So, youre thinking about owning your very own online business. The question is, do want a legitimate home based business or do you want to just think you have one? Theres a big difference.
When someone sells products to people, or specifically on the Internet, that person selling those products needs to be buying those items from a Wholesale Distributor. Thats either the manufacturer itself, or an authorized distributor of those products. If the products arent coming from those two sources, the chances are a middleman is involved. This is basically a person or an entity that is putting itself in between the distributor and the reseller and chipping away at potential profits.
There are hundreds if not thousands of these middlemen on the Internet chipping away at peoples hard-worked earnings. They specifically attack people that do not operate a legitimate home based business because they are easy targets. Okay, heres an example:
JoDaddyO has heard about the recent successes of online entrepreneurs and wants to open an online store himself. He sees pictures and reads blogs of people who have succeeded at making money online by dropshipping products and he thinks to himself If college students and stay at home moms can do this, SO CAN I!!!
So off goes JoDaddyO to the Internet search engines. Hes typing in all kinds of stuff, he wants to learn how to quickly sell products and make money online. He finds some sites that offer an All-In-One web store that already has products in it and lets you automatically take customer orders and credit cards without having any merchant accounts or anything else. Plus, its cheap. Sounds too good to be true, doesnt it??
In a hurry, JoDaddyO pays this All-In-One web store their signup fees which include hosting costs and a membership fee that gives JoDaddyO access to their products. JoDaddyO is happy, he thinks to himself, Man that was easy, Ill be making millions by next month.
What JoDaddyO doesnt realize is that this is not a legitimate home based business. He just subscribed to a middleman, turnkey online store in which hundreds if not thousands of other people will be selling the same things while using the same store front. JodaddyO doesnt make any money with this All-In-One web store, so he researches a bit further about how to drop ship products online. JoDaddyO then decides, lets go ahead and try Ebay Stores. Theres built in traffic there and I cant lose! Then he has to find products to sell on EBay, so he searches the Internet for Wholesale products. Man, I need some wholesale suppliers that will drop ship for me, says JoDaddyO. He then finds a wholesaler for some electronics and decides to contact them to try to setup a wholesale account.
The wholesaler emails Jo back and says, No problem, well drop ship your items to any customers of yours at a wholesale price. Well ship them one-by-one when you sell them to your customers. All we need is for you to fill out our forms about your business and be sure to include your business Tax ID number.
At this point JoDaddyO freaks out. Forms???, what the heck is a Tax ID number??? He thinks this sounds scary, like too much work to do. It also sounds Legal scary Definitely scary to a lot of folks, JoDaddyO is no exception! So, of course JoDaddyO skips this and searches elsewhere on the Internet. He thinks that there must be a way to get wholesale products at wholesale prices without being a legal business. Theres got to be a way around this legal thing to be a legitimate home based business.
JoDaddyO then finds this website called, Wholesale Heaven. On the homepage this site in huge blinking letters says, Free Drop shipping Tons and Tons of wholesale products you can market and sell on your online store. NO TAX ID NUMBER NEEDED!!! – Just signup in the next 10 minutes and youll be a millionaire by next month.
JoDaddyO is jumping in his shoes, he has found end of the rainbow. A place, he thinks, no human has ever been before. He promptly sends the signup fee to Wholesale Heaven and gets his mouse ready to copy and paste their products to his new Ebay Store. All he has to do is email Wholesale Heaven his orders and they handle the rest, the definitely dont ask for a scary business name or Tax ID Number. JoDaddyO thinks hes hit it big, unfortunately the only one making serious money here is Wholesale Heaven.
Wholesale Heaven is a definite middleman. They basically form dam between JoDaddyO and the true wholesale distributor. What Wholesale Heaven basically does is forward Jos orders to the wholesale distributor, who then sends that order to Jos customer. Think of it like this, if you mail an envelope to someone across town, its going to get routed by a post office somewhere. Wholesale Heaven is doing nothing else then routing Jos orders and taking his profits. The problem here is this, Jo never, ever knows this is happening to him.
Wholesale Heaven is raising the true wholesale prices here. JoDaddyO in his hopeful glory will try his best to make millions like this and wont succeed. This is because Wholesale Heavens prices are hugely inflated above the real wholesale distributor and adding to that, thousands of other unwitting clients of Wholesale Heaven will try to do the same thing. JoDaddyO will try his best to make money this way, thinking that this is a legitimate home based business.
Where did JoDaddyO mess up?? He messed up when he wouldnt take the time to realize that starting a legitimate home based business is an easy thing to do. He chose instead, the middleman path, the path to wasted time and money. He didnt want to work or take any affirmative steps in the right direction. Just signup in the next 10 minutes and youll be a millionaire by next month. This is all JoDaddyO needed to see. He let Wholesale Heaven cheat him out of his profit, because it was just So Easy .!!
If you dont get anything out of this article besides the following two things, I will be happy …. remember these two facts:
1) Any Person(You) MUST do business with REAL Wholesale Distributors in order to start a legitimate home based business.
2) Any Person (You) cannot purchase from a true wholesale distributor without being a LEGAL online business.
Lets once again read Number 2, the most important, turn down your IPOD and say it, scream it .
You cannot purchase from a true wholesale distributor without being a LEGAL online business!!
Any website that lets you purchase products from them for reselling minus any legal papers is NOT a true wholesale distributor, they are taking the profits from you, and those profits should be your own.
Getting legal and true is an easy thing to do if you want a legitimate home based business. Ignore those people who tell you to go with Wholesale Heaven or some other middlemen web-parasite. The following are the basics to getting a legal business in the US, remember this is general information, not free legal advice.
1) Go to your Secretary of States Office and file an LLC, a Corporation, or a Doing Business under an Assumed name (DBA). This can be done yourself for maybe 100 bucks. Some states require new business papers to be notarized, some dont; after getting the papers from the Secretary of States office go to a Notary or a family attorney and get it notarized if need be. I filed an LLC in Louisiana and this costed around $100.00. Our Secretary of States Website had detailed instructions on how to file this; I would suggest researching your states website on this matter.
2) This step is conditional upon your states business laws. You may need a local business license. I didnt need this in Louisiana, but I know some states require it. Once again, check your states Secretary of States office.
3) This step is after you get your business name filed. You have to contact your States IRS Office to get a Sales Tax ID Number. Sometimes called Sales and Use Tax ID and possibly a Reseller Certificate This is what you forward to your wholesale distributors to show proof that you are a legitimate home based business in your respective state. They use this to show the IRS why their not charging you any tax on the wholesale prices their giving you when you purchase with them and resell on the Internet. This should not cost a thing and will usually take 30 minutes if you wait.
Make money on the Internet, reap the profits that you deserve and stay away from those websites that like to eat at your money. Getting a legal business is easy, and the rewards are great.