4. What exactly does a home business owner do?

It depends on what kind of home based business they have. The most common is network marketing or MLM (multilevel marketing). In this home based business, you buy tangible products like vitamins and other nutritional or non-nutritional products from your company with a discount and sell them to others in their regular prices. The best way to make money with this business is to recruit people to join you because it is from your recruits that your real income will come since you will get a commission from every sale they make.

A lot of people don't like selling. It's a good thing that there are companies emerging online. This is called online home business, and I mean pure online business. Not MLM utilizing the internet. You don't need to sell products in order to earn and you don't need to have a very huge downline in order to earn a lot.

So if you are with an MLM company, you will need to both sell and recruit. If you are with an online home based business, there's no need to sell. You only need to promote your business and attract people to join you using online strategies, or if you want, you can also do offline marketing. The good thing is that you don't need to have stocks of products at your home to sell to people and there is no need to have personal contact with them. You can always use e-mail if you're shy. This way, you have more freedom to choose whenever you want to work. Besides, MLM has gained bad image to a lot of people.

5. If we make more money by recruiting rather than selling, wouldn't there be a time when there is no one to recruit anymore?

That is absolutely true if it's the end of the world. There is always someone who wants to start a home based business and there is always someone as well who quits for reasons like he's already rich enough or he wants to start a brick and mortar business such as a retail store or a restaurant. The marketplace for this kind of business will never be exhausted. There is always someone willing to join.