Starting A New Online Business - The Right Way

Thousands of people everyday dream of working from home and having their own online business. Sadly though, most online businesses fail within the first year. The reasons for this are two fold. In the following paragraphs of this article we will discus these two areas that cause most online businesses to fail. More over we will discuss what you as a new online business owner can do to empower your online business and avoid them being your downfall.

The first area of that we need to look at is actually made up of three sections. These deal directly with the product or service that the online business has to offer. In order to be successful online a business needs these three things right off the bat. In the beginning stages of a new business there is a little leeway in this area but not much. A new online business must focus and fine tune these areas quickly.

Section One:
1) A product or service that people actually NEED.
Many new business owners fail to research the need for a product or service. It may also be the case that the market may be over crowded or saturated with similar products or services. Such situations cause an atmosphere of extreme competition for the marketplace position.
Lots of times the new business owner may actually have a product or service they are using and believe it to be a marketable product. In reality though the product or service may only be useful to a small subset or niche of people. While there is nothing wrong with having a product or service that only a small sector of other people may need it does change they way the product should advertised online.

2) A product that pays GENEROUS commissions.
Too often a new online business will promote a product that has a very slim profit margin as their main product. A lot of businesses will use a low cost product as a “loss leader” to secure a customer. A secondary product, that in most cases is really the main product offering, is available as a “back-end” product.

3) A product that pays you RESIDUAL monthly income.
Just as bad as a low profit main product is promoting a product or service that only offers the one time sale to the customer. A business should always be looking towards a consistent revenue stream from the new customer. This could be offered through maintenance contracts or updates or even upgrades to an improved version of the product.

Next we’ll move on to the next area that a new online business owner should pay particular attention to. For it it is in this area that a business sustains its livelihood in the online marketplace.

Section Two:
This is probably the biggest mistake that new business owners make and that’s lack of contact with the new and prospective customer. It is a given fact that in advertising a potential customer needs to be exposed to the business’s offerings five to seven times on the average.

Many new businesses ignore this and only offer a simple email contact link on their websites that they must manually use to answer the customers questions and concerns about their products. While this is actually not a bad thing it should not be the whole method of contact the business offers.

To effectively service a customer and to persuade a new prospect into becoming a customer an online business must have an autoresponder service. Autoresponders can be used for a variety of things in an online business. Foremost is the ability to facilitate offering additional information and serving advertising about the business’s product to prospective customers.

But also a just as needed service an autoresponder can serve is instruction and training for the use of a product or service. Using an autoresponder in this manner even saves the business money in employee and tech support costs.

This was a quick summary of the two things that most new businesses online over look and can lead to their failure. Neither of them are hard to provide, but both are absolutely essential to a business being successful online.

This is but a small portion of what you can learn about having an online business in my new FREE guide: Empowering Your Online Business. Get your copy today and take your online business to the next level. Also included is a copy of our award winning Excellence Magazine. Be sure and visit http://www.daelectronics.com to get both of these.