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10 Keys
To Creating a Profitable Online Business
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by:
Jan Peterson
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Starting
an online business is not always as easy as it may sound. But, running
an online business has many benefits over its offline counterpart.
First, and the most appealing, is you'll most likely be working from
home from your own computer, and working the hours that suit you. And
secondly, you have the potential to make a lot more money than you
would if you were working for someone else.
Before embarking on an online entrepreneurial quest for the perfect
home-based business, it's advisable to look at the array of online
business opportunities available, and decide which would be the most
suitable for you. While it's quite conceivable, that the most
profitable and legitimate type of online businesses can be operated
successfully by one person, most involve a collaboration of skills and
input.
For the individual, making money online is a very real prospect, but
there are some important factors that should be considered before
taking that first vital step.
1. Should you sell a service?
Unless you have a well-developed skill such as, web design, graphics
design, writing or some other creative or artistic flair, you'll have
to concentrate on finding or creating a product.
In selling your services, you must first determine whether a paying
market actually exists for your services. Initially, you'll need to do
some research and look at similar services being offered. A good
indicator is usually when there are numerous similar services
available. This would suggest a buoyant market, but it's not always the
case. A friendly yet inquisitive email sent to a few established
service providers in the business you're considering, should give you
an insight.
Take a good look at the existing competition. Look at the quality of
their work. Could you do it better? What prices are they charging?
Could you do it cheaper? If you can effectively do either of these
you're on your way to building online wealth.
2. Should you sell a product?
More people than ever buy products online, but the main thing to
consider is whether you want to sell a tangible product or a virtual
product.
As with selling a service, you must first determine whether a market
exists for your product. Look at similar products then decide whether
there's room for another player. All products will have to be sold
through a website, from which an order can be taken and a payment can
be processed. If you have the knowledge and necessary skills, you can
easily build the website yourself. Otherwise you will have to pay a
professional.
A tangible product is something that can be held in the hand, therefore
it will also need to be packed and shipped. Processing orders is very
time consuming, but more importantly you may have to keep inventory,
which can be very expensive plus you'll need to find storage space.
An alternative is to sell virtual products. These include downloadable
e-books, videos and information products. You'll still need a website
with ordering and credit card processing facilities, but you will not
need to keep any inventory and it won't take up any space (except on
your computer's hard drive) Many successful Internet marketers use this
method to maximum effect.
3. Selling someone else's product
Some of the best online business opportunities are very simple to set
up and run. The first of these is affiliate marketing. You simply find
some existing products that are being successfully sold on the
Internet, and sign up for their affiliate program. Basically, this is
straight-forward process. You complete an online application form and
you're given a reference number, which you can embed into your
marketing links. The host company will also track your sales and pay
you commissions. All you have to do is sell their products.
Some people go overboard on affiliate programs, trying to sell anything
and everything they can sign up for. It's advisable to concentrate on a
few related items such as e-books on a similar subject. When that
enterprise begins to make money online, start all over again with a set
of different products. With careful consideration and clever marketing,
affiliate programs can be the perfect way of making money online. A
good place to start is www.clickbank.com
4. Buying a business or franchise
If you'd prefer to buy a readymade business, there are many to choose
from. Some established and profitable Internet businesses will gladly
sell you a franchise. This will most likely be a clone of their
existing business, but beware! Owning a franchise business on the
Internet will prove useless unless you have territorial rights. The
problem with online franchises is your limitations on what you can
sell. You must sign an agreement with the franchisor, that you, the
franchisee will only sell their range of products. Check out the
various franchise opportunities at www.usatoday.franchisesolutions.com
5. Online investment opportunities
Not strictly a business opportunity, but investing in real estate or
stocks and shares has become big business in itself. The Internet has
opened up all kinds of opportunities for investors, and it's so easy to
go online and find stock brokers willing to advise you where to put
your hard-earned cash for the maximum return. The big consideration
with investing is to remember that prices can fall just as quickly as
they rise. For all the information you need on investments, visit
www.investorguide.com
6. Finding the right market
Whatever service or product you decide to offer your online customers,
you must first establish whether there's a need for it. If there is,
you'll have to work on an effective strategy of getting your product in
front of your prospect ahead of the competition.
It's been proven time and again that small is big. The small or niche
market has been responsible for many people making a nice profit from
the Internet. It's as well to remember, that a niche market on the
internet could number well over a million potential customers. Just 5%
of a market this size, each buying a product with a $10 profit margin,
would return $500,000 in profits.
A few examples of niche markets might be: Holidays for singles over 40,
sports and fashion wear for children 6-24 months or easy car
maintenance for lady drivers.
7. Online Auctions
The phenomenal success of online auctions, eBay in particular, is
unprecedented. Not only are the online auction companies making large
profits, they give everyone an opportunity to sell something to anyone
anywhere in the world. From fashion accessories to collectibles and
sports equipment to memorabilia, there appears to be a market, although
limited, for everything.
The key to success here is to buy wholesale and sell volume. When
you've got to the point of making good money from online auctions,
simply write a book and tell everyone else how you did it. To get
started in online auctions, go to eBay, click on wholesale, buy some
stock and resell individually back on eBay.
8. Paid Surveys
Some people might not consider clicking boxes alongside questions a
valid business opportunity. But if you consider it work, and the survey
companies are willing to pay you, then it must be a form of business to
be considered. It's something almost anyone can do, doesn't require any
specialist knowledge or skill and can be done from anywhere.
The downside is, it's tedious and won't make you a fortune. However,
it's the ideal part-time opportunity for people with a few hours to
spare or to run alongside a new venture during the 'quiet' periods. To
sign up for online surveys visit: www.surveyclub.com
9. Enthusiasm, Commitment and Self-Discipline
Looking at the various online business opportunities and how you should
evaluate them is only part of the equation for online wealth building.
Working for yourself in your home-based business will require real
enthusiasm, commitment and copious amounts of self-discipline.
Whichever route or opportunity you consider, all will require a degree
of 'do-ability'.
Be prepared to spend more time at your computer, especially in the
early months, building your business and getting your products in front
of likely prospects. If you do it right, an online business can pay you
big monetary rewards.
10. Accounting the costs
If you plan to set up and run an online business as your main source of
income, beware! The tax man cometh! An online business is no different
to a bricks and mortar business, in the eyes of the IRS. If you
establish an online business and you're making a full-time income,
don't forget to inform the authorities. You must have a business name,
although this could be your own name, preferably a business bank
account and you'll need to inform the IRS.
You'll need to keep records of all your business transactions for
accounting purposes and you'll need to set aside a percentage of your
profits to cover taxes. Microsoft's Excel program is perfect for
keeping records of this nature, but don't forget to keep a back-up of
your files, just in case. The message here is to play it straight and
keep it legal.
Of all the things you should consider, when planning to start an online
business, the most important is undoubtedly marketing. Marketing
strategies can make or break a business.
About the Author: Jan
Peterson, Founder of http://www.GoldStarReveiw.com,
provides in-depth research and candid reviews of over 400 business
opportunities both online and offline. Go to http://www.goldstarreview.com
for your FREE Report on the Top 10 business opportunities.
Source: www.isnare.com |
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