Those who run a storefront or an office-based business are well aware of the overhead costs of setting up shop and then running that business every day. All the related expenses take away from the profits of each transaction. On the other hand, if you take your business plan to the World Wide Web, and hang out your shingle in the virtual space, there are many benefits and advantages over a brick-and-mortar business. This article discusses why some online reseller rights businesses succeed, while others fail.
1. Again, there is no rent to pay for a storefront or office. The majority of online resale rights businesses operate out of private homes. So by reducing or eliminating your rental overhead, you can increase your profits. Also, if you use a part of your home exclusively for conducting your online resale rights business, you may deduct that portion of your rent or mortgage off your taxes every year.
2. By taking your storefront online, you have the entire World Wide Web as your potential customer base, and this customer base is expected to continue growing for many years, as more and more of the world goes online.
3. Of course, this means that you can sell your reseller rights product line to anyone who can read English. If you are able to translate resale rights content into another language, once you have determined that there is a large enough user base to make this worthwhile, then you can sell additional product line from the same original product. For a really hot product, it might even behoove you to pay for translation services.
4. Since the Internet is always open, your product line can sell at any hour, in any time zone. So you can make money while you sleep. If you go the extra step of developing affiliate marketer connections, you can exponentially increase your marketing, by having others promote your content via dynamic links. This is one form of viral marketing.
5. By reducing or eliminating your need to hire labor to run your store, you have increased your control over costs, along with your scheduling flexibility for any business related tasks.
6. Start up costs for an online reseller rights business are small compared to start up costs for most other businesses, so you should recoup your original investment fairly quickly. It is also relatively easy to test a new product without a major investment in rights acquisition, and then to drop the product and move on to something more profitable if it does not sell well for you.
7. Online visits per month to a well organized, interesting, and useful reseller rights store could number in the thousands, tens of thousands, or beyond. So identify your niche market, find the products that sell well to it, acquire the rights, promote them sufficiently and effectively, and your sales momentum will build.
However, while marketing and growing a reseller rights business on the Internet is fairly straightforward, and despite all the advantages listed above, many new businesses do not succeed. Here are some reasons that these businesses fail. As you read through these, think about — or better still, write down — all the ways that you can prevent such a fate.
1. Many reseller rights businesses fail to create a viable business plan from the get-go. Your business plan is your compass, day in and day out, to steer your ship through any choppy Internet waters. It can always be refined. If you do not have a strong sense of organization, then you may want to seek a start up consultant or business advisor who can help you work out the necessary details. These include your start-up budget and your resale rights business’ focus, sometimes called your market niche, or mission statement, along with other things. Plan ahead to give yourself the best possible shot at success.
2. Many people who start a reseller rights business are simply lazy. They may not have the drive or vision to carry them through the tough times. Some are seduced by stories of easy money, which are almost always just that — stories. Most “overnight sensations” take years to achieve success, and only make it look easy, because they don’t complain a lot about the hard work it takes to make any start up business succeed.
3. A different problem but one related to laziness is impatience. Some people simply lack the discipline and tenacity — sometimes called “stick-to-it-iveness” — to sweat the details and wait for their efforts to pay off. Be sure that you have given a product every fair chance before you write it off. Learn everything you can about how to write effective sales copy. And above all, don’t ever buy into all the hype online that tries to convince you that a reseller rights business is super easy money. Yes, it can be very lucrative, but is seldom super easy. And most quick success doesn’t last anyhow, because it doesn’t teach you how to work through problems. Like anything worthwhile, this business will require your time, effort, and patience.
4. It is important to keep investing in your reseller rights business, not only in terms of money recycled back into your enterprise, but also in terms of the time and effort it takes to research new products, negotiate for their rights, and determine the most effective ways to market them. Don’t spend all your money on things that will not grow your business. Your budget should include plans to reinvest a significant portion of your initial earnings to increase profits over the long haul. The entrepreneurial mind is a strategic, long-range mind. It knows that instant gratification seldom builds business security and stability.
The more people discover the power and the convenience of online shopping, the more opportunities exist for a reseller rights business, provided that it offers good service and products that are of value. Just as importantly, you must market your product line well. Look for unusual and overlooked promotional opportunities that don’t cost you a lot of money. Market yourself well. Get others emotionally invested in your business success whenever you can. Talk it up and be sure to let others in your sphere of influence know what you are doing to succeed, whether they are part of your online world, or your local one.