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WEBSITE MARKETING

Business Opportunities Online
By: Developer Shed
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    2004-02-18

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    Business Opportunities Online
    by Pavel Lenshin


    ------------------------------------------------------------
    copyright (c) Pavel Lenshin
    ------------------------------------------------------------


    To get the most from informational era you should have deal
    with digital products. Information stored on the data medium
    is the major representative of that kind of products. Let me
    specify some of the beneficial features information
    possesses as an intangible substance:
    * No direct maintenance expanses.
    * No overhead expanses on additional producing, copying and
    distribution.
    * Truly unlimited supply.
    * Relatively easy and quick ways of delivering.

    Don't you think that these features are forming God Blessed
    Business? There are lots of opportunities of dealing with
    tangible products using the power of Internet through
    wholesale distributors and drop-shippers, but the
    perspective of dealing with not only customers but the
    suppliers and of dealing with not only payment charge backs,
    but a tangible product charge backs as well, makes this
    opportunity not so appealing to the online business
    newcomer. Besides the profit margin and therefore your
    income on any info product is always higher.

    BUSINESS MODELS ONLINE.

    So the conclusion of starting new informational online
    business is obvious. Let us quite briefly examine the most
    popular opportunities here. Among them are:

    1. MLM.
    2. Affiliate programs.
    3. Private eBusiness.

    1. MLM "opportunity".

    The word "opportunity" in the headline of that section was
    taken at the quotes because MLM is more likely to be the
    opportunity for its owner rather then participants. But let
    us look into it step-by-step.

    One of the alluring prospects for any online newcomer is the
    target of "being-your-own-boss". Internet is a virtual
    economy, with virtual employers, employees, virtual
    corporations, partnerships, and private businesses. MLM has
    its own organization structure with respective bosses,
    administration, clerks and so on. The shocking fact about it
    is that the people are eager to change their 8-hour off-line
    job to 12-hour on-line job for the same but virtual boss,
    usually to be paid much less! But wait, that's not the end
    of the story. MLM members, as we know, actually pay their
    "bosses" for the "right" to work for them. Do you imagine
    paying your "off-line" boss $20-70 monthly only for the
    right to come to your office and work for him? Why not? If
    you and your colleagues pay that money, your boss will be
    twice more kind with you than any up-line MLM team leader.
    Try :0) A very good question to ask in any business endeavor
    is: What am I paying for?

    Efforts to take, money to spend:

    * You are not supposed to run and support a personal
    web-site (page) promoting MLM, but these chances of success,
    in that case, are greatly decreased.

    * Recruiting people is crucial and it forms the main
    business task you should fulfill. In other words you have to
    sell "virtual MLM success", what is much more harder than
    selling any real services or products that have their
    perceived value. Product sales are subsidiary in any MLM.

    * Usually, your right to earn in MLM will include entry
    and/or monthly fees. Plus buying their products is also,
    quite often, a must for working and earning in any MLM.
    Your earnings are divided between you and your up-line. The
    more greedy mouth you have above, the less will rest for
    yourself :0).

    * MLM participant is more likely to be an MLM employee, who
    should keep on referring people to see any residual income
    at least in 3 months, more often, a year. If the
    participant enters and starts working on a second MLM
    "opportunity" his or her work in the first MLM won't have
    any progress.

    2. AFFILIATE PROGRAM opportunity.

    Affiliate programs are the entry level of cooperation in
    business. The highest (and the most profitable) level of
    partnership between businesses is join ventures. Next step
    is only to business acquisition or merger. Business
    cooperation takes its roots from the times of primitive
    communal society, when a hunter made a bargain with a
    fisherman to provide him with a part of his pray for the
    share of the fisherman's catch.

    Now it is a worldwide practice to attract third party
    sellers for the share of generated profit in order to extend
    sales volume focusing on the new products development or
    clients servicing.

    The affiliate seller in that "game" is also in funds. By
    selling other people's product affiliate earns a commission
    without hassle on producing, managing and servicing
    anything.

    Some features which were considered to be the benefits of
    the MLM business like commissions on sales made by referred
    members of the third level have been implemented in some
    affiliate programs, creating so-called two- or three-tier
    programs, but in contrast with MLM the business partner
    isn't obliged to pay membership or any other fees.

    Efforts to make, money to spend:

    * You are not supposed to run and support a private web-site
    (page) promoting third party product, but the chances of
    success, in that case, are greatly decreased.

    * Your earnings strictly depend on sales you and, sometimes,
    your referred affiliate have made. The percentage is usually
    not less then 5% and not more then 60% per sale. The more
    retail price is, the less commission percentage you will
    have. The most popular commission now is 20%-50% on info
    products.

    * No need to pay entry or monthly fees. You as well as
    affiliate program owner may make additional investments on
    services or products, but they do not directly concern your
    affiliate business cooperation.

    * Any affiliate operates as an independent business entity
    and has a database of potential customers, may result in
    simultaneous marketing of as many affiliate products as
    wanted, earning commissions on them all.

    3. PRIVATE eBUSINESS.

    As many times marketing experts have said, you will find no
    "Guru", who build their internet empire by marketing
    exclusively other people's products or participating (not
    owning) in a MLM. 99,9% of them have their own products or
    services to sell. Only having 100% of private rights could
    bring you 100% of profits on any effort you will make.
    Especially when you're at the beginning of business highway.
    Internet is a perfect workplace where your income exactly
    equals to the work input you've made. You have full control
    not only on product or service to sell, but something more
    vital, credibility building and creating the community of
    loyal customers. Once again, especially, when you are
    setting up your first eBusiness.

    Efforts to make, money to spend:

    * You have to create (or order) business web-site (page) as
    a representation, advertisement, selling and
    customer-servicing platform of you business.

    * Your earnings strictly depend on the sales you've made.
    Any sales bring you 100% income. The setting up of affiliate
    program, based on your offer, could also increase your
    market and profit exposure allowing you to create indirect
    income.

    * Any dime you will spend building your own empire is an
    investment in yourself and your business. It means that for
    any monetary unit you will get a service or product, which
    brings the actual value for you and your business. Unlike
    consumer spending, any investment is intended to earn you
    the interest with time.

    * Private business operates as an independent business
    entity. Automation of business processes could make your
    hands free for creating second, third etc. business entities
    or divisions. The more products you sell the more residual
    income you will have.

    NEWCOMER eBUSINESS PROSPECT

    Without any doubt private business beats any other
    opportunity on the first step of wealth building on the net.

    The most reasonable steps should be:
    * Setting up private venture or partnership to double the
    efforts as well as profits. If your share in partnership
    structure is 50%, you may probably earn initial 100% on your
    work as the income of your business is also supposed to
    double.
    * Long-term online incorporation implies stages of
    popularizing your product, trade mark, creating virtual
    community of grateful customers, and spreading positive
    business image.
    * Establishing your own affiliate program to maximize market
    exposure and profits.
    * Joining third party affiliate programs that reflect your
    best interest and promote their products to existent
    customers for immediate results.
    * Having residual cash flow you may consider joining MLM.
    You have customers and business income to spend. But in that
    stage more astute action to take is to organize your own MLM
    venture based on products you sell. In that way you will not
    get "hurt" by spending money on an up line and guarantee you
    true MLM "success". What should be thought over here is the
    possibility of hurting your clients what, to my mind, isn't
    worth any MLM income you may have.

    Accomplish these steps and you will guarantee financial
    freedom for yourself, your closest relatives and children
    for many years ahead. Start your own business by investing
    necessary time and money in you and your business. If you
    do, the life you are dreaming about will find you very soon.

    ------------------------------------------------------------
    Pavel Lenshin is a publisher of NET Business Magazine,
    professional web-developer and CEO of:
    - http://ASBONE.com/ - informational portal and provider of
    discounted internet services for entrepreneurs, including
    internet access, web-design and hosting;
    - http://InfoAlchemist.com/ - a must-have business library.
    ------------------------------------------------------------

    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.

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