During the last 12 months, I have received more than 10,000 emails from the New Indian Express readers. By any standards, it is an amazing figure. As I have not been able to respond to these emails personally, I will answer - now and then through this column - the most frequently asked questions so that all readers are benefited. This week I will tell you how to identify profitable and practical Internet income opportunities.
Theoretically any business can be carried on through the Internet. However, only some types of online businesses can be successfully run by individual entrepreneurs. You want to sell diamond jewelry online. But do you really believe that customers will love the online images of the jewelry, pay you a few lakhs through credit card and take delivery by courier?
If you want to succeed in an Internet business - any business - and become a money spinner, common sense should be your northern light. Irrespective of the fact who, what and where you are, you can make money online working from home if you use your common sense and work hard.
The best online businesses sell products or services that people want to buy online. People want to buy products that will increase benefits to them or decrease their difficulties. If you offer such products or service, you will be successful. Even if you don't have your own products, you can be a reseller, or an affiliate, for such products and make money online.
You believe you have a useful product or service that people will love to buy online. How do you know your product or service will actually sell? You should carefully consider the following important points before you commit your precious resources into the venture.
(1) Will your product be useful to the buyer? Ask yourself whether you will buy such a product if you were the buyer. If you think you will not pay for it then forget the product.
(2) Do you have a big market? Through the Internet, you can reach the entire world. If your product is meant for a small market, try to modify it and make it suitable for a bigger market.
(3) Does your product have some special features that will keep you ahead of the competition? If the answer is 'no' it is good for the first time online entrepreneur to enter a market where competition is less. Big crowd of competitors means presence of big and expanding market. However, such market is suitable only for experienced business persons.
(4) Does your product have a niche market? With a little creativity most general products can be converted into niche products. For example, a book with the title 'How to pass IAS Exam' is a general product. However, 'How to pass IAS exams if you are weak in English' is a niche product.
(5) Is your business legal and legitimate? What you think as legitimate may not be so from legal or social point of view. For example, selling traditional medicine over net may be acceptable within India. However, it would be illegal to sell such medicine in many European countries without registration and proper prescription.
(6) Can you receive payment online and process orders without difficulty? Online transactions involve credit card processing and third party services. Selling against cash or cheques only will not help you much.
(7) Will you be able to deliver your products without burning a hole in your pocket? Some products such as downloadable software or eBook involve no-cost or low-cost delivery. If you sell fragile glassware or heavy and bulky items to customers in far away countries, you are taking unnecessary risk.
(8) Will your service require a lot of customer support? Though customer service is the key to succeed in any business, an individual entrepreneur with limited resources must try to concentrate on business models that do not require much customer support.
(9) Is it possible to promote your business online without heavy advertising? If you have a great product and offer incentives, other websites will happily provide links to your website and work as your agents.
(10) Is your price right? It is easier to sell low priced products (in big volumes) than high priced items. Customer will not mind taking risk in buying good products from a faceless online seller if the price is low.
Though there are many other points to consider, the above 10 points will help you avoid starting a bad business. If your business passes all the check points, then you can confidently go ahead and start working hard on your home based Internet business.