Business Opportunities Online
By Pavel Lenshin
Posted Friday, August 27, 2004
To get the most from informational era you should have deal with digital products. Information stored on the data medium is the major representative of that kind of products. Let me specify some of the beneficial features information possesses as an intangible substance: * No direct maintenance expanses. * No overhead expanses on additional producing, copying and distribution.
* Truly unlimited supply.
* Relatively easy and quick ways of delivering.
Don't you think that these features are forming God Blessed Business? There are lots of opportunities of dealing with tangible products using the power of Internet through wholesale distributors and drop-shippers, but the perspective of dealing with not only customers but the suppliers and of dealing with not only payment charge backs, but a tangible product charge backs as well, makes this opportunity not so appealing to the online business newcomer. Besides the profit margin and therefore your income on any info product is always higher.
BUSINESS MODELS ONLINE.
So the conclusion of starting new informational online business is obvious. Let us quite briefly examine the most popular opportunities here. Among them are:
1. MLM.
2. Affiliate programs.
3. Private eBusiness.
1. MLM "opportunity".
The word "opportunity" in the headline of that section was taken at the quotes because MLM is more likely to be the opportunity for its owner rather then participants. But let us look into it step-by-step.
One of the alluring prospects for any online newcomer is the target of "being-your-own-boss". Internet is a virtual economy, with virtual employers, employees, virtual corporations, partnerships, and private businesses. MLM has its own organization structure with respective bosses, administration, clerks and so on. The shocking fact about it is that the people are eager to change their 8-hour off-line job to 12-hour on-line job for the same but virtual boss, usually to be paid much less! But wait, that's not the end of the story. MLM members, as we know, actually pay their "bosses" for the "right" to work for them. Do you imagine paying your "off-line" boss $20-70 monthly only for the right to come to your office and work for him? Why not? If you and your colleagues pay that money, your boss will be twice more kind with you than any up-line MLM team leader. Try :0) A very good question to ask in any business endeavor is: What am I paying for?
Efforts to take, money to spend:
* You are not supposed to run and support a personal web-site (page) promoting MLM, but these chances of success, in that case, are greatly decreased.
* Recruiting people is crucial and it forms the main business task you should fulfill. In other words you have to sell "virtual MLM success", what is much more harder than selling any real services or products that have their perceived value. Product sales are subsidiary in any MLM.
* Usually, your right to earn in MLM will include entry and/or monthly fees. Plus buying their products is also, quite often, a must for working and earning in any MLM. Your earnings are divided between you and your up-line. The more greedy mouth you have above, the less will rest for yourself :0).
* MLM participant is more likely to be an MLM employee, who should keep on referring people to see any residual income at least in 3 months, more often, a year. If the participant enters and starts working on a second MLM "opportunity" his or her work in the first MLM won't have any progress.
2. AFFILIATE PROGRAM opportunity.
Affiliate programs are the entry level of cooperation in business. The highest (and the most profitable) level of partnership between businesses is join ventures. Next step is only to business acquisition or merger. Business cooperation takes its roots from the times of primitive communal society, when a hunter made a bargain with a fisherman to provide him with a part of his pray for the share of the fisherman's catch.
Now it is a worldwide practice to attract third party sellers for the share of generated profit in order to extend sales volume focusing on the new products development or clients servicing.
The affiliate seller in that "game" is also in funds. By selling other people's product affiliate earns a commission without hassle on producing, managing and servicing anything.
Some features which were considered to be the benefits of the MLM business like commissions on sales made by referred members of the third level have been implemented in some affiliate programs, creating so-called two- or three-tier programs, but in contrast with MLM the business partner isn't obliged to pay membership or any other fees.
Efforts to make, money to spend:
* You are not supposed to run and support a private web-site (page) promoting third party product, but the chances of success, in that case, are greatly decreased.
* Your earnings strictly depend on sales you and, sometimes, your referred affiliate have made. The percentage is usually not less then 5% and not more then 60% per sale. The more retail price is, the less commission percentage you will have. The most popular commission now is 20%-50% on info products.
* No need to pay entry or monthly fees. You as well as affiliate program owner may make additional investments on services or products, but they do not directly concern your affiliate business cooperation.
* Any affiliate operates as an independent business entity and has a database of potential customers, may result in simultaneous marketing of as many affiliate products as wanted, earning commissions on them all.
3. PRIVATE eBUSINESS.
As many times marketing experts have said, you will find no "Guru", who build their internet empire by marketing exclusively other people's products or participating (not owning) in a MLM. 99,9% of them have their own products or services to sell. Only having 100% of private rights could bring you 100% of profits on any effort you will make. Especially when you're at the beginning of business highway. Internet is a perfect workplace where your income exactly equals to the work input you've made. You have full control not only on product or service to sell, but something more vital, credibility building and creating the community of loyal customers. Once again, especially, when you are setting up your first eBusiness.
Efforts to make, money to spend:
* You have to create (or order) business web-site (page) as a representation, advertisement, selling and customer-servicing platform of you business.
* Your earnings strictly depend on the sales you've made. Any sales bring you 100% income. The setting up of affiliate program, based on your offer, could also increase your market and profit exposure allowing you to create indirect income.
* Any dime you will spend building your own empire is an investment in yourself and your business. It means that for any monetary unit you will get a service or product, which brings the actual value for you and your business. Unlike consumer spending, any investment is intended to earn you the interest with time.
* Private business operates as an independent business entity. Automation of business processes could make your hands free for creating second, third etc. business entities or divisions. The more products you sell the more residual income you will have.
NEWCOMER eBUSINESS PROSPECT
Without any doubt private business beats any other opportunity on the first step of wealth building on the net.
The most reasonable steps should be:
* Setting up private venture or partnership to double the efforts as well as profits. If your share in partnership structure is 50%, you may probably earn initial 100% on your work as the income of your business is also supposed to double.
* Long-term online incorporation implies stages of popularizing your product, trade mark, creating virtual community of grateful customers, and spreading positive business image.
* Establishing your own affiliate program to maximize market exposure and profits.
* Joining third party affiliate programs that reflect your best interest and promote their products to existent customers for immediate results.
* Having residual cash flow you may consider joining MLM. You have customers and business income to spend. But in that stage more astute action to take is to organize your own MLM venture based on products you sell. In that way you will not get "hurt" by spending money on an up line and guarantee you true MLM "success". What should be thought over here is the possibility of hurting your clients what, to my mind, isn't worth any MLM income you may have.
Accomplish these steps and you will guarantee financial freedom for yourself, your closest relatives and children for many years ahead. Start your own business by investing necessary time and money in you and your business. If you do, the life you are dreaming about will find you very soon.
About the Author
Pavel Lenshin is a publisher of NET Business Magazine, professional web-developer and CEO of: - (http://ASBONE.com/) - informational portal and provider of discounted internet services for entrepreneurs, including internet access, web-design and hosting; - (http://InfoAlchemist.com/) - a must-have business library.
