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July 2008
By Robert Smith © Smith's Family Enterprises Inc.
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Going Professional
 By Robert Smith
© All Rights Reserved
When I started my on-line business in 1996, my theme was 'Free In Cyber-Space.' I indexed all the best free services and resources required to get a web business started.
A few years ago you could grow a web business with little or no up front costs. I no longer believe it is possible to create something out of nothing. Now an Internet business is like any other business, your success depends on skill development as well as some real operating costs.
Many large Internet startups died when funding dried up in the last few years. Many of these failures were primarily the result to using off-line marketing strategies that simply don't work on-line.
In the early days a small web businesses had a distinct advantage because they could respond to changing conditions almost overnight to incorporate new trends or marketing strategies.
Internet businesses have been going through a period of re-definition. Corporations and investment groups have been forced to realize that it's impossible to sustain high "Burn Rates" of capital; new businesses no longer have the luxury of burning capital to be profitable sometime in the future.
More than 90% of the total income earned on-line is still produced by less than 10% of all websites. This figure does not include 100's of corporations spending millions offering information and support without earning a profit. Having a lot of money to spend doesn't even come close to assuring profitability.
Profitability Is Key
Today if you want to stay in business on-line, you MUST operate a profitable business from DAY ONE.
The good news is that there are thousands of small and home-based businesses all over the world earning outrageous incomes. Some of these businesses are earning more in a month than most 2-income families earn in a year. In fact, it IS still realistic for the home-based business to earn a good income on-line. Today it requires more planning and goal setting.
In the home-based business sector, two distinctly different groups are emerging. They are the home hobby enthusiasts and full time home-based businesses. It's still possible to migrate from hobbyist to pro, but it's getting harder all the time.
Home Business Hobbyist
Well over 95% of all home businesses fit into this category. It requires most folks at least a year of skill development to progress through this stage. It took me longer because when I started I had to figure almost everything on my own. I learned through trial and error, mostly error. Now much more information is available.
Today there are millions of people on the Internet, trying to sell something. The problem is, everyone is trying to sell the same things but few are buying.
The home business hobbyist's website is easy to recognize. It usually consists of tons of slow loading banners and animations touting all kinds of unrelated stuff for sale. Very often, there is little or no content employed to attract targeted traffic to the website. Without a clearly defined mission to begin with, they are doomed to failure.
The hobbyist's position is simply immature marketing strategy. Long term, the best way to control almost anything is to learn how to do it yourself. In real estate, it's called sweat-equity. We all learn from doing and especially from our own mistakes.
During the early stages, it is not advisable to spend a ton of money in advertising or paid promotion. Take this time to learn skills and develop your market niche. After you are able to communicate your concise mission statement, you are ready to consider paying for outside promotional services.
If you are still at the hobbyist level, it can feel like you are on a treadmill going nowhere. The solution is to find a market you can reach, and then an in-demand product your market wants. This is the key to success and nearly everyone overlooks it. Develop and test your own winning marketing strategy, and then work it.
There are many good marketing courses ranging from under $20 to over $200. Not every good marketing strategy will work well for YOU so I advise anyone serious about making the transition to consider purchasing several marketing courses, especially during the first year.
It's no longer probable that you will grow a successful Internet business without specific marketing skills. Invest your time and money in education and skill development during that first year.
The Full Time Internet Marketing Pro
An interesting thing happens once you start to earn money on-line. You start earning increasingly more all the time.
Just as the Space Shuttle burns 90% of its fuel load in getting off the ground, the average home-based business requires most of the planning and work before it earns a dime. This can be compared to the work that writers and actors do; they create a product using material already in their minds, and get paid according to its acceptance in the market place. If the money comes at all it comes later, sometimes much later.
Most successful people still fail more than they succeed, yet in the end success is for those who don't give up. Failure, on the other hand is reserved only for quitters.
After you discover marketing strategy that works for your business, everything seems to flow in your direction. It usually takes only a short time to progress from earning a few hundred dollars a month to earning thousands. This all happens AFTER you discover and develop your unique marketing strategy.
Many successful Internet business owners earning a good income on-line find they have two great businesses. The first business is marketing the niche products and services identified at the beginning, and the second is selling the information that helped them get to where they are now.
Paid advertising and promotion is much less risky when you are making money regularly. The reason is simple; it is harder to lose money after you understand what works. Advertising strategy is simple; it pays as long as you earn more in profit than it costs.
When you are making money, you can justify taking more chances and testing new promotional ideas. At this stage, you can afford to spend more because advertising no longer costs - it pays.
Making the Transition
The transition from hobbyist to marketing professional is difficult. Most people don't have enough desire to put in the effort required. Success on-line is not easier than a brick and mortar business, but it can be a lot more profitable.
The good news is that on-line businesses may be successful with a fraction of the money required to start and run a conventional business. Moreover, you can start and grow your business at your own pace.
The keys to your success go back to our beginning where you defined your niche and your mission.
It's also possible to build your business MENTALLY, then move that virtual business to the Internet and become an almost instant success. But this can happen only if you have a great concept, a well thought out and thoroughly tested marketing plan, and you follow it.
A Basic Outline For Your Transition.
- Define your niche and create your mission statement
- Know exactly how you will reach your targeted market
- Research your proposed business, including your competition
- Obtain and follow good marketing information
- Register your domain name
- Build your web website using professional services where required
- Set up your follow-up messaging system
- Sell products and services repeatedly to the same customers
- Revise your approach. Repeat the process
- Automate the process
- Restart the entire process with a new product or service.
If you are sufficiently disciplined, willing to develop the skills required, hang in long enough, and have a little bit of luck, it's still possible to develop a full-time living income on-line in a year or less.
ROBERT SMITH
helps thousands successfully market their
Internet based home business. You'll find tons of free marketing tools & resources on his Internet Marketing web
site at: http://www.smithfam.com/.
The WebKit CD - Complete Marketing Package
http://www.smithfam.com/webkit/
The WebMaster's Tool Kit CD
http://www.smithfam.com/wtk/
You can reach him by phone at: (541) 689-1847 PST
and by email at. Contact Robert Smith
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