Starting An Online Business With What You Know
If you are considering starting an online business, before selecting any one business think about all of the products or services you buy online and which ones spark your interest the most. As a basic rule of thumb, if you do not buy it or will not buy it online there is little reason to believe that many more people will buy it. A product that you have used, and are happy with, is probably the best chance for success in starting a home business.
The best way to sell any product is to have a full understanding of why people will buy it, not just that people do buy it, but the reasons they give for offering up their cash to own it. One of the top door-to-door cosmetics companies recruited their sales team not through fancy marketing plans and glitzy advertising, but through the users of their product. Once people became familiar with them and were repeat customers, they were offered the chance to purchase the merchandise at wholesale prices by becoming a distributor.
Many of them jumped at the chance as they could not only save some money on their own products, but could money by selling the great products to friends and neighbors. When you look through offers for online businesses you will want to consider if any of them can meet the same criteria. Is the product something that you personally have a use for and are willing to buy? Is it something your friends and neighbors would be willing to buy from you? Is it a good product at a fair price and has little competition?
If you can answer yes to these three questions, you should probably jump at the opportunity being presented. However, if you cannot envision a market, have no idea what the product does, only that you can make a fortune if someone, somewhere is willing to buy from you, then you will probably end up looking for another line of work. It is important to understand the market for the product and not only how you will make your first sale, but to whom.
How much potential customers are willing to pay for the product will depend on a number of variables, among them the real and perceived need for the product. Consistent hyped advertising often drives up the demand for a product, but once it hits the market if it doesn’t meet the customers’ expectations, plan on a bunch of returns as well as angry customers. On the other hand, if the market for a specific product is soft and demand is high, it can lead to lots of sales with very little profit.
For example, if you have found an opportunity to sell organic toothpaste that promises to whiten the teeth and eliminate gum disease and cavities, it may sound like a great product. With a price in line with many of the major brands you believe there may be a good market among people between the ages of 40 and 60, but market research also shows that many in that age group are already loyal to other brands and are not likely to change, dropping the price is one option. However, marketing with the objective of grabbing market share can bankrupt a company unless they first create product awareness based on its original price.