Making Money Online

Millions of e-stores now thrive on the Web, providing people with a convenient way to purchase goods and services with a few mouse clicks. For small businesses, the Internet delivers a global market. Depending on which survey you believe, there may be more than a billion people worldwide who regularly use the Internet--that's a lot of potential customers and that number will only continue to grow into the foreseeable future. But while great promise is there, challenges loom large for entrepreneurs who want to set up shop on the Net.

First of all, how do potential customers learn about your website? That can be difficult given the amount of online competition. To attract customers, you have to aggressively market your website. While guerrilla strategies keep costs down, running a promotional campaign, buying ads, either in print or online, can be costly.

Second, what kind of products do you sell? The answer is critical, because online shoppers can be reluctant to buy big ticket items, such as furniture. The exception seems to be commodities like electronic gear and computer equipment. What's selling well? Airline tickets, hotels reservations, music, books and software--goods and services that are already familiar.

Remember, it takes time for people to adopt to new technology and modes of transactions. Some people still remain reluctant to give out their credit card numbers over the Internet. But as previously noted most analysts project healthy growth for online sales, especially as security issues improve.

The poster child dot-com business, Amazon.com has a lot to teach aspiring Internet entrepreneurs. It has grown from a bookseller to a purveyor of thousands of diverse products, pioneering ways to improve convenience and customer service. After years of hemorrhaging millions of dollars, the company has seen its revenue soar, despite the global financial crisis.

The Web is still in its adolescence, less than 20 years old, an unexplored territory with great potential and few rules. Despite uncertainty and high risk, opportunities abound for electronic entrepreneurs.

Last update: Jan 12, 2010