Friday 23 May 2008

Home Based Business; Factors Affecting Profitability

The one question most people considering embarking on a home based business ask, is how long it will take them to start earning significant sums of money online?

The sales pages of numerous opportunities available today make bold claims of how people in their organization made enormous amounts of money in record time.

While one cannot discount these claims, the onus is surely on the one evaluating the opportunity to check whether such claims are credible.
It is possible to become very rich quickly online, but I think too much emphasis is put on the money aspect. I will prefer to concentrate on the process rather the end product.

The viability of the process or strategy that you deploy will decide how quickly you will become successful online.
The process comes down to two basic points, assuming you already have an opportunity that will interest people and costs relatively little to get started.
1) Website Traffic
2) Your Prospect List

Website Traffic is crucial to any online business, like in the traditional business world. The more people you can get into your store, the greater the chances are that they will purchase something once they get inside. The online world is no different. How you get targeted traffic to you website and quickly are probably the key to profitability on the net, especially if this can be done via the search engines (free advertising). Quality traffic to any website is usually determined by the content available.

The second factor is your list because it is easier to sell to people who have an established relationship with you and have earned your trust than a complete stranger. This more likely if you try hard to help people solve their problems. You must always remember that most people go online seeking to solutions to problems. They are not necessarily seeking to purchase a particular product or service. It is just that they are more likely to do so if it serves an immediate need.

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