How to Build a Profitable Online Business

By: David MacGregor - [online]
When I first logged on to the internet (back in 1996), I was immediately motivated by the idea that here was a brand new opportunity to do business with the whole world.

Dollar signs popped into my eyes, as I considered selling some widget for $10 - to 100,000 people across the globe. And obviously, I'm not the only person to have ever considered the possibility - given the amount of spam I receive!

I can recall my first internet venture. It was a web hosting concept - set up like a Business Mall.

Well, it didn't take me long to realise I'd never get rich this way. I think I made $50 or so. But it was a start to the learning curve - which is still going on.

The point is this: Although the internet is rightly considered as a wonderful medium through which to conduct business - it requires knowledge and effort.

Coming to grips with exactly HOW you make money on the 'net is fraught with traps and difficulties - not least of which are the many downright scams that are out there - promising you the sky, but leaving you decidedly earthbound.

The nitty gritty is this: you can put up the most professional looking website, and offer the most worthwhile product or service - but you will languish in the cyber-backwoods, unless you learn how to attract qualified visitors to your site.

If I could put it in a nutshell - then I'd say (as someone who has been making a living on the internet for 5 years) that a successful online business is ALL about marketing. Sure, you have to have something to sell - that's a given, but it's not enough by itself.

You're not out of the woods yet though, because even though you accept the challenge of marketing your site, you will still need to wade through all the conflicting ideas as to exactly HOW you should do this. Not everything you may read about internet marketing actually works!

When I combine what I've read with what I've learned from the business school of hard knocks, I can reduce the essentials of building an online business to the following:

1) Obviously, you need a product or service that will sell. If you don't have one, or can't create one - then, you can sell someone else's product/service as an affiliate.

2) Once you have decided on your product/service - you will need a website. If you're reselling on someone's behalf, then it's likely the website will be provided. You'll also need to decide on, and register, a domain name. This is very important, as you want it to reflect the nature of your business.

3) If you're selling your own product/service, then you'll need to write up (or have written) some good sales copy. The internet is an information based medium - so your copy must provide all the relevant information, in an easy-to-read style - and trigger a desire to ACT - on the part of your prospective customer.

4) You will need to accept credit cards - and for this you must use a card processor. There are many to choose from - and the easiest for start-ups is perhaps PayPal.

5) You will need to promote your website - and this is where the real work begins. I've tried many things - and I can pass on what I know - and what works. Bear in mind, the process of marketing never stops - as you always need to test new ideas, or refine existing ones.

The following are my tried and true methods. This is not exhaustive by any means - but it represents my own experience with what works and what is worth trying.

a) Build your own opt-in list. This is absolutely essential. An opt-in list is a mailing list where the subscribers sign up voluntarily. The best way to build a list is to offer information for free - like an e-zine of some sort. In this way you can build an ongoing relationship with people - something that is essential in an anonymous medium like the internet.

b) Spend time learning and implementing the basics of good web design (from the perspective of the search engines). For example, you don't want to build the selling part of your website in frames - as search engines will ignore you. You need to create key words, metatags, page titles and a host of other things which will make your pages more desirable for the little spiders the search engines send out.

c) Getting visitors via search engines is the main name of the game. Why? Because when someone wants something - he or she types in their query and begins to read the results. This is the type of potential customer you want - someone who is looking for what you offer. So, you need to make sure you are registered with all the major search engines. Be wary of site-submisson services.

d) Build link partners. This is a very effective way to drive traffic to your site. What you do is seek out other websites, which have an affinity (but not directly in competition) with your own website - and ask them to exchange links with you. Make sure you have a standard link text to provide - one which matches keywords you have chosen, and which you have in the title of your web pages as well.

e) Advertise in related e-zines. There are hundreds of thousands of e-zine publishers. Some of these e-zines have over 100,000 subscribers. By looking for e-zines that are likely to have readers who could be interested in your product/service, you can build a cost-effective campaign to attract visitors to your site.

f) Use the pay-per-click advertising methods now offered by many search engines - where you can bid for certain keywords, and only pay when a potential customer clicks on your ad and link. These systems are now highly advanced and very sophisticated - and will allow you to scientifically test and monitor various advertising ideas and strategies.

g) Set up your own affiliate system. You'll either need to buy the software, or rent it off a a provider. The obvious benefit of having affiliates is that you only pay them when they deliver a customer. So, apart from the cost of the affiliate tracking software, you can have a growing sales force working for you - who are only paid for results.

What NOT to do.

Stay away from FFA classified advertising, link farms, and other dubious get visitors systems.

The point is, you don't just want ANY visitors, but those who are likely to be potential customers. In other words you want qualified visitors only.

And I shouldn't have to mention - stay away from spam - and spam related systems. You may be tempted to join one of the many opt-in list services. But, you'll simply find yourself amongst thousands of other opportunity seekers - all attempting to send emails to each other. A waste of time!

So, you CAN build yourself a profitable online business - by applying the basics, as outlined above, and being persistent.

The possibilities are endless - you just need a good idea, and the motivation to see it through.

David MacGregor runs a private cyber-community, for those interested in international living, business and investing, at: http://www.sovereignlife.com

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