Tuesday, May 15, 2007

Why Online Businesses Fail

There are millions and millions of online businesses. Most of them spend more than they make and many close down with tired and frustrated online marketing entrepreneurs giving up and going back to their day jobs.

You don't hear about the failures. The reason for that is very simple. Your email box is filled with promises of fantastic riches waiting for you if you just buy into some dream marketing business or how to start an online business.

Let me say this unequivocally. Most offers are pipe dreams that too complicated with many that are simply scams selling regurgitated information.

Unfortunately nobody is going to spend money emailing you the perils and frustrations in becoming an internet marketing millionaire.


Why is starting up an online business and making it successful so difficult? Here are just 5 major reasons...


First of all: COMPETITION.

There are probably hundreds of thousands of folks out there doing the exact same thing. All of them want to get to page one of Google be it through a well optimized website or by using Google Adwords to get traffic. Don't forget - this isn't a retail store cozying up to a huge anchor store in a shopping mall with just several competitors around the corner. You've got hundreds of thousands of internet sites that are better built, with possibly cheaper products and that may happen to already have brand recognition.


Second: ADVERTISING.

The cost of advertising your products can ruin you fast if you don't know what you're doing. CPC (cost per click) advertising can add up big time, and if your ROI (return on investment) is low, you'll be crying the blues. You have to convert those clicks into sales. In order to do that, you need to understand how your web site design, navigation, ease of use, price points, guarantees, sales page and trust-factor all affect the outcome of a sale. If the pieces of the puzzle aren't put together in just the right way - you'll be out of the game before you know it.


Third: PRODUCT SELECTION.

Finding the right product to sell is a hit and miss process. You basically have to experiment. Things you're absolutely sure will sell - don't. Things you would never buy - sell like crazy. It is best not to rely on your personal tastes. This means you have to do research and test. For most new internet marketers this can be a very exhausting and costly exercise. For the most part it can drain you and leave in a cursed mood if you don't use the right strategies and shortcuts.


Fourth: LACK OF KNOWLEDGE.

Nobody should get into the internet business if they aren't prepared to learn some basic survival skills. These include: simple website design, basic html code, copywriting, where to advertise, keyword analysis, search engine optimization etc. For many, just these few examples is enough of a deterrent. That being said, you'll be surprised at what you can do if you are determined and set your mind to it. For those of you who are so inclined, you're half way there!


Fifth: ORIGINALITY.

There are many unique sites. Those that make it big all have one thing in common."THE STICKY FACTOR." This is the ingredient that keeps people coming back for more. ie: youtube, myspace, facebook etc. The likelyhood of attaining such remarkable notoriety is small indeed. But it is possible within smaller niche markets. How do you do it? Again, it involves a mixture of all the elements above and then some.


For those of you looking for a quick buck - I will tell you THE ABSOLUTE TRUTH. It doesn't exist!

Even the scam artists work like dogs to feverishly come up with devious plans, setting up websites, re-writing and reselling the reseller's information.


So what can you do to get into the game?

Above all, be informed! You will need to learn a fair amount.
If you buy several e-books and find that they are misleading or contain information that goes nowhere and doesn't resolve your problems - give them back!

Many e-books are legitimate and offer tremendous information and value. The benefit, is that you'll learn a lot of the shortcuts as well as what NOT TO DO! But to succeed in the online internet business, you'll simply have to accept the fact that there are many dead-ends...turn around and try something else.

For those of you determined to get online, you'll find a wealth of information at Top10InternetGurus.com

3 comments:

ADVERTISING ADVICE BLOG said...

Hi!

Interesting article. I don't think a lot of people realize how often internet businesses fail... especially in the US where they are remarkably prevalent. I also work for an advertising company in Montreal called Starmedia. Glad to see another Montrealer in the blog community.

Thanks for the good read.

-Kate

merjoem32 said...

Thanks for these tips. I know by experience that Internet advertising can be a frustrating venture. It took me months before I was able to earn a decent profit and more than a year to recover from my losses. These tips can supplement my tested techniques and hopefully help me gain more income.

Donna said...

Your articles are rich with ideas and solutions for anyone looking to improve their online and offline marketing efforts.
Thank you for the great tips!

Donna