Saturday, September 12, 2009

Top 7 Reasons Why Many Entrepreneurs Fail Online:

by Nadira Haniff

1) Experience: Many people coming to market online are jumping in with great expectations having ‘heard’ of the Internet gold rush. Entrepreneurs have this notion that is would be a ‘piece of cake’ to earn on the Internet because it is swarming with people all in one place. The main drawback here is most of these potential entrepreneurs have little or no business experience. Selling is an art. Getting people to buy from you requires technique. Most are lacking in this expertise so the learning curve can be steep.

2) Mindset: ‘I want to make money’ may be a good mantra to say everyday, but it does call for a lot more than chanting a mantra to make money online. A good portion of enterprising entrepreneurs jumping onboard the Internet wagon is not quite sure what to expect. Establishing and keeping the right daily mindset to win in business does take some planning, preparation and shedding of some emotional baggage, which many carry around.

3) Due Diligence: A common error in online business is folks do not do their due diligence when it comes to choosing a business. If you have an existing offline business, which you are working on getting online, to expand your market reach, then you would have done some groundwork already on your business niche. However, many aspiring entrepreneurs neglect to do the necessary due diligence and struggle to churn a profit after making bad decisions.

4) Understanding Your Niche: Niche marketing has been the talk on the Internet for quite sometime, but that’s what it’s been, talk. Many marketers still struggle with this concept of niche marketing. Marketing to a small targeted group of people, which is the core concept of niche marketing, can appear ridiculous to most marketers who came online to market because there’s the ‘whole internet’ to market to! What a ‘crock’ it seems to just market to a small group! And then there’s the struggle to choose a profitable niche, which can be quite eluding.

5) The Internet Machine: The notion of marketing on the Internet and making money just hitting keys on your keyboard, and earning overnight even while you sleep can be really ‘sexy’ and luring for many who want to make a profit online. The key here is that the Internet is a huge monster of a machine and the majority of entrepreneurs do not understand the mechanism. As such, marketing for profits is more of a hit and miss event than calculated, marketing tactics to generate profits for many Internet entrepreneurs.

6) Advertising: No other media provides more misleading advertising than the Internet. Every day thousands fall prey to well written ads which promise ‘big profits with little effort’ only to realize that building a business online seems to be more work than anticipated. By now you would think most have given up on the ‘get rich quick’ schemes. Not so! People are still looking to make big money and do little or no work. And there are plenty of marketers supplying this gimmick. If that’s what you are looking for, you’d better have some money to burn, before you will ever find the right business niche, business model or business tools to give you the winning edge online.

7) Noise: The Internet is a big buzz of noise. Many, many things happening at the same time. And it can be a very confusing, frustrating place to be once the novelty dies down and you get to thinking. Hordes of people are talking at the same time. Everyone seems to be making money except you; or at least that’s what they say. There are more business opportunities than you can count so how do you choose. Many claim they have the ‘system’ to make you money fast if you can part with some of your hard earned dollars to get started. And the list goes on… Many get lost in the noise for years without making profits in business.

The above are only a few highlights as time and space permits here. Making money, running a profitable business online and building wealth are all very possible on the Internet. That I know for sure.

The real struggle for most aspiring entrepreneurs is to get through the online clutter and recognize that churning a profit online does require a few critical ingredients:

  • Choosing a profitable niche
  • Matching with products that are in demand
  • Understand and master marketing on the Internet
  • Systematically apply cutting edge marketing tactics to continuously churn a profit

In addition be flexible enough to adapt to a changing and evolving market place called the World Wide Web!

Originally Posted here

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