Again and again I see people tempted to start their own internet business by starting a blog, putting up a website, starting a forum, etc…without really knowing 3 factors that are critical to ALL businesses:
1. Target Market
2. Marketing Demand/Desire/Need
3. Unique Value Proposition
Stop that right now!
Know that you will be banished to the “worst internet business in the world graveyard!” from where nobody returns.
STRATEGY BEFORE EXECUTION
There is near 0% chance of succeeding if you haphazardly enter a business not knowing exactly who you are targeting, what it is they want and how to tap into that desire in a way that puts money in your pocket – more money than you spend to acquire the customer of course.
75% of businesses fail, online that number is even higher given that the barrier to entry is that much less. Don’t make the same mistake that others do in ignoring the strategy aspect of planning your online business.
Here’s a system many of us have followed over the past few years to get thriving businesses off the ground…
1. Brainstorm a series of markets/topics that you are
- Interested in
- May have already some basic experience or some preliminary research
- That people come to you for advice or as the “go to” guy
This step is to ensure you start with a business that gives you the highest chance of success and satisfaction.
2. Uncover topics and businesses models...I do this simultaneously – I may have some ideas for underlying questions or desire within a given marketplace, but I still go to the top discussion forums, blogs, Amazon books and magazine directories to see what people are clicking on and consuming. That will give you a good insight into where their interests are
You want to pick desires and needs that are severe, based on desperation from the customer base, this will make sure your pull in any given market is that much higher.
3. Study the methods of monetization. How are top ranked sites in that market making money? Are they selling their own products? Are they selling as an affiliate (Amazon, Clickbank, Commission Junction, etc…)? Are they selling ads and ad space?
The key here is to find a business model that has the following characteristics:
- You can work at day-in and day-out without hating it or getting lost
- Where you own the content…that cannot be immediately displaced by another company (Example is a site completely dependent on Google traffic that loses half of their traffic overnight or a business completely dependent on selling affiliate products from Amazon that is instantly put out of business when Amazon changes the rules). Make sure you select a business where you OWN the rights to the content AND you have multiple ways to monetize that content in case one disappears temporarily or permanently.
- Make sure it scales. Can you grow it bigger without having to work harder yourself?
Don’t be one of the majority who put sweat and money into growing a business that either does not make you money or where that model disappears one day after all of your hard work.
YOUR QUESTIONS…
Have a question on starting your own online business that we haven’t answered? Leave a comment.
