Home Based Business Ideas That Work…and the 2 Causes Why

When we use the phrase home based business ideas that work, what are we talking about exactly? Well, we're talking about a business that you can grow from the beginning stages all the way to the point where it can replace your current income. What is the primary factor that allows for this large degree of growth to happen? It's whether or not the business in question is scalable. Now, what exactly do we mean by scalable?

Making The Math Work

A scalable home based business can be set in motion and grow without some unforeseen characteristic of that business putting a stop to the growth. So, how do you know if your home based business idea is going to be scalable or not? Well, by pulling out a calculator and doing some basic math. Here's what I mean.

The first step is to decide how much you want to make with your business. Let's say it's $50,000 a year. You can target a larger figure but let's just say $50,000. Next, we are going to do this math based on a simple marketing and sales funnel that looks like this.

The first step in the marketing and sales funnel is the source of where people are coming from; for example, the source could be an ad on Facebook or a video on YouTube.

The next step is an opt-in page, where people give you their email address in exchange for information that can help them immediately solve a problem they have. Next is a sales page where you make an offer to them to buy your product, they click on the "order now" link, are taken to your shopping cart and buy your product.

The first step in our math analysis is defining how much money you generate per sale. We call this the average order value. And in our example it's $100. So now, let's start at the end of this funnel and work backwards doing the math.

You want to make $50,000 per year. So, the first question is how many customers will you need in a year to create that income? Well, we take $50,000 and divide it by the average order value of $100. This gives us 500 customers.

The next question is, how many leads who gave us their email address did it take to arrive on your sales page and buy from you in order to create those 500 customers? Well, a reasonably good sales page conversion rate, or SPCR, is 3%. So, take those 500 customers and divide it by 3% or .03. This gives us, 16,667 leads. This is the number of people who arrived on your sales page.

The next question is, how many people did it take to land on your opt-in page in order to create those 16,667 leads who actually opted in? Well, with a reasonably effective marketing message, a 20% opt-in rate is very doable. In fact, I know of quite a few marketers who achieve 3 times that opt-in rate.

So, here's the math again. 16,667 leads divided by .2 (20% Opt-In Page Conversion Rate or OIPCR) equals 83,335 people who had to land on your opt-in page in order to generate those 16,667 leads.

That's A Lot Of People!

So, a couple of points to go over here. First of all, that 83,000 people that your marketing needs to generate can be a daunting figure to a lot of people who have never gone through this process before. But that's the reality.

So here's what you need to start thinking about. First, how are you going to come up with 83,000 people per year? But here's the more important question. Are there even enough people out there, looking for answers to their problems, on the specific subject matter that your product is based on, in order to generate those kinds of numbers? Let's address that very important question.

Solving The Need For Low Cost and High Quantity

What are we referring to when we say, "Are there enough people out there?" Well, we are talking about niche size and selection. And here's the first step to take. First and foremost, you need to go where the most people are hanging out. And those people right now are on Google and Facebook.

Next, when you are first starting out with your business, you need to be able to access those people as easily and inexpensively as possible. So, here are the choices. First there's Google organic search… where people type a keyword phrase into Google and website listings come up. But that approach is the most difficult because it can takes years to rank for the keywords that you are after.

Next is Google ads and Facebook ads where you put advertising in front of people you specifically target. But, in order to turn a profit using these two sources, you need a comprehensive and highly converting marketing and sales funnel in place. And this is something that a person new to the internet will not have.

So, what does that leave you with? Well, a frequently overlooked source is YouTube where you create videos related to certain keywords. The fact is, it's much easier to rank for keywords that people are typing into YouTube than it is for Google. And there's no financial cost to putting those videos in front of people. This not having to spend money on ads allows people to turn a profit sooner.

Now back to our question. How do you know if there are enough people out there for the subject area that your product covers? Well, here's the best possible advice I can give you, based on a lot of experience. Hire an expert. There are so many factors that go into the answering of this question that you really should hire a YouTube marketing expert.

That being said, here's a very good place to start. Go to the subject areas where the money has already been proven to be made and then target a sub niche in those areas. And here are those proven subject areas. The first is business and making money. The next is relationships and dating. And the third is health and fitness.

Now, the next step is to choose one of these broad areas then drill down to a more specific niche. For example, let's say that you decide you want to target the health and fitness category. Then you drill down 3 more levels by targeting fat loss… for men… over 40. See how that works?


In order to start a scalable business where you can build revenue with minimal cost, you first need to choose a niche where there is plenty of demand. Then you need to use a free marketing method like YouTube until you have developed a highly converting sales funnel where you can then move into paid advertising.