Managing an online business really can make you want to pull the hair out of your head. If you’ve tried, chances are you known what I mean. It’s commonly reported that only 10% of businesses ever really have any success.
Truth is… It is very overwhelming with the dominance of the digital age, it seems like you need 100 different skill sets to be able to compete.
You don’t even know where to turn.
You have heard how Instagram advertising is the wave, how email marketing is a must-have, how SEO can get you FREE traffic from Google, how content is king, how video content is taking over, blogs, landing pages, the list goes on and on. All are important while managing an online business.
If you are attempting to generate any kind of revenue online and have not yet been successful then buckle down because you are in the right place.
This article will be a “bird’s eye view” of the basic building blocks that are essential for creating a successful online business in 2 simple steps.
The important part is this; at the end of the day if your business is not successful at providing these 2 parts, you will fail as an online business.
First define a business: what is a business?
A business is a product or service that can generate revenue consistently.
To have a successful business, you need:
- A quality product or service
- Attract customers consistently
One step at a time…
Step 1. How to deliver a quality product or service
You must first prove that people want what you are offering…
To do that you must prove the concept.
PROOF OF CONCEPT
There are ways to figure out if you have something that people want…
Just ask! Your potential customers will tell you what they want.
Interview potential customers. You can do this in person or through social media surveys.
For example, say you have experience in real estate and believe you can help real estate agents. You can ask them questions like “What is the number one pain point you struggle with?”
You give them a few options to choose from, and you find out from the results that maybe out of 50 participants, 34 real estate agents said their biggest problem was managing and following up with leads.
They also told you in the interview they would pay $200/month for that service. Now, you have a business!
So, the point is, whatever you are offering must solve a problem worth paying for to have a quality product.
PRODUCT VS. SERVICE: THE GOOD AND BAD
Let’s start with product-based businesses…
You want to focus on upsells. In this business for example you will buy something for $20 and sell it for $40.
Upsell another product related to yours. In this business,
sell more products = more profit.
You can also start a monthly membership business where you send one product per month in exchange for a discount of 15%-30% off.
Typically products are easier to sell because you are exchanging something tangible that the customer can hold.
A service-based business is different from a product-based business because you can demand higher wages based off your social proof.
If you show your services of $200 generates $2,000 for your client per month you can ask for more money because of how much value you are providing.
By building yourself to be the leader of the industry in a service-based business you yield higher wages.
The main difference between a product-based business and a service-based business is where the value is coming from
VALUE comes from YOU in a service-based business.
VALUE comes from a THING in a product-based business.
Now for Step 2…
Step 2. Attract customers consistently
Consistently being the keyword here. This is because if you cannot repeatedly show you can generate profit month after month then you don’t have a business, you had a successful side hustle.
If you want consistent revenue, you need to be in touch with a lot of customers daily.
Where can you find an automated way to attract an endless amount of customers? online, of course.
So you need a digital marketing plan.
The first step you will take is defining your target audience.
This is useful because you will be able to adjust your content accordingly. For example, you will not want to post something related to hip hop culture if you are targeting the 55+ age community. That’s a bit of an obvious example, but you get the idea.
How old is your ideal customer?
What are their hobbies or interests?
Questions like these will help you get a solid understanding of who to “speak to” when delivering your content.
After you figure out your ideal customer, you have to figure out what kind of content you create for each platform. Maintaining social media is a big part of managing an online business.
Instagram: This is where everyone is nowadays, especially the youth. The focus on Instagram is quality picture content so brainstorm some creative photo shoots for your business and take some photography classes.
Facebook: Facebook can be a great opportunity for your business to reach a slightly older audience than Instagram. You can also leverage groups on Facebook to your advantage, especially as a B2B business. Also, take note that in order to advertise on Instagram you need a Facebook account.
YouTube: Video content is officially taking over. Your main focus is to offer value in the form of videos. For example, if you are an auto body shop, this is a perfect opportunity for you to make a video on how to change a spark plug or replacing a blown fuse. You can start weekly videos and people in your target audience will watch your videos, start trusting you, and buy from you eventually.
Blogging: Blogging has a similar approach to YouTube, but it’s basically in written form. The goal of blogs is to build trust with your audience by providing them value.
BUILD AN AUDIENCE AND SELL
People talking about paid vs. free advertising, but really a hybrid of the two works best. You need to deliver a ton of free value through content before someone trusts you to buy.
Paid ads are best for advertising your product or service. At this point, the potential customer should already recognize and trust your brand.
In these paid ads, you will influence people to buy using techniques like offering a money back guarantee to take away risk or offering a free incentive as a foot in the door technique.
So there you have it, you know have the anatomy of what it takes to create a successful business online.