Online Businesses are Doom to be Fail – Three Main Reasons
Many people intent to start an online business because they could see the potential of making money by starting one. The start-up cost is relatively much more cheaper than starting off line business, and it could be started while keeping your day job.
But in reality and from own personal experience few years ago many online businesses fail within the first 3 to 6 months. There are countless reasons, but in reality we could sum them up into three core reasons.
TRAFFIC, TRAFFIC & TRAFFIC
It is same as buying a property, where people always say about location, location and location. In online businesses, traffic is the most important aspect if you want to make money. Lets put it this way, no matter how good is your money making website/blog but if there is no visitors, you will definitely NOT MAKE ANY MONEY.
But if you have a crappy website and somehow you have tons of traffic coming to your site, there are high chances you will make money ( may be not a lot, but there will be some). This is because you are offering people some product/services, and even when many will refuse to buy, there will be always one or two who will be interested. If you have the traffic, then you just have to change or tuned your conversion ratio to give a be better results.
LOST OF INTEREST
It is noticed that many people who go to the Online Business Seminars/Workshop tend to be very fired up at the beginning. They will come home after the seminar and start an online business. However, the internal fire within most of them will fade away (however some will be always in fire – these are the ones will make it) as they could not see their results fast as they wish for. Many of them have this problem because they started an online business model which they do not have interest. Most of them started because they know it could make money, and have seen people making money.
Online business needs passion and interest. You have to treat the business as your real business, and must constantly place in effort to improve it from time to time. In order to place constant effort, many of us need to like what we are doing. If your online business model is at no interest for you, you will tend to let it go easily when things do not go as planned.
NOT GIVING IT TIME TO GROW AND BEING PATIENT
Online business requires time to grow same as off line business. People need to know your website and your product. With millions of websites competing to get visitors, and it is hard for you to be noticed at the beginning. But consistency in maintaining the website/blog will lead to more and more people to notice your website and create repeat visitors. Off course, your website need to have the valuable information for people to keep on coming back in future.
Many people tend to be inpatient with slow progress of their online business, and finally pulling the plug on the business. Any successful online marketer will know that building a successful online business requires time and constant effort to be successful.
CONCLUSION
Therefore, before starting an online business one should understand three fundamental aspects which are identifying business market and models, creating a website/blog if required and making an offer to people by generating traffic to the website/blog.
These fundamental aspects will ensure you have the interest and ability to stay on the business especially at the early stage when many challenges need to be solved before a successful online business will be established. For detail explanation of these 3 fundamental aspects, read on at my website since it will be out of the focus of this article to discuss it here.
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November 22nd, 2009 at 4:39 am
Hi I am from Mexico, but I live in clearwater FL for eighteen years . I was waching your English clases videos and I like them very much because you explain every detail. Thanks.
November 22nd, 2009 at 5:26 am
Querido Steve, vivo en Orlando florida y he asistido a muchas clases de Ingles , pero usted tiene el don de explicar muy bien Thanks very much!!!! I really appreciate it.
November 22nd, 2009 at 4:48 am
You don't have to register with the state. When you are up and running get a business license from the city. It cost less than $200 to start an online business, so you should be able to save that in a week or two…. if not perhaps you are not the type to be success in business?
November 22nd, 2009 at 4:55 am
November 22nd, 2009 at 3:40 pm
I run 5 websites (none in retail though). I can say that this is a hard question to answer. Clearly, overstock.com will cost more to run than joesglass.com. I personally use bluehost.com for hosting, so my monthly expense is under $10 for all 5 sites (non-retail though…). I see anywhere from 8k to 20k visitors monthly with no speed issues. You should probably look into some e-commerece software solutions like this:
http://smallbusiness.yahoo.com/ecommerce/
It looks like their starter package is about $40/month, and its scalable in case your business grows unexpectedly.
November 23rd, 2009 at 4:00 am
Thanks!
Steve
November 23rd, 2009 at 6:08 am
so great to got that course!!!
November 23rd, 2009 at 5:18 am
Yes, I can help…
I use a step-by-step approach and it works all the time. Here you go:
1) First validate the demand (FREE keyword tool):
Are there people searching for what you want to offer?
https://adwords.google.com/select/KeywordToolExternal
2) Build your website with this FREE tool:
http://www.officialsitebuilder.com/
3) Select a URL and setup Hosting (not FREE but darn cheap and reliable – something like $4 per month…):
http://www.officialsitebuilder.com/domain-checker.php
4) Drive traffic (not FREE but you cannot do without):
https://adwords.google.com/
5) FREE Online Business Creator:
(http://www.sandrosalsi.com/tools/online-business-creator.html)
This is a list of tools and resources I use myself to build and market my websites.
Highly recommended. Hope this helps…
November 23rd, 2009 at 1:55 pm
My suggestion is to do some research on the subject before starting. Check with your local Chamber of Commerce, the Secretary of State, the Small Business Administration. Read up on it — go to your local library, check Amazon, etc. Write a business plan — there are plenty of books available on this subject.
Prior to investing your time, money & effort into an online business name, it is strongly advised that comprehensive research be conducted to ensure that the name you're interested in is truly available.
This entails searching the pending & registered Federal and State trademark files as well as the US National Common-Law files. Then, if clear, you can decide if you would like to file for a Federal or a State trademark.
Research is needed to make sure your trade name is legally available, before opening, before expansion, before incorporation or before designing your logo. Similarities in sound, appearance and meaning affect you too!
There are 16+ million trade names in use in the United States. Similar names matter, if close in sound, appearance or meaning. Similar names in related classes, distribution channels and customer matter too. You are affected by Common Law use (14 million), State Trademarks (500,000) and Federal Trademarks (2 million).
November 23rd, 2009 at 6:47 pm
you might try to contact an established school and see if you can offer your course through them.
Barnes and Noble has a line of online courses where this might fit.
November 24th, 2009 at 12:07 am
I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box. These 4 sites should get you on your way in terms of what needs to be done (e.g. licenses, permits, taxes, etc.)
Associations may be a good avenue to explore as well. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.
Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:
* Too Good to be Threw: The Complete Operations Manual for Resale & Consignment Shops by Kate Holmes
* A Common Sense Entrepreneurial Guide: How to Open & Run a Successful Consignment Shop [DOWNLOAD: PDF] by Nancy L. Nolan
* How to Start and Run an eBay Consignment Business by Skip McGrath
* Specialty Shop Retailing: How to Run Your Own Store Revised by Carol L. Schroeder
There are plenty of free informational resources out there. Check the source box for links to articles.
Hope that helps! I wish you much success & happiness in all your ventures!
November 24th, 2009 at 6:59 am
You're looking at becoming an "Affiliate". There are a lot of companies out there that offer this. Just search for "affiliate opportunities" and you should come up with quite a few opportunities, just be careful and read the fine print. I have a few other ideas if your interested feel free to email me
November 24th, 2009 at 6:26 pm
thanks vety much
November 24th, 2009 at 6:27 pm
You are welcome!
Steve
November 24th, 2009 at 1:51 pm
two guy's in my town just started a web site. It's actually doing very well for them. It's a yard sale web site. Where people from the town can take pictures and post things for sale ( yard sale prices) and other people in the town can go on the web site and purchase the item. THe guy's who started the site just charge people $8.00 a month to post their items. It's kind of like e-bay but they don't take a percentage of what you make. Here is the web site address, take a look at it.
hollomanyardsales.com
November 25th, 2009 at 3:11 pm
excellet course