August 2010


Forums can help you learn…..

I have posted before about the value of visiting forums. I will just again suggest, that as you have some time, you take a look around to see what is there. I think you will be happy with the information that you find. There are threads about site promotion and copywriting. Some about coding, that is over my head, I am not big on the tech stuff. Plus information about different types of internet income sources.

http://www.v7n.com/forums/  
http://www.honestworkfromhomesuccess.com/index.php?referrerid=16386 
http://www.warriorforum.com/
http://www.marketersspaceforum.com/forum/index.php?referrerid=388

Although, some of the links are referral links, I get no money from sending you there.

I do get a good feeling if you get some help on your trip to the destination the you have chosen.

Till next time,

Jim Gillum

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(Part two of three)
 Some serious consideration…..
 

 

A few things to think about that can separate you from the sink or swim problems.

Do people want what you have to offer them? This is where your “marketing research” is involved.

Many times, a fairly good idea fails to produce a profit, because nobody wants to buy it. Search the internet to see what is selling. There are a few effective techniques that we will talk about later.

In product areas where there is competition, there is money to be made. People are buying the product and several people are selling the product.

Maybe it is a similar product, a different size, color or whatever but….people are spending money.

Here is where you can get stung and stung badly.

You have a great idea for a product; no one else has offered it for sale on the internet. If it is a new product, that solves a problem for your prospective buyer, you may be in great shape. If it is something that has been around for awhile and no one is trying for sales …watch out. The market may have long ago been saturated.

There may be such a small profit margin, that no one will market it to just make a few cents. Or maybe the product is so common that it can be purchased in the local stores for a cheap price.

Do your market research on your product……

A different twist…

Even a product that has been around for awhile can be sold if it is presented from a different perspective.

You could develop a new use for the product. You could provide new colors or unusual sizes. You could re-name, repackage and market the product as “new and improved”. It would be even better if you could actually improve the product.

There are many options.

Above all, avoid the deadly product trap. Do not fall in love with product. Be realistic and think like a businessperson. “How much money do I want to lose?” Before I realize that nobody wants to buy “my” product.

My marketing test…

Here is an example of market research….

Many years ago, I had a small product line. All items were handmade at home. I took them to a craft show and sold them from my booth. I made money. Not a lot of money but I made a profit.

I saw that my “stuff” would sell.

(Important note…..This will not normally work at flea markets. Most people there are looking for bargains.)

I expanded the product line. I added more colors, more sizes and added some additional items. They were all handmade and original.

Within six months I was having thousand dollar days at craft shows. And that was back in the 70s. I did learn that there was a market for my products.

(What was the product? Sorry. I may want to do that again someday.)

Expose your product…

You need to get your product in front of strangers. Especially, if it is a new and unknown product. Your family and friends might not want to tell you your product is not any good. They are nice people and may even like you.

(To be concluded in part three, in a couple of days.)

Hope you are moving forward with your business…

Till next time,

Jim Gillum                                     

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(Part one of three parts)
By spending time in IM related forums, I can see some of the information that new marketers are looking to find. Sometimes you have to read between the lines, but you can tell by the tone of the question and the sentence structure, that the poster is probably new to internet marketing.


For clarification, if I may, a reminder, whenever you sell anything, even as an affiliate, or offer a service, on the net, you are an internet marketer.
That being said let me say this…..
 

One of the areas that seem to give many people a problem is the “basics of business”.
 

You can’t run a business if you don’t know something about running a business….
 

The internet covers the entire world. Every place has different laws, rules or regulations concerning the operation of a business from your home. Of course, I would imagine that some places have none at all.
 

You really need to do some research about the laws in your area.  Also laws concerning any taxes. Tax laws vary from country to country and even different states in the U.S. may have different rules.
 

You do not want to get a successful business going and then be faced with fines or worse yet, have your operation closed down by some government agency.
 

Most local governments can provide booklets or brochures listing the rules for licensing or zoning. Don’t overlook using the internet as source for your research. Let your fingers do the walking on your keyboard.
 

Basic Records…
You will want to establish a records system to keep track of all your activities related to your business. Any expenses incurred including any licensing fees. These records will be necessary in computing any taxes and to establish whether or not your business is making a profit.


This can also be useful to keep track of your suppliers. You order some component. Then six months later you need more and can’t remember where you bought the original. Simply look through your receipts and bingo….you have the information and save yourself a lot of time and aggravation.


It is way safer to keep everything that you might need, than to need something you didn’t keep. You can always ditch whatever you don’t need at a later date. Once you have firmly put together your records system.


 Meat on the Bones……
Now it is time to put some “meat on the bones”.  Get ready to write…write…write…
It is time to write your business plan.  Probably the most important part of starting your business.
How will your business start?
How will you get the products?


All the operational questions. All the “how to things” and that means all the answers too.
Think about everything in a “one step at a time” progression.
And write down each step, every expense, and every outgoing dollar.
Many new business owners overlook some pretty common items. So, think carefully. It is easy to forget that a copy machine needs paper.
 
With your home business, many of the items you will need are already under your roof. That helps. But, consider the extras. Things like an additional phone line and any special equipment you may need.
 

This is all heading toward the final conclusion……..will your home business make a profit for you.
 

Second Part of the plan….
Once you have finished this part of your business plan, “the what will it cost part”, you can move on to the income part. But income is not profit. Profit is what you take in minus what you put out.
 

Simply stated, you sell a $10 item and it costs you $8 to do that….you have a profit of $2.
 

OK…Product production or cost of product. How much does it cost to produce or to buy your product?
 

Include shipping, both incoming and outgoing. Any cost of storage. Any packaging you need to ship out your product.
 

These costs combined with your operating expenses will give you your total to get your product out the door. With that you can calculate your net profit.
 

(Part two is coming up next)
 

Till next time,
Jim Gillum
 

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I owe all my readers an apology…….I have been derelict in my posting to this blog….
 

My special lady has been in the hospital for the past seven weeks and I have let time slip away…..
 

Not good……..
 

But I am getting back on track and she is getting better……
 

There is a lesson……..
 

Family is more important than business……..I am not suggesting that each of you is not important to me….because you are….
 

In the immediate future, I will double my efforts to provide you with good solid information….
 

Thank you for your loyal viewing and your understanding…….
 

Until next time,
Jim Gillum
 

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