by Jennifer Claerr

Created on: March 05, 2008

Starting a business is a lot easier than it used to be. The internet has created many new income-earning opportunities for ordinary people. Often it's possible to earn an income working entirely from home.

The Basics

Before you begin your business, you must take care of a few legal responsibilities. If you will be selling a product in your own state, you will probably need a tax ID or sales permit. Also, you may need a federal employer identification number depending on what type of business you are running, and what your business structure is. Be sure to consult with a lawyer and an accountant if you have any questions about legal considerations for starting your business.

eBay

When starting an eBay based business, you can purchase merchandise on eBay and at garage and estate sales for resale. However, restricting yourself to these areas as product sources may leave you with an inadequate inventory. It's important to branch out into other product sources, such as Craigslist, Worldwide Brands or your local market hall for products to sell online. You may be able to establish a good relationship with a supplier who can provide you with a steady stream of high-demand products to sell.

If you sell on eBay, it's crucial that you become a Trading Assistant. Trading Assistants are in high demand on eBay because not everyone has the knowledge, skills, equipment and time to sell their own items. However, you should only take the most lucrative sales. Reject items with a poor sales history.

Affiliate Marketing

Another commonly overlooked source of eBay income is becoming an eBay affiliate. eBay affiliates can earn cash on eBay sales without carrying an inventory, shipping products, dealing with customers, or coping with feedback issues. You can sign up to become an eBay affiliate through Commission Junction.

There are many other companies that will pay you to sell their products for them. By joining networks like Commission Junction, Linkshare and Clickbank, you can sign up to sell products for several different businesses on one account. It's best to get some instruction on affiliate marketing before you begin signing up for programs. I recommend Rosalind Gardner's Super Affiliate Handbook. She also offers a free newsletter and free advice on her website.

You will also need a website in order to be approved for most affiliate programs. So be sure to sign up for a domain name and get inexpensive hosting service. Your website will need to be active with complete pages before

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