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Five Steps To Starting A Successful Online Business
Setting up and managing an successful make money online business is in reality consist of several hundred, and not only 6, however this six steps will serve as a guideline so will have direction for your efforts. As oppose to what you may have heard profusely on the web, there is no cookie-cutter, get-rich quick scheme on the internet. Not only is every online business different, what functions for one person or in one month may not work for another person or in the next month.
The Internet is continuously changing, and the online market is naturally different this year as compared to it was last year. New hi-tech improvements crop up every month, and impact the online business setting. What functions for one person when he is the first to sell a specific product a particular approach may not work just six months later when he has sold his concept to 60,000 other moneymakers, and they all begin to endorse it. Traffic generation strategies are significantly different than they were just a year ago, and hardly resemble profitable strategies three years ago.
The following five steps are simply the bare-bones frame of what has to take place for your internet business to be profitable. They are foundational, and even though the execution methods are works differently these days than more than a few years ago, the basic procedures remain the same.
1. Develop or discover a product
You must search a product that meets today’s needs. A 5 year old product whose resell rights you can acquire for a dollar or obtain for free most likely won’t meet the needs of today’s consumers.
You should be willing to pay for the rights to provide a current , valuable product, or become an affiliate marketer, where you market a famous product, and in return are paid a percentage of the profits from the sale.
2. Set up a Website
Determine how the potential customers can view your merchandise and see a sales presentation. If you develop your personal product or purchase the rights to sell someone else’s, you will need a website. A few ideas here: Instead of using free web hosting, it is better if you purchase your own domain name.
It is even better if you pay to have your domain name and web site hosted by a professional web hosting company with a reputable history. The reason behind this is if the free web hosting company goes bankrupt, it is inevitable that they take your growing online business with them.
3. Create a Compelling Sales Copy
The next thing you may want to consider epecially if you’re intending to promote your own products is to develop your own sales page and web copy. Once you have your web site up and running, unless you are using an affiliate program that supplies a sales page, you need that sales page to sell your own product or service. This is probably the most important thing you can do aside from getting your own domain name and web hosting.
If you are still starting it is a good option that you will outsource the writing of your salespages. It maybe tempting at first to write a sales pitch on your own, but unless you already have a lot of experience in the offline marketing world and have written effective sales letters, you need to invest in a few courses on web copywriting. If you are serious about your online business you should be willing to spend a little money upfront on learning this crucial skill.
A lot of starting internet marketers attempted to wing it in this area but after a some months of losing money on the internet, they finally break down and buy the knowledge to compose a good sales page. To avoid these same mistakes, it is good if you do it the other way around – buy the knowledge first and then start making sales right from the start.
In most cases, customers will not purchase anything from you just because you have a website. They buy from the web site that does the best job of convincing them it has the best product for their need.
4. Drive traffic to your new site
For a newly created online business to be successful, you should develop a traffic source that bring results. When you are still starting you may be on a shoestring budget, but that is alright. Let’s say you have been willing to spend some money on sales letter writing and a decent web host, you may be able to skimp in the traffic arena for awhile. That is if you have plenty of time.
If you are short on time, you may opt to allocate some budget for paid advertising. However, if you do not have some cash to advertise, nor time to work out on low cost advertising, you probably shouldn’t be attempting to start an online business.
Now, if you do choose to go the low-cost route then you must know two things up front – the returns are really low and you will usually spend massive amounts of time on on driving traffic to your site.
As soon as you start making some sales, you should invest a part of your income in paid forms of traffic generation. If you do not, you will likely run out of enthusiasm for generating the free traffic. Remember that the free method of driving traffic usually takes a lot of time and effort.
In many case, if you do not reinvest the income from your first sales into advertising, you are bound to get tired and this may lead to failure.
Here are some good sources of low-cost but rather time consuming traffic:
- Writing articles and submitting them to article directories
- Classified ads
- Searching for free to advertise sites
- Ezine ads
- Posting on forums
- Commenting on realated blogs
- Search Engine Optimization
You may have encountered hyped-up advertisements for thousands of visitors for a few bucks or millions of banner ads for another low-cost price. However, both of these procedures maybe effective 2 years ago, but they are a sure waste nowadays.
5. Track your stats
As soon as you start to receive traffic to your online business site, you shlould keep detailed records of where the traffic comes from. You should also make a record of what percentage of visitors from each traffic source are buying your product or services.
Okay, to better understand the importance of tracking your traffic stats let us take this illustration: If you have traffic that cost you $100 per hundred to visit your web site, but on average they only buy $50 per hundred visitors, you are certainly losing money. Although the income may feel good, your internet business is not that profitable.
So in essence, by simply tracking your expenses on each type of traffic and by tracking your revenue on the same traffic sources, you can effectively determine which of your traffic generation campaigns need changes or need to be dropped out. Lastly, you will know and which campaign is profitable and that you will need increase in intensity.
By applying the above discussed steps in starting your online business, and diligently keeping records you can develop a successful online business which can make you passive income in the coming years.
You may wonder how on earth you can track all your traffic stats but you can find plenty of good web site tracking software on the internet that can help you do that. You make use of Google’s Analytics or Statcounter.com.
Finally, keep in mind that all these things and your online success will not happen overnight. There’s no guarantee that you will get rich quick. However, if you set up a solid online business with a solid foundation, and are willing to spend some money learning how to do it right, you really can become successful in business online.
You can then establish your own internet business empire by simply repeating, at the same time improving, the same formula and process that is making you real money online.