Service Based Company vs. Product Based Company...

When I started looking to work from home I had NO CLUE there were so many choices. I knew I wanted a home based business, but didn't really know beyond that what I wanted. I kept looking at companies that just didn't fit my life or my needs, and I failed at them all... It was only once I found a company that fit me that I discovered WHY I was failing at all these others. I never understood the difference between a product based company and a service based company - nor did I understand how that would affect how I market, build and earn with my business...  It's because of this experience that I feel this difference is something that needs to be addressed.

A product based company will offer a physical product. This will offer you opportunities such as home parties, vendor/craft shows, store fronts and sample marketing. However, with a product based company there are also some draw backs. Depending on the company itself you may be required to deliver or ship each product order. Others may have a limited purchase opportunity for customers, so this is something that needs to be considered. IF you have a company with a limited product selection or where products are not going to be reordered you may be limiting your future income. It's generally best to find a product line which offers reorder potential. Vitamins, Cosmetics, Edibles and Clothing all carry a great reorder potential because people will use them up and need more. If your company offers a product with a low or limited need to reorder it does not mean that there isn't a good income opportunity, it simply means that you will always be searching for new customers and will not have the luxury of leaning on older customers.

A service based company will not generally offer a physical product, but will offer some type of membership. These companies are not a suited to home parties or shows as their product based counterparts but it can be done. They will also give you the freedom to promote your service without the need of deliveries, shipping or product stock. Service based companies also tend to offer a "residual" style pay, meaning that unlike a product base you don't have a need to contact previous customers or collect reorders because the service will generally be billed automatically unless they cancel. This is a good option because it frees you to find new customers rather than spending time contacting new ones and helps to provide a faster building income. But, it tends to lack some of the "business relationships" that come with the repeat customers of a product line...

Which is better is completely up to you! But now that you know all the differences, you can make a better informed choice about what is right for you!