Choosing the right Product

The Internet is that it is built on pretargeted markets, certain interest groups "hang out" in certain areas. For example, you will find skiers at skiing e-mail discussion lists, skiing newsgroups, skiing ezines, skiing related websites, etc. The point is it is easy to find skiers online. If you were selling a product that all skiers "wanted."

In direct mail, magazine advertising, etc. you pay large sums of money to get a targeted market… on the Internet you can reach this targeted market for very little cost. If you have a product or service that has a target market hard to find online, you will have trouble selling your product online no matter what you do.

1. Have a target market that is easily definable.

2. Know your target market well, and make sure your target market can afford what you are selling them.

3. Make sure your market is not over saturated.

*Find a market that is easy to reach and then find a need in that market that you can fill, affordably.

One of the first things you will have to decide when setting up an Internet business is whether you want to sell a product or a service, both of which have their advantages and disadvantages.

Products:

• Advantage: unlimited income potential because you are not constrained by time, the way you are with a service (the more product you sell the more income you make - especially when you are automated).
• Disadvantage: requires stocking and shipping (or drop-shipping from a supplier).
• Disadvantage: generally requires you filling large amounts of orders to make a reasonable living, unless you have a product with a very high profit margin.

Services:

• Advantage: it is easier to make a profit quickly because the entire price of a service is paid to you (except for any overhead).
• Advantage: services can generate a great residual income because the client may want to hire your services again and again.
• Disadvantage: On-line services are constantly changing, you must be ready to advance quickly with a constantly changing technology and market.
• Disadvantage: you are limited to a modest income because you can provide only so many services each day (unless you hire employees to perform services for clients).

Selling a product online has, by far seen the biggest profit potential in the long run. Once you get a successful product, you can automate the system and move on to new products that will generate multiple streams of income.

Providing a service is the fastest way to produce instant income... however it will rarely pay off as big, in the long run, as selling a product with a high profit margin. If you sell a service, think about how you can transform it into a product.

Sell what people WANT to buy.

Or... has your own profitable Web site just been a dream until now? Well, everyone's an expert on something! So... Think! Brainstorm a little. Can you offer... world-class consulting services on your special area of expertise? special travel services, like bike tours through the Andes? Unique info-products, based on knowledge from your job or hobby? Multinational corporation? Entrepreneur with an idea?

Avoid finding a product and then trying to find a market to sell that product to. Finding a market that needs a product and then creating a product or service to fill that need is ideal.

Product Examples.... do these fill a need in today's market?

Starting Your Own Jewelry Business (actual product/business "opportunity")

Web Marketing and The Search Engine Intelligence Report! (Internet service)

MeMail.com (affiliate based - "free service")

Why do diet Infomercials work… why does exercise equipment sell… because people want to be thin! They don't "need" to be thin, they "want" to be thin. People want these "solutions" to their problems and they buy them… plain and simple.

Summary:

STEP 1 -- Develop a great product or service: Developing a great product or service is important for success no matter weather you choose the Internet as your main selling outlet or not. It is up to each person or business to create their own Product or Service. There are Resale businesses available through the Internet. You may create a website to resell popular products such as shoes or other name brand items.

STEP 2 - Build a site that really sells: Get an HTML editor and everyone is a website designer?!!! Well, get some oil paints and everyone is a great painter! Maybe... looking at what is selling for art in major Galleries -- everyone is an artist! That's OK. If you are a creative person and would like to jump into designing your own sit, you may visit our Basic Website Design - on-line tutorial. If you are looking for a professional designer, and website hosting company you may visit our Professional Web Design Service Site.

STEP 3 - Attract targeted traffic to the site: Submit to Search Engines. Banner Exchange Programs, WebRings, News Groups, News Letters etc.... Discussed in Marketing your site!

Recommended Reading

Data Mining Your Website by Jesus Mena -- Data Mining Your Website will teach you the tools, techniques, and technologies you'll need to profile current and potential customers and predict on-line interests and behavior. You'll learn how to extract from the huge pools of information your website generates, insights into on-line buying patterns, and how to apply this knowledge to design a website ....

THE savvy way to successful website promotion; Attracting on-line traffic; Guide to top positioning on search engines by Derek Galon -- This comprehensive guide to do-it-yourself Web promotion and successful on-line business, can be your most valuable assistant on the difficult way to real Web success on a small budget. This is a book on Web promotion...