Failing – An Online Business Story Observations & Reflections on 8 years of consistent failure (Part 2: "The" Lessons 1-5)

Lesson 1:

Don’t Expect Anything

The Reality:

This is my first piece of advice, and probably the most important in the big picture. You need to understand that there are approximately 1 billion websites on the internet, all drowning out any newcomer that dives in the internet market with high hopes and a cute idea. The concept of not expecting anything will save you from serious disappointment, despair and financial troubles. If you think you’re creating the next big website, or you’re site is going to take off the second it hits the virtual world, take a step back and be realistic. This is the problem with the internet guru’s that tell you, “you could start making money today”, they pump false hope and empty promises into your mind. Don’t buy into these people, and definitely don’t take out your wallet and start paying these people so they could “coach” you. That is why they make money online, because they serve these outrageous ideas to us “dreamers”, then you end up realizing that these bozo’s never had a successful online business to begin with.
When you make the decision to create an online business, you have to know deep down that you’re probably going to fail. It’s not pessimism, it’s just fact.

Solution:

Instead of dreaming aimlessly about making “unlimited income” online, be calculated, strategic and treat your online endeavor like a REAL business. Create a business plan for your site, and methodically examine your business structure and conceptual ideas and mission, add real metrics to gauge your plan of attack and measure progress. You need to stick to a strict budget (starting an online business could end up costing thousands), and an exit strategy if things go sideways. Treating your online business like a real business will be the first step in separating yourself from all of the others who wonder around without a purpose or solid plan.

This is a common issue I see with several people who start online businesses, whether it be an e-commerce site or blog, they fail to treat their business like a real business. Starting an online business requires real money, so why not treat it like a real business?

Lesson 2:

Don’t Fall for the “Niche” Ideas

The Reality:

For some reason, probably by the game “Telephone”, people think that to create a successful online business they need a niche idea that has a low competition ranking on a keyword assessment. Trust me, this does not work. First of all, putting money into something whether it be products, content, videos, etc., that you don’t actually care about is your first downfall. How am I supposed to get excited about starting an online business centered on “Bee Farming” or “Dog Grooming”? Not only is this concept dry and unfulfilling, it’s just ridiculous. Even if you did make money on a niche idea that you found, if you don’t truly care about the topic then it’s not sustainable, you’ll burn out and so will the site along with any penny’s you’ve made.

Solution:

Get into something you care about. You don’t need to go off and find the most niche idea to have a successful website. I’ll tell you from personal experience and observation, that people could sense when a site whether it be blog, content, products, etc., is being ran by someone who doesn’t know what they’re talking or doing business about. Don’t waste other people’s time by trying to make stuff up and put it on a website to make money. Sit down, think, reflect and create a unique idea that’s special to you. Something that you truly enjoy, something that you’d do even if you didn’t make money, something that you’d be proud to show your friends, family and co-workers. Just do something that you have a personal interest in, and add something special. You’ll be happier over the long run, and it will be more sustainable, not to mention it’ll probably make you more money over time and open up new opportunities.

Lesson 3:

Expect to Pay Up

Reality:

Just to start an online business, you’ll have to pay for a domain name and webhost. Domain names are often between $10-25, and web hosting for anyone expecting some minor success could expect to pay $50-100 a month for a solid platform.
A lot of web hosting sites now charge immense prices for having your own piece of internet real estate. Although, you could find website hosting with introductory low pricing, you’ll quickly find out that these web hosts offer the absolute bare minimum at the introductory price, and offer premium upgrades at an inflated price.
A popular webhost Wordpress now requires a significant amount of money to have all the plugins and special features that make your website actually look professional. These webhosts hook you in on a low price offer to get you in the door, and then when it comes time you want to start adding some character and personality to your site, it costs twice as much if not more. This is another thing that the online guru’s pitch, a cheap start-up, and don’t get me wrong, it is cheap but not as cheap as they paint it out to be. Also, to actually generate some serious traffic in a rather short time, you’ll have to look into paying for advertising, definitely not cheap.

Solution:

As I stated earlier, any new online business you get into needs to be treated as a real business. Keep track of your expenses, and shop around for the best deals. There is often some decent web hosts that offer decent pricing, but be sure not to add on all the upgrades they offer, because most of these are recurring costs and could add up tremendously over time. Don’t think that you could throw a hundred bucks into the internet and get your website up and running with no advertising in a short amount of time. It’ll cost much more than that, and not to mention, time. Think about what you’re going to expect from your online business, and do your research to make sure that your webhost is consistent with what you’re going to expect from your online business.

Lesson 4:
Online Business Takes a Lot of Time
Reality:
Online business is often pitched as a “start making money today!” endeavor. That is so far from the truth, it’s actually quite funny. Nothing good comes over night, and neither does an online business venture. Not only does creating a worthwhile website take a lot of time, effort and money, so does generating the traffic you need to actually make any money.
Unless you plan on taking “online survey’s for real cash right now!” as your business tactic, then ensure yourself that you won’t expect to make any money from your website for 6-12 months, at least. This is especially true for content creation sites such as a blog or information website. You could possibly make some money from an e-commerce site after launch, but it will require massive amounts of advertising and expenses out of your pocket. You have to understand that when you create your online business, nobody knows or even cares...

Solution:
This is where setting goals and a vision statement really come into play. Remember when I said you need to run this online business like a real brick-and-mortar business? Well that idea is not going away. You need to set up a strategic plan that includes you tending to your online business daily. Once your online business is set up, with its new car smell, the real work starts.
You need to start filling those empty margins of web space with content, products, or whatever it is that you’re centering your business around. And not only do you need to constantly add useful and relevant products/ideas/content, etc., you also need to start networking and getting your name out.
Start by reaching out to some websites, blogs, forum’s, social media platforms, etc., to get some wind under you. Even if people reject you, and they will, at least they’ll know who you are, and what online business you’re in. Don’t be a spamming ignorant beggar, be respectful and have some self-confidence. Provide some kind of benefit to those you ask for favors from, this is a capitalistic digital world, expect to pay favors in return for them helping you.
Don’t think that once you’re online business is up, that people will flock, because they won’t. Be persistent, be consistent and persevere for months or even years before you start seeing serious success. Like I said, a strategic plan that outlines your daily, weekly and monthly goals and objectives will seriously be what keeps you in line with this idea.

Lesson 5:

Customer Relationship Building is Vital

Reality:

Most dominant websites account for majority market share in their respective industries. Websites such as Amazon, controls 45% of the total e-commerce market share. The large conglomerate online industry leaders are the one’s taking majority of the pie, but there’s a little slice left for the little guy.

Just like Wal-Mart, McDonalds, and other major businesses garner majority of the market, there is still always the little guys that get theirs. It’s quite easy to see now that the dust has settled, but people, especially on the internet, want a “relationship” with whoever they’re doing business with. What I mean by that is people desire to know who their doing business with, they want to know the person/company/establishment/history of their provider of goods, services, etc.
This is the only thing that leaves the gap between Amazon having only half of all internet sales, instead of 100%. They are too big to really develop these relationships with the people to whom they conduct business with. People do business with people they LIKE, especially when conducting business online.

Solution:

When you start your online business, don’t make it seem like you’re a huge corporation. I’ve made this mistake myself. Let your audience know that it’s a start-up, and that you’re personally going to ensure that you provide value, customer service, reliability, quality and above all, a great relationship to your customers/readers/subscribers, etc. Even when you do grow over time, stick to that relationship building.

People don’t mind paying a little more for a product/service/ads from a business that they know is reliable, has great customer service, and goes out of the way to ensure a trusting and reliable relationship with them. Go out of your way to let people know what you are, what you’re about, and what you’re going to give them in return for their loyalty. Great relationships with your customers are what separates you from the big guys.