Many home based business opportunities are actually Network Marketing companies (aka MLM). Often they are marketed as ‘independent businesses’. Such terms as ‘independent distributor’ and ‘independent business owner’ (IBO) are actually used in many network marketing organizations. But are they really independent home businesses?
For one thing, network marketing companies restrict independence by policy. In most network marketing companies there are policies in place that restrict how the individual can market the business, promote the opportunity, and price the products — among other things.
There is also the issue of what happens if the network marketing company folds due to legal action, financial problems or other issues? While the individual can contribute to the overall success of the network marketing company, some things will be out of the individual’s control. It’s not like the individual can go on selling the product or service after the company has folded is it?
So these and possibly other issues keep Network Marketing companies from being truly independent home based businesses. Having said that, the best Network Marketing companies will provide a reasonable framework to have some independent choices in your business.