Internet Retailer







$
Earnings unlimited
.You can operate a
retail business on the Internet for a
fraction of the price it would cost to open a 'bricks and mortar'
real-world store. Th Internet also allows you take advantage of multiple
income streams.
- Product/Service Sales
This
is the way that most people think they're going to make money with
their retail internet site. In fact, it IS a very powerful medium for
making direct sales to both consumers and businesses.
Let's say I invent a new bicycle seat that makes cycling for long periods easier. How am I going to market my new product?
If
I buy advertising in the general newspaper, I might as well flush money
down the drain. Beside being very expensive, most readers of the daily
paper have no interest in tour cycling.
I could buy an ad in a
cycling magazine, but advertising is extremely expensive. A full page
ad can run tens of thousands of dollars, even a tiny ad can run
hundreds.
I could go through the expense and long term effort of
approaching retailers and getting them to carry the product - and
probably should anyway - ,but I need money soon, not two years from now.
I
could try to build word of mouth advertising by giving away samples to
bicycle clubs, and that is a good idea, but again can take an awful
long time.
On the other hand, I could set up a website that
talks about my product. I can give myself as many full page web 'ads'
as I want. People who are interested in bicycle touring can find my
site if I do my site promotion, and the website can sell them.
The
average commercial webspace costs between $25 and $50. For that price,
you have as many pages as you wish, available 24 hours a day, and
available world wide. You can make it in full color, and can create all
kinds of feedback/involvement. All for $25-$50 per month.
- Drop shipping
If
you are selling custom bicycle seats on your website, people are going
to find you because they did a search for bicycle seats, or ran across
one of your messages in a bicycling newsgroup, or heard about you from
another bicyclist. Since they are looking at your expensive bicycle
seats, this tells you that they are likely avid bicyclists, who are
devoted to their two wheeled steeds. You also know that they are going
to be needing all sorts of other bicycle products and services, and
they have the means and inclination to buy them.
This could
include bicycle accessories, lightweight travel food, cycling attire,
insurance for their bike, and any number of other items. Now, when you
are in the making bicycle seats, you probably shouldn't become an
insurance agency to insure the bikes, nor should you turn into a
dehydrated food manufacturer. What you should do is approach such
providers, and see if you can't work out a deal. The best situation is
when you can place a page on your website selling their product or
service, and people place the order with you. You can then keep 40% as
your commission, and forward the remaining 60% to the manufacturer
along with the customer's name and address. The manufacturer can then
ship to the customer. The same thing applies to services.
Now
you can make a tidy profit without the hassle and expense of shipping
and storage. In the mail order business, this is quite common and is
known as drop shipping.
The 40%-60% ratio is a typical example of the split, but is not set in stone anywhere. It is negotiable.
- Consignment sales
If
the provider of the product isn't willing to do drop shipping, then try
for a consignment setup. In this case, you'll actually take possession
of the merchandise, but will pay for it as it sells. The discount is
normally 40% or so, but again that is negotiable. This is not as
desirable, since you have to store and protect the merchandise and do
the shipping, but it still allows you to have the products available
without the large cost of buying them in advance.
- Advertising
If you can't
work out a deal to sell the products or services directly from your
website, you can sell advertising space on the site to those who want
it. The advertising could be a banner graphic, buttons, or text links,
and the rate you charge is entirely a matter of negotiation.
- Membership
The old model
of the Internet held that all information was free, but that has
certainly changed. If you have great information that is not generally
available
elsewhere, create a private members-only section of your website and charge a membership fee.
A
good example of this is http://www.searchenginewatch.com which is
probably the single best way on the Net to learn about search engines.
They have a wealth of information freely available, but if you want the
latest rules from each of the search engines, as well as the best tips
on how to optimize your site for higher placement, you must subscibe.
At the time of this writing is $69 a year - a pittance for the valuable
information you gain access to.
The nice thing about subscription
fees is that they are up-front! You get paid whether or not the
subscriber actually takes advantage of the privilege later. This income
is also pure profit - you don't need to ship any merchandise at all.
Subscriptions also help build site loyalty - if I am a dues-paying
member of a site I'm pretty likely to keep going back to it. Besides
"inside information", you can make your subscription area a kind of
buyers club, where members get the best possible deals that are not
available to the general public. This enhances the perceived value of
the deals they get.
- Ebooks
One of the
greatest specialty product niches on the Net is the downloadable sales
niche. You can offer information e-books or software - people buy from
your website and instead of you having to ship the merchandise to them,
the customer can simply download the information from your site. They
get near-instant gratification, you save on the trouble of packaging
and shipping.
- Affiliate Programs
How
about "money for nothing and your clicks for free?" There are hundreds
of associate (also known as affiliate) programs out there that will pay
you a
commission on any sales made on their site for which you are
responsible. This is similar in concept to the commissioned product
sales idea mentioned
before, but in this case all you do is send the
customer to the associate program's website. If the customer buys, you
get a commission. The rate is far less than what we mentioned for
commissioned products - typically 15% or less, but you have to do no
real work.
You sign up with the company who has the associate
program, and they give you the code for a link or graphic to put on
your page. Once somebody clicks on this, all that is left for you to do
is wait for the report on whether or not the customer bought, and cash
the commission check. Not bad!
Two great competing sites to find out
about associate programs are http://associateprograms.com (of course!)
and http://refer-it.com
just to name a few.
It is almost unlimited what you can sell online.
Follow-up:
What makes one website
profitable while another loses money? This CD gives you what you need
to make sure yours is a winner. Purchase our
business manual
on CD http://bizshop.com/description.php/pubs//155
©
BizShop/Steve Veltkamp, 2008
Please let us know at bizshop@bizshop.com
if you find any errors, or have any suggestions or comments.
Your
level of success in attaining the results in our materials depends on
the time you devote to the program, ideas and techniques mentioned,
your finances, knowledge, market conditions and various skills. Since
these factors differ according to individuals, we cannot guarantee your
success or income level. nor are we responsible for any of your
actions. Any and all forward looking statements here or on any of our
material are intended to express our opinion of earnings potential.
Many factors will be important in determining your actual results and
no guarantees are made that you will achieve results similar to ours or
anybody elses, in fact no guarantees are made that you will achieve any
results from our ideas and techniques in our material.
The
author and publisher disclaim any warranties (express or implied),
merchantability, or fitness for any particular purpose. The author and
publisher shall in no event be held liable to any party for any direct,
indirect, punitive, special, incidental or other consequential damages
arising directly or indirectly from any use of this material, which is
provided "as is", and without warranties.
As
always, the advice of a competent legal, tax, accounting or other
professional should be sought.
All links
are for information purposes only and are not warranted for content,
accuracy or any other implied or explicit purpose.
Low startup
Computer based
Power
Computer Needed
High earning
Degree, license or
certification required |
Moonlighting or part time suitable
Home base OK
Fun to run
Passive - make money asleep
Steady earners
|
Bright
future (taking
advantage of trends)
High
creative requirement
High physical requirement
High skill requirement
BizShop Manual on CD available |