Lesson 11 - Starting Home Based Business

Lesson 11 - Starting Home Based Business

Uses

Home-based businesses use merchant accounts to accept credit card payments for goods and/or services. Merchant accounts are usually set up by a bank or Independent Sales Organization (ISO), and are a requirement for accepting all major credit cards. You are liable for a small fee only if you have a successful transaction on your merchant account.

Merchant accounts are useful for home businesses when:

* The business is buying and selling products online

* You are unable to pay costly monthly fees

* Your debt history is uncertain

* You want to record only successful transactions

There are several web-based companies that offer free transaction processing for new businesses whose budgets do not allow for a typical credit card processing account. You can apply for a third party merchant-account provider, paying little or no submission or monthly fees.

About the Account

When you open a home business merchant account through any organization, a merchant number is issued to your company and all types of credit cards can be accepted. Merchant accounts offer home businesses a secured payment gateway on the internet using a standard merchant account for well established home businesses. This option is cheaper if your sales figures are high because you pay less per transaction than with a third party service.

Home business merchant accounts help your business to grow because, with the expansion of internet-based business, it is nearly impossible not to accept payments online. A merchant account permits you to give your clients numerous payment options including credit cards and checking accounts, which enable payments to be made instantly and securely.

Making the Sale

To put your customer in a buying mood you need to know what they want. The best way to find out what they want is to analyze the situation and ask yourself three questions:

1. How will the targeted market benefit from my product? Knowing the product's benefits is vital, as you will have to convince yourself that the products you sell are what the customer needs and will benefit from.

2. Why should they buy the product from you? With a million of places to buy the product from, you have to give a good reason for the customer to buy the product from you over your competitors.

3. How will you fulfill the desires of the customer? You need to offer something that will make the customer make repeat purchases from your business. You need to be ready to fulfill the most unusual requests for your customer.

After you have analyzed these questions you will need to take a look at your sales tactics. Your marketing scheme should make the customer wonder "Do I really need this product?" and "Had this product come out six months ago it would have made my life easier?" If you doubts that your marketing is making your customers think this way, you will have rethink your marketing tactics. Have all advertisements read by unbiased critics who will give honest opinions. Use any negative comments to improve on your advertising. If the critics are happy with your ads, you can be sure that your customers will also be ready to buy.

Even though the customer is in buying mode the job is not done yet! You still need to make a sale and impress upon your customers the need to make decision a purchase decision. Now you are on your way to making a sale. The sale process should be one that requires them the least time in processing their order. Remember, the less time taken in processing the order the less time they will have to change their minds!