Why do some websites fail as a business?
By Robin Porter
Unfortunately, the vast majority of commercial websites, big or small, are failing to make their owners any money. Of course, there are those which choose to be non-profit making, but sadly most, not by choice, fall into that category anyway.
If we can address the reasons why websites fail to be profitable, then you can stand a chance of preventing your website falling into the "non profit making trap".
An over reliance on affiliate schemes : Affiliate schemes have been a godsend for webmasters, allowing anyone with a website to earn extra income through them. However, they can rarely return enough to be the basis of a profitable business. Unless you're happy with part time money, you shouldn't rely on affiliate payments alone.
Virtual Malls : An affiliate program on a larger scale, these have become popular in recent years. However, unless they are specialized , they suffer from not being targeted enough. Unless you have the resources of Amazon.com, it's going to be hard work making it pay.
Poor products : The Internet is tailor made for entrepreneurs who make their own products. Unfortunately, there's often little quality control, but thankfully, people will eventually vote with their feet. Offer poor quality, and the Internet is unlikely to allow you to prosper.
Under delivering : Websites that under deliver and over promise can't hope to be profitable in the long haul. Because online, there's always an alternative choice.
Lack of promotion: "Build it and they will come" is a saying that just doesn't cut it online. Like anything else in this world, the customer must be first aware of you before he can buy.
Making it hard: Websites that make it hard for the customer, by not accepting credit cards or offering no guarantees are doomed. If you want to use the 21st century technology of the Net, then you must offer 21st century services too.
Ensure your website survives and thrives. Avoid the perils above and build it on firm foundations.
Copyright 2000 Robin Porter CEO RP Associates http://www.theinternetmarketingwizards.com/index.htm?art3010 - if you're really serious about making money online you should go. Many great marketing and promotion resources , including a FREE copy of “E-marketing Wizard” software application to really “Power Promote” your website.
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