How To Start A Profitable Online Business That Yields A Passive Income With Minimum Upfront Investment
This post is designed to teach how you can start a profitable online business with minimum upfront investment that will yield a passive income for you for years to come.
To start a profitable online business you have to keep in mind these two pre-considerations. Namely: any passive income business should first specify whether your online business idea will:
- Sell a product, or
- II Render a service.
If a product, what kind of product, if I may ask? It is good making this point clear; your profitable online business product can be a book,(physical book), e – book, a report, a CD, DVD, and any of such. If your product will be service, you must specify whether it will be a physical service rendered offline, like repairs, design, installation etc. Or a digital service rendered online, like typing, writing, video production, proofreading and the like.
Keep in mind here that any physical product you offer will attract much more upfront investment than if your product or service offer would be digital.
Solve a Problem That Disturbs Your Target Customers Minds
At the back of your mind must be an undeniable intention that your product or service will go to solve an outstanding problem that your prospects are having that are still disturbing them right now.
As you know human needs are insatiable. But prospects will only reach for their credit cards for their MOST UNBEARABLE BURDENS, needs and cares.
What Are Pressing Needs?
Good question. Fixing a leaking WC or painting your kitchen, which one would you call an expert considering that you have limited resources. Take for example your wc. leaking and the kind of odor that oozes into your home; its always far too unbearable. See it? Refurbishing your car or going for an already overdue surgery (once you take this month’s salary), which one would you call an expert.
Without being told, saving your life through surgery and checking the wc leakage odor to enable you breathe fresh air in your home will obviously come higher in your scale of preference here.
So in your product or service you must target prospects with most likely pressing, if not unbearable needs: prospects purchase goods or services to satisfy their physical or emotional needs.
So I must conclude for you, that you should target prospects problems that do not have a common or simple solution. Also target a problem that prospects who are confronted with, can hardly endure for long. See the picture?
Are You Vested With Skills, Capabilities or Interests You Will Need?
Before you start your online business, ensure you have the ability, needing little or no external help to render your service or create and deliver your product. It is not best to start an online business you will employ and pay helping hands from the start. This can come when your business has grown and expanded.
Do You Have Financial Capabilities?
This is another question. Although in this offer we are studying options which require little or no upfront investment, we must still be able to pay for the little or few items of expenses that will come up along the line.
Ask Yourself A Question:
What kind of person will be in need for this service / product? Can he pay for it? Can I have them in their large numbers? For how long will they be purchasing from me? Your research must bring answers to these questions, before you choose a product to promote online.
Have You Identified Your Prospective Customer Base?
Identify your customer base. Identify the group of people, their sex, age, race and possibly their faith, who will be purchasing your offers. For instance, your target group must have ability to pay for the product.
Here’s what mean. Retired men and women cannot be ideal customer for a “Good Parental Tips” information product. This product should be for young parents. In the same way, unemployed graduates cannot be targeted for “baby clothing or toiletries see it”?
Pay Attention to Your Target Market.
Research your target market for possible competitions. Check what they offer. Are they exact or similar products? Or are your competitors in large numbers? For example, if you have a large number of competitors offering very close resemblance of your product, it’s a good sign to steer clear from that product.
Look for a product with few marketers, but which potential customers and buyers are all over the place. This will likely be a winner.
What Will Your Product or Service Cost You To Offer?
What will you need in terms of monetary costs, time as well as energy to produce and deliver your service? How does your total cost compare with your products selling price? Do you make a meaningful profit margin? Your answers will determine whether you should go in this effort, or retrieve your steps.
If you are offering a digital product or service, your costs will be considerably low. But physical (except affiliate) products will be expensive to offer.
The above determines your profit margin. This is why we are paying attention to an online business in nature. They generally cost less to start, as well as cost less to operate.
Build A Brand And Promote It.
As you promote your product, and customers love it, you know that it will satisfy their needs, so go ahead and promote it to be preferred against your competitors’ products.
This helps your products to gain popularity, with repeat buyers. When customer loyalty is guaranteed, they will refer their friends and families to your products also.
Now You Can Set Up A Blog.
Your website is the first impression an online information seeker has of your business. You need to have an engaging website, set up by you yourself or you hire a professional to do it for you. Once google.com sees that your site is loaded with good contents, it will take your site serious and rank you well. But before you go, read this post on how to start your online business easily without spending any money first