Is it possible to earn money online? The answer is an unequivocal “Yes!”
To begin, however, you must understand how this game actually works.
A positive mindset is critical to success.
You have probably already encountered numerous business opportunities. I am aware that you are actively seeking information. I hope you have not already become jaded by the con artists who make false promises out there.
What true e-commerce is all about
The Internet is not a magical medium. It is, in fact, merely another mode of communication. The distinction between conducting business online and conducting business in a brick and mortar location is as follows:
1. If you so desire, your potential customer base can span the globe. You are not constrained by your geographical location.
2. Your business is open 24 hours a day. Even after the workday is over, you can continue to generate revenue.
3. Your overhead is significantly lower than it would be in a traditional business, and your entry barriers are also significantly lower.
4. You can establish non-traditional businesses that are unmatched in the offline world.
As an online entrepreneur, you also have more flexibility in terms of the products you sell, their delivery method, and your profit margin after expenses.
That sounds fantastic, does not it? It is an ideal situation for the small, home-based business owner; however, do not immediately quit your job.
An online business requires the same amount of focus and dedication as any other type of business to get started, so forget about working from home in your underwear right away.
If you already have some business acumen and common sense, you are already ahead of the game. The real difficulty arises when you attempt to translate this knowledge into terms compatible with online commerce. On the internet, the game is played slightly differently than it is on the streets.
Newcomers frequently struggle to distinguish between business models and business strategies.
The following are some of the most frequently used online business models:
1. Offering tangible goods for sale
2. Selling intangible/downloaded information products
To thrive in any of these environments, a certain personality type is required. Consider the characteristics associated with each.
The Person Who Sells Tangible Goods
This type of entrepreneur typically has prior experience in the retail industry, though prior experience is not required to succeed. An inexperienced online retailer, on the other hand, faces the steepest learning curve.
To sell tangible goods, you must first become familiar with the ins and outs of wholesale product sourcing. To remain profitable and competitive, you will need to learn how to set the optimal price point for your products. You are responsible for shipping and returns.
If you run a one-person operation, shipping products in the required volume will be nearly impossible. In this case, you will need to locate businesses that will “drop ship” your product. Drop shipping is a form of fulfillment.
This appears to be an ideal situation – but be forewarned. The majority of legitimate wholesalers require minimum order quantities and will not ship single items.
Drop ship wholesalers that ship individual items frequently mark up their prices, and you end up paying at least 10% – 15% more than the true wholesale cost. This is not a trivial cost to pay if your goal is competitive pricing. Even a slight markup can significantly reduce your profit margin.
If you choose this path, be prepared to put in a lot of effort! Persistence, patience, strategic planning, and a high tolerance for risk are all required in online retail.
The Vendor of Intangible/Information-based Goods
If you choose this path, you will require a new set of skills. Primarily, you will need to develop strong copywriting skills and the ability to sell people on their desires, not their perceived needs. It is relatively easy to persuade a visitor to purchase something, say, an MP3 player, if they are already on the lookout for one. This does not necessitate persuasive sales copy.
However, an information product does require good copy. You are asking your customer to invest in a product they are unfamiliar with – something they can not see, touch, or interact with in the same way they can with a tangible product.
Information marketing is largely “mind-based.” It is contingent upon your ability to arouse people’s passions and hidden desires. If you take pride in your ability to see the “big picture” and have the heart of a teacher or communicator, information marketing may be a good fit for you.
The Internet Marketer
For the majority of people, becoming an affiliate marketer is the ideal business. They eke out an existence by selling products that they do not own. Profits are earned through commissions on sales referred to other merchants.
A successful affiliate can earn a substantial full-time income marketing a suite of products he does not own. He is not responsible for product creation, is not responsible for shipping, and is not responsible for customer service or returns.
The ability to generate highly targeted traffic is a critical skill that an affiliate marketer must develop. Additionally, you must learn how to capture that traffic and perform some additional selling before they reach the merchant’s site.
If you do not capture the visitor’s e-mail address, they will leave permanently – and you will be stuck generating massive amounts of traffic over and over again in order to capture enough “luck of the draw” sales to make ends meet. It is the equivalent of flushing your advertising budget down the toilet.
There are two ways to earn money online. The first is trial and error, which requires hundreds of hours in front of your computer, the purchase of e-books, and perhaps a year or two of struggle before you earn a dime. The second and most effective method is to learn from someone who has already achieved online success and can coach and guide you along the way.
However, be cautious; there are many out there who will sell you garbage e-books and courses brimming with ideas for making money online, but most will fall short of providing you with an easy-to-follow and workable plan. This is especially true if you are new to internet marketing.
I know this firsthand because I spent an entire year attempting to earn money online. I purchased nearly every so-called Guru system available only to be disappointed and left struggling to earn money. However, my determination to earn a living online paid off, and I am now generating an excellent full-time income for my family solely through my online affiliate business.
Whether you are a newcomer or have been struggling for some time, you, too, can achieve online success if you do not give up and learn the necessary skills from a seasoned Internet Wealth Building Coach.
Simply remain focused, proactive, and optimistic – and you will be well on your way to earning outstanding money online in no time!