The most important consideration when starting a business is choosing which products to sell. If you don't do your homework in the beginning, you may be doomed to fail even before you begin.
It is always best to own, control, and sell your own products. It's also important to diversity your business by selling other people's products. I use the following considerations to evaluate any potential product.
Quality?
Is it a product I already own or want to own? I always purchase the product and use it first to determine if it offers a real value to my targeted niche. I won't offer it to others unless I'm willing to buy it myself.
Are there enough buyers out there? You can't sell motor homes to the home-less. No matter how good your product is, you can only expect to sell it to people who can afford to buy it.
Products In Demand?
Is the product in high demand? Nothing sells like a hot product on the leading edge. On the other hand, if it's a new product I want to test it thoroughly. There is a fine line between the leading edge and the bleeding edge.
Consumable?
Can I sell it over and over to the same customers? Many companies focus on products that people need and use every day. Amway built an empire selling home cleaning products.
High Cost Vs. Low Cost
Consumable products and services may have a lower cost because they have the potential to sell over and over. High cost products are usually more profitable, but require more credibility to sell. Choose real estate over motor homes and motor homes over automobiles. Make sure your time will be compensated for the sale.
Services
Selling services is great if you can get residual income. Services like hosting or Internet services are good because, like consumable product, you earn money over and over for work you do only once.
Commission?
Whenever you re-sell someone else's product, you should study the commission structure first. Learn EXACTLY what you must do to earn a commission on a sale. You can earn the biggest commissions on your own retail sales. Most of all, don't expect others to do all the work for you. They won't. I never depend on anyone else, and I'm never disappointed.
THE $300 TEST
You can use any number you want as al income goal per day, week, month or year. The key is to understand exactly what you need to do to reach a goal. Once you reach your goal, do it again in less time, over and over.
Shipping
Information products are ideally suited for sale on the Internet because they can be downloaded. Examples include software products, music, and ebooks.
High Profit
I like products that I can earn at least 50% from each sale. The best selling products won't ever earn any real money if your percentage is too small. I also like the idea of a even split. It helps me feel like a true partner.
Support
Determine the company's support structure up front. Find out whom you can call when problems arise. This is especially important if you sell software.
Inventory
Do you have to carry inventory of a company's product, or do they deliver? This issue is especially important for higher priced products. I like products that I can sell and someone else delivers.
Handling Payments
Who actually collects the customer's money? You will have more control If you use your own Merchant's account. In addition, you should earn a bigger percentage of the profit as a reseller than as an affiliate.
Tracking
How are you notified of orders in real time? Do you collect the money or does someone else? You should be able to track every order that is placed even if you don't collect the customer's money. There are many systems to track your sales. I prefer to have the leads and sales come directly through me whenever possible.
Buy Wholesale And Sell Retail
You can buy products at a large discount through a wholesaler. Just order the products from your wholesaler and mark them up.
Reprint Or Duplication
Some companies sell licenses to reprint or duplicate their products. You determine the price and keep the profits once you pay for a license. Costs vary from business to business.
Affiliate Programs
Affiliate Programs are the most common way to acquire products to sell cheaply. You sign-up as a reseller on the seller's web site and they give you a link to track your prospects and sales. Every time someone orders through your link you receive a commission.
Affiliate Programs are currently the most popular way to sell products online. To be more successful, start your own affiliate program. Make it as easy as possible to have others sell your product.
Conclusions
Consider each factor presented here before you start selling any product. Always develop and sell your own product whenever possible.
When selling products other than your own, sell consumable products or services that offer residual income and are in high demand by qualified buyers. Sell only high quality products and services. Understand the commission structure. Buy low, sell high
Selling high cost products is usually more profitable, but usually requires more credibility to sell. The best selling products won't ever earn any real money if your percentage is too small.
Best Wishes
Bob
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