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I’m with you Matte that I think it’s a pretty grim portrait.

However I think this serves as a good wake-up call to a lot of people who may be under the impression that “making money online is easy”.

A lot of people chose to start online businesses versus brick and mortars because the start up costs are far lower.

And while I think this is still true- people need to think very carefully about the type of online business they get in. This leads us to all the buzz about niche sites which may be one of the best (if not only) way to generate any real online revenues without spending lots of cash. Even then some will be required. Like the Gypsy said in another post, you still need to spend money online to make money.

Unfortunately I still see a lot of people who for example try to open “Online Shopping Malls”. If your direct competition includes sites like eBay or websites of major brick and mortar retailers (Best Buy for example)- I think your going to need some deep pockets.

Just because it may be cheaper and easier to setup an online store then a bricks and mortar doesn’t mean that any less research and thought should go into the preparation and planning.

Sorry, I should have linked to it.

I have had many people asking for site appraisals on the value of their online business (but what I really offer is a review, not valuation) because they have made several mistakes
1. thought it would be easy
2. Did not understand the time it takes to get firmly happening - some as soon as three months are looking to jump ship
3. Do not understand the basic apects of search engines, SEO, other advertising etc
4. Fill their garages up with stock = Investment=loans=interest= liability SAD
5. Complete in competitive areas, how many more jewellery, baby clothes women's clothes online retailers can we support - those that just use oscommerce etc to set up and wait for the sales

Yes there are significant savings to being online, but only if you do it smarter

here is an article I wrote on this just over a year ago

The secret of not going broke operating an internet business

There is a HUGE number of folks that go into web 'business' as a hobby.. or part time endeavor. That's a major difference from B&M - which better PAY you.. most folks don't go into B&M for part time employment or as a hobby.....

The internet is full of 'let's try this' folks.... there is rarely much in the way of profesional planning involved... with a B&M there is usually investors in the form of banks, family and friends or Venture Capital... you won't get that without a business plan (in most cases). The internet biz? I rarely have met folks with anything more than rudimentary planning behind it.

I rambled on about this stuff a year or so back - Internet Business Success

I also did an article on ' Internet Business Structure'  -- I am thinking about expanding that one.... maybe another handbook? he he.... some type of comprehensive, structured, type of guide would be handy....

Anyways... you'd be amazed how many folks go into B&M biz thinking it is easier than it is. Both have a fairly high turnover rate.. that's for sure...

Last edited by TheGypsy (2007-05-29 07:41:08)