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Best keeping secret about online business is that it is waste of time and money.

by Dr. Leonid Sakharov

Entrepreneurship online is a waste of time and money.


You are searching web to find out possibilities to make some extra money. Most likely bet that one time you will open the page with claim that the secret how to do decent money can be revealed to you for quite moderate price like 10 or 50 backs. Being very frustrated with previous experience you could buy the e-book or real book or membership or something else to do at last right move. What this secret information most possible will be about? That you can sell the secret how to make money on Internet too. And as soon you yourself bought such product it means that there is no fraud. Every small fishes online are selling such kind of information each other. Almost nothing else. And this almost is so small that we can put it aside for these remarks.

What could be successful Internet business? You already know all of them. Successful specific online businesses are intermediates between sellers and buyers. Between job seekers and employers, individual antique sellers and collectors, software sellers and buyers, travel planners and hotels, stock and currency sellers. Necessary condition is large number of participants - hundreds of thousands. Internet is mostly chaotic market place but not an avenue of stores. A human nature is responsible for this situation - peoples tend to do impulsive purchases in real stores because of falling in love from first sign with some nice gadget. Online the magic of touching and trying is not presented. The same as there is an absence of a pleasure of chatting with nice store girls.

What you can sell on Internet as an ordinary or even extraordinary person? Something else that you cannot to put out of your front door but that has a value? Even more difficult question? What you can produce periodically so unique helpful that in necessitate to sell this product all around of globe? Something that you neighbors already bought from you and you are sure that everybody else will buy it as soon as will see. Do you have this it? If the answer is yes - go to Internet and you will be billionaire very soon. If not forget about residual income from online business. I will explain catches of most popular but illusive plans.

Affiliate partnerships. Idea is quite reasonable. You have a traffic on you website and placing the advertisement for others business products on it. You visitors could want to go to check products and if they will buy them you will have part of price. Absolute honest and legitimate scheme. Every information services are selling advertisement place or time. The weak link here is traffic. Let's estimate what is the average number of hits for one page. Note that numbers here are fluid. So. Google is indexing 8 billion pages, all population on the globe is about the same. Active Internet users about 5% of all. So if we will say that per one potential Internet customer there are twenty pages the mistake are not too great. It means that if every computer user will randomly look at 20 pages every day the every existing page will has one hit per day. Only one. To my experience it sounds about right.

So everything about online business focuses on traffic. Traffic. Traffic. Traffic. How to get big fat healthy traffic. No way. You have to present valuable, unique and often requested information to be popular. What it could be? News, search service, reference. Nothing of above is can be developed by one person or even by small team. You have nothing to offer to crowd. Accept it.

Traffic generators. There is very funny activity online. Desperately entrepreneurs who out of hope for naturally driven customers gathering under one roof to stroke each other backs. The idea is to exchange visits. Technically there are different solutions but all of them are about it. I will see your page - you will come to mine. To my estimation there are about 25 thousands of such traffic hungry businesses and they migrate from one place that offer such service to another. Visits from the same poor things obviously will not significantly increase sales. Nothing more then fooling yourself. You need only customers who are looking for your products not one is in need to sell something to you.

E-mail campaign. Not too much nice to say at all. In most cases it's the best way to create enemies and looking for trouble. I have about 200 bulk emails every day. Probably open one or two per week. And take into account that I am very curious person. Million e-mails probably bring you 100 visitors who will find you site with search engines anyway.

Entrepreneurship online is a waste of time and money.

Originally submitted at Feb. Nov 15, 2004; 14:02

Unfortunately after many years I can only confirm the conclusion. One way or another small player will be marginalized and pushed out of money stream. Maybe there are few exceptions but in general even talented programmer with unique product will be ignored until sell himself to industry level organization. Too high money barrier to enter market with broad advertisement campaign to be noticed.

And in addition to previous troubles now the is lots road blocks tolls like certifications of different sorts. At first they create backdoors to their software then they are fighting  them by blocking all third party software been treated equally. It is long story deserved separate article.

Nov. 16, 2017; 18:49 EST

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