will fail.  Also Hybrid Binary is a system that combines horizontal flaws with binary building.   You want to start a company that is Binary based which maximizes the profits in the entire group.  The structure should share profits from the newest owners to the oldest as well as from the oldest to the newest.  To this day the highest paying plan is shop.com
RED FLAG #5
One industry or one product line company.  Market conditions change all the time - if you are a one industry or one product company - you will experience challenges that could wipe out your business.  Also, not only are you limited on your customer base, but also on who you can bring on as a partner.  Find a company that is a product broker.  Brokerage companies can move with the markets and always be where it's profitable.  
RED FLAG #6
MLM's.  MLM's were created in the 1950's and have failed the majority of builders.  The idea was to pay people different percentages to a specific level to encourage expanding the business.  Problems in this system include:
- Top experienced leaders don't help the new people bc there is no payout on their level - ends up with new people teaching new people
- People build wide (horizontal) to get paid the highest % and spread themselves too thin
- Competition is created and begins to errode your business
- Break-a-ways.  If a partner does well, the MLM company could take that person and move them to pay you less.  This creates a structure where you don't want anyone to succeed bc then you'll be paid less on their success. 

For more information on researching shop.com , check out www.thestackgrp.com