Types of Online Businesses
Although the
Internet has been around for quite some years, it has evolved to the net
as we know it less than 10 years ago. And in that short time, it
has truly become indispensable, featuring prominently in our work and
play.
And, as is
inevitable in any medium in widespread use, the Internet has also become
commercialized. And that is why you are here now, exploring the
possibility of utilizing the net for your own monetary gain.
Before we look
further into a business on the web, it will be good to know about the
different types of online businesses found on the web:
Extension of an Offline Business.
A large
established company may find that it is necessary to have a web
presence. In many
cases, this online venture will not be a business in itself, but merely
serves as an extension of its marketing department. In some cases,
this web presence may not be directly related to marketing or selling.
The company may
use its online presence for market research or information distribution.
Online forums may be set up to gather
feedback, or the
company may make their catalogues and product specifications available
online for their customers' convenience.
Large Online Business.
This type of
company will start with an entrepreneur with a brilliant idea. He will
solicit funds from venture capitalists, or even start with his own
funds. A company is born and it will start hiring MBAs, programmers,
systems analysts, graphic designers - whatever it takes to be online in
6 months time.
I would not put my
money in such a company. The professionals hired, while undoubtedly
competent in their own line of work, may not do such a good job in the
online environment.
Take, as an
example, the graphic designer. She would probably design a very
impressive flash presentation for the home page of the site. It will
tell of the merits of the company and it will no doubt be well received
by all in the company.
But a web surfer
(their customer) is not going to be at all happy with the presentation.
Firstly, it takes
forever to download even on broadband, and a lot of us are still on 56k
dialup.
Secondly, it takes
over the computer's speakers, which will not be well received by those
that are listening to music, or on the phone, or watching television.
Thirdly, there
will probably be no option to skip the presentation, if one so desires.
And lastly, the
presentation talks only about the company, not about how the company can
benefit the surfer.
However, things
are changing. Professionals hired during the dot com craze at the turn
of the century have learned that the net is a different kettle of fish
altogether and they are adjusting.
Testament to this
is the turnaround of Amazon.com. In 2001, they reported a loss of $567
million. But 3 short years later, in 2004, they were in the black by
$588 million.
Small Online Business.
A single
individual typically starts this. This person may already have a small
part time business of their own, and is looking to the net to expand
their sales. Or, they may be attracted by spam he got in his email
promising large sums of money for little or no work.
After a few months
most would have given up in disgust. They would have tried out the
so-called business opportunities offered, many of which are outright
scams and all of which would have failed to live up to their claims.
A select few will
remain. They would have developed a discerning eye and seen through the
get-rich-quick schemes for what they really are - get-rich-quick schemes
for the starters of the schemes. They will ferret out the more
legitimate opportunities, or start one of their own, and go into
business for themselves.
This online guide
is about online businesses that can be started by a single person, with
limited resources, working alone in their home.
