How important is the initial start-up cost (price point) of an online or home based
business opportunity? This is a very delicate subject that is often not credited
with enough significance. Hitting the right “sweet spot” with start-up costs can
literally make or break your success in the online entrepreneurial world.

Call it what you want – ”price point”, “start-up cost”, “price threshold” (the initial
fee to get registered and started in an online opportunity), but it is crucial that
this amount is not priced too low, or too high.

TOO High Priced Business Opportunities
The problem with high ticket business opportunities are twofold: 1) your field of
prospects is radically reduced, and; 2) most newcomers underestimate the
additional costs of getting a business started. Most people who join high ticket
business opportunities ($2,000 to $10,000) are not told about the high cost of
making each sale (the average cost of acquiring a new customer). Advertising is
your most significant ongoing investment. Online beginners hear that an
opportunity is… $3,500 (for example) and forget that this amount will only get them started. What about
advertising? What about ongoing maintenance fees? (turn-key websites, accounting and training services,
etc.) For an opportunity with a flat start-up cost of $3,500, your average cost per sale can range from $1,000
to $4,000. Why you ask? Because, as mentioned above, businesses with higher price points narrow your field
of prospects dramatically, so you must advertise more to adjust for the waste, or
pay significantly higher rates for upper income prospects. You would be shooting
yourself in the foot if you didn't expect to invest a minimum of $1,500 to $4,000 per
sale to advertise it right. So you really need $5,000 to $7,500 to start this business
correctly. On top of that, if this business is a 2/up system (where you owe your
sponsor your first two sales), you’ll need another $6,000 to $8,000 for these training
sales. That’s a total of about $12,000 to $15,000 to get you started right. A brilliant
man once said that before you start anything, “count the costs”.

Bottom line, “High Ticket Home Business Opportunities” can be great if you have
a lot of money. Again, the problem is that most people do not plan well enough in
advance. In fact, they usually don’t know what they don’t know to even ask the
right questions.

Here’s something else to consider – when you sell a program that exceeds $1,000
for sign-up fees, you’ll need to be good on the phone (or be a fast learner) since
most people will not invest much over $1,000 without talking with someone.

TOO Low Priced Business Opportunities
The problem with business opportunities that cost $10 to $100 is that they’re just
so difficult to turn into serious money. Let’s compare $10 to $100 price points. If
you stand to earn $10 to $100 per sale, you will invest the same amount of time,
energy (and usually advertising costs) to make 1/10 to 1/100 the amount of money. You’ll have to make ten to
one hundred TIMES the number of sales to make the same amount of money.

Most people don’t realize that the cost of making a $15 sale is almost as high as making a $500 sale.
Especially when you consider one of your best sources of advertising…Google. The average cost per click for
the “Business Opportunity” related category cost about $0.75 to $1.50. You would have to sell one in 10
people who come to your site…just to break even (with no net profit). There are free advertising vehicles of
course, but these require massive amounts of time and oversight, which ultimately limit you quite a bit.

So what’s the best price point you might ask? In my opinion, it’s somewhere between $300 to $1,000.

The article is brought to you by Peter Grundner