Small Business Tips For Success: The Feast Or Famine Business Model
The feast of famine business model merely refers to my personal perceptions of certain prevalent business models you or anyone else might likely find while searching for a business to join online.
Most often employed by many high cost or “high ticket” programs and products online, this model for business would most accurately be described as a recipe for disaster.
The underlying premise being, at say $1000 a sale, how many sales would you need to make a return on your investment, quit your job, buy a house, etc., etc. Feast or famine…
For those with a proven track record of success online, more often than not the case for them will be feast. For those with the skewed perception that any kind of success, be it success online or success in general, happens over night; I see famine in you future.
Small Business Tips #1: Operating your business on the firm belief that x amount of traffic will generate y amount of conversions without the market research to prove it will cause you nothing but grief.
The best way to avoid falling prey to a feast or famine type scenario is to do your homework, and make sure that the numbers support your efforts.
For PPC (pay per click) marketing, be sure to track, track, track, everything. By using tracking links in your ad campaigns you can determine your cost per lead as well as your cost per sale along with your cost per click/click thru percentages provided by you campaign provider.
Small Business Tips #2: Next, estimate the value of each sale. If the income is residual, what’s the retention rate of your program or down line? Once you can place a decent estimate on how much each sale is worth and you’ve calculated your cost per lead per sale, then and only then are you in business.
Flying blind with your marketing dollars in hopes that good fortune will smile upon you is far to fanciful a notion to actually be effective. Be sure to track all your marketing efforts so that you can be aware of what works and what doesn’t; as well as what could use improvement.
Small Business Tips #3: To some, the entire notion of feast or famine may seem a bit much like some savage struggle for survival set in the most unforgiving of landscapes. To those individuals, I would suggest that in the time it’s taken them to form said opinion, they have most likely dropped an additional notch or two on the food chain.
Business is extremely competitive by nature. The best strategy for success is to always try to ensure you happen to be among the biggest fish in the smallest pond I can find i.e. research and niche marketing.
Small Business Tips #4: In summary, I’d say that most endorsements of unrealistic and unfounded business practice work off the premise that people in general will always take the path of least resistance; forever hoping to not only get something for nothing but, attain great success with little effort on their part.
A very lovely notion, but so is the lottery; and your odds would probably be about the same. Unfortunately, I’ve found out (the hard way), that internet business is not the financial freedom vending machine I was led to believe it was. For every few dollars I put in I have yet to find happiness wrapped in $100 bills (although I do remain hopeful).
Be sure to treat your business more like a business and less like a lottery and you are sure to do well.
Showing posts with label Tips For Success. Show all posts
Showing posts with label Tips For Success. Show all posts
Thursday, June 25, 2009
Online Business Tips For Success - Charting The Right Course Across The Ocean Of Online Opportunity
Thinking in terms of your typical “how to” approach to online business opportunity, those immortal words branded as the “boy scout motto” come to mind. Namely; “Be Prepared.” Just as many a weather beaten “the sea is a harsh mistress” sea fairing captain will tell you (not that I know any, Just speculating here), preparation is the key to weathering any storm.
Online Business Tips #1: By preparation, I don’t mean to imply that by completing a few tasks here and tying up a few loose ends there, that the job of preparing is something that you can forever leave in your wake.
If anything, the steps you’ll take to prepare to launch your business will be much more like a routine that you’ll maintain to be certain you’ve battened down all your hatches so to speak.
Online Business Tips#2: Steps like market research to determine income generating potential, financial planning and promotion budgeting, mission statement and company vision; these are all constantly changing values which need to be assessed on a periodic basis.
Much like checking a compass every so often, just to make sure you’re still on course.
These types of measures will make sure that your operation stays afloat and avoids running aground.
Online Business Tips #3: One of the best pieces of advice I or anyone else can offer to those preparing to embark upon their maiden voyage in online business is this; learn as much as you can from as many different sources as you can before you decide to commit to a particular course of action.
Take a lap around the harbor before you set off around the globe…
Online Business Tips #4: What I mean quite simple. Take every given opportunity to minimize your risk as well as increase you knowledge base.
I you intend to develop the most incredible product the world has ever seen and completely revolutionize life as we know it. Good for you.
However, you may want to reduce you initial risk by trying your hand at several affiliate programs first. This way, you gain the experience of marketing products without having to invest as much time and money in product research and development.
Taking the same piece of advice a step further, you should definitely invest time and perhaps a few bucks to learn more about how to market a product before you spend any cash on an advertising campaign.
If you stick to these basic guide lines, you’ll quickly find yourself in the favorable position of knowing what to market, how to market it, and how to leverage all the information you’ve gathered to create the greatest return on your investment.
So, don’t just take any one persons word for anything, not even mine (I think), see for yourself. That’s the real beauty of the working online and this new age of information as many call it.
Online Business Tips #5: A literal fountain of knowledge is constantly available to you, just at your finger tips. All of the information you find may not be as accurate as it could be. But, such is the nature of any medium that allows so many to voice their thoughts and opinions.
It’s really up to you to decide for yourself what pieces of information are useful to you and therefore worth keeping.
I hope that this little blurb has helped to inspire those of you who are still on the fence about taking the plunge and perhaps provided some useful tips for those who are already sailing off into the horizon.
Information's pretty thin stuff unless mixed with experience.
Online Business Tips #1: By preparation, I don’t mean to imply that by completing a few tasks here and tying up a few loose ends there, that the job of preparing is something that you can forever leave in your wake.
If anything, the steps you’ll take to prepare to launch your business will be much more like a routine that you’ll maintain to be certain you’ve battened down all your hatches so to speak.
Online Business Tips#2: Steps like market research to determine income generating potential, financial planning and promotion budgeting, mission statement and company vision; these are all constantly changing values which need to be assessed on a periodic basis.
Much like checking a compass every so often, just to make sure you’re still on course.
These types of measures will make sure that your operation stays afloat and avoids running aground.
Online Business Tips #3: One of the best pieces of advice I or anyone else can offer to those preparing to embark upon their maiden voyage in online business is this; learn as much as you can from as many different sources as you can before you decide to commit to a particular course of action.
Take a lap around the harbor before you set off around the globe…
Online Business Tips #4: What I mean quite simple. Take every given opportunity to minimize your risk as well as increase you knowledge base.
I you intend to develop the most incredible product the world has ever seen and completely revolutionize life as we know it. Good for you.
However, you may want to reduce you initial risk by trying your hand at several affiliate programs first. This way, you gain the experience of marketing products without having to invest as much time and money in product research and development.
Taking the same piece of advice a step further, you should definitely invest time and perhaps a few bucks to learn more about how to market a product before you spend any cash on an advertising campaign.
If you stick to these basic guide lines, you’ll quickly find yourself in the favorable position of knowing what to market, how to market it, and how to leverage all the information you’ve gathered to create the greatest return on your investment.
So, don’t just take any one persons word for anything, not even mine (I think), see for yourself. That’s the real beauty of the working online and this new age of information as many call it.
Online Business Tips #5: A literal fountain of knowledge is constantly available to you, just at your finger tips. All of the information you find may not be as accurate as it could be. But, such is the nature of any medium that allows so many to voice their thoughts and opinions.
It’s really up to you to decide for yourself what pieces of information are useful to you and therefore worth keeping.
I hope that this little blurb has helped to inspire those of you who are still on the fence about taking the plunge and perhaps provided some useful tips for those who are already sailing off into the horizon.
Information's pretty thin stuff unless mixed with experience.
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