Why the Internet is So Good For Testing Your Business Ideas |
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By: Greg Smyth Posted: 2009-11-30 06:56:36 |
| There are many reasons why a business online should succeed if you have the right idea. The main reason is numbers; numbers of people online, and the other reason is cost. For a conventional business you have overheads like payroll for staff, lease payments, taxes, insurance, retirement funds for staff etc. The list is long and what percentage of gross income goes to these overheads? Lots i suspect, from 25% to 50% or higher!(just a guess)The other big plus is that you only need a very small percentage of people online to buy your product or service to make good money. There are over a billion people online and the number increases every year. Get on board now and ride the wave. To be sure you have a better chance than most to have your business idea online succeed, the following points should be thought about before your business goes live.1/ You must find out what people want 2/ How much competition is there in your chosen niche? 3/ Do you have the expertise to provide what people want? 4/ How much will people pay for your product or service? 5/ How many buyers per month do you need to make the business worthwhile?What is the point of trying to sell something that no one wants, or there is little demand for. Use Google search to see how many of that product is out there already. The other way to do research, saving you time, is to pay someone to research your idea.Once you have a product or service that you feel is a goer, test it out in the marketplace. Do joint ventures with people who have opt in lists, use Google AdWords, use free and paid classifieds, try solo ads. Many more marketing strategies can be used. If you already have a website that gets traffic why not put an ad on this website so that at least your new idea gets seen. If you try these methods, which some do cost money, over a month or two, what is the response?In a conventional business the testing of a business idea costs much more than on the internet. For under a thousand dollars you can normally find out if your business idea is a goer or not on the internet. If you have created a digital product, the cost is even less. The biggest expense with creating a digital product is time. Sometimes months are spent developing this product, and then if it fails, you are not very happy. But your research, if done well, will ensure you have a good chance of succeeding.Every product you launch on the internet has potential, how do you really know how good it is going to be unless you test it. Some products have been around for years, yet still sell. So what if it sells well at the start and then sales taper off. This pattern is probably the norm, the only variable is the length of the tapering off period.The big advantage that the internet has is that setup costs can be recouped so quickly with a popular product. The research and time costs are easily paid back with even 500 sales. We are assuming the cost of the product is $20, 500 sales would bring in $10000. Assume for a moment 10 sales a month at $20 equals $2400 per year. Your setup costs are probably covered, and the rest is pure profit. You can now go and develop your next business idea. The previous examples are purely fictitious, as every product is different, and will have different setup costs.The main point is that an internet business idea is much less costly to try out and the potential reward can be substantial. The numbers of people on the internet mean that with a small outlay, even modest sales can be very rewarding. How do you know really, unless you test, whether a product will be a best seller? You could surprise yourself, and become one of those who develops a product once a year, and makes a very comfortable living selling online. Good luck! |
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