Why Do Only 5% of Online Business Succeed?

by Lily White
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So, you see one of those advertisements that have a picture of a nice shinny red sports car parked in front of a huge, beautiful mansion. Underneath the picture in big bold letters are "YOU COULD MAKE $ 20,000 A MONTH WITHOUT GETTING OUT OF BED !!" You get psyched and invest a small investment that include: your very own customized website, some so called "hot" leads, and / or a fee to some internet marketing company that promises to get your website to the top of the search engine in no time. Visitors drawn to your website like flies; and money flows into your bank account like a river that flows down stream. And "BOOM!" your dreams have come true! OK, enough with Fantasy Land.

Now for a reality check, it is estimated that 95% of online businesses fail. That means that only 5% succeed. No joke!

The internet has become an integral part of our daily lives. People from all over the globe have centered their lives around the internet. For this reason, the internet has opened doors for those who have always wanted to start their own business but could not afford the huge capital that is required to start up an offline traditional business.

The internet has allowed a person start a business with a small investment, have potential to make a high profit margin, with little overhead. Technology has minimized the cost to advertise online. You could reach a wider audience for way less money than you could with traditional advertising media such as radio, television, or publication.

While there is no surefire guarantee for an online business success, here are some suggestion on how to increase your chances of becoming a part of the 5%:

1. Research before you invests. Taking the time to research a business will save time and money. You might want to see if the business is legitimate. There are a lot of scams. If the business is legitimate you need to see if the business is right for you. What I mean is this; there are various forms of online businesses such as auction business, multi-level marketing, promoting affiliates, etc. Just determine what your interest is and what avenue you would like to take.

2. Develop a business plan. When starting an offline business you have to have a business plan. Most lending institution will not give you a time of day without one. Starting an online business is no different. You need a map to know where you want your business to go and how to get there. Write down your short and long- term goals; and how you will achieve them.

3. Time Management is very critical. You will not make $ 20,000 a month not getting out of bed. Who's going to run the business? In the world of self- employment, time is money. That means you make money based on results. The better the results, the more money you make.

4. Your online business needs your participation. Owning an online business will require your participation in the day to day operations of the business, such as making sure customers get their orders in a timely manner; calling and following up on prospects; making sure your website has update and current information, etc.

5. Increase your knowledge. You could shorten your learning curve through education. Start subscribing to ezine and newsletters, you could get a great deal of wealth of information; read e-books (some are free!), Blogs and offline books; listening to CD's; and attend seminars (some will allow you to attend online).

6. Invest in your business. I read somewhere that you can start an online business with no money. Many of the marketing programs do offer free services. However, it will take your business forever to get off the ground. You are going to have to invest some money into your business. Investing into your business could mean faster results and higher profits, provided that you find the right tools for your business.

7. Be creative. Creativity is the soul of a business. It is what gives the business life because it is what makes the business unique. You could sell the same products as other online merchants. But what makes your products so special? Because of the simplicity of starting an online business, the competition is fierce. Through creativity, learn unique ways to market your products. Do be afraid to take risk.

8. Build it and they will come. The internet is an ocean full of websites. If "they" do not know your website exist, "they" will not come. You have to advertise to increase your presences. There is a lot of different internet marketing methods it's just finding the right one that fits your business and your budget.

This article is not to discourage you from pursuing your dreams of owning your own business. It is possible to make $ 20,000 a month. But it will take dedication, hard work, educations, and constancy.

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