Starting an online business from your home can lead to many great opportunities, as well as the chance to replace your day job with your own full time business. Whether you are an Independent Professional seeking more clients or whether you create an entirely new business on the internet, you can be successful.
But when you are new, it is easy to lose money because you have so many choices. Most new Internet marketers don't know how to recognize the red flags. Sometimes you're not even being scammed: you just don't ask the right questions.
Many newbies pay excessive web hosting fees. "Alan" signed up for a company that promised a free web design. He just had to sign up for 2 years of hosting at $40 a month. He thought it was a good deal till he learne he could pay $9 a month to host all his domains. So he's paying $30 a month above the going rate for 24 months.
That's a $720 web design. He could spend considerably less to get started with a simple site.
"Barbara" signed up for a package that promised to deliver all the training she need for her business for several thousand dollars. The company offered a dozen or so slide presentations -- not Webinars or videos -- online. They explained how to use pay per click, but didn't discuss the fine points of choosing key word phrases and choosing a niche that wasn't too crowded. And they didn't warn Barbara to test her niche to see if she could be profitable at all with her product.
"Carl" paid $3000 for a simple web design for his site. He realize he needed some help with the copy but said, "I don't feel I can spend more. I just invested $3000 and have nothing left."
An experienced Internet marketer told Carl, "I could get a comparable site for about $500. This site is very simple -- it's really a template.".
The people I call Alan, Barbara and Carl are not at all unusual. They're very smart people. They achieved successful track records in corporate life and off-line businesses. But now they became Internet entrepreneurs trying to get start-up businesses off the ground. They were like explorers who got dropped off in a jungle without a guide.
One red flag all three missed: When they consulted with resources, they were encouraged to focus on design. Not copy. Not strategy. That's the most common mistake newcomers make: getting lost in graphics, colors and typeface. A professional look is important, but first you need to develop strategy, choose a target market and write your content.
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