Choosing the Right Structure For Your Home Based Internet Marketing Business

Your home based Internet marketing business will stand to profit more if it’s backed by the ideal legal structure. Contrary to popular belief, not all home based businesses are operated through sole proprietorship. Some are established by a partnership or even a corporation. Ultimately, choosing a legal structure should be based on the nature of your home based business as well as your goals.

What You Need to Consider

If all you have right now are home based business ideas and nothing more concrete than that, you can narrow your list further by taking into consideration factors that could be greatly affected by the type of legal structure you’d use for your business.

Goals and Visions

Even the best home based Internet marketing businesses start out small, but that doesn’t mean they have to stay like that. Some of them proceed to becoming corporate giants in their respective industries. Progress, however, can be hampered by the wrong legal structure so you need to be clear about what your goals and visions are for your home based business before making a decision.


Simply put, sole proprietorship hands all the reins of the business to you and you alone but you’ll have to share your power and authority with others if you choose any other legal structure.


Sole proprietorship is the easiest legal structure to set up, not to mention the most affordable as well. It does, however, leave your personal assets vulnerable when your home based Internet marketing business fails – something you wouldn’t have to suffer, or at least not at the same extent, with another legal structure. Profit and losses can also increase or decrease, depending on the type of structure you choose for your home based Internet marketing business.

Three Types of Legal Structures for Your Home Based Internet Marketing Business

As mentioned earlier on, most home based Internet marketing businesses, or home businesses in general, use sole proprietorship as they’re mostly run by their owners themselves. There are however, other home based businesses that choose a different structure because they feel that their needs wouldn’t be adequately met by sole proprietorship.

Sole Proprietorship

Besides the various benefits mentioned earlier on for sole proprietorship, this structure also ensures that all profit generated by your home based Internet marketing business go directly to your pockets. If you want to close it down for any reason, you can also do so easily and without any major fuss.

Sole proprietorship, however, isn’t perfect. Besides placing unlimited liability on the business owner, businesses using sole proprietorship find it rarely easy to get funding from investors.


A simple legal definition for a partnership is an arrangement wherein at least two persons share ownership, and possibly management as well, of a single business. Home based Internet marketing businesses owned by a partnership will still not be able to protect its owners from lawsuits. If a business is sued for any reason, the owners are sued as well.

A partnership agreement is required by law as it will state all the terms and conditions that partners agree to, with regard to capital requirements, profit sharing, management of the business, dissolution of the partnership, and any other aspect affecting the business or the partnership.

Because there is more than one owner, more funds can be generated for a home based Internet marketing business. Having more than one owner also means more skills can be used for and lesser liabilities when growing the business. Then again, having more than one boss also means greater chances of having management disagreements and smaller profits. Lastly, a partnership immediately dissolves when a partner dies or withdraws and if this happens in an inopportune time, it can mean financial suicide for the rest of the partnership.

If you are consider using a partnership for your home based Internet marketing business, you’ll have to decide what type of partnership you wish to use: general partnership, limited partnership, or joint venture.


Quite a small number of home based businesses use a corporate set-up for various reasons. If they believe that their business has far to go and there is more than one investor involved, a corporate structure would provide them maximum protection from the get go. A corporation is, after all, a separate tax entity, one that can sue and be sued without making its investors or stockholders liable. Corporations, however, are expensive to set-up, not to mention time-consuming. They also have a limited lifespan and are charged with higher tax rates.

Now that you’re aware of the various structures you can use for your home based Internet marketing business, which would you choose?

Finding a Niche For Your Home Based Internet Marketing Business

Your new home based Internet marketing business will have lesser chances of surviving if you go head to head against businesses that are older, bigger, and richer. If you want a chance to steal their market shares, you need to find a place where you can compete against them on the same grounds or at least a place where their name doesn’t mean anything yet. Thankfully, you can have all that by finding a niche for your home based Internet marketing business.

The Basics of Niche Marketing

Only companies with the greatest resources can supply the needs of an entire market at the same time. To do the same thing, even at a lesser degree, will still be a tall order for home based businesses like yours and comes with extremely high risks.

In the end, the more practical and affordable thing to do is to change the market scope of your home based business. It would be pointless to mirror the strategy of a larger business when you don’t possess the same resources. To achieve success, a smaller business would be better off finding a different and, yes, smaller market it’s at least capable of serving with the same, if not better, competence. When you do that, your home based Internet marketing business is practicing niche marketing already.

How to Find a Niche for Your Home Based Internet Marketing Business

Finding a niche requires long and careful study of your market. Try to find different ways to segregate the market and look into niches where the products or services of your home based Internet marketing business could enjoy high demand for.

Unanswered Needs

The largest companies often prioritize the needs of customers who are able to pay the best price, leaving the rest of the market to do what they can to afford the same rate. As a home based Internet marketing business that’s just starting out, don’t waste your time and effort by immediately going after the same target market of your competition. Cater instead to the needs of the rest of the market or whoever else that the competition has largely ignored or taken for granted.

Many home based Internet marketing businesses like yours focus on offering their services to owners of poorly designed websites and ineffectively managed online businesses. Instead of competing with them in that front, why not change your business’s direction and find business owners without any knowledge of doing business online, much less a website?

True, your work’s going to be more difficult, but you’ll also have lesser competition to worry about and you can charge reasonable rates for your services.


There are two ways for location to create a substantial niche for your home based Internet marketing business. Firstly, let’s see how location can work to your advantage if you’re planning to meet the needs for Internet marketing in your neighborhood.

Because you’re a part of the same neighborhood as your customers are, you are privy to various information that other Internet marketing businesses aren’t. Meeting with you, whenever the need arises, will also be more convenient for your customers because you’re in the same area.

Now, if the needs in your local area are more than adequately met by the competition, it’s time to use the Internet to offer your services outside your comfort zone. Not all home based Internet marketing businesses are willing to entertain clients outside United States because of the potential risks it comes with. But taking proper precautions and other necessary actions can immediately negate many of these risks. As long as you believe that there’s a niche outside the US where you can profit and you’ve done everything to mitigate your risks, you should seriously consider offering your services to a newer market.


Another excellent way of finding a niche for your home based Internet marketing business is by basing your market definition on what you’re best at offering.

Contrary to popular belief, specialization doesn’t always take the form of your business’s main line of products and services. The quality of your customer service, for instance, could be why people continue patronizing your business and even if you rate lower in terms of product quality and price. Nevertheless, if customer service is your greatest advantage then try to determine which market segment would appreciate your customer service most and be willing to pay, in time, a substantial fee for it. That will be your market niche, and that’s what will make your business grow.

Cooperative Marketing Business Model Vs Traditional Network Marketing Business Model

For clarity, I will refer to Cooperative Marketing Business Model (CM) as it is set up in the business that I’m in. Actually I can’t say with 100% certainty, but I have never came across this business model with any other business. It assures that you can join as a business partner today and have buying customers tomorrow. That can’t be said with traditional network marketing business’s.

Here’s a quick overview of how the cooperative marketing model works. The company that your affiliated with spends its own money on TV, radio, print, internet advertising…, to acquire customers for its product(s). Additionally, it back ends those customers which have bought products. That is, they service, educate, promote, provide special buying incentives… all in effort to retain their customers. The company allows its personal business affiliates like myself, the right to acquire(purchase) the lifetime purchasing rights of those customers. thereby allowing yourself to build a long lasting residual income.

These are real customers and you don’t have to process their orders. IN FACT, YOU DO NOT SELL, STOCK OR SHIP PRODUCT! The cooperative marketing business model provides systems in place to take the pressure off of you for selling or marketing products. Of course you can market and acquire your own customers to earn an even higher income.

Consequently, some people simply buy customers, as the monies earned on their customers orders provides the income they want. However, this is extremely passive and means you have to keep buying more customers until you average the income you want.

Other business affiliates understand the power of this CM model and couple this with the leveraging power of the network marketing aspect and market to attract other like minded business associates because they understand that their new business associates will also have their own buying customers. Since business associates have a customer base from day one, there’s no reason for your associates to get discouraged and drop out or jump to another program – they’d be leaving money on the table because the customers are staying. The customers which have bought products, bought them solely for the benefit of the product and not for the business opportunity. This alone is huge because many network type business’s customer base is build primarily from business associates buying product rather than true product customers. It the typical network marketing business model, business associates jump ship quickly looking for the next best thing. This problem is alleviated with the cooperative marketing business model, as business associates don’t won’t to loose their customer base earnings.

The company is successful because it is a real company, with real products, and real paying customers buying consumable products month after month. It’s called supply and demand and is how real business is done. A solid customer base, acquired through great product, rather than a company built by business associates being the base of product consumption which will eventually collapse when the hype of the quick get rich commission structure or the promise of the automatic turn key business promise doesn’t quite pan out like one would hope. Most people fall prey to buying into hopes and dreams rather than a real business.

Here’s the bottom line.

Would you benefit from a company that does everything from acquiring its customers, fulfilling their orders, providing impeccable service, following up and offering incentives for further purchases and offering you lifetime rights to a percentage of their future purchases by allowing you the ability to purchase their customers? Its a no brainer, of course you would benefit.

Would you benefit if the business associates you brought in also had a buying customer base the day after they started? Would that solve half of your problems with traditional business models? People quitting?

Don’t get me wrong. The cooperative business marketing model isn’t a get rich quick scheme. What it is, is a 21st century business model which is a vast improvement over traditional network marketing business’s. The company that employs a cooperative marketing business model understands that the strength of the company resides in a strong customer base. Consequently, it has one end of the company that spends the monies needed to advertise and acquire customers in a manner that you and I individually couldn’t afford to. The important thing to understand is that these customers are buying solely for the product, actually their not even aware that their is another part of the company that offers a business partnering opportunity to individuals like you and me.

This again is a strong shift from many traditional network marketing companies, whereby its customer base is primarily its business associates buying product. I don’t know how many times I’ve been on business opportunity calls where I heard almost nothing about the companies product but all emphasis was on the business opportunities get rich quick propaganda.

In my view, I not only can’t see any weak link in the cooperative marketing business model, I think its the next generation in network marketing type business’s.