All you need to start internet marketing (IM) is a computer and an internet connection to make money online, right? Well, I am afraid it’s not that simple. In my opinion, anybody with a tiny little bit of business acumen and common sense can make money on the internet. A person with a lot of business attitude and business knowledge has a slightly better chance of making it. The buying attitudes, reasons, and motives of customers buying on the web are very similar to the ones buying on the high street. A lot of business principles can be applied to marketing online and off-line so people who are aware of these business principles are just one step ahead of others. Having said that, you certainly do not need business knowledge to make it. It is just an advantage and not a necessity.
Don’t try to fit in if you are born to stand out. Don’t join the rat race.
The traditional elements of marketing are the “four Ps”. These also apply to the Internet Marketing business. The point I want to get across here is that Internet Marketing is comparable to doing business outside the internet. Internet business is like running a normal business; it will need your full-time attention to succeed.
Here are some business terms that are very useful in the business world though outside the internet but can also be applied to the IM environment.
The 4 Ps are:
- Product. Your product is whatever yin are selling, online or offline.
- Price. Your price needs to be realistic compared to comparable products on the market, in our case on the web.
- Placement is about your distribution channels. Where and when are your products going to be available? There is one big difference here with normal marketing because products are available online 24/7.
- Promotion is your channel of communication with your customers and prospects.
If there is a problem somewhere with your sales, on the web, or outside the web, you need to investigate each “P” to see which is causing the problem.
A = Attention – Get your visitor’s attention, in our case by building a website with various sources of potential interest.
I = Interest – Get your visitors interested in what is on your site.
D = Desire – Give your visitors the desire to click on something on your website. In our case, we are trying to make the visitor click on something that makes you money.
A = Action – Your visitor takes action and clicks on one of the links on your website. All links are links that make you money, so the principle you need to follow when designing your website is to include as many money-making links as possible.
#2. 80/20 rule
80% of your sales come from 20% of your customers and apply very often in any business environment. This also applies in keyword research, as 80% of your sales will come from 20% of your keywords that are used in, for instance, an AdWord campaign. It is therefore important to look after that 20% of your customers and to focus on the 20% of your good keywords.
#3. Rule of 10
A sales representative can get 100 prospects gathered at an exhibition. Out of these 100 prospects, he might get ten more interesting leads, and out of those ten leads, one person will buy his product. If he is lucky, the sales rep could get between 2% and 5% of sales out of his 100 prospects. That is a principle that I have always applied in all my businesses.
How does this work in Internet Marketing? If 100 people click on your ad and one person buys your product, you have a conversion rate of 1%, which is acceptable in IM. A realistic Internet Marketing conversion rate (discussed later in more detail) is between 1% and 5%.
Know your competitors
Knowing your competition is vital whatever business you are in. There are different tools to “spy” on your competition.
#4. Supply and demand – pricing policy
If a manufacturer makes a product and there are a large demand and no competition, they will probably sell the product with a high-profit margin as there is no competition. If other manufacturers start to produce similar products and bring them to market, the first manufacturer will probably have to reduce his price, as it is likely that the other manufacturers will have a lower selling price.
The same applies to the pricing of eBooks: if you find a niche and there is no competition you can sell your eBook for a high price. If five other people publish an eBook in the same niche, chances are you will sell less, and have to lower your price to stay competitive in the market.
#5. Benefits, benefits, benefits
When selling any products, you HAVE to concentrate on what the benefits are for the customer when purchasing the product. If you are selling a product online, exactly the same applies for benefits, benefits, benefits. Don’t say “We make good quality chairs” but instead say “Your back pain could disappear forever with our chairs”.
#6. Only two sales
There are only two reasons for sales in any sales environment, on the web or outside the web:
- A solution to a problem
- A fulfillment of a need or dream
#7. Put on other shoes
If you want to be in business you need to put yourself in your customer’s shoes. What would you like to see if you were a potential customer? Look at the world, your product, your sales letter, your eBook, etc… as a potential customer. If you visit a website, what would you like to see? Develop the website in that way.
#8. KPI indicators
KPI stands for Key Performance Indicators – also called Key Success Indicators and are used a lot in businesses outside the web environment. As an internet marketer, you also need to analyze as many aspects of your website as possible and try to improve it all the time. Just like the giant supermarkets know more about your spending habits than you do, you need to try to find out what the searching habits of your customers are. The purpose of a KPI is to measure a certain activity, analyze the data, and learn or improve.
Last but not least: Your
#9. USP =Unique Selling Point. What is unique about your product? How do you stand out from your competition?