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Monday, March 22, 2010

Question: How do you determine if a business or money making opportunity is “legitimate” or not?

Question: How do you determine if a business or money making opportunity is “legitimate” or not?
B.Y. Shelburne VT

Answer Marc Charles:
My rule of thumb is there’s nothing new under the sun.

The “essence” of a profitable or legitimate business or money making opportunity has been around since the beginning of time.

However, there will always be new ways of doing things, or variations on ideas.

Whenever an entrepreneur seeks my advice regarding a new business opportunity, I ask them to give me two or three examples of someone already doing it.

Whenever an entrepreneur says, “Oh, you don’t understand. Our product or service is brand new, the market is wide open, and no one is doing it!” 

I usually shrug and suggest they’re probably in the wrong business or market

In other words, let’s say you’ve designed a “new” paperclip. You want all of the office supply chains to carry it, as well as megastores like Walmart or Target. The time, energy and money it would take to educate chain store buyers on a “new” paperclip would be onerous…in fact it would be close to impossible.

Granted, thousands of products and services are being invented every day.

But most of these inventions are not “new” but rather new ways of doing something, or a variation on an old idea.

In my experience a “legitimate” business or money making opportunity would be something already generating cash or sales…somewhere.

Google did not invent, or try to educate the public on search engines. Search engines were not “new” when Google came along.

In fact, Google didn’t become the torrent of cash it is today (more than $2 billion in revenue last quarter) until it included keyword advertising in the search results (AdWords) and became a publicly traded company. Both of these areas were not “new”.

Align your business, product or service with something which is already making money. You’ll save a lot of time and money in the process.

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