How to Fail at Online Business - Neglect Niche Marketing
I was browsing the internet [as you do...] when I came across this neat little article which I agree with and feel is worth while sharing with you guys here:
How to Fail at Online Business - Neglect Niche Marketing
Now as I doubt I can copy the whole thing across I'll just put the points and my quick comments:
1. Internet Competition Is Fierce
Indeed! As the next point makes... you're competing against the whole world [sort of], which naturally makes for fierce competition. Are you ready? You'd better have a plan for success!
2. Geographic Distance Doesn't Limit Competition
Yup again. Only thing stopping people is language barrier and shipping costs. And even that can often be merely a very low barrier.
3. Niche Marketing Is Key
This comment of his says it all:
"The key is to select a niche that has enough demand to generate adequate revenue, but not so much competition that advertising costs are excessively high."
Got to get that balance right, a lot of people don't realise how far down the niche they should start however...
4. Most Internet Franchises Are Doomed to Failure
Heh, well he has this conclusion because of the little anecdote he starts of with :p
Though I'll still say this: franchises are doomed on the internet because franchises are inherently "cookie cutter businesses".
While this can work for ones at physical locations such as Starbucks and McD's but they're all very much the same as each which means for online they're obviously going to fail as they can't all compete against each other!! Unlike Starbucks, where my Starbucks that I just opened won't be directly competing against your Starbucks in the next town over.
How to Fail at Online Business - Neglect Niche Marketing
Now as I doubt I can copy the whole thing across I'll just put the points and my quick comments:
1. Internet Competition Is Fierce
Indeed! As the next point makes... you're competing against the whole world [sort of], which naturally makes for fierce competition. Are you ready? You'd better have a plan for success!
2. Geographic Distance Doesn't Limit Competition
Yup again. Only thing stopping people is language barrier and shipping costs. And even that can often be merely a very low barrier.
3. Niche Marketing Is Key
This comment of his says it all:
"The key is to select a niche that has enough demand to generate adequate revenue, but not so much competition that advertising costs are excessively high."
Got to get that balance right, a lot of people don't realise how far down the niche they should start however...
4. Most Internet Franchises Are Doomed to Failure
Heh, well he has this conclusion because of the little anecdote he starts of with :p
Though I'll still say this: franchises are doomed on the internet because franchises are inherently "cookie cutter businesses".
While this can work for ones at physical locations such as Starbucks and McD's but they're all very much the same as each which means for online they're obviously going to fail as they can't all compete against each other!! Unlike Starbucks, where my Starbucks that I just opened won't be directly competing against your Starbucks in the next town over.