|
|
|
Build It.......(the Relationship) and They WILL Come!
Build It.......(the Relationship) and They WILL Come! Copyright Terri Seymour Have you ever heard the line from the movie: "Build it and they will come"? Well, this might not hold true for a website, but I do believe it is true for "The ...
Do You Have a Plan?
Writing a business plan for a home based business is every bit as important as writing a business plan for a conventional outside the home business. The lack of a concrete plan can be linked to many businesses failing before...
How to Avoid Program-Itis
When people first come online to start or build a business a lot of them catch a very common Internet disease that I will refer to as Program-Itis. I also fell victim to this disease. What happens is the bug hits you and you begin to believe that...
How to make sure your site gets properly crawled and indexed by robots
Search engines have robots that come to your site and grab
everything there is to grab. But because competition is so
fierce, there is no way to get in the search engines, unless you
pay for ads or hire a SEO (Search Engine...
Managing The Cost Of Doing Business Online
Have you spent a boatload of cash on advertising for your web site, only to end up with no sales and an empty bank account? Managing the cost of doing business online can give you the results you are looking for, without going broke in the...
|
|
| |
|
|
|
|
|
|
What should I sell On-Line
One of the first things you will have to decide when setting up an Internet business is whether you want to sell a product or a service, both of which have their advantages and disadvantages.
Products:
Advantage: unlimited income potential because you are not constrained by time, the way you are with a service (the more product you sell the more income you make - especially when you are automated).
Disadvantage: requires stocking and shipping (or drop-shipping from a supplier).
Disadvantage: generally requires you filling large amounts of orders to make a reasonable living, unless you have a product with a very high profit margin.
Services:
Advantage: it is easier to make a profit quickly because the entire price of a service is paid to you (except for any overhead).
Advantage: services can generate a great residual income because the client may want to hire your services again and again.
Disadvantage: you are limited to a modest income because you can provide only so many services each day (unless you hire employees to perform services for clients).
In my opinion, selling a
product online has, by far seen the biggest profit potential in the long run. Once you get a successful product, you can automate the system and move on to new products that will generate multiple streams of income.
If you need immediate cash flow, providing a service is the fastest way to produce instant income... but it will never pay off as big, in the long run, as selling a product with a high profit margin.
If you sell a service, think about how you can transform it into a product. One of the best examples I can think of is regarding the people who submit websites to search engines. Because the competition got so fierce and their business began to suffer, some wrote and sold reports revealing how search engines work and tricks for getting sites listed higher etc. The reports were priced at $20 -$100, and the entrepreneurs in our example found new markets to tap.
I hope this helps in your future marketing decisions.
About the Author
David Bell is Manager, Online Marketing, at http://www.wspromotion.com/ , a leading Search Engine Optimization services firm and Advertising Agency.
|
|
|
|
|
|