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Why Most People Fail to Make Money Online

Written by: Zeke Camusio

Article Overview: Internet is, in my opinion, the best tool ever invented. I just love it. It has made starting companies a lot easier. However, most Internet companies fail to make any money. Why is that? Is starting an online business different from starting any other business? Yes and no. Yes, the technologies change. And no, most basic principles still apply. You still need to understand your target market, learn what they want, and provide them with it in a cost-effective way. You still need to learn what their buttons are and how to push them. You still need to know about finances, leadership, management, marketing, and sales.

Why Most People Fail to Make Money Online

Don’t think for a moment that just because you open a store online and Internet reaches the whole world people will buy from you. Venture capital firms call this “The China Myth” because so many entrepreneurs pitch investors on the idea that all they need is 1% of the Chinese market to be successful. The question is “How do you plan to sell to that 1%?” Don’t even think that because so many people have an Internet connection and you open an online store “someone will bite”. It just won’t happen unless you make it happen.

As an Internet Marketing consultant I’ve spoken with several people who start an online business, a month later they haven’t made enough money, and they decide that the business was a bad idea so they start a new one. Another month down the road they are in the same place. Nothing happens.

So many people are always looking for the next “hot” thing to do, the next “hot trend”, the next easy way to get rich overnight… so many people follow the so-called gurus who make money online by selling them e-books on how to make money online!

Don’t give up so easily. When you start a company, work on it until it becomes successful. Don’t give up after a few weeks. The truth is that a couple of weeks aren’t enough to figure out the right business model.

Another mistake I see often is people thinking too small and not considering the monetary value of their time. A woman told me the other day “I have an online business. Last month I made a profit.” When I asked her how much money she made and how much time she invested she said “I made $45 last month and I usually work 3 hours a day.” After doing the math we figured out that she was making $0.68/hour. McDonalds pays a lot more than that. I said “Good, that’s a great start. Now let’s think big.” and we went over a plan that helped her make $1,500 the next month. Your time is worth money. If you want to become rich overnight or make some easy money, don’t waste your time. If you are determined to building a solid business, Internet is one of the best things that could ever happen to you.

One last thought. I often see people spending 80% building a website and 20% promoting it. You should do it the other way around. If people don’t know about your website, your website doesn’t exist.

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Article Tags: bad idea, business model, chinese market, e books, easy money, enough money, gurus, hot thing, how to make money, internet connection, internet marketing consultant, investors, math, mcdonalds, mistake, monetary value, myth, pitch, venture capital firms, worth money



Related Forum Posts
Re: What inspires you? - Another inspiring thing is which I really likes "Most People Fail because, their dreams are small". Most people like to engage with something or teh other. If they can truly listen to their inner voice and work towards achieving it, then you can see "miracle in action". So, big changes happen, when you think BIG. If you cannot to think BIG, you cannot do BIG things too. Robert
Re: We Have Another One... - Right after posting my last message I went to the online businesses section and noticed he had posted again since earlier. There are now 2 posts of his in there. At the time of writing this they are the top 2 posts in that section so they should be easy to find. I have also reported them both. I checked one of them and found many copies of it on different forums. One of them was the warrior forum and someone replied to it saying this... [quote:12zan0h6]This has been copied/pasted from Ideas To Make Money Online This guy also tried spamming my forum this way too, was banned quick - strongly advised to check his other 9 threads/posts I can almost guarantee if you google the first sentence you'll find more [EDIT: confirmed - all except his first are pasted from other sources - spamzer]. You'd think randomizing usernames would cross their minds...[/quote:12zan0h6] By the way, the ones on other forums are from journeyoflife7 (without the extra 7 that the new poster here as) which is the same as the one who was banned here. So it is definitely the same person, which means journeyoflife77 should also be banned. I already knew it had to be the same person but this confirms it.
Re: UPDATES: New Campaign! New Layout! New Ideas! - [quote="Ringo So":2696kbgu]Trent - It's actually a sub-forum within the "Making Money in 2010" category. Please let me know if there are any troubles finding it.[/quote:2696kbgu] Nope, still don't see it. I see the Online Businesses forum but that has been there for a long time. Is that what you mean? I don't see any Internet Marketing section.
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Re: Quote of the Day - "The only people witho - Thanks for sharing this Evan, there are some very powerful quotes in there, I particularly like this one:- You are now at a crossroads. This is your opportunity to make the most important decision you will ever make. Forget your past. Who are you now? Who have you decided you really are now? Don't think about who you have been. Who are you now? Who have you decided to become? Make this decision consciously. Make it carefully. Make it powerfully. regards, Mal.


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