Frequently Asked Questions About Internet or Online Businesses – Part 1
I thought it would be helpful if I take the five of the top questions that have been asked about the internet or online business and share my take on each of those. In my answers, you will find both strategic or big picture as well as short-term and tactical information that you can put to use immediately. So here we go folks.
#1. Which internet business is the best? What internet business is profitable? What internet business should I start?
The best internet business for You is the one that allows you to fully tap your potential for a given market. Once you’ve found something that you’d consider your purpose, or at least your passion, you just have to align it with your talents and focus on providing greater value than anyone else has provided before you. Now, greater value doesn’t mean that you’ve to OUTDO everyone who came before you, it just means that you need to find a way to differentiate your OFFER, as we discussion in the online business framework, as well as your brand from everyone else in ways your market would care. All internet businesses are way more profitable than legacy offline counterparts, when choosing a market, you should pick up that’s not too big and not too small, or what’s known as a profitable niche. Now, in terms of popular options available today, you can do an all-digital business which is my favorite by selling eBooks on Amazon or online courses using Udemy or your own website. If you have some knowledge of retail and have some upfront capital that you can invest in, you can also venture into selling physical products with Amazon FBA.
#2: Why start an internet business? Why internet business is good? Why internet business is successful? Why internet business is important?
I guess I can start with why you would start a business in the first place as opposed to working a job. With a job, your financial upside is limited whereas downside is pretty much unlimited. Don’t agree with me? Well, in today’s economy with so much fierce competition and tech disruption, no one’s job is secure. However, with a business, your upside is pretty much unlimited since you can increase your monthly income by doubling down and working longer hours. With a business, your downside is limited, what’s the worst thing that can happen to you? Your business goes bust right? Well in that case, you still learnt something valuable that you can take to your next business venture. Before you say, wait a minute, isn’t it the same thing in case if I lose my job? Well, no! Remember, you can lose your job for reasons that have nothing to do with you, i.e. your role is eliminated, or your company shuts down.
Internet businesses leverage internet or web software stack and tooling ecosystem. Why does that matter? Well, because effective use of software and tools allows you to maximize your profit margin by bringing set and forget operations to your online business. Internet business represent the future of trade and commerce, a lot of it is already here, however offline business is still bigger than online business and will remain so for many more years which means internet business carry a huge opportunity and fusion of online and offline in fact is an opportunity of our lifetime.
#3: Where to start internet business? where to set up internet business?
In order to start an online business, all you have to do is to, either build your own website or leverage a platform like Amazon to sell your digital or physical products or services. Today, web hosting is cheap, reliable and fast and all of the ecommerce infrastructure software such as Woocommerce or WordPress are available for free. You can get started in a matter of hours.
#4: Are internet business scams? Is internet business legitimate?
Internet businesses are not scams, however they can be if the person who runs them decides so much like what can happen in any business. Now, if you can create a Ponzi scheme offline, I am sure you can create a much bigger version of that online. However, internet businesses are totally legit and there are millions of people who make their living doing them every day of the week.
#5: What are internet business models? what are good internet business ideas? what are good internet business to start? what internet business model would be appropriate? what internet business should I start? what internet business makes the most money? what internet business is profitable?
There are many business models available on the internet and there are plenty of ways you can slice and dice them. However, at the end of the day, there are only two models per se, either you sell a product, or a service and it can be your own or you can promote someone else’s, which is known as affiliate products. Having traffic or the demand side is a precondition in order to promote and sell other people’s products which is known as Affiliate Marketing. Your offer can be all-digital or all-physical, or a mix of those. Your success with internet business lies within your ability to get attention in a very noisy internet and eventually own traffic for your niche. However, today you can also use a platform such as Amazon to instantly solve traffic and conversion in exchange for a referral fee. Here are my five rules on internet business models:
- Market research, I can’t emphasize how important that is before you jump with both feet.
- Understand your cost structure before you get started, obviously more so if you’re planning on doing an all-physical business with a platform such as Amazon FBA. Every player between you and your customer eventually becomes a margin sucker.
- Product and brand differentiation. You must figure out a way to differentiate your products and your brand in the ways your market cares. You must ask yourself “why you” and “why now”.
- Pick a level of competition that you’re comfortable with. For most people, there is no such thing as get-rich-quick, so start slowly and arrive at your financial destination one step at a time.
- Think long-term and avoid short-term or get-rich-quick bias.