When it comes to home based business, there are as many options as you can imagine. People craft home decorations or jewelry and sell them online, offer technical support for their friends’ computers, make videos and post them on the Internet or several other options. The key if you want to Work from Home is to understand what your skills are, how much money you are looking to make, whether you want your idea to be a full time or a Part time Business and, more importantly, to know how to start and grow your business over time.
Buying and selling vouchers is one of the best options for you if you have reasonably good math skills, if you are able to sell anything to anyone, if you have some free time and if you are patient and optimist. We will outline how this business works for you to understand what it is about and give you four simple steps to give it a try for yourself. Let’s get to it:
1. Save some money and buy one or two voucher packs
Voucher packs or voucher books are sold by stores or companies at a fixed price, and they include several individual vouchers that offer different promotions, that can be a regular discount on selected items, value packs that combine two or more items and sell them for less money together, 2x1 or 3x2 promotions or even in some cases with cheap items, vouchers valid for a free item, whether you buy something in the same visit or not.
These voucher packs are useful to the company because they earn money before selling any actual product, and they are useful to customers because they are always worth more money than what you pay for them initially. That last feature of voucher packs is what your business will rely on.
So the first thing is to save some money –you don’t need much, because there are voucher packs sold at only fifteen or twenty dollars and the first ones you buy are going to help you understand the business and their purpose is not to make you a lot of money- and buy one or two voucher packs. When you have them, you can proceed to the next step.
2. Do the math
This is the most important step of the entire process. Here, you will find out exactly how much money you could make out of your voucher packs and will develop your personal formula to decide for how much to sell them. Since your intention is to sell the individual vouchers to people who don’t buy at the store frequently enough to buy their own voucher pack, the main math goes something like this: First, you need to calculate the individual value for each individual voucher. Here are some examples:
- If a voucher includes a promotion of buy-one-get-one-for-free on a $10 item, this voucher is worth $10 (what the customer will save by using the voucher).
- If a voucher offers a 25% discount on a $20 item, this voucher is worth $5 (what the customer will save by using the voucher).
- If the voucher is valid for a free $2 item, this voucher is worth $2.
- If a voucher has a general discount of a certain percentage on anything on the store, you will need to negotiate directly with the person interested in buying it.
What you need to remember is that you are looking to sell the individual vouchersfor people who don’t need an entire voucher pack, and you wont be able to sell each voucher for their real value –if someone was to pay you the full value, it would be exactly the same as buying the items with no promotion at all-, so you need to negotiate. A good place to start is half the value of each voucher. In the first example above, you could offer the voucher for $5, which will allow whoever buys it from you to get $20 worth of items just by paying the store $10 and paying you $5. You should keep in mind, though, that some people will offer you way less than half and some people in certain circumstances will be willing to pay more, it is up to your negotiating skills.
After you sell each individual voucher, you need to subtract the money you originally paid for the voucher pack to the total earnings you made and you will have your net profit.
3. Actually sell the vouchers
When you have done the math and have confidence in an approximate amount that you can earn as profit –remember that the negotiation process is what will determine the exact amount you earn-, you just need to start offering your vouchers.
You can start by offering them to your family and friends and ask them to give you a recommendation. If you have some basic Internet knowledge and want to take things to the next level, you can also open a website to sell your vouchers online.
4. Learn and improve
After you gain some experience, you will be able to quickly identify the best deals on voucher packs, so even if at the beginning you are only making a few bucks a month because you take on very cheap voucher packs, the more you learn, the more confident you will feel about buying more expensive voucher packs in the future –which, of course, result in more profits-.
If you follow these easy steps, you could start a new business that potentially can grow as far as you take it. So, what are you waiting for? This is a great business opportunity that you should at least give a try to!