ONLINE BUSINESS


What is online business?

Online business — is the activity directed on obtaining the income by means of the Internet of technologies. In most cases, online business is reduced to creation, advance and monetization the site Internet. In this blog we will try to describe step by step process of creation, advance and monetization of the sites constructed on various CMS. Besides, we will make a number of experiments, that:

to define optimum CMS for a basis business online
to make effective strategy of advance of the site
to define safe ways of favorable monetization of the site

What technologies are applicable to online business?

The term "online business of technology", is as follows: a set of methods and methods for the solution of the set business challenge.
The following technologies are applicable to online business: technologies of creation the Internet of the sites, technologies of advance of the sites and online of advertizing, marketing technologies, is a lot of technologies from area of creativity and elementary accounting. Nevertheless, creation online of business demands use only of superficial part from them. Also it is possible, when using step-by-step instructions. All methods and strategy, will be checked experimentally on creation, advance and monetization of the sites. Also we will check efficiency of methods and strategy on various sites and we will find an optimum form and CMS a basis for creation of the site, as bases business online.

The feeling is created that now most of those who wants to open the first business, dream of online store. Here and there questions are audible: how to open online store, to decide on a niche, to choose a cursor, to find the supplier, to make the correct advertizing?

It seems to me that thirst for opening of online stores is connected with that to people hammered simple dream into the head: to work a little, to earn much. The beginning businessmen sleep and see how they will open online store, and further everything will go on the nakatanny: clients come, goods are bought, suppliers ship them from the warehouses, and the businessman only accepts money and has a rest somewhere on islands.

So it won't turn out. Rather another will turn out: at the price of improbable efforts you will create small online store, it will bring you in good months $50 000, in the bad — $15 000, you will spend on it all the time (days off won't be), you learn a lot of new about people (clients, couriers, operators on phone).

Why so most often occurs? Usually the beginning businessman hasn't enough money. And Internet advertizing already not such cheap and uncompetitive, as once.

For example, your shop works at the mass market. Most likely, one visitor of your site attracted through a contextual advertizing will cost about 20 rubles. If conversion of your site in sales about 1% (it is good, if it such), the client costs you $2 000. And how many you from it will earn? Whether you are ready to pay on 2 000 for everyone? Whether and if yes, remains to you for itself much? And whether there will be repeated sales, and if yes, that how soon?

Opening similar shop, it is necessary to know that the market of Internet sales in Russia tiny, much less the offline market. Working at the small market, you earn less money at the same efforts. Besides, online stores most often sell rather inexpensive things. Means, you will need many clients somehow to live. It is necessary to spend for work with them a heap of time, especially first: continuous sitting on phone (it is impossible to miss the client's call!), constant questions with couriers (I didn't come, I didn't take, I didn't return money, it wasn't polite with the client), continuous bustle without days off and holidays. And all for $40 000 a month which brings average online store to his owner.

Bad advice

Usually the beginning businessman hasn't enough experience. Therefore he trusts numerous courses which not always teach the correct things.

Often there recommend not to go to the mass market, and to choose a niche. Yes, the niche online store has no competitors, but there and not to make big money.

Internet gurus also tell that by means of modern lending it is possible to increase conversion of the site to 5% and above. For example, they say that if to add free consultation on the site, conversion will grow with 1 to 10%. Don't trust it at once — at first specify, what conversion they mean.

After all that will turn out as a result? We will make free consultation, we will spend a heap of time and money for the organization of call center, and as a result we will be called by 10 of 100 visitors, and will order goods also one client. That is sales will remain the same, and costs of service of calls will grow, but your adviser of it doesn't take into account — it increased to you conversion ten times!

At seminars often say that Internet advertizing is elementary in control. It is a lie. Competently not simply to adjust the same contextual advertizing at all, especially without experience in it.

There are agencies, you will tell. They for small percent (or in general it is free, at the expense of the commission from "Yandex") will adjust your advertizing so that everything will work at the machine gun and to bring in the stable income from your online business.

It not absolutely so. Good experts in agencies cost much therefore they are engaged in exclusively advertizing campaigns with budgets from $ N. The skilled expert won't be engaged in new online store. So, you will get on the beginner trainee who has 50–100 such shops as yours (respectively, he gives you one fiftieth or one 100-th working hours). About this situation and how it is possible to try to bypass it, it is very well written in Vasily Smirnov's book "A profitable contextual advertizing". I recommend to read.

What to do? Not to begin business in general? I recommend to begin the business in the B2B-market — these are sales to corporate clients, but not individuals.

Many companies are ready to pay good money to those who spends time and energy on the organization of sales for them (our partners in BodyREC earn very decent money because build sales of means in the region).

SPEND FEW MONTHS FOR studying as it is correct to work with corporate clients. For this purpose it is enough to read three-four books of Konstantin Baksht and to look at a LJ of real businessmen, for example Igor Belousov.

THEN it is NECESSARY to CHOOSE BRANCH in which there is a stable considerable demand and in which you though you understand a little. It is desirable to take not modern goods and services, and what are already consumed tens or hundreds of years and will be consumed further. Timber, plastic packages, a metalwork, concrete pumps is much more perspective than iPhones and kapkeyk.

FIND 10–20 COMPANIES which work at this market long ago, call commercial or to the CEO of each of them and suggest to bring them clients for percent from sales. At first you will look for clients independently by phone and then you will pass to online business.

In process of GROWTH of SALES AGREE about increase in a discount at suppliers, you will collect a pool of partners not to depend on one company. Will pass two-three years — and at you the healthy, growing, reliable and financially strong business which you created without $ investments — only at the expense of the free time and personal persistence.

This online business option has one minus. Unlike online store in which it is possible to create imitation of rough activity (to plan the site, to think of design, to choose suppliers and other), it is necessary to work much and diligent here. To make the way through refusals. To listen to impartial words about itself.

But eventually this way will lead you to success much bigger, than online trade. And then it is already possible to open also the online store.
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