Online Business Help

  Homes arrow Online Business Help arrow Free is a great word, but It doesn't pay the ...
 Webmaster Tools
 
Base64 Encoding 
Browser Settings 
CSS Coder 
CSS Navigation Menu 
Datetime Converter 
DHTML Tooltip 
Dig Utility 
DNS Utility 
Dropdown Menu 
Fetch Content 
Fetch Header 
Floating Layer 
htaccess Generator 
HTML to PHP 
HTML Encoder 
HTML Entities 
IP Convert 
Meta Tags 
Password Encryption
 
Password Strength
 
Pattern Extractor 
Ping Utility 
Pop-Up Window 
Regex Extractor 
Regex Match 
Scrollbar Color 
Source Viewer 
Syntax Highlighting 
URL Encoding 
Web Safe Colors 
Forums Sitemap 
Weekly Newsletter
 
Developer Updates  
Free Website Content 
 RSS  Articles
 RSS  Forums
 RSS  All Feeds
Write For Us 
Contact Us 
Site Map 
Privacy Policy 
Support 
 USERNAME
 
 PASSWORD
 
 
  >>> SIGN UP!  
  Lost Password? 
ONLINE BUSINESS HELP

Free is a great word, but It doesn't pay the bills...
By: Developer Shed
  • Search For More Articles!
  • Disclaimer
  • Author Terms
  • Rating: 5 stars5 stars5 stars5 stars5 stars / 1
    2003-08-09

    Table of Contents:

    Rate this Article: Poor Best 
      ADD THIS ARTICLE TO:
      Del.ici.ous Digg
      Blink Simpy
      Google Spurl
      Y! MyWeb Furl
    Email Me Similar Content When Posted
    Add Developer Shed Article Feed To Your Site
    Email Article To Friend
    Print Version Of Article
    PDF Version Of Article
     
     

    SEARCH DEV MECHANIC

    TOOLS YOU CAN USE

    advertisement

    Free is a great word, but It doesn't pay the bills...

    By Terry Dean

    One of the most recognized and endorsed types of online businesses has always been the "Free Content" web site.

    A "Free Content" web site is a site which basically gives away information or free tools to generate a large audience or a large community of users.

    If you were to listen to some web experts, you would think that all you should do at your site is give away free stuff.

    These "experts" have the idea that if you give away enough stuff for free, then you can build a site with loads of traffic. You can then sell advertising for millions of dollars.

    There is only one problem with this idea.

    If all of the traffic at your site is only there to pick up free stuff, then they won't buy anything from the advertisers.

    The advertisers lose money. Eventually the advertising money dries up and you don't have a profit model for your site anymore.

    Only the top 100 or so web sites on the net are able to currently make a decent profit selling advertising space to their audience.

    The rest of the millions of sites out there following this model are quickly finding out that just having free content is not enough to build a successful Internet business.

    Yahoo.com is an example of a successful site with free content following this model. They have a directory, articles, news, weather, chat, forums, and everything else you could possibly imagine for a free content site.

    Yahoo is the King of Content sites. They have been around since the early days of the Internet and are one of the few major corporations who actually earns a profit online.

    Yet, even they are considering changing to a Paid Membership Model For Some of their Content: http://www.roibot.com/w.cgi?R249_YAH

    Am I suggesting that you should never give away freebies? Not at all...I still use quite a few freebies of my own including this article you are reading now.

    What I am suggesting is that you shouldn't be giving away freebie after freebie hoping to just build traffic at your site.

    Every freebie you offer should have a specific goal in mind. In other words, you should be thinking about how this freebie will generate more customers for products and services you are selling.

    Below are two ways to turn web content into profit...

    Model #1: Joint Venture Endorsements

    Instead of just selling banner ad space or text ads on your site, use that same space to make deals with companies you feel good about recommending to your customers.

    Then, do personal recommendations of these companies products or services. You will find that the response rates they will receive from a personal endorsement from you will be three to five times what they would have received just buying ad space from you.

    This will turn your dead ad space into a cash generator. In most cases you will also be receiving a lot more money through doing these joint venture deals than you could have ever received selling out the ad space.

    You may have sold ad space at a price of $20 per 1,000 impressions...if someone was willing to pay that. By signing up with an affiliate program and personally endorsing them, you will be able to make much more than this without worrying about having to sell out your ad space.

    For example: If you signed up with an affiliate program paying 30% on a $100 sale, you would get $30 per sale. If the endorsement you gave only gave them a 5% click through rate (very low for an endorsement) and a 5% sales rate, you would be having 2.5 customers per thousand impressions for a total of $75 for the same ad space.

    This would have been done without ever having to worry about dealing with advertisers, credit cards, or anything else. The affiliate owner would have taken care of the worries for you.

    If you have a high traffic site or some type of other leverage, you can also make special partnership deals with your endorsements.

    Instead of just signing up for an affiliate program, contact a merchant who has a product you know your customers will love and make a special deal for them.

    Get the merchant to offer a discounted price, an extra special bonus, or some other type of offer to your customers only. Then your response rates will be much higher at your site than just the regular affiliate program link.

    Model #2: Paid Membership Sites

    This is the next eventual step for online content. General information such as news, weather, etc. will always be free.

    Specific and highly specialized content has started moving over to a paid membership model.

    Instead of giving away their hard to find content for free, membership sites now charge either a yearly or a monthly fee for access.

    Most of them charge anywhere from $39 to $4000 per year or $9.95 to $150 per month just to see their cutting edge content. The more specialized and valuable the content, the higher of a price you can expect to pay.

    For example, if you planned to join a "Day Trading" membership site, you can expect to be paying near the upper limits of the scale at $150 a month or more.

    If you joined a "Brittany Spears Fan Club" you could expect that to be at the lower end of the price range.

    Either way, you can expect that more and more sites are going to follow in the paid membership path.

    Some people don't believe paid memberships will last, but they also originally didn't believe people would pay for cable TV.

    TV Networks were originally free. Then cable stations came out and the major networks of ABC, NBC, and CBS thought it was an absolute joke. They didn't think anyone would be willing to pay for something which was originally free!

    How many US customers aren't paying for some type of cable or satellite service now?

    Information on the Internet is going to go in the same direction. General information will always be free, but highly specialized up to date information is going to cost you.

    If you can become the producer of this type of information, then a paid membership site will be the best way for you to profit online.

    -----------------------------------------------------------------------------
    Terry Dean, a 5 year veteran of Internet marketing, will Take You By The Hand and Show You Exact Results of All the Internet Marketing Techniques he tests and Uses Every Single Month" Click here to Find Out More:
    http://www.netbreakthroughs.com


    DISCLAIMER: The content provided in this article is not warranted or guaranteed by Developer Shed, Inc. The content provided is intended for entertainment and/or educational purposes in order to introduce to the reader key ideas, concepts, and/or product reviews. As such it is incumbent upon the reader to employ real-world tactics for security and implementation of best practices. We are not liable for any negative consequences that may result from implementing any information covered in our articles or tutorials. If this is a hardware review, it is not recommended to open and/or modify your hardware.

    More Online Business Help Articles
    More By Developer Shed

       

    ONLINE BUSINESS HELP ARTICLES

    - Social Media: An Analogy
    - Make a Digital Trail for Site Performance
    - Communication is Key Even in SEO
    - Look Past Your Web Analytics Blinders
    - Everything is Marketing
    - How to Be Transparent Online
    - Respecting Customer Privacy in Social Media
    - Testing Your Site For the Holidays
    - Speak Your Customer`s Language
    - Don`t Ignore Social Media
    - Focus on Business Goals, Not the Internet
    - Solve Problems to Make Money Online
    - Offering Coupons Without Alienating Customers
    - Build Relationships to Build Conversions
    - Online Reviews Matter More Than You Think

    Developer Shed Affiliates

     



    © 2003-2018 by Developer Shed. All rights reserved. DS Cluster - Follow our Sitemap