For those of you who currently operate, or are considering taking the steps to operate a home based business, this article was written for you. The key is to recognize that some home based businesses put you in charge, but do not make you the owner. Often times people think because they signed up for a business, and received a website stating their name, or that of their company, they own the business. As you will discover throughout this article, many of these individuals are mistaken.

It is very common for entrepreneurs to come across offers which advocate the ownership of your own home based business. Despite the fact that your, or your company's name are displayed prominently on your web page, the business owner is the parent company. Sadly enough, with such an arrangement, you are merely a distributor for the parent company's products or services, and are operating within their business model. Thus, you are selling the parent company's products at a price which they have stated, and are being paid a commission.

I know that I seem to be coming off as negative to such an arrangement. Allow me to soften my stance. I am not saying that you cannot make money while operating as a distributor for one of these companies. However, I am making it clear to you that when you operate under such a structure, such as a Direct Marketing Company, you do not own a business, irrespective of what they try to tell you. Rather, you have to follow their guidelines, risking losing you distributorship, and forfeiting future income if you do not. Furthermore, the website which you promote with your own money, only permits you to sell products or services which belong to the parent company. No one can put such restrictions on the activities of a business which you actually own.

Having said this, I do firmly believe that a franchise actually provides the entrepreneur with a good business model, due to the immediate credibility which it provides. This is the case irrespective of whether you invest in a brick and mortar franchise, or a franchise. Both businesses mirror one another. The franchisee will incur fees in exchange for name recognition and national advertising. Products for the business must only be purchased from predetermined, authorized vendors. Of course, you will be listed as the owner of the franchise, but not the business.

These are just a few things to keep in mind when looking at one home based business as opposed to the other. If you want to own your home based business outright, and have the autonomy which such ownership brings, then you should avoid any situation which is nothing more than a glorified distributorship.