1) Network Marketing: This is also referred to as MLM. There are companies that sell a myriad of products and services. If you love people and are good at sales, consider this opportunity. Choose a company that you trust, with products you believe in. Keep in mind you will have to buy their products, or a 'starter kit.' This will cost you anywhere from $ 100 – $ 300. You will want to invest in a website and some online advertising as well. This will still qualify as legitimate home business opportunities under $ 500.
2) Affiliate Marketing: This is very similar to network marketing, with one major exception. The products you sell are not to repeat customers. You will have to advertise regularly to find new customers who want your product. This is not difficult, nor does it take a lot of capital, but it can be more work. Find a product (or multiple products) you love and have tried yourself and sell them online.
3) Freelancing: If you love to write, draw, or build websites consider an online freelance career. There are many sites that connect business owners with freelancers and most of them are free to join. This is one of the best legitimate home business opportunities under $ 500 because there is no cost to get started and no ongoing expenses other than your internet connection.
4) Ezine Publishing: Do you have a hobby that you are passionate about? Create and distribute an online newsletter and share information with fellow enthusiasts. Sell advertising space and affiliate products. It takes time to build your subscriber base, but it is well worth it when you have trusting readers who feel that you know and want to do business with you.
5) Create Your Own Product: Write a book, or create a software product that people can use. This can be done with a bit of training and research. You can partner with other business owners to sell your product on their websites. There is huge potential here for a product that is in high-demand and with the right endorsements from others.
There are many other legitimate home business opportunities under $ 500, and these are just some examples. Once you begin to look at all the possibilities, it is exciting to follow where those possibilities may take you. Beware of scams, do some very thorough research and you will be able to find an opportunity that matches your talents and desires.