Thursday, November 21, 2013

Your Web Based Business

You can read that titles two ways, as in a business solely web based, or that portion of your business that is web-based.

Since the WWW has combined, and therefore replaced, the telephone book and the telephone, and has done no more than augmented the company catalog by putting a copy online, you can see how the internet can go only so far as part of your business.

I was lecturing on this, and arguing the cost of websites and maintenance is usually not worth the return from internet sales.  That is, the amount of money spent does not bring in enough sales to make the effort worth while.  A marketing manager for well-known and established winery looked off into the distance (I watch reactions) and after some calculations, offered how in their instance that was exactly right.  When she reckons the money into the site and the sales therefrom, it just isn't there.

So why do people make such websites?  Momentum.  We have an entire generation that believes in magical internet powers that simply does not exist.

There is a balance to be struck, one does need a web presence, but not all of the nonsense and Sesame Street grade child grade distractions which makes up most of most websites.

Next, and this is common enough, a student found a very cool source of jewelry, everyone says it is great stuff, and the would-be importer would like to do good by doing well:  help the folks overseas who make it by selling it on the internet in USA.  Ain't gonna happen.  And I teach this in my classes.  And when people say no to plan A, I offer plan B, a way to test their hypothesis without running any risk.  If you think your internet based business is going to work, test it all out before you spend any time and money.  Go straight to those customers.  Get samples, set up the site, and do what you expect to do to get sales.

Here is an exchange with that student, who took my course within the last few months:
On Nov 18, 2013, at 5:59 PM, Delight Of Light USA wrote:
John,
How do I get people to see my website www.delightoflightusa.com?  I have beautiful jewelry to sell, but need to attract more traffic to the website. How do I increase my traffic flow?  Thanks!
Georgia

Hey Georgia,
Well, do you want traffic, or sales?
You can pay for traffic, and get lots of people to come to the site, for a price.  But that does not mean any of them will buy.
That is exactly the problem of selling on the internet.  It costs more to get people to come than you get from selling to people.  If you have to spend $90 to find someone who will buy something at $75, then of course the system will not work.
This is why I advise people to sell to brick and mortar stores and sell TO web stores, not sell on the web.
John

Hi John,
I agree with everything you stated.  I want to increase sales.  When selling to brick and mortar what percentage do they buy the product at?
*** You have your price, and you do not worry or concern yourself with the retail price.  They set it at whatever they want.***
  How do I get my product into the stores? Do I meet with the buyers?
***Your item is existing...  therefore the best you can do is simply walk into stores, show your product, and "test your hypothesis"  that is, say "I believe I I import these you will buy form me.  Am I right?"
See what they say...
You can call sales reps and ask them to look at your line, and see what they say.***
If she gets sales from this method, good, then she will start to redesign based on customer feedback.  If she does not get sales, she will redesign based on customer feedback.  In any event, to be successful, she will gravitate toward designing.

So how to approach it?  Remember my point above...

Since the WWW has combined, and therefore replaced, the telephone book and the telephone, and has augmented the company catalog by putting a copy online, you can see how the internet can go only so far as part of your business.

If you want to see an example of this done right, check out www.uline.com.

Feel free to forward this by email to three of your friends.


3 comments:

Anonymous said...

Just this week I received 4 paper store catalogs from bed bath and beyond, and some other similar stores in the mail.

It's 2013 A.D., were in the 21st century for Gods sakes! Haven't these stores heard about the "Internets" yet?!

I still remember all of the doomsday talk in the 1990's about how the internet and online stores like Amazon.com were going to kill off the real brick and mortar stores and strip malls.

advance against royalties said...

I have just read the article on 'Your Web Based Business' and found that it is really informative.The topic is very interesting. Look forward to read more article on this topic.

Amy said...

John, can you elaborate more on how ULINE is doing things right? It seems like it's just like any other web-based businesses.