Can The Average Person Really Make A Living Online?
Can you really make money online? The answer is a resounding
"Yes!"
First, though, you need to understand how this game really
works. The right mindset is crucial to your success.
You've probably come across numerous business opportunities
already. I know you're actively searching for information. I
hope you haven't become jaded already by the con artists out
there who make false promises.
The fact is you can profit significantly and, yes, even quickly
once you learn the right way to do business online. So, approach
this article with an open mind.
What E-Commerce is really all about
There's nothing magic about the Internet. It's really just
another medium of communication. The difference between doing
business online versus doing business in a brick and mortar
establishment is this:
1. Your potential customer base spans across the globe if you so
desire. You aren't limited by your location.
2. Your business operates 24/7. You can still make sales even
when the workday ends.
3. Your overhead is significantly lower than it would be in a
traditional business, and the barriers to entry are lower as
well.
4. You can create non-traditional businesses which will have no
parallel in the offline world.
As an online entrepreneur, you also enjoy a wider range of
options in number of products you sell, their method of delivery
and your profit margin after expenses.
Sounds great, right? It truly is an ideal situation for the
small, home based business owner; but don't quit your job just
yet.
An online business requires just as much focus and dedication to
get off the ground as any other business, so forget about
working at home in your underwear right off the bat.
The first thing you need to do is investigate your options. What
type of business can you start online? Which businesses are the
easiest to set up?
If you already possess some business knowledge and common sense,
you're off to a great start. The real challenge comes when you
start translating this knowledge to match the rules of online
commerce. The game is played a bit differently on the internet
than it is on the streets.
Newcomers often have difficulty sorting out the differences
between business models versus business strategies.
Here are some of the most common online business models:
1. Selling tangible goods (ie, Ebay)
2. Selling information products (intangible/downloaded)
3. Affiliate marketing
It takes a certain personality to thrive in any one of these.
Let's take a look at the traits associated with each.
The Seller of Tangible Goods
This type of entrepreneur usually possesses previous experience
in the retail industry, though it is not totally necessary to
have previous experience in order to succeed. However, an
inexperienced online retailer faces the biggest learning curve.
In order to sell tangible goods, you'll need to learn the ins
and outs of wholesale for product sourcing. You'll need to learn
how to set the optimal price point for your products to remain
profitable and competitive. You must deal with shipping and
returns.
If you run a one-person operation, it will be near impossible to
ship products in the necessary volume. In this case, you'll need
to find companies which can "drop ship" your product. Drop
shipping is a fulfillment service.
This sounds ideal - but be forewarned. Most real wholesalers
have minimum order requirements and will not ship single items.
Drop ship wholesalers who do ship single items often mark up
their prices and you end up paying at least 10%-15% above the
true wholesale cost. This isn't a small price to pay when your
objective is competitive pricing. Even a small mark up can kill
your profit margin.
If you choose this route, be prepared for a lot of hard work!
Online retail requires persistence, patience, strategic planning
and a high degree of risk.
The Seller of Intangible/Information Products
Information products present an good opportunity for small,
home-based business owners. Your costs of development and
overhead are low, while your potential profit margin is high.
You will need a new skill set if you choose this path.
Primarily, you will need to learn good copywriting skills and
how to sell people on what they desire, not on what they think
they need. It's relatively simple to entice a visitor to
purchase, say, an MP3 player when they're already looking for
one. This doesn't require convincing sales copy.
An information product, though, does require good copy. You're
asking your potential customer to invest in a product they
aren't familiar with - something they can't see or touch or play
with like a tangible product.
Information marketing is very much "all in the mind". It rests
on your ability to stir up people's passions and secret wishes.
If you pride yourself on seeing "the big picture" and have the
heart of a teacher or communicator, information marketing could
be the right choice for you.
The Affiliate Marketer
Being an affiliate marketer can be the Ideal business for most
people. They make a living selling products they do not own.
Profits come from commissions paid on sales that they refer to
other merchants.
A good affiliate can reap an enormous full-time income marketing
a whole suite of products that he does not own. He doesn't pay
for product creation, doesn't have to ship anything and doesn't
deal with customer service issues or returns.
One major skill an affiliate marketer needs to develop as is the
ability to generate highly targeted traffic. You also need to
learn how to capture that traffic and do a bit of extra selling
before they hit the merchant's site.
If you don't capture the visitor's e-mail address, they're gone
for good - and you'll get stuck trying to generate volumes of
traffic over and over again just to capture enough "luck of the
draw" sales to get by. It's like throwing your ad budget down a
hole.
If you want to make money online, there are two ways to go about
it. The first is trial and error, spending hundreds of hours in
front of your computer, buying e-books and struggling perhaps a
year or two before you make a dime. The second and best way is
to learn from someone who has already achieved success online
and can coach and guide you every step of the way.
But beware, there are many out there who will sell you garbage
e-books and courses full of ideas on how to make money on the
internet, but most fall short of giving you an easy to follow
and workable plan. Especially if your a newbie to internet
marketing.
I know first hand about this because I spent a full year
struggling to make money on the internet. I bought almost every
so called Guru system out there only to be let down and was
still left struggling to make money. But my determination to
make a living on the internet paid off and now I produce a
fantastic full time income for my family solely from my online
affiliate business.
Whether your a newbie or have been struggling for some time, you
can achieve online success too if you don't give up and learn
the right skills from a proven Internet Wealth Building Coach.
Just stay focused, proactive and stay positive - and soon you'll
be well on your way to making outstanding money online!