It is ironic that education system doesn't prepare anyone how to run a business. The education system is so focused on preparing you to be a worker- a part of 40-40 club. The club where you work 40 hours/week for 40 years.
In my earlier post, I pointed out that it is best to be involved in high paid commissions affiliate program. It is a concept based on work smart not hard. Always remember that you have to pick a product or service that is desired by specific niche.
It is important to stress that online business must focus on three essential elements religiously to generate regular income stream:
- Traffic – Promoting a webpage and to capture potential customers contact information
- Conversions – Turning customers into prospects over time via regular contacts
- Sales – Following up with prospects to complete a sales transaction.
Your first step in business is to invest money on promotions so that this will go on to generate leads, sales, future profits and future reinvestment. You will need to decide ‘how successful you want your business to be in the future and invest accordingly today.
So far so good. But most business owners ignore the important aspect- focusing on profits. It is true that every business is in operation with the goal of making profits. To generate continuous profits, your business must focus on top 20% of customers- because they represent 80 per cent of total business. This is known as 80/20 rule- the Pareto principle.
The significance of this approach is that once you have credibility with top 20% of your customers, you need to have additional products/services so they will want to get it from you. As a consultant, you can promote My Own Business Education (MOBE) powerful masterminds focusing on how to do business, how to protect assets and how to invest. The 80-20 formula is likely to push your clientele (including you) into top 10% of the population. You as a consultant will be part of creating wealthy generation in the future.
The online business has inherent advantage of not requiring large capital to start the business. That does not mean online business does not require marketing. The essence of business is continuous traffic. Your prime focus is in creating a viable system that will generate targeted traffic. If you wish to be successful, your business operation will require funds towards marketing efforts.
Most online entrepreneurs are unsuccessful because they rely on organic sales to generate profits. There have been few cases when people have attained super success using just organic methods- google, social media. But those successes are not norm. It is also true that just throwing large sums of cash for marketing may not necessarily yield huge profits.
Unfortunately for online business advertising you pay per click (PPC). You are buying clicks of your web link, not completed transactions. At the onset hardly anyone will buy, very few will leave their contact information and many will click on your link and decide to leave without ever making a purchase. In essence, with paid traffic you are paying for every click on your link, not just those who will spend money. Furthermore, due to nature of ever evolving online marketing, past performance does not guarantee future returns. The results of advertising are not predetermined. There are many variables which are beyond anyone’s control.
Though it may sound difficult, but in the long run online business pays off especially if you are involved in high paying commission affiliate programs.
More Checks Less Bills