Startup Costs For Homebased Business
Just about everyone jumps on the web with a web site without realizing all that is involved. It's the horse and the cart. Recently, we tested a new way of solving the primary reason people, especially homebased business or work from home moms and dads, look to the Internet as a fast and easy way to generate income. Traditionally, the first thing you think you need is a web site. But if you look at sites such as Ebay, Amazon and Yahoo!, you realize that a person doesn't need a website to make money on the Web! Savvy sellers take advantage of auction and direct sales sites to sell their wares with little to no cost. These smart marketers have the right idea! Marketing is first.
For others, how to make money on the Internet and what to do first is a mystery. So they follow the pack and search for a web designer. Unfortunately, some are left with little funds to attract buyers to their shiny new website. And so goes the tale of a million sites on the Internet that don't work, don't pay for themselves, and certainly don't generate the income a work at home mom hopes for. One of the biggest obstacles is the copy on a web site page.
Both search engine optimization and persuasive sales copy require additional funding in addition to web design and development. Nearly all novice web owners who we come in contact with don't realize that they have to provide the content for their web pages. It's usually an unpleasant surprise to find out that web designers don't write copy although someone on the company staff may provide this service. It calls for an extra fee. Our solution to this conundrum is to start with your marketing objective and then develop the pieces that deliver the objective. For example, when you want to sell teddy bears, look for a domain name that includes teddy bears in the URL. Next, discover who wants your teddy bears and how you're going to let these buyers know about your bears. Then, make a list of why your buyer would want to own your teddy bear more than your competitor's teddy that looks a lot like yours. Once you have this basic information, consider all the parts you need to invest in to bring your offers to market on the Internet. Here are some rough numbers: Your domain name from Network Solutions is $35 per year.
If you're well funded, you might want to start with a web plan, about $1500. Copywriting is next and for a 12-page web site, you are looking at $2-300 per page, that's an average of $3060. A quality 12-page business HTML web site, including web design and development runs about $1500. All this expense and you have not sold your first teddy bear yet. Opt for a good web host, not those cheapy hosting services. In fact, it is a good idea to go with the hosting service your web designer prefers. Not all servers work the same, and you reduce the development and maintenance time and avoid paying your developer for more time when she is intimately familiar with the server tools. A reliable web hosting service costs $20-30 a month depending on the server space your site needs and the bandwidth used from all your web traffic. If you are like most new web owners, you had no clue that all this was needed. There are still a few more steps to consider.
One is the number of pages associated with your website. Twelve pages is a healthy number for most small business people to start with, but that can hardly support all the keywords you have to generate free web traffic. Plan on adding more keyword web pages as time goes on. Consider a competitor site with 100 search engine optimized web pages all devoted to selling teddy bears. Your site will struggle getting a top ranking against this big guy. Two, is the big enchilada. Internet marketing. And this is where most of your funds go, and it's where most new web owners fall down. Even cutting all the corners, there is usually little left for marketing. And a lot of the time, new web owners are shocked and dismayed with the outpouring of money up to this point and dig their heals in at spending any more, especially when Internet marketing is a mystery for many.
Internet marketing involves several options. The most widely recognized is search engine marketing. You have probably heard the term. Another common marketing practice is CPC or PPC. Cost Per Click or Pay Per Click can be tricky and can drain your credit card quickly. It looks easy, but trust me on this, there is nothing easy about direct response copywriting and that's what placing ad copy on a search engine such as Google or Yahoo! requires. There is a method to determining how much to invest in a CPC bid. So don't rush in, write a few ads, and wait for visitors without knowing what you are doing. It's a wonder so many people jump on the Web without finding out about all these costs, but they do.
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