But as with all good things, it takes effort to attain it. First you need to understand how online business really works.
If you are reading this, you may be contemplating the possibility of being an online entrepreneur like me. You may probably have come across some online business opportunities. Hopefully you haven¡¯t been conned by the scam artists out there who prey on gullible people and make false promises.
But in spite of the risks of getting duped by those con artists, there are so many opportunities in the internet to establish a business and be successful in it. You just have to be patient, receptive and try to learn as much as you can.
First thing to remember about online business is that it¡¯s not much different than a business in a brick and mortar establishment. The only differences are:
1. Your potential client base is global. You are not limited by your location.
2. Your business operates 24 hours a day, 7 days a week. It may be exhausting in customer support and fulfilling orders, but the good thing about it is that you can still make sales even when the workday ends.
3. Your overhead expenses are usually much lower than it would be in a traditional business since most of the time your office is your home, saving you the expenses of paying for office rent and the accompanying expenditures for utilities and maintenance. Moreover you don¡¯t need much personnel to assist you.
These differences do sound so tempting, but before you take the plunge, you have to remember that just as a traditional business needs focus and dedication, so as an online business.
You need to investigate your options. What type of business will you start online? What do you need to be able to start that particular business? You need to thoroughly do your research for you to be able to succeed.
Here are some of the common online business models:
1. Selling tangible products (e.g. eBay)
2. Selling information products (e.g. eBooks, tutorials)
3. Affiliate marketing
Now that I¡¯ve mentioned these business models, let me discuss each one.
Selling Tangible Products
This is no different from selling products in a traditional business mode. To sell tangible goods, you need to know the in¡¯s and out¡¯s of wholesale product sourcing. You should learn how to set the optimal price for your products to remain profitable but at the same time competitive with other sellers. In addition, you have to deal with shipping and returns.
If you are the only person managing your online retail business, it can be difficult to keep up with your product orders. Drop shipping may be your option. With drop shipping, you can get your products from the drop ship company and they will deliver the goods to your clients themselves. This saves you time fulfilling the shipping of your goods. There is one thing to remember in drop shipping. Drop ship wholesalers who ship single items often mark up their prices such that you end up paying at least 10%-15% or even more above the true wholesale cost. This percentage is substantial when your objective is competitive pricing. Even a seemingly insignificant mark up can kill your profit margin.
Online retail requires persistence, patience and strategic planning.
Selling Intangible/Information Products
Selling information products can be a good opportunity for small, home-based business owners. Your costs of development and overhead are low, while your potential profit margin is high.
This may sound ideal to you, but there is one thing to keep in mind. An intangible product may be more difficult to sell since this is something people can¡¯t see or touch or play with, unlike a tangible product. Thus you will need to learn good copywriting skills in order to convince people to buy your product.
Information marketing depends primarily on your ability to stir up people¡¯s passions and secret wishes. If you have good writing and communication skills, information marketing could be the right choice for you.
Affiliate Marketing
This can be an ideal business for most people. It is ideal since you don¡¯t need to sell your own product. Thus you don¡¯t have to deal with orders, stocking, shipping and returns. You earn from commissions on sales made from people that you refer to the merchants.
As an affiliate marketer, you need to learn how to attract as much people on your website. You also need to learn how to capture those visitors to your website and do a bit of extra selling before they hit the merchant¡¯s site.
Whatever kind of online business you get involved in, it pays to take time to research and learn the skills required for the business. Couple that with patience, perseverance and a positive attitude, I¡¯m sure that you will be able to attain that goal of being financially free... with your online business.