Introduction To Making Money In Online Business
The Customer Purchase Lifecycle
The first step in the cycle is to identify a need for something, a product or a service, which will solve a problem for a purchaser, and save them either time or money, or risk. This is a fundamental step to understanding making money in online business.
The Wealthy Affiliate training on this subject is here:
What Is Your Niche Market?
You need to decide what niche you are in, that is who is your audience, or customers. What demand are you going to try to satisfy?
Some people choose a passion of theirs, such as a hobby or a sport they may be interested in. Whereas other people choose to solve problems such as weight loss for women, or hair loss for either men or women, or both. You need to choose a market segment which is sufficiently narrow that you do not have too much competition. For example, Corgi dogs as a niche, as opposed to the market for dogs as a whole, which would have massive competition. Or maybe fretwork patterns as shown in the image below.
So recognizing the need or problem to be solved within your niche, or by your target audience, you will need to offer solutions to purchasers in order to achieve success for yourself, ie to conclude sales.
There are many sources of products and services which you can access and use (in addition to making or providing your own products and services) in order to make a good offer to solve the problem of your customers. Some of the sources available for affiliate products are as follows:
- Amazon Associates
- Commission Junction
- Fiverr (for services)
Affiliate marketing is a popular low-risk type of business model, where the introducer of the buyer receives a commission from the seller or party who fulfils the order.
There are many models involving drop-shipping where the seller of the product does not fulfil the order themselves. The seller places an order with the drop shipper or fulfilment company who may be in a different country, such as China. Alibaba and Ali Express are well known and successful drop shipping companies with a massive range of products available.
The products which you offer will need to satisfy the demands of purchasers, solve their problems, help them in order to be successful.
Therefore you need to choose carefully which products you choose to offer and from where to source them.
You can create your own products and services to suit your niche.
There are many known facts about the typical behaviour of customers and the processes which they employ prior to making a purchase, either online or offline.
1) Customers rarely buy upon the first contact with a product or a seller.
2) It typically takes seven times contact from the first encounter to concluding a purchase, including the research phase, familiarity and information gathering, comparison then finally purchase from a trusted seller.
3) Purchasers do not buy from sellers they do not trust.
4) Purchasers exchange money for something which they believe will solve a problem for them.
5) Customers have far greater access to information and reviews and feedback about products that has ever been the case before, so they are better-informed purchasers.
6) Customers see through scammy products and will not buy from sellers who offer these.
Consider your own process for identifying and evaluating a product before purchase and imagine that many people will follow similar processes before they decide to purchase a particular product, and then the process for identifying the supplier from whom to purchase the product.
Once you have relevant traffic, you have all the potential in the world to earn money from sales.
You can get traffic from a number of sources:
- Social Media – eg Facebook ads,
- Google Ads
- Bing Ads
- Yahoo Ads
- Pay Per Click
- Pay Per Transaction
Ideally, you would want Free Traffic, but that may not be sufficient volume to achieve sales quickly enough.
Therefore many providers pay for Ads and drive traffic to their websites.
Amazon has a massive pool of potential buyers who are primed and ready to buy, so in many ways, it is an ideal marketplace, but on the other hand, there is a massive amount of competition, so prices will tend to be lower.
Customers have a perceived value about what they are prepared to pay for a product, depending on how they like to receive that product. For example, shoes may be preferred to be bought traditionally from High Street stores by some buyers, because they want to ensure the comfort and fit of the shoes.
Other buyers may be quite happy to receive something through the post by ordering online if they think that there is no risk, and they trust the seller. Especially if they have the right to return the goods if they are not satisfied for any reason.
Some customers may be prepared to pay more if they perceive there is added value from certain sellers, for example, no quibble money back guarantee, or servicing and repairs are provided.
OMS Conclusion And Recommendation
Making money in online business is not as straightforward as many people originally anticipated.
There is a complex process of interaction and understanding between the purchaser and the seller. The purchaser has multiple choices at every stage of the transaction, and can easily be put off from buying from you at any stage of the process between introduction (or visit) and eventual purchase.
You need to establish a relationship with your prospective purchaser in order to build trust so that they would eventually buy from you, even if this may take up to seven visits before a purchaser is satisfied and has an intent to purchase from you.
In order to fully understand the Customer Purchase Lifecycle, and how to make money in online business, you may need further training, if you are not already fully aware of the process and all the variables and complex factors which contribute to it.
If you would like to see our review of Wealthy Affiliate then click here.
Wealthy Affiliate can provide you with this training if you need it, and you can sign up for a FREE account to try it out for an unlimited time, click here.