osp article excerpt: getting online business profitable

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I've covered before how to leverage your product income, as well as the real basics to economics. But unfortunately, I can't find these links for you.Let's recap (quickly):I. Economics consists of four inter-related functions, not just two as is taught - Supply Demand Information ServiceDefined: Supply means having a valuable product, but also covers how much competition you have - if you are selling a commodity product (and so have to compete on price as well.) Demand - is anyone actually looking for your product and how much can they afford to pay for it. Information - are you actively promoting this product so people can find you? Service - are you delivering high quality, or schlock?These inter-relate: More promotion will increase demand. Low-quality will decrease demand - and if you are selling tainted peanut butter, can decrease supply as well. Non- or slow-delivery will decrease demand for your product. Information: An incorrect price (too high or too low) can affect demand...

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  • 1.Online Sunshine Plan Excerpt: Chapter I - Article 03 by Dr. Robert C. Worstell

2. Copyright 2009 by Robert C. Worstell. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system,or transmitted in any form or by any means, electronic, mechanical,photocopying, recording, scanning, or otherwise, except as permitted underSection 107 or 108 of the 1976 United States Copyright Act, without theprior written permission of the Author.Limit of Liability/Disclaimer of Warranty: While the publisher andthe author have used their best efforts in preparing this book, they make norepresentations or warranties with respect to the accuracy or completenessof the contents of this book and specifically disclaim any implied warrantiesof merchantability or fitness for a particular purpose. No warranty may becreated or extended by sales representatives or written sales materials. Theadvice and strategies contained herein may not be suitable for yoursituation. You should consult with a professional where appropriate.Neither the publisher nor the author shall be liable for any loss of profit orany other commercial damages, including but not limited to special,incidental, consequential, or other damages.This excerpt from Beta release 0.1 3. Table of ContentsOnline Sunshine Plan .................................................................... 0. Introduction...........................................................................1How to get the most out of this book ......................................6How this book is set up ...........................................................9 I. Purpose/Passion - what drives you, what makes you really happy? ..........................................................................12 Articles: ..................................................................................16 II. Business Basics ................................................................48 Articles: ..................................................................................54 III. Market Research .............................................................115 What is marketing? What is a market? ................................115 How to research for your community-market ....................118 Keywords, their care and feeding: Niches...........................122 Keywords, Their Care and Feeding: Finding Them ............127 A possible approach to keyword research ...........................131 The short version of keyword research - 9 steps: ...............135 The convention analogy .......................................................136 How search engines used to work .......................................139 Where to look for your keyword research - Part I - Basics . 141 Where to look for your keyword research - Part 2 - The Real World ....................................................................................144 Wheres the money? Im from Missouri - show me.............146 Finding and Building Your Community..............................150 Learning from the Experts in your Niche.............................151 Finding your way out of this wet paper bag ........................153 Articles: .................................................................................155 IV. Your Sales Funnel - ........................................................179Lining up your chickens .......................................................179Collecting up your eggs into baskets. ..................................182That narrow end of the funnel isnt, really. ........................184Copywriting - how to talk your walk ...................................187Articles: ................................................................................193 V. Search Engine Optimization ...........................................212Why do people think search engines are important? .........212Search Engine Myths ...........................................................214Strategies old and new .........................................................216 4. Names to follow and why .....................................................221 Recommended Products ......................................................221 Articles: ................................................................................222VI. Promotion .......................................................................242 Networking and Promotion ................................................242 Social Media Defined...........................................................244 The care and feeding of social media ..................................247 There is no ROI in Social Media Marketing .......................250 So how do you convert viewers to clients through Social Media? ..................................................................................252 Now for the Social Media All-You-Can-Eat-Buffet ............254 Write once, publish many ways, many formats .................260 Addtional Online Promotion ..............................................263 Offline and Classic Promotion ............................................266 Articles .................................................................................267VII. Summary ........................................................................310 5. The Online Sunshine PlanHow to get your start up small business (more) profitable.Ive covered before how to leverage your product income, as well as the realbasics to economics. But unfortunately, I cant find these links for you.Lets recap (quickly):I. Economics consists of four inter-related functions, not just two as istaught -1. Supply2. Demand3. Information4. ServiceDefined: Supply means having a valuable product, but also covers how muchcompetition you have - if you are selling a commodity product (andso have to compete on price as well.) Demand - is anyone actually looking for your product and howmuch can they afford to pay for it. Information - are you actively promoting this product so peoplecan find you? Service - are you delivering high quality, or schlock?These inter-relate: More promotion will increase demand. Low-quality willdecrease demand - and if you are selling tainted peanut butter, can decreasesupply as well. Non- or slow-delivery will decrease demand for yourproduct. Information: An incorrect price (too high or too low) can affectdemand. 23 6. Dr. Robert C. WorstellLately, I found there are some other terms floating around, which alsodescribe and actually combine economics and leverage - called MarketingMix. While I have to do another post to actually define this in non-gobbledygook language, you can see that these four economic principlesabove are actually a very workable description of how to set up your ownmarketing mix.II. Income Leverage - Most marketing is based on simple math - and is anumbers game. Some relevant facts: The bell curve predicts that most of your buying public will be onlyconsumers (until you turn them into subscribing clients). Additionally, this predicts you will have a base conversion of 2-3%(if you make no hideous errors in your sales copy.)Your profit (or any retailer) is dependent on a simple formula:Leveraged Sales - Overheador (Products x Sales x Outlets) - OverheadDefinitions: Products: Number of products you are offering. Sales: Number of sales you get per week or per day. Outlets: Do you only have one website? Overhead: Cost of doing business (payroll, webhosting, taxes).Examples: When you are selling one product per week on one site, you have aleverage of 1. If you increase the volume of that products sales to 100 per week onthat website, you have a leverage of 100. 24 7. The Online Sunshine Plan When you routinely sell 20 products 100 times per week - thisincreases to 2,000. If you get 100 affiliates selling your product, your leverage is now200,000.Now subtract your overhead and youll see that a brick-and-mortar storeselling one product per week will have to sell a very expensive product tocover its costs. This would be a high-end luxury car, or an expensive dressor suit. If you are selling one product on the web, you only have to coveryour item cost, shipping, plus your web host. Online is obviously cheaper.Sell an info product which is instantly delivered and is created digitallywhen it is sold - and your overhead is mostly just your web host cost.However, when you use affiliates to sell your stuff and give away 50% ofyour sales price as a commission, then you are trading half your profit onthose sales - which you wouldnt have gotten otherwise. So if you sell 2,000info products yourself at $20 each, thats $40,000 profit. If you get 100affiliates to sell them at half price, you just increased your profit by$200,000. But you didnt have to do anything except set up your affiliatesales to pay their commission after you delivered the product. $160,000increase in profit over doing it all yourself.Now, heres the Marketing Mix.That post on the bell curve above covers why you want to move over tosubscribers. Your conversion rate goes up from an average 2-3% upwards toabove 50% or more.This means that every time you add a new product to your shopping cart(and promote it to your list), you arent just increasing your leverage valueby 1 or 1,000 - you are also increasing it by a percentage of the number ofpeople on your list. So the new formula becomes:([Products x Sales x Outlets] x Subscribed Clients) - Overhead =ProfitAnd guess what - your affiliate sales outlets also have lists. So if you tellthem about your new product (and send them one so they can see how goodit is), then this can take your profits into a completely new range.Assuming 50% of the subscribers buy - and say cumulative you have about25 8. Dr. Robert C. Worstell100,000 subscribed clients between you and your affiliates - so take a new$20 product and figure that on release day, youll have about $20 x 50,000= $100,000+ profit in about