How To Start An Online Business And Lose Money Fast. Part-2

If you are looking to create a second income from a home based business or internet business then in Part 2 of Paul Chatwin's article about how not to go broke quickly he discusses tips 6 to 10 of the common blunders made when setting up online.

Deadly mistake #6. Spam Messages - Never Do It!

Spam or the sending of unsolicited e-mails is a massive no-no that is 100% guaranteed to drive your business into the ground.

There is no reason to spam; it won't make you any money. Prospects are immediately wary of it.

Your most important asset as an internet marketer is your reputation.

The fastest way to ruin it short of ripping people off is by spamming.

As a reputable marketer you will make tons more money building your list through opt-in rather than sending boring spam.....And it is boring!

Deadly mistake #7. Forgetting that consistent marketing activity is the key to success!!!

Even if you don't have the greatest product in the world (and to be honest most people don't) you will never sell anything if you don't tell anybody about it.

Without advertising there will be no prospects and without prospects there will be no sales.

It sounds pretty obvious really but it is a common blunder.

For a business venture to be successful you only have to do two things and only one of those needs to be done on a regular basis!

Firstly you need to develop a profitable business model (and this applies whether you are selling on line, on the high street or offering any type of service). Until you have demonstrated that you have a product that certain people want and a method of marketing it, anything else is jumping the gun.

Don't waste time and money promoting a dud just because you like it or it might be your hobby.

Example: Your hobby might be collecting sweet wrappers and you have developed an E-Book dedicated to that very niche market. (And by the way, hobbies and niche markets are perfect for on line sales).

It goes without saying that this product would have limited interest, and although you may be really proud of it, you could end up wasting much valuable time and resources promoting it.

Unfortunately many marketers get too close to the product they are creating.

Test small before you spend serious time and money rolling it out. Once you have determined that your business model is sound then you need to spend most of your efforts promoting it.

If you make say £15.00 per sale (which is conservative) then you only need to find 1,0000 customers to make £150,000 profit....and that's not a bad income!

Deadly Mistake #8. Thinking That You're Going to Get Rich Quick.

This is probably a Number One Killer and it's not just limited to working on-line although the get rich quick mentality seems to be prevalent in this arena.

A successful business isn't built overnight; it is the result of many late nights and many frustrations.

If anybody tells you differently or claims they can make you rich without working for it then run away as fast as you can (and don't leave your cheque book on the table).

The get rich quick mentality is very popular on line, but the truth is there really isn't a way for the average person looking to make a life change to do so. And it's a fact that getting caught up in the hype is only going to delay true success.

Save yourself the wasted time and pity and put your focus 100% into developing your business without trying to discover the mystical secrets.
With some hard work and perseverance anybody can make a living on-line!

Deadly Mistake #9 Believing The Hype.

This is just a quick tip really but absolutely crucial if you don't want hopelessness and feelings of failure to sweep over you and crush your business from a 'mind-set' angle.

Typical statement: 'Gee Whizz. I went from $200,000 dollars in debt, my home being repossessed, my wife leaving me and virtually living on the street with only the dog for company to now having banked $20 million dollars in 6-months'

FANTASTIC!!...But it's total nonsense.

Yes it's true. People have gone from virtual rags to riches by setting up home based internet businesses.

As previously mentioned, where else can you set up shop without the investment of premises, stock, rent, rates etc.

It's a wonderful, incredible tool for business but it Does Not happen like that.

The point I want to make here really follows on from Tip #8. If you let all this nonsense permeate into your mind then you are going to miss the real opportunity to create a very comfortable lifestyle for you and your family.

The trouble with listening to the big numbers is that it breaks your grip on reality.

What's the average income in Britain and the United States? Possibly £28k in the UK or $45K in the U.S

If you could create an income on line of say £150K Sterling or $225K USD then that puts you and your family into the top earning bands on both sides of the pond, and it's a lot easier than beating yourself up because you're trying to create $20 million dollars working from your kitchen table! All because somebody claims to have done it in 6-months with no experience and no product!

The point I'm making is don't let cleverly written sales pages touting big numbers for no work make you feel inadequate.

The feeling of despair this can create in your mind will overwhelm you and cause you to give up. Keep a reality check on the figure you want to achieve to make a difference in your life and focus on that.

Actually, focus on your first sale because without that you can't make the second sale, the third sale and so on!

Deadly Mistake #10. Not Understanding the Real Power of the Internet.

The internet is a communications tool. It was created for this purpose, and you will get the most out of it if you use it for that purpose.

There has never been an easier or more cost effective way for a business to reach its target audience and there never will be again, so make use of it.

By using the global power of the internet you can reach millions of potential customers and offer outstanding customer service that was previously unimaginable.

By using the internet intelligently you can gather information, carry out research on your competitors and network with prospects and like-minded people.

Use the internet to drive your business and have fun doing it!


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Do you want more information on how to create a second income online? Paul Chatwin shows you step by step how you can start your own home based business and create a great lifestyle working from home.