People always talk about “firing their boss” once they have a successful online business. After all, why would you want to work if you have a “successful” online business?
Would it not be dumb to work for $15/hour when you can make millions from the “comfort of your home”?
Here is the simple, brutal truth: A profitable online business is very difficult to start and maintain.
I have found comparing a brick-and-mortar business to an online business is a little misleading. If you try to manage your online business as a real-world business, you will most likely fail.
Here are 3 harsh realities of an online business which no one told you about:
1. Most people starting out online will fail many times: An online business is normally much more competitive than its brick-and-mortar counterpart. In fact, starting an online business has one of the worst failure rates.
The reasons are simple. You have to compete globally against companies whose costs are 75% less than yours (and who are still willing to offer discounts just to get additional business). You have to constantly innovate and stay ahead in the game. And finally, because the world is becoming smaller everyday, you have to work even harder to get the same customers, who can now choose between a million suppliers.
But what about those “get rich quick” courses, you ask? Arent they supposed to help you become an overnight success?
Nope! Most get rich quick courses are designed to feed on the dreams of people. The authors normally understand that their claims are outrageous, but if they can cover themselves legally, it is all good business. Most of them are more inclined to make a quick buck themselves than to care about the success of their customers.
The end result is simple. Most people starting an online business will fail because they do not have the time, money or the intellectual capabilities to handle such a unique venture.
2. People who make it big online are extremely rare: Let`s face the facts. Although every make money online website you go to features amazing success stories, we all know that they are exaggerated for the most part.
And even if they are not, only the successful people can afford to brag. The reality is that successful people make an extremely small percentage of the total number of people who have tried starting a business online.
In other words, the picture you see is extremely skewed.
For every success story, there are thousands of failures. The only difference is, unlike successful people, people who failed online cannot afford to brag or tell their story.
Chances are, if you ask the owner of a successful online business the secret behind his success, he will tell you that the secret was to fail 15-30 times..
3. You need a competitive edge: If you are thinking of starting an online business, you better differentiate yourself from your competitors effectively or you will go broke. Period.
Competing on price on the web is suicide because someone will always be able to under-cut you. This normally results in a price war where everyone loses. You and your competitors find it hard to stay profitable and will drive yourselves out of the market. The customer will look at your product or service and lose interest because “if it looks cheap it is cheap”.
Differentiate yourself and you will make money online. Statistics show that established copywriters and consultants make 100X-200X more money by servicing a SMALLER number of customers.
Think about that for a minute and you will understand how important differentiation is.
In conclusion, the picture is bleak, but not if you approach things the right way. Please note that this post is aimed not to discourage people, but to inform them of the realities of starting an online business.
If you are committed and are willing to learn, sooner or later you will succeed online.
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