The demand for a legitimate home based business opportunity is growing rapidly.In fact, over 50% of small business owners work from home. This industry is one of the very few in the United States that has expanded during the economic downturn.The demand for a home business is understandable. With corporate lay-offs and job insecurity, working from home is very attractive. You have no boss and no commute. Your income potential is unlimited. You can work your own schedule and are not limited to a few weeks of vacation each year.With this increase in demand, the number of home based businesses available is also growing. Unfortunately, this is resulting in more bogus businesses being offered. Finding a legitimate home business is becoming more difficult.It’s becoming more and more important to do your due diligence in evaluating a business. Here are a few factors to keep in mind:1. Products/Services – Does the company offer quality products and services. Do they provide value to you and the company’s customers and representatives?2. Compensation plan – How quickly can you start making money? Is it possible to make a full time income? Do you understand the comp plan?Are the company’s income projections for a new rep realistic or not? Most company comp plans present estimated income levels based on a perfect scenario. Are you able to earn residual income?What is your compensation per sale? In many companies, you must make a lot of sales in order to earn much income.One of the major reasons for failure in network marketing is the time it takes to start earning sufficient money. This doesn’t even take into account how long it takes to recover your initial investment of joining the company. Do you have enough cash set aside in order to go for several months without earning much income?3. Marketing system – This is important. How difficult is it to set up the company’s marketing system? How do you get leads to look at your business website? Is the marketing system compatible with your personality and level of experience?In many companies, you must bring a lot of leads to your website before you start making much income. How do you get those leads? Does it require a fairly high level of marketing skill to generate these leads.Or does the company suggest that you buy leads? Many companies do. This can be very expensive.Marketing is the key to a successful business. Do you have enough cash set aside to cover monthly marketing expenses starting with the first month and subsequent months?4. Training – Is detailed, step-by-step training readily available. Is your enroller/upline a leader?Can your upline give you a marketing plan that makes sense to you? Does that person have experience in marketing and can help you be successful? Without the proper training and guidance, your business will probably fail.These are a few of the major questions that need to be answered. The answers to these questions will help you determine if the company you are analyzing is a legitimate home based business opportunity.But even if the company is a legitimate business opportunity, it may not be for you. Are you passionate about the products or services that the company offers? How easy is it to earn the amount of money you are looking for? Is your enroller a leader and someone who can guide you from the situation you are in to where you want to be?