Why Do Only 5% of Online Business Succeed?

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 integrate 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 your business becoming 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 crucial. 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 requires your participation in the day to day operations of the business, such as making sure customers get thier 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 curb 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" don't 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.

Debbie Ford http://unlimitedincomegenerator.blogspot.com

A Guide To Making Money Online
For those people who want to make extra money working online part-time, theres no real limit to the amount of money that they can earn. The only limit depends on the amount of hard work they are willing to put into their new business. The best way to make money online will be different for each person. Some people will like selling products while o...

Why Internet Marketing?
Much has been mentioned regarding the hype about internet marketing. Many have tried jumping on the bandwagon but not all have made it. Is it really that difficult to succeed? Not if you follow a proven system. Better still, if you want to short-cut your way to success, find a mentor to guide you with his or her experience so that you do not n...

Home Based Internet Marketing Business - 100 Essential Tips For Success
I deal with home based internet marketing businesses and the people that run them (or want to) on a daily basis. Some of them succeed; most of them fail. I am a big believer in helping others achieve their dreams. One could construe my altruism as a fundamentally selfish behavior, because I do believe that the good I do will be returned to me tenfo...

4 Reasons To Develop Successful Mentorships
So many times I wonder why people fail. Maybe it is because I have done my fair share of failing. If I had a click for every time I started something just to ....You get the picture. Here you are trying to do it all by yourself. If you could do it all by yourself, I would be calling you at your new beach house in the Bahamas or on your new I-phone ...

Why Small Businesses Must Need To Accept Credit Cards Payments
For small businesses, one of the factors why they succeed or fail is whether or not they accept credit cards payments, online or offline.In order for a business to succeed, businesses need to accommodate to the wants of their customers. Most customers want a method of payment that is convenient for them. If you accept credit cards you'll give your...

Internet Marketing Tips - Why Setting Goals Will Help You Succeed
If you are new to internet marketing and you are working on your own you may be finding it hard to progress and start earning a decent living online so if you want to succeed you should seriously consider setting yourself realistic goals and targets that you can focus on.As with anything in life, if you want to achieve something its important to se...

Email Marketing - How To Succeed
Nowadays, everyone wants to know what it takes to succeed in email marketing? Of course that subject has had truckloads of information published about it. However, I thought I would revisit the subject and provide a short, succinct message on what I think it takes to succeed in email marketing. First, lets use common sense. Promoting your service o...