What Type Of Internet Business Should You Start?

What Type Of Internet Business Should You Start?

Posted on 20. Apr, 2013 by in Archived Post

If you currently have a physical store without an online presence, you could be missing out on an unlimited pipeline of potential customers. The internet opens a second door to millions of customers, some that may be ready to open their wallets for your product. If your internet strategy is well designed, you will find the internet to be a perfect channel to tap into another revenue stream. Let’s say you have a local store that sells clothing or pet supplies or handbags or whatever and you want to scale up to compete with some of your communities larger stores…maybe even JCPenneys or PetSmart or Target. Can you imagine the price of having to upgrade your store to do so? Not just upgrading from a physical standpoint, but also as it relates to marketing…..both are huge investments.

Beyond Brick-and-Mortar

Now let’s see how this compares with expanding your retailing presence onto the internet. The physical cost are mitigated as there will not be a need to rent a space, purchase store fixtures, pay additional insurance, etc.. The costs you are expected to pay will be web hosting, domain name(s), payment processing, in some cases, a website template and web design. If you decide to utilize an Ebay or Amazon store, most of those costs will be consolidated into one monthly payment making it easier to manage or track costs. At the same time, you will be able to leverage their advanced online presence, technology infrastructure, and marketing strategies. Granted, you will sacrifice some control of the complete design of your store and marketing of your items, but the ease of putting your store and setting up your online inventory is so much easier.

Piggyback The Big Boys

Although we have been talking about someone with a physical store and the benefits of developing an online presence, a need for physical inventory is not necessary to succeed with an online store. For example, you could write and sell ebooks via your online store or through a well-established marketplace such as Amazon. No need for a local store, inventory, POS, etc. You may have to scale back some of your profit, but Amazon’s amazing infrastructure, high visibility, inventory management software, and delivery process is second to none.

When I first started selling on the internet back in 2003, it was via Ebay and selling handbags. At that time, my wife and I lived in Los Angeles and were able to track down my wholesalers in the garment district. I built a strong core of wholesalers, developed quite an inventory, and had a solid shipping process. As good as my complete process was, the amount of time spent building and managing the process was high. Due to our wholesaling cost, we were able to make a good profit and pay our monthly bills/living expenses.

As time passed, and due to other factors that I will discuss in a later post, we transitioned to selling downloadable items such as software. Selling these items eliminated the need for maintaining a physical inventory and all shipping-related cost. The purchasing process was fairly simple: customer identifies an item, makes the purchase, receives a download link and then downloads the item. Basically a hands-off process for me which is what I wanted. My goal was to provide the best pre and post-sale support that I could….and I did.

Packaging Your Services For The Internet

If you currently have skills that could be packaged as an online service, then consider doing so. Software programming, web design, software engineering, app dev elopement, website security, software support are a few that come to mind. For example, if you are a software or PC support specialist, you may consider creating a website focused on your skill set, purchase a PC remote support tool, and offer a PC support package. If you currently have a PC support business, extending your services to the internet could be a great compliment to your business.

So, take the time to decide what best suits you or your existing business in terms of what you can offer online. Keep in mind, potentially thousands, hundreds of thousands, or even millions of potential customers are waiting for you to showcase your business to them.

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35 Responses to “What Type Of Internet Business Should You Start?”

  1. SharonJ

    12. Jun, 2013

    Besides Amazon and Ebay, have you ever tried Etsy.com? Etsy does require that anything you sell be handmade or vintage.

    There are some great freelance sites out there to market your skills as well like Elance.com, Guru.com, freelancer.com, fiverr.com and Odesk.com

    Reply to this comment
    • Big Dave

      Big Dave

      12. Jun, 2013

      You know, I’ve never tried Etsy.com. I’ll check it out…..thanks.

      Reply to this comment
    • VahnCross

      15. Jun, 2013

      I agree. And I think Elance and Freelancer needs more commercialization with the success they bring. I’ve been on Elance for a year and I’ve already bought a new high-powered PC, a new TV, and a smartphone with all the blogging money. Success stories are on the rise because of freelancing.

      Reply to this comment
    • Sky

      17. Jun, 2013

      I’ve tried Etsy before but with little success. However, I’ve only been on Elance a few times and I do believe that it will be helping to pay for the bills here soon. I’ll be checking into the other sites as well.

      Reply to this comment
      • Charlotte

        16. Aug, 2013

        I think Etsy all depends on your product. I find that Etsy caters more to the Pinterest audience.

        Reply to this comment
        • Sky

          28. Aug, 2013

          Definitely an accurate description – Etsy is all about homemade and artsy items! I don’t know if Etsy could ever actually become truly “passive” as you’re supposed to be creating the products you sell.

          Reply to this comment
    • Paolo

      19. Jun, 2013

      I’m trying out Guru.com now and I’m expecting to see progress on this one. Will inform about it soon!

      Reply to this comment
  2. VahnCross

    14. Jun, 2013

    Here are also other freelance sites that are great in passive income too. Ghostbloggers.net, HubPages.com and Blogger

    Ghostbloggers is still new but the potential it holds is great for writers. Hubpages and Blogger need traffic to start earning but it gives you the chance to write or talk about what you want. As long as you generate traffic, income is great.

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jun, 2013

      First time I’ve heard of Ghostbloggers…..will check it out. Why do you say “the potential it holds is great for writers”? HubPages and Blogger I’m familiar with and, yes, generating traffic to those sites is crucial to ones success. I also have a Squidoo Lens that makes me a little money from time to time…..social bookmarking and linking via Web 2.0’s has historically helped with sending traffic to these sites.

      Reply to this comment
      • VahnCross

        15. Jun, 2013

        It’s only in the Beta stage I think, though you can earn on it already. There’s little marketing and advertisement on it and very few people know of it. But the content and the money it brings for writers is really great. The lengthier the article, SEO maximized and high quality, the pricier it gets.

        Reply to this comment
    • Sky

      17. Jun, 2013

      I’m very intrigued by Ghostbloggers…I checked it out and it’s definitely something I’m going to be looking into more – I think it could really work for me!

      Reply to this comment
      • VahnCross

        21. Jun, 2013

        Great to hear that. Let’s hope that the site gets popular even more so clients who are looking for writers will go to Ghostbloggers often.

        Reply to this comment
    • Zuri

      19. Aug, 2013

      I’m going to look into each of these. I’m only using Elance right now, but when work is slow I don’t really know what to do. Thanks for these sites Vahn!

      Reply to this comment
  3. SharonJ

    18. Jun, 2013

    I just took a look at Ghostbloggers and it def looks interesting. I don’t understand Squidoo though…. can someone explain to me how it works and how you make money from it?

    Reply to this comment
    • VahnCross

      20. Jun, 2013

      @SharonJ

      Yeah. I wanted to try Squidoo before but I just don’t understand how it works exactly. And it really gets a lot of traffic so making money via Squidoo could really work great!

      Reply to this comment
  4. James

    22. Jun, 2013

    Hey Dave – How does one get involved in selling software online?

    Reply to this comment
    • Big Dave

      Big Dave

      23. Jun, 2013

      James, are you referring to selling through Amazon or Ebay? Or your own website?

      Reply to this comment
      • James

        24. Jun, 2013

        All of the above. How do you get the rights to sell the software? Or is it software that you created?

        Reply to this comment
  5. SharonJ

    23. Jun, 2013

    lol @VahnCross

    So you don’t understand Squidoo either? I’m REALLY curious now how it works!

    Reply to this comment
    • Big Dave

      Big Dave

      23. Jun, 2013

      @VahnCross @SharonJ,

      A Squidoo lens is web page that shares your personal perspective on whatever topic you wish to share with everyone. Squidoo provides basic publishing tools that helps you to organize topics and make money from advertising commissions (i.e. Amazon) or product sales. Now, I don’t make a lot from my lenses only because I haven’t spent much time doing SEO work on them. But it’s still good to know that even though I built the lenses over a year ago, I’m still periodically earning money from them.

      Reply to this comment
  6. SharonJ

    23. Jun, 2013

    Huh…. I’ll have to look into that more… so you basically provide top ten lists or reviews?

    Reply to this comment
  7. Big Dave

    Big Dave

    24. Jun, 2013

    Reviews more than anything else….only problem I have is the amount of time it takes to create/build a lens. And that problem probably has more to do with me not taking the time to setup a workflow for building lenses.

    Reply to this comment
  8. John

    09. Jul, 2013

    Effective negotiation skill would be a much sought after component of running your own succesful business online or otherwise.

    Reply to this comment
  9. Sandy

    09. Jul, 2013

    One should also check out KROW . Quite a few online and part time options are scoped out here.

    Reply to this comment
  10. Natalie Thom

    11. Jul, 2013

    What do you mean by a workflow for building lenses? What does that entail?

    Reply to this comment
  11. Sharon

    13. Jul, 2013

    I am exploring online start-ups and you pretty much have most of what I have found so-far lined-up here. But will need to think more about ‘building lenses,’ to make it work for me.

    Reply to this comment
  12. nomansalehzada

    14. Jul, 2013

    Dave, i want to write and sell Ebooks on ” hot topics” like how to earn money online etc and also reviews of some best seller book, which platform would you suggest me to start? ideally i do not want to invest more in the initial stages

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jul, 2013

      Hi nomansalehzada,

      Amazon without a doubt…check out the link below:

      https://kdp.amazon.com/self-publishing/signin

      Reply to this comment
      • Zuri

        23. Aug, 2013

        Thanks x2 Dave! I’m really interested in learning about self-publishing myself. I’m working on something that I think (for the first time) I really want to share. I just don’t want to get overwhelmed with that side of things until it’s finished though. I’d hate to loose my inspiration!

        Reply to this comment
  13. nomansalehzada

    15. Jul, 2013

    Thank you for your suggestion , i hope that will help 🙂

    Reply to this comment
  14. Charlotte

    26. Aug, 2013

    My mom an I just came up with a great idea for an Etsy store. I’m excited to get started! Thanks for putting all of this in the forefront of my mind!

    Reply to this comment
    • Sky

      28. Aug, 2013

      Awesome!! I hope you find success on there. I think I’m going to give it a try with my photography again soon.

      Reply to this comment
      • Charlotte

        29. Aug, 2013

        Thanks Sky! Good luck to you as well. Dave really has a way of inspiring us all!

        Reply to this comment
  15. Harvey

    19. Feb, 2014

    For someone just starting out, would you suggest Ebay or Amazon? I know they both are great but is there one that might be better for the learning curve?

    Reply to this comment

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