If this is your first time reading any of my posts, you may already be put off and ready to leave, but if you want the truth about online marketing, you should probably read a little further.
Who am I? I am an experienced online marketer, working for more than 15 years in the online marketing space, and it’s time someone told you the truth, you can’t make money in online marketing. Marketing, online or offline doesn’t generate money, it generates action. Action to visit a store, action to visit a website, action to click a button. But that ACTION is not what generates money online. Its what happens on the other side of that action that may or may not “make money.” If you’re still reading this, perhaps I’ve piqued your curiousity more than just a little, good, keep reading.
For years I’ve had people ask me how they can make money online. And for years I’ve tried to explain to them what I am about to explain to you. The idea of making money online is like assuming you’ll make money just by opening a storefront. It’s just not true. If you really do want to make money online and you have some guts, determination and have a belly for a little risk. Rest assured there are dozens of ways that you can USE online marketing to grow a business that makes money, but the devil is in the details.
Doesn’t that sound a little more realistic, using marketing to grow a business instead of to “make money”. In this article lets look at 3 things you really need to know before you try to dive in to “making money online”.
- Can you afford to go into business?
- Do you have a business plan?
- How long can you survive without making a profit?
Lets look at these one-by-one:
Can you afford to go into business?
The barrier to entry in starting an online business seems pretty low, until its time to really get down to business. You have to evaluate how much capital you can afford to invest and possible lose before you get started. “LOSE?” I can already hear you moaning, YUP, LOSE. If 3 out of 5 traditional businesses fail where there is a greater barrier to entry, I would imagine the statistics are even higher for online businesses.
Most of the folks who come to me wanting to start an online business truly can’t afford the financial risk of investing $500 let alone the $5,000 I think you should have to get started. Why $5,000 … because now you’ve got some skin in the game, If you toss $500 at it and it fails, you can let it go without much heartache. If $5,000 is online line you’re more likely to work your ass off to make it work. The SBA has some internet start up recommendations that are worth reading.
Do you have a business plan?
The internet is still the wild, wild west in some ways and there are always some banditos looking to take your money. Before you spend one single dime on the business, sit down and write a business plan. Treat this like a real business. Be smart and if you are not prepared to write a business plan, then stop wasting your time and putting yourself and your family at risk.
How long can you survive without making a profit?
Hooray, if you’ve made it this far, then my antics haven’t been able to scare you away. Good. Now’s the hardest question of all, “How long can you survive without making a profit?” Just like a traditional business, you’ll have monthly costs, probably unexpected expenses, and lower sales than you planned for. How many months can you (and your spouse) tolerate being in business without making any profits? This may come as a shock to you, but not all businesses online make money from day one. And some, never. How long can you stay in the game? A good way to find out is to calculate a break even analysis.
By now you should have a little more fear in your idea of starting an online business, and that’s good. Let that fear drive you to making great decisions and implementing a business someone will want to do business with. Sit down and work out a real plan. It doesn’t have to be perfect and it doesn’t have to be long, it’s just the first step in moving toward “making money online”. And then come back and read more of my blog posts and snarky comments about doing business online.
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