10 KEYS TO CREATING A PROFITABLE ONLINE BUSINESS
BY: JAN PETERSON
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. how