Job Insecurity? There is now a solution on the Web.
By Brad Beiermann
As many of us working folks have discovered over recent years, a secure
guaranteed job is the topic of fictional writers. Without a doubt the labor
market is going through new changes and shifts as the national economy
becomes evermore globalized. Unfortunately, our daily responsibilities of
paying the mortgage, insurance, and tuition costs are not fictional. They
need real solutions for making the payments. This has created many in the
working class to consider other alternatives outside of their unstable or
miserable jobs. One of the popular alternatives has been leveraging the Web
to generate an extra income. There has been a flood of Web hosting services
and online tools come on the market to help the most computer illiterate
folk setup a second (often primary) income on the web. These services and
tools are inexpensive. Actually, downright cheap! You can have an online
store with shopping carts, credit card processing, custom domain names, toll
free numbers, business cards…etc. for about twenty-eight bucks. We will get
back to the details. This is a serious bargain when you consider this can
get you a real flow of income to pay the non-fiction bills.
What Have We Learned?
Remember not too long ago when everyone was being bombarded by all the dot
com hoopla? Remember not too long ago when the whole thing basically tanked
as we watched some very silly Internet companies file bankruptcy? While many
of these companies folded, the public received a very good education. They
received an education on what does not work on the Web for a business. As
more time has passed since the dot com era, we have also learned about what
is working on the Web. One of the things working nicely on the Web is people
starting a small home business based purely on the Web. There have been
countless niche small businesses recently started on the Web with measurable
success. The good news is there is plenty of room for more of these types of
businesses to start. In fact, this whole movement has inspired many folks to
get on a PC for the first time and learn the ropes. They are discovering the
ropes are fairly simple. In fact if you have the following:
1. A pulse
2. Know how to read
3. Can move a mouse, and
4. An ability to focus on getting things done.
You have the ingredients to begin a successful income on the Web. Let’s
take a look at some specific items that could help someone get started.
Starting A New Income Today
There are few basic necessities one would need to get their home based Web
business started:
Website Hosting Service. The website will be the foundation
of your online store or services. As mentioned earlier, there has been a
flood of Web hosting services and online tools come on the market. Companies
such as CityMax (www.citymax.com), BigStep (www.bigstep.com) and USight
(www.usight.com) are some of the companies offering online servers to host
your site. There are many others, but these particular hosts have online
tools that are fairly simple to use for the PC novice. The tools are purely
a click-to-add or drag-and-drop interface that allows someone to create a
Web page. Creating a Web page or site with these tools does not require
someone to be knowledgeable with computer languages or fancy forked tongue
computer talk. The tools are based on pre-made templates and forms that
allow virtually anyone to create a fully functional sight. Many of these
online tools have the shopping cart functionality desired to create an
online e-commerce site for customers to make purchases. This is pretty
amazing considering a few years ago the shopping cart functionality for a
site was typically built using a web based language and a computer geek
costing thousands. I know this first hand as I was a computer geek building
such programs. Companies literally spent millions of dollars getting these
sites built. Those days are long past just like the horse and buggy days.
The technology curve is now in the favor of the novice online business
creator.
Domain Name. Many folks wish to have their own domain name
(aka. www.somename.com) for their site. This can often be supplied by the
same hosting company you might use for your site. However, there are other
alternatives such as GoDaddy (www.godaddy.com). They offer low cost domain
names along with email names.
Online Payment Provider. In order to receive your payments
through a site shopping cart a third-party payment provider is needed.
Perhaps the most well known payment provider is PayPal (www.paypal.com). An
account can be setup for free which will give your customers the options to
pay by credit card. This is a nice option to use as you get started. It is
indeed the low cost option for doing credit card processing on a site. It is
limited to transactions taking place online. So, your options are a bit more
limited for offline transactions such as processing transactions for phone
orders. The next step up would be getting a merchant account.
Merchant Account. A merchant account will allow you to accept
credit cards from your customers with greater flexibility than an online
payment provider. This is something that can make a world of difference when
you get your store created online. When you make it easy for customers to
buy from your site, they feel more inclined to buy. A merchant account makes
it possible to do phone authorizations and various other remote
authorizations. In most cases, you will want to get a virtual terminal
(sometimes called a gateway) for the site. The virtual terminal enables you
to forego using a physical point-of-sale terminal. AuthorizeNet
(www.authorizenet.com), Cardservice International (www.cardservice.com), and
Bank Card USA (www.gobusa.com) are some of the more popular means of getting
credit card processing enabled. You will also find many of the Web hosting
providers can steer you to the proper folks for getting the site set up for
credit card processing.
Toll Free Number. You can now get a toll free number setup to
your existing home phone inexpensively. While this might not be a necessity
for a Web based business, it is something your customers will appreciate as
you start to do business. Particularly if you get word-of-mouth advertising,
people will want to call with inquiries for your products and services.
Also, this helps customers feel comfortable knowing they can reach someone
on the phone instead of being trapped by email. The beauty of today’s
telecom industry is the price wars concerning long distance. Small home
based business owners are coming out winners on the telecom side. As of this
writing, QCI Internet (www.qcinet.net) offers 1-800 service numbers to your
existing phone line for 3.9 cents a minute without a base fee. So, you will
only get charged when people call you. If no one calls, there is no charge!
Free Business Cards. The word free is often over used and
abused as people find free things are not always free. However, VistaPrint
(www.vistaprint.com) offers free business cards with a variety of designs to
choose. The cards are free. The shipping you pay (around five dollars).
Wholesale Drop Shippers. These are the folks that can supply
a small online business with products to sell on the Web, warehouse it, and
ship it directly to customers. They are the heart of a “stockless retailer”
wanting to retail online. There are plenty of drop shippers available.
However, finding one to suite your needs requires a little bit of homework.
There are wholesale drop ship directories online that list drop shippers to
be used. However, many of these directories are rip-offs and con-artists
that do not actually contain tier one wholesale drop shippers. They may
often list companies that are middlemen or false agents representing a drop
shipper. These middlemen are getting an unnecessary slice of the profit by
not adding any value to the supply chain. A small online business is best
suited, profit wise, by going directly to the actual wholesale drop shipper.
Hienote (www.hienote.com) offers a directory of wholesale drop shippers that
can be used by a stockless retailer. The directory is updated weekly and is
focused on hard-to-find tier one wholesale drop shippers. Plus, there is a
toll-free number (1-800-342-0386) to call if you have questions. Members can
submit a conditional request for a search if they do not see a specific drop
shipper in the directory. This gives an advantage to those seeking unique
niche items to offer on the Web. In addition, there is a free ebook on the
site describing free advertising tips for your business.
Putting It All Together
Now that we are familiar with the major pieces need for our new venture,
let’s take a look at the total start-up costs for the components we have
reviewed:
1. Website Hosting Service___________________$20 - $50 per month
2. Custom Domain Name ____________________$8 for one year
3. Online Payment Provider__________________$0 setup fee
4. Merchant Account (optional)_______________$250 one time fee
5. Toll Free Number (optional)________________$0 setup (3.9 cents per
minute)
6. Free Business Cards (optional)______________$0 (shipping is about $5)
7. Drop Shipper Directory (optional)___________$45 - $70 (usually a one
time fee)
Total Costs
Scenario #1: Least Expensive = $28
Scenario #2: Most Expensive = $383
Assumptions:
In both scenarios above we are assuming:
- One month of website hosting services.
- One year fee of a custom domain name.
- The transaction commissions for options three and four are not factored.
- Scenario #2 picks up shipping charges on business cards.
- Scenario #2 does not use a toll free line.
- Scenario #2 uses the higher priced drop ship directory.
In the least expensive scenario, we are basically getting our website
hosting service and custom domain name. In the most expensive scenario we
are getting pretty much everything listed. The nice part of this list is the
options. In other words, you could scale your starting efforts to whatever
you feel comfortable with on a budget. For example, we could start off with
Scenario #1 and add a merchant account later as you get a few sales under
your belt.
Getting People To Recognize You
In order for people to buy from you, they have to know about your
existence. It has often been said that marketing and advertising are the
life blood of a business. This life blood can sometimes result in a
financial blood bath when done incorrectly. This is where low cost
advertising, and sometimes free advertising becomes a necessity for the
tightly budget minded folks. Again, let us consider our options for
scalability. Remember those free business cards mentioned earlier? Some of
you might be wondering why you would want business cards for a website that
is viewed globally? Your business cards can be an effective tool for
advertising. Leaving business cards everywhere, and I mean everywhere, can
get some initial exposure. Some examples of everywhere includes, store
shelves, books in the library, restaurant booths, restaurant menus, even
stuff them in the utility bill envelopes you pay monthly! Remember, these
cards are free. Most folks are very receptive to a business cards as they
are small, contain all the info, and unlike a billboard or radio commercial
they fit into everyone’s pocket. Some of the best marketing out there is by
word-of-mouth. Everyone has been involved in some type of word-of-mouth
marketing. When was the last time you asked someone, “What do you
recommend?”
Don’t Forget The Offline Folks!
Interestingly, some of the best advertising for a website will not be found
on the Web. Sure there are search engines, portal marketing, newsgroups…etc.
on the Web. You can leverage these eventually. However, there is a large
body of customers are not on the Web. Theses are the offline customers. This
is where your budget 1-800 service comes into play. At just a few cents a
minute, you can say a lot without breaking the bank. In a couple of minutes
you can address the easy who, what, where and why questions for those
interested. Often time, the folks who do not use the Web or a computer know
someone that will look up something for them (i.e. son, daughter,
co-worker…etc.).
Your New Income
The Web has enabled many folks to begin a part-time and full-time start up
business. In addition, the Web has also helped lower the barriers of entry
into the small business world. Once you are able to get your site fully
functional (which can happen in a matter of hours) and your marketing
moving, you will be embarking on a new direction. What direction? It will be
a direction of some financial security…this is also sometimes known as
freedom!
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