Profiles of Top Internet Business Concepts Part 2

5. Auction Site

OVERVIEW OF BUSINESS MODEL
Online auction sites are one of the fastest growing businesses on the Internet
today. Almost everyone knows at least one person who has either bought or
sold a product through an online auction service such as eBay or Yahoo!
Setting up an auction Web site may seem easy at first glance. However, the
popularity and success of online auctions has led to an explosion of these sites.
This has resulted in stiff competition among auction sites. You must find a
niche market—for example, rare collectibles, baseball cards, celebrity memorabilia,
or autographed items—to set yourself apart from the competition.
If you decide to open an online auction site, you will be using a special
computer program that places items up for auction on your Web site. People
interested in the auctioned item place bids. If you are using a good auction
program, then your computer will keep track of these bids and will finally close
the auction and notify the seller and the successful bidder. The bidder and seller
must arrange for the shipping of the item privately. Your sources of income will
be the commission earned from the sale of each item on your site or the fee
charged to submit an article and banner advertising revenue. Some auction sites
also include a membership fee for access to selling on the site.
SKILLS NEEDED
What you’ll need to embark on this opportunity is basic Web publishing and
digital imaging know-how, and an in-depth knowledge of the auction software
program you are going to use. You will also want a robust list of contacts with
items available for auction on your site or knowledge of Internet marketing to
spread the word about your business online.
COST TO START THIS BUSINESS
The cost to set up and run this type of business ranges from as low as $10,000
into the millions for a presence like eBay. The most expensive elements of the
startup will be the auction software and the extensive marketing needed to
launch this type of business. You will also have to pay for the design, development,
and hosting of your Web site.

NUMBER OF EMPLOYEES NEEDED TO START
The number of employees needed may change as the business grows. It will
depend on the volume of business you handle and the degree of automation of
your online presence. To start, one competent person can handle operations.
INTERNATIONAL POTENTIAL
Online auctions have strong international potential. Unless you are a specialty
site, anyone can place anything up for auction. It is the customer’s responsibility
to arrange for the transfer of auctioned items. So it is entirely possible for
someone in Zimbabwe to use your site to buy a lock of Elvis’s hair from someone
in Greenland.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 3 is most appropriate for an auction site. You will need some
sophisticated software and online payment processing (if you are going to take
care of the financial arrangements from your site) to be competitive in this
market.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
There is already a saturation of auction sites; some have proven to work and
others have flopped. Getting the buyers to your site will be the biggest challenge,
so once you build a somewhat dedicated audience, it’s important to be
responsive to their needs by incorporating a rating system that is regulated by
the users of your auction site. You want to develop a system to ensure that you
are paid your fee or commission if you don’t handle the financial transaction
from your site.
Niche auction sites still provide a great opportunity. Stamp auctions, coin
collector auctions, and similar types of niche auctions provide for easier marketing.
ONLINE MARKETING TECHNIQUES
• By asking if your customers would like to be kept updated on any great
deals in their field of interest, permission marketing could be one of
your greatest assets. For example, an Elvis fan might be interested in
knowing when an Elvis-related item comes up for auction.
• Banner exchange and banner advertising on sites that have the same
target market you do can be very effective.

• Consider using viral marketing. This will allow your customers to invite
friends to join the auction site. If users see something a friend might
like, they will most likely pass on the information.
• Develop a sponsored listings campaign to bid on appropriate keywords
with the popular search engines.
• Develop and implement a comprehensive link strategy.

ADDITIONAL INCOME
Banner advertising can generate a substantial income as long as you have a lot
of visitors to your site.
ONLINE EXAMPLES
eBay
http://www.ebay.com
eBay is synonymous with online auctions in the same way as Nike is synonymous
with sneakers.
uBid
http://www.ubid.com
Another well-designed auction site. Not as omnipresent as eBay, but a welllaid-
out site nonetheless.
6. Auto Advice
OVERVIEW OF BUSINESS MODEL
Through providing sound advice to visitors wondering how to solve a problem
with their current automobile or whether or not to purchase a certain year or
make of automobile, you have the opportunity to develop a nice little business.

If you offer your visitors quality auto advice, they will return to your site again
and again to see how your advice can help them to maintain a better, longerlasting
automobile.
Advice Web sites allow you to “data-mine” in targeted markets. Consider
your users as your source of income. The more visitors you have and the more
information you gather from the people you counsel, the better. There are a lot
of permission marketing opportunities available with this type of business. You
can ask your visitors for permission to send them specific types of information
and then you can charge a sponsorship or advertising fee to those suppliers
who have information they want distributed to these opt-in lists.
Your main source of income will be from selling banner advertising on your
site to businesses that share the same target market—automobile retailers, used
car dealers, after-sale product suppliers, and auto parts suppliers. Since this
type of business targets individuals interested in automobiles, you are providing
an optimal banner advertising opportunity for all businesses in the auto
industry.
SKILLS NEEDED
This form of business requires that you have expert knowledge in the area of
automobiles. If you don’t offer quality advice, your visitors will notice and will
not return to your site. This could seriously hinder the profitability of your
business.
COST TO START THIS BUSINESS
The cost to start this type of business ranges from approximately $1,000 to
$5,000. Initially you will have to pay for the design, development, and hosting
of your Web site. Additional costs associated with starting this type of business
include online and offline advertising costs.
NUMBER OF EMPLOYEES NEEDED TO START
Typically, one part-time person is needed to run this type of business, depending
on the volume of requests received from visitors.
INTERNATIONAL POTENTIAL
This business has high international potential.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 is most appropriate for this type of business.  

IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
It is important that you offer sound advice on your site. If you offer advice that
is incorrect or inappropriate, it could seriously hinder your business potential.
You should place a disclaimer on your site in case this problem arises. This will
exclude you from any legal action that may result from accidents or damages
resulting from your automotive advice.
ONLINE MARKETING TECHNIQUES
• Viral marketing with a catchy “Tell a Friend” element would be appropriate
for this type of site.
• Make sure there are plenty of areas on your Web site that encourage
users to provide their e-mail address—for example, “Click here if you
would like to be notified when we update our advice column.” You
could also have product-specific mail lists to which visitors could opt
in. Having an RSS feed to let subscribers know when you add new
content is another neat feature to generate targeted traffic.
• Participate in newsgroups, mailing lists, and discussion forums related
to automobiles with a cleverly designed signature file.
• Have your Web site listed and linked from as many auto-related directories,
meta-indexes, and Web sites as possible.
• Develop a sponsored listings campaign to bid on appropriate keyword
phrases with the popular search engines.
• Develop online press releases and have them distributed to as many
automotive-related publications and e-zines as possible.
• Web ring participation can have a significant impact on traffic, as there
are many auto-related Web rings accessible from Webring.org and
Looplink.com.

ADDITIONAL INCOME
There are plenty of avenues to create additional income in the advice Web site
business. You can set up mailing lists targeted toward specific car owners and
sell or provide sponsorship opportunities to industry partners that want to reach
that target market. For example, you could have a Volkswagen mailing list, or
for an even more targeted approach you could have a Volkswagen Beetle mailing
list. The possibilities are endless. You can ask people if they would like to
receive different auto maintenance advice via e-mail daily. This form of permission
marketing enables you to send them an e-mail at their request. Proper use
of these targeted lists could result in a tremendous money-making opportunity
for your business due to the nature of readership.
ONLINE EXAMPLES
AutoAdvice.com
http://www.autoadvice.com
An in-depth site offering auto advice and tips on how to buy a new car.
FreeAutoAdvice.com
http://freeautoadvice.com
This site is operated by a collection of mechanics and technicians who repair
cars.

7. Banner Ad Designer

OVERVIEW OF BUSINESS MODEL
One of the primary forms of advertising on the Internet today is through banner
advertisements placed on high-traffic Web sites. Banner ads quite often are
designed by a graphic designer. With the Internet growing at an exponential
rate, more small businesses are going online. Most of these small businesses
can’t afford to have their own in-house graphic designer, so they have to outsource
the creation of their ads to outside firms.
As a banner ad developer, you will take requests for banner ads via e-mail.
After consulting with customers via e-mail or phone, you will construct a banner
ad that meets their requirements and price. The revenue will come from the
payment for these services.

SKILLS NEEDED
The most important set of skills for creating banner ads lies in superior graphic
design abilities. Familiarity with the standard graphical programs is a must.
More recently, however, animated banner ads have become quite popular. To
create these types of ads, you will need to be familiar with the Java programming
language or Macromedia Flash.
COST TO START THIS BUSINESS
Costs can be minimal to begin this business if you have a computer and the
proper software needed to complete the work. Most graphic designers have the
necessary hardware and software and are more than capable of designing and
developing their own Web site.
NUMBER OF EMPLOYEES NEEDED TO START
One part-time person can start this business.
INTERNATIONAL POTENTIAL
The international potential for this business is without limits. If your graphics
are catchy, your ads will be noticed and you no doubt will be contacted for
your services. If a client requests banners in another language, have them provide
the text and there should be no problem.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 or 2 is appropriate for this type of business.  You will be taking requests through e-mail, but since the
customers will desire input into the creative process, you will be in contact with
them over the phone and they can pay you directly.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
Online competition could be formidable. For this reason, great design and excellent
customer service are very important. The graphical presentation of your
own Web site is of particular importance. Show off your stuff and have an area
for client samples and testimonials viewable to the public.
ONLINE MARKETING TECHNIQUES
• Develop a comprehensive link strategy. Establishing links from related
sites such as online marketing e-zines, ad agencies, and newsletters is an
excellent way to bring targeted business to your Web site.

• Circulate a series of dynamite banner ads for your own services.
• Develop a sponsored listings campaign to bid on appropriate keyword
phrases with the popular search engines.
• Participate in marketing mail lists, Usenet newsgroups, and forums.

ADDITIONAL INCOME
By increasing your services into related fields such as graphic corporate ID
development, e-book covers, e-brochure development, and Web site development,
you could expand your income.
ONLINE EXAMPLES
Addesigner.com
http://www.addesigner.com
This Web site lets you design your own banner ads in a short time and then
download them if you are a member. The banner ads are of the simplest kind,
but it is a good low-end solution for some businesses.
Mouser Art
http://www.mouserart.com
A typical small entrepreneurial Web site. However, the excellent site design and
layout gives the site a really professional feel.

Profiles of Top Internet Business Concepts

Profiles of Top Internet Business Concepts

1. Ad Network
OVERVIEW OF BUSINESS MODEL
Ad networks are among the top methods of online advertising. The “network”
component is organizing the sale of ads and finding high-traffic sites on which
to place the banner ads or hyperlinks for your clients. Ad networks are just like
other ad agencies. They research Web sites that attract the target demographic
of their clients. The revenue comes from the percentage of advertising dollars
that you retain during each campaign.
SKILLS NEEDED
Knowledge of online advertising techniques is an asset to run this type of business.
If you decide to offer banner ad design services, knowledge of graphic
design would benefit your business by eliminating the costs associated with
outsourcing to a graphic designer.

COST TO START THIS BUSINESS
You will have to pay for the development, design, and hosting of your Web
site. Computer hardware and software will be the main start-up expense.
You will need a software program that delivers the appropriate ads to the
sites in your network every time it has a visitor. The software should also be
able to provide reports of results for your clients. Estimated cost is a minimum
of $3,000 to $10,000 to start. Some of the sophisticated software, if
your clients want extremely targeted banner ad placement, could run you
over $100,000.
NUMBER OF EMPLOYEES NEEDED TO START
The minimum number of employees needed to start and run this type of business
is one dedicated individual.
INTERNATIONAL POTENTIAL
This business has strong international potential. Online advertising is an important
part of the marketing strategy for many businesses, in all countries.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
As the advertising campaign needs to be developed with the client and decisions
must be made about where and when the ads will be appropriately placed,
e-business level 1 or 2 would be appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
The software you develop or purchase to administer the ad network should
be researched and be suitable to your level of operation. You should be
available by phone for prospective and current clients to contact you. You
should plan what you are going to do with the excess capacity ad space—for
example, you may want to offer last-minute volume discounts. Concentrate
on associating yourself and including in your network those Web sites that
have sustained high traffic levels. Always get paid up front for an advertising
campaign.
You will need to address the sophistication levels you want to get into with
the site advertising. Are you offering static ads, or are you going to provide
keyword advertising, geo-targeted advertising, behavioral advertising, and the
like? The level of sophistication will impact the software and the cost of that
software.

ONLINE MARKETING TECHNIQUES
• Developing a comprehensive affiliate/associate program would not only
increase the awareness of your ad network, it would also send referral
business to your site.
• Get linked from online advertising directories.
• Develop a sponsored listings campaign to bid on appropriate keyword
phrases with the popular search engines.
• Participate in newsgroups and discussion forums related to online advertising
or the industries that your ad network targets.
• Launch your own strategic banner advertising campaign on Web sites
frequented by your target market.

ADDITIONAL INCOME
You could generate additional income for your ad network by providing graphic
design services to businesses. You could design banner advertisements for businesses
that are not capable of handling this task in-house. This additional service
would add value to your online business.
ONLINE EXAMPLES
AdForce
http://www.adforce.com
AdForce is an independent centralized ad servicing and management solution
on the Web. Focusing on pay-per-click marketing, they offer expertise in the
management of online advertising.
.Com Marketing
http://www.commarketing.com
Having managed thousands of online operations, .Com Marketing’s strength
has focused on maximizing online media placements. .Com Marketing assesses

each component of our clients’ campaigns prior to, during, and post-launch.
Consideration to detail is what sets .Com Marketing ahead of the rest.

2. Apartment Locator
OVERVIEW OF BUSINESS MODEL
Moving to a new city is never easy. Everyone needs a place to live, but not
everybody has the time to look. This is a problem that is being solved by many
businesses in major cities across the world. Many savvy individuals are launching
their own apartment locator Web sites and are turning quite a profit from
doing so.
Your main source of income will be referral fees from rental offices of apartments,
condominiums, and other real estate structures. You could also charge a
fee for sublets, apartment sharing, and private rental listings. Requests are sent
via e-mail from those seeking an apartment to you, the site administrator, with
a description of the desired apartment location, size, necessities, and so on, that
the individual is looking for. You then take the request and find the best possible
location to suit the person’s needs. Once you have found a match, you set
up a time for your client to view the apartment. You collect a referral fee if the
client signs a lease.
Another way to run this type of business would be to set up a searchable
database. Those with apartments to rent or sublet would pay a fee to add their
listing. People looking for an apartment would search based on specific criteria
such as location, maximum rent, number of bedrooms, etc.
SKILLS NEEDED
This business is great for someone with a thorough grasp of the available living
space in the local area and basic Web publishing skills. You should be a clear
communicator via e-mail and phone with your clients and the owners of rental
buildings so they take you seriously.
COST TO START THIS BUSINESS
Costs associated with starting this business range from $1,000 to $5,000. Initially
you will have to pay to design and develop your Web site along with all
costs associated with this (e.g., hosting service). If you want to develop the database,
there will be additional costs involved—the amount will be determined by
the level of sophistication, the number of fields, and the number of searchable

fields. Additional costs associated with opening this business include online advertising
costs and any offline promotion that you may implement.
NUMBER OF EMPLOYEES NEEDED TO START
Typically this business can be run by one individual to start and will increase
depending on the volume of referrals.
INTERNATIONAL POTENTIAL
Although people from other countries may use this service if they are moving to
the country, city, or state that you represent, this business generally has national
and regional potential.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 or 2 would be most appropriate for this type of business—level
1 if you are providing hands-on services and level 2 if you want to go the database
route and have the site run itself. For more information, see Part 1.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
Although you want to receive as many referrals as possible, it is important not
to let the apartments that you represent take advantage of your site as a free
advertising opportunity. To avoid this problem, don’t list the specific names or
addresses of the apartment complexes that you represent. You can provide pictures,
and general location information. If you give the specific address of the
suggested match, your client may go directly to the apartment without even
using your service. Of course, if you run this Web site as a database, this will
not be an issue as you will be paid up front for all listings.
Collection of referral fees is an important issue. Ensure that you have contracts
in place with the apartment owners and safeguard procedures that help
you to keep your incoming fees organized.
Your Web site has to be constantly updated and maintained. When an apartment
is rented through you, make sure to show this on your site. When an
apartment is no longer available, remove it immediately from your site.
ONLINE MARKETING TECHNIQUES
• Develop links from as many Web sites and meta-indexes as possible
that target your geographic audiences.
• Purchase banner ads on geographically targeted Web sites (e.g., if you
represent apartments in New York, purchase a banner ad on a Web site
about living in New York).

• Participate in sponsored listings with the search engines by bidding on
appropriate keyword phrases.
• List your site in the classified ad section of nearby online newspapers.
• Participate in real estate or geographically specific mailing lists with a
cleverly designed signature file.

ADDITIONAL INCOME
You should consider partnering with businesses that could benefit from your
referrals. For example, local moving companies or furniture rental businesses
could benefit from your referrals, since you target the same market. This could
prove to be quite profitable for your business. An alternative to this would be
selling advertising to these businesses on your site.
ONLINE EXAMPLES
Sami-Apts.com
http://www.sami-apts.com
This is a great student apartment locator service.
AOK Apartment Locators
http://www.aokapartmentlocators.com
A dynamite apartment location service in the Dallas-Fort Worth, Texas, area.

3. Art Supply Store
OVERVIEW OF BUSINESS MODEL
Today everyone is buying products and services online, even artists. The number
of potential customers for an art supply store is tremendous. Many artists
frequent the Internet to buy supplies such as paint, canvas, brushes, carving
tools, and more. The Internet makes it easy for artists to buy products, especially
uncommon supplies that are not carried by your local art supply store.

Offering uncommon supplies also enables you to practice niche marketing and
can produce high returns for your business.
Here’s how it works. With the click of a button artists can easily browse
through your selection of art products, adding what they like to their shopping
cart. When they are finished they can simply check out, pay for the products
online with a credit card, and wait to receive the products in the mail. It’s as
easy as that.
SKILLS NEEDED
Knowledge of different art supplies and techniques is an asset, as you want to
provide the best customer service to your clients. You can’t do that without
understanding their needs.
COST TO START THIS BUSINESS
The cost to set up and run this type of business ranges from $2,500 to $5,000.
Initially you will have to pay for the design, development, and hosting of your
Web site along with your storefront solution and merchant account setup. All
additional costs are associated with promoting your business online and offline,
and purchasing and holding inventory.
NUMBER OF EMPLOYEES NEEDED TO START
To start this operation all you will need is one person. This operation is ideal if
you are looking to start a business part-time.
INTERNATIONAL POTENTIAL
This online business has strong international potential, as its products are of
interest to artists around the globe.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 3 is most appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
The site must be kept current. When items are discontinued or out of stock, the
Web site and storefront should be updated. The shipping operation of your
business should be timely. The prices have to be competitive with the same
products available off the Web. Keep in mind that shipping and handling charges
have to be added for products bought in your online store.

ONLINE MARKETING TECHNIQUES
• Develop as many links as possible from art-related Web sites and directories.
• Participate in newsgroups and discussion forums related to art with a
cleverly designed signature file.
• Host your own art advice column or daily art tips that will feature your
products and current promotions. You could leverage your exposure
through an RSS feed.
• Participate in sponsored listings by bidding on appropriate keywords
with the popular search engines.
• Develop a permission-based mailing list of potential customers and send
weekly e-specials or a newsletter with Art Tips and Resources.

ADDITIONAL INCOME
In addition to selling art supplies on your site, you could also help artists sell their
artwork. You could auction other artists’ work from your site and then take a
percentage of the sale for your services. This would be a great way to earn additional
income and would also help to generate repeat traffic to your Web site.
ONLINE EXAMPLES
MisterArt.com
http://www.misterart.com
MisterArt.com is a large discount art supply store that uses a fully integrated
e-business strategy to provide art supplies to consumers.
Island Blue Art Supplies Catalogue
http://shopping.islandblue.com

This is a great site with a huge catalogue of art supplies that can
easily be purchased directly from their site.
4. Association Management
OVERVIEW OF BUSINESS MODEL
The number of associations related to different industries and interests is phenomenal.
Many of these associations cannot afford to hire (or do not have the
volume to warrant hiring) one or more full-time employees to handle the dayto-
day administrative duties involved with running the association. Associations
are now outsourcing all of these administrative duties to an association
management firm.
Here’s how it works. The duties that associations want taken care of are
administrative. Common tasks include billing, bookkeeping, and accounting,
taking minutes at meetings, collection of annual dues, association event promotion,
Web site maintenance, and distribution of weekly or monthly newsletters.
Since these tasks will be repetitive and not very time-consuming, you are able to
handle the association management for multiple associations, and because the
tasks will remain similar between associations, you will be able to work much
more efficiently.
IslandBlue.com offers a wide range of art supplies from its site.

The key to success in this business is organization. Make sure that you are
always on time with your work. If you don’t keep yourself organized or you
take on too much work, you increase the chance that you might not perform up
to the associations’ expectations of your firm. This could result in the termination
of a management contract and ultimately will affect the professionalism
and overall appeal of your organization’s services.
SKILLS NEEDED
Excellent organization and communication skills are necessary for starting this
type of business. Other skills that would be an asset include knowledge of accounting,
creative writing capabilities, and other basic administrative skills.
COST TO START THIS BUSINESS
Since you are providing a service that has no inventory, your initial costs will be
minimal. The cost to start this type of business ranges from $1,000 to $10,000.
This type of business typically can be run out of your home, which eliminates
overhead costs of setting up an office for your management firm.
NUMBER OF EMPLOYEES NEEDED TO START
One person can run this business part-time to begin. This is a perfect idea for
someone working from home.
INTERNATIONAL POTENTIAL
This business does not have strong international potential due to the nature of
the service provided. Common tasks include taking minutes at weekly or monthly
meetings or attending other functions held by the association. This will require
your business to be located in the surrounding area of the association, so this
business has a more regional appeal. Of course, if this is a national association,
most meetings may be online, with one or two a year being face-to-face with
everyone flying to a common location. If this is the case, the business could
have national or international appeal.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 is most appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
With all your clients, make sure to have a detailed contract that clearly outlines
all the services and duties you will be providing. The contract should indicate
important dates and contact lists, and someone within the association should

be appointed to provide you with all the necessary information and approvals
to run the association efficiently.
ONLINE MARKETING TECHNIQUES
• Participating in newsgroups and discussion forums related to your target
audience would be a great way to increase the traffic to your Web site.
• Launch a strategic banner advertising campaign on Web sites frequented
by your target market.
• Develop links from as many Web sites, directories, and meta-indexes
related to your target audience as possible.
• Participating in mail lists and discussion groups related to different industries
and associations with a cleverly designed signature file would
be a great way to generate awareness for your services.

ADDITIONAL INCOME
In addition to handling the daily administrative tasks for associations, you could
also provide your clients with promotional services. This would help to promote
the association’s membership benefits to prospective members and would
also increase the awareness of the association. Providing a newsletter circulated
to association members where you may feature paying advertisers is a chance
for additional income.
ONLINE EXAMPLES
Maguire/Maguire, Inc.
http://www.maguireinc.com
Maguire/Maguire, Inc. is a dynamite business that provides not-for-profit association
management and marketing services.
Smith, Bucklin & Associates, Inc.
http://www.smithbucklin.com

Doing Business Online

Doing Business Online

The term e-business means different things to different people. To some,
e-business is simply having a Web site and e-mail capability through which
customers can place an order, request a quote, or make a reservation. For other
people, e-business is having a Web site that enables customers to order and
submit their credit card information online, even though their orders may then
be processed manually just like a fax or telephone order. For others still,
e-business means being able to place a secure online order, having immediate
credit card verification, and having fully integrated back-end systems that are
dynamically updated and inform the customer of the latest prices and whether
or not an item is in stock. The point is, the appropriate e-business solution for
you will depend on the type of business you operate, the products and services
you intend to sell, your budget, your target market, what your competition is
doing, and so on.
For instance, a software development company that sells a downloadable
software application (i.e., has no physical boxed version) has no inventory per
se. Therefore, they would not require a back-end inventory database to be integrated
with their e-business system. All they might need is an e-business system
that includes payment processing capability. On the other hand, if you have an
online business that intends to sell books and you want to become the next
Amazon.com, you will require a full-blown, full-featured e-business system to
compete with the Amazon.coms of the world. Otherwise, potential customers
will shop at Amazon.com because their e-business system is more convenient
and easier to use. In this chapter we discuss the features of e-business sites,

online storefront options, taking online payments, and selecting the right
e-business model for your online business.

Getting the Point Across

The consumer is king. This statement is especially true in the e-business realm.
For instance, if you were to visit an offline bookstore to do your holiday shopping,
you might browse through the aisles for a few hours, pick out a few books
you wanted to buy, and take them to the cashier to pay for them. If you asked
the cashier whether the bookstore offered gift-wrapping or shipping services,
the response from the vendor would probably be “no, we don’t provide those
services.” You would be satisfied with this and make the purchase anyway. You
would then take the gifts home, wrap them, and ship them to their various
destinations.
If you are making the same gift purchases in an online bookstore, you expect
to be able to have them gift-wrapped and delivered to any address you
desire. It defeats the purpose somewhat if you have to pay to have the books
delivered to your address, only to turn around and pay to ship them someplace
else. If you are purchasing the books as gifts, you want to have them gift-wrapped.
Again, it defeats the purpose if you have to have the books sent to your address
so that you can gift-wrap them and then reship.
Online it’s a whole different world. Consumers have higher expectations.
Often they shop online for the convenience and expect the online merchant to
meet all their needs. Consumers expect the online merchant to deliver what
they want, when they want it, and how they want it. If you don’t provide what
they want the way they want it, another vendor is just a click away.
Not all possible features of an e-business site are applicable to every business,
but if you intend to be competitive online, you must give your consumers
what they are looking for. You might have something they want, but if they
cannot conduct transactions easily on your site and competitors offer more
point-of-sale service, people will leave your site and shop at another site that is
easier to buy from. This section focuses on some possible e-business features
that you might want to include on your site. Decide which features are most
applicable to your business and implement them into your e-business system.

Storefront Development Options
Depending on your online objectives, your products and services, and your
budget, you might have to develop an electronic storefront for your business.

An electronic storefront is the interface that a customer sees when purchasing
goods on a Web site. The need for an electronic storefront varies with the level
of e-business that your company chooses to implement. The various levels of
e-business are discussed in more detail later in this chapter.
When developing a storefront for your business, you have three options
available. You can
• Use the ASP (Application Service Provider) model
• Purchase storefront development software
• Program and develop your own storefront.
Each option has its strengths and weaknesses, and some are more appropriate
than others, depending on your business’s budget and online marketing
objectives. In determining how to develop an electronic storefront for your
business, you should evaluate the following options and select the one that is
most appropriate for your business.

ASP Storefront Model
ASP stands for Application Service Provider. The ASP owns the storefront software
and operates its own e-commerce server. An ASP licenses out the use of its
software and e-commerce hosting services to clients that desire to sell products
and services online. The software is hosted on the ASP’s server, and as the client
you pay the ASP to use its software and server. This option is often much cheaper
than purchasing your own storefront software package.
When using the ASP’s storefront solution, a client can be quite confident in
the fact that the system will always be up to date. The ASP’s server handles all
system updates, back-ups, and technical support on a regular basis. There is no
need for a business to purchase any extra on-site equipment or software, and
the installation process is fast, straightforward, and affordable.
The ASP’s storefront solution can be integrated with your existing Web site.
The portion of the storefront that is hosted on the ASP’s server can be customized
to duplicate the appearance of your site. This adds to the level of professionalism
and maintains a sense of consistency across all pages of your site and
the purchase process.
The ASP’s storefront model is known for its high reliability, as well as an
unfailing online selling security system. A great benefit of using an ASP’s server
is that business owners are able to access their data from any place, at any time.
The only equipment needed is an Internet connection as well as your ASP server
ID and password.

Each client is given a unique user name and password to allow for easy
management of its account. The information hosted on the ASP’s server can be
modified at any time—you can add or remove products at your convenience,
alter the layout, and so on.
This solution is ideal for those businesses that are looking to maintain their
own site but do not want to be responsible for configuring and maintaining the
technical aspects of the e-commerce system. The ASP model is easy to configure
for those individuals with limited HTML knowledge and can be set up and
running in a very short timeframe.

Storefront Software Packages

There are a variety of storefront software development packages available that
enable you to develop your online storefront for your business. If you choose
to use this approach, more technical knowledge of computers will be required
and you will have to find an Internet service provider to host your electronic
storefront.
Storefront software is commonly installed on the same server as your site.
This can be a more involved process, and in some cases it may be necessary to
hire a person with the appropriate technical knowledge to set up and maintain
your storefront. Many medium-sized to large businesses have their own inhouse
team to manage their e-business operations, so this is not an issue for
them. Do some research on features needed and select the storefront option
that best fits your business requirements.


Program and Develop Your Own Storefront

If you have a broad product line, a complex system with different prices for
different customers, or volume discount levels, or if you want a high level of
integration with your accounting, inventory, and sales systems, you may want
to consider developing your own storefront. This requires in-depth technical
knowledge and programming capabilities. If you don’t have the technical capability
in-house, you can outsource this activity to a firm capable of developing
such a program for your business or hire an employee or team to handle the
storefront development.
If you decide to develop your own storefront software, you should ensure
that everything is running smoothly before you launch the storefront into cyberspace.
Every aspect of the storefront selection and purchasing procedure

should be tested and retested to ensure that there are no bugs, miscalculations,
or errors in the process. Once you are sure that everything is working correctly
and smoothly, you then have to find a place to host the storefront, whether it be
on your own server or on an ISP’s server. From that point on, your only recurring
expense is that of hosting your storefront and payment processing and
authorization charges from a payment processing company.


Storefront Features

There are many different features available with different electronic storefronts.
Features vary depending on the storefront option that you have selected. Typically,
higher-end software has more advanced features than that of a template
service; however, some of these features may not be essential to running your
particular online business. The following is a list of features that you should
consider when selecting your storefront development option for your online
business:
• Shopping cart
• Purchase notification
• Inventory management integration
• Client database management
• Integrated mail list
• Searchable product database
• Thumbnail image capability
• Customer e-mail notification
• Unlimited autoresponders
• Shipping and delivery options
• Coupons, discounts, and special offers
• Technical support
• Affiliate programs.

Shopping Cart

An electronic shopping cart is an excellent feature for sites selling multiple products
or services. The online shopping cart system operates much like an actual
shopping cart. Buyers can add items to their cart as they please, and they can
remove items just as easily. As the customers add and subtract items from their
shopping cart, a running total of their purchase choices is dynamically updated.
This is a great feature that shouldn’t be overlooked when you choose your
storefront software.
Purchase Notification
This software feature enables merchants to be notified via e-mail whenever a
purchase is made on their Web site. The e-mail typically states the product
purchased, the purchaser’s contact information, and the credit card information.
This feature is terrific if you use offline methods (e.g., the telephone) to
authorize credit card purchases. You can simply pull up the e-mail message on
your screen and call in to receive an authorization number.
Inventory Management Integration
Does the software enable you to integrate the storefront with your back-end
system? Back-end systems refer to the company’s internal accounting, inventory,
contact management, customer service, and other supporting software
systems. This is a fantastic feature for companies selling multiple products online.
By integrating the back end with your storefront, you can track inventory
levels to (1) ensure that you don’t run out of a certain product or (2) notify
customers that you are out of stock before they make a purchase. More information
on integrating your back-end systems with your storefront is explained
later in this chapter.

Client Database Management

A client database is essential to any business that would like to keep track of the
people utilizing its site. This includes all users who interact in some way with

your site, either by filling out one of your forms, becoming an affiliate of yours,
or purchasing something through the shopping cart. All users will have a record
of their actions in your client database. You can find out information such as
who bought a particular product, who is subscribed to a particular newsletter,
the time a client has been added to your database, and so on. Once a search is
conducted, you will get a list of all clients and their online actions on your site.
With this list, you are able to create a customized mailing list.
Integrated Mail List
Many ASP storefront solutions integrate private mail list software with their
application. It just makes sense that when someone makes a purchase, they
might like to give permission for you to send them your e-zine or newsletter,
your e-specials, or coupons. The mail list application should be able to be fully
integrated with your Web site and should provide good tracking and management
reports. Today it is essential that mail list software have an integrated
spam checker so that your mail can have the best chance of getting through to
the intended recipients.
Searchable Product Database
Practically a necessity for companies selling hundreds of products online, this
feature enables a consumer to visit your site and search through your database
of product listings. Normally consumers will know what they want when they
visit your site, so offering this feature will enable them to go directly to the
product SKU (stock keeping unit) they want, rather than searching through
multiple pages trying to find the product. An SKU is similar to the ISBN number
you find on the back of books—it is a numerical value that identifies an
individual product.
Thumbnail Image Capability
Your storefront software should enable you to place small thumbnail images of
the products next to their listing. The user can then click on the image to enlarge
it and see a better view of the product. This enhances the overall listing
for each of your products in your storefront. Thumbnails also assist in optimizing
your site’s download time. It takes much less time to download several
thumbnail 2K images as opposed to several full-sized 50K images.

Customer E-mail Notification
This feature enables you to automatically send your clients an e-mail directly
after they purchase an item on your Web site. The message will confirm that
you have received their order, and you can also take the time to thank them for
doing business with your company. This is a great way to provide quality customer
service to your clients.
Unlimited Autoresponders
An autoresponder is a customized e-mail notification with a few added features.
Autoresponders can be used for different purposes, and you can send an
unlimited number of sequential messages. For example, you might have one
general autoresponder for all your customers and a few more-detailed
autoresponders for customers who purchase a particular product. This way
you can ensure a great follow-up for future repeat sales. By using this method
you can offer classes with the lessons delivered by autoresponder e-mails once
per week, as well as train your affiliates on up-and-coming news with your
business. An autoresponder can be set to go out over a period of time and be
composed of one or more messages. Autoresponders are becoming a very powerful
Internet marketing tool.
Shipping and Delivery Options
Another way to provide excellent customer service is by offering different shipment
options to your clients. This feature enables your customers to select a
shipping option that best suits their needs during the checkout period, when
they are finalizing their order on your Web site. Some people like to receive
their purchases in the mail sooner than others. By offering a variety of shipping
and delivery options, you have an opportunity to up-sell, utilizing different
price points for different delivery periods. You could set a specific price point
for each of your delivery options, which may include “next day,” “two or three
days,” “surface, one to two weeks,” and so on. In addition, some customers
may prefer to send individual items to separate locations—perhaps they are
doing their Christmas shopping. Giving the user the option to send each item to
a different location is a great feature to include.

Coupons, Discounts, and Special Offers
Many storefront solutions provide the ability to offer discounts, accept coupons,
and provide for special deals to generate urgency to drive up your sales.
Technical Support
Above all, whether you purchase storefront development software or choose to
use a template service, you should always ensure that the service provider has
excellent customer support. If you have any problems with your storefront, you
should be able to call and receive immediate assistance to remedy your problem.
Downtime or malfunctions in your storefront can hinder your business’s
professionalism, so you should have the best technical support available to help
you solve any problem you may encounter.

Affiliate Programs
A major challenge for new Internet businesses is how to drive traffic to their site.
Some possible shoppers come to your site; they look around and really like what
they are seeing. On your Web site you have a “Join Our Affiliates Program” link.
They click on it, fill out a quick form, and choose a user name and password.
They then will receive an e-mail with instructions and access to referral URLs.
Once they have the URLs, they must send their prospects to your site either through
outbound e-mail or via links from their own Web site. Along the way, your new
site viewers will get tagged as having been referred by the affiliate. If they become
customers and make a purchase, the affiliate will be credited with the sale. Both
you and your affiliate can see this in the order record, using a login page with a
full history of all their commissions. Affiliates are wonderful because they send
traffic your way, and you pay them only for paid customers.
Payment Processing Methods
One of the key components of doing business online is the ability to take payment
for goods and services online. Essentially, taking payment online involves

the ability to successfully transfer payment from the buyer to your bank account.
There are a number of factors you need to be aware of before venturing
out and developing your online business. The main form of payment online is
the credit card, which is the focus of this section. Currently 95 percent of all
purchases online are made using credit cards.
The Advantages of Taking Online Payments
The ability to take payment for goods and services online presents several significant
advantages to you as a business owner. Many Internet users expect
speed and convenience. They want what they want, when they want it. By
offering Internet shoppers the ability to make a purchase and pay for it online,
you’re helping to facilitate their needs and desires. You’re enabling them to
make their purchase at any time of day or night. Basically, your online storefront
is open for business 24 hours a day, 7 days a week, 365 days a year. By
allowing users to purchase goods and services online, you’re allowing them to
pay for items on their own terms as well. Independence and freedom play a
role. Users are able to make purchases on their own without any reliance on
another individual. They do not need to wait for the assistance of a sales associate
to make their purchase, they do not need to wait an extensive period of
time for approval of their purchase because everything is automated, and they
do not need to write down a phone number or other information to contact
someone to make their purchase. It’s on their terms, and they like that.
Automated online payment processing can benefit your business in the form
of reduced costs. You do not need to pay someone to process your transactions,
and you do not need to pay to produce paper invoices and statements. Think of
the additional time automated online payment processing can save you as well.
You or an employee will not have to spend time processing payments yourself.
Your time will be free to be better used on more important business matters.
Having your site set up to take online payments portrays a professional
image and boosts the credibility of your operation in the eyes of the consumer.
It shows that you have taken the time and have invested the money to develop
a well-run operation.
You may experience increased sales. Why? Many of the purchases made
online are impulse buys. Living up to consumer expectations is key to your
success!

Money part 2

Internet Business—The Opportunity of Our Lifetime

Communicating with customers and other businesses has changed dramatically
over the past century. It started with print, then radio, television, phone,
and fax, and now all of us are operating in the fastest medium yet—the Internet.
The future is bright for businesses that utilize the Net as a primary medium
of communication and sales.
The number of Internet users and the amount of business done online around
the world is growing at a staggering rate. The world’s population currently
holds well over 1 billion Internet users, and the majority of these web-savvy
humans have online access at home. They research, study, e-mail, chat, download
podcasts, and shop online.
Why question the amazing rate at which the average business is moving
onto the Net? It makes too much sense to deny the obvious answer. Having a
business online is the opportunity of our lifetime. Besides the greatly expanded
market reach afforded by the Net, there is also the reduced cost of doing business
online. Look at all the time, money, trees, and travel costs that are spared
from the average business’s operating budget due to this new medium. The
collective business world realizes the bounty of opportunity to be seized in
cyberspace.
All businesses that have a Web presence are seeing the advantages of selling
online. They are committing more and more of their marketing dollars to online
activities, where they are seeing a greater return on investment.
Expansion of the Internet into all business and personal communications is
inevitable. What was once considered a trend is becoming the norm. Overall
familiarity and trust in online transactions and consumer relationships improve
each month as new security-based technologies are developed. New media support
groups hasten the learning curve of the average Internet user, a factor that
earlier had hindered the speed at which consumers feel confident enough in
their own understanding of the Web to make money-related decisions based on
their own online research. The time is now for everyone to get online. In our
lifetime, “newbies” will cease to exist.

The future is really bright, so put on your shades and a thinking cap! Hot
items are software, music, books, electronics, and travel. Broadening the gamut
of goods sold online will happen quickly.
The opportunity is there for you to create a dynamite business online if you
do it right. It’s not a matter of throwing a Web site together, putting it online,
and having the world beat a path to your door. You have to choose the right
business, develop the right Web site for your target market, and build substantial
traffic to your Web site. The online customer is extremely demanding, with
expectations that exceed those of the offline buyer in many ways. Online buyers
want what they want, how they want it, when they want it, at the right
price. The product and service must be exactly what they ordered, delivered
immediately to the correct place and for the lowest price they can find. Competition
is fierce, so you have to create a professional and secure online presence
for your business, target the demographic of Internet users with an affinity for
your product or service, and work diligently to attract traffic. Serious marketing
research is required to successfully access and captivate these eyeballs.
It’s a challenge, but the opportunity is substantial. Many who have gone
before you are reaping the benefits today. This book will provide you with a
myriad of online business ideas for your consideration.
Defining What’s Important to You
“What are the benefits of this new age?” you ask. Today and in the future,
personal lifestyle plays a significant part in career choice. Perhaps you have no
inclination to commute in traffic each working day. Maybe you want more
time with your family. If your dream is to be self-employed, this is your era!
Run a successful global business from an island in the Caribbean or from
the comfort of your living room. Hours are flexible, and the business is operational
24 hours a day, all year round. No matter how small your business is, if
you set it up correctly, you can compete with the big boys.
Before embarking on an e-business venture, it is very important that you
very clearly define your objectives. Take your time—brainstorm with family
and friends. Find out what’s really important to you, and then find a business
that you can build that will help you achieve those objectives. Starting a business,
online or offline, is serious business. Without adequate preparation in
defining your objectives, researching for the best business for you, and then
developing an adequate business plan, you are asking for problems.
When you are defining your objectives, you will have to ask yourself a
series of pertinent questions. What type of time commitment do you foresee?

Do you want this to be a full-time or a part-time endeavor? The options are
wide open. Many online businesses are ideal for extra income to leverage your
regular salary and make the budget of daily life easier to manage. The beauty of
working online is that it’s sustainable without having to quit your regular job if
you don’t want to. The point is that you should allocate in your business plan
how much time you are willing to spend on the venture, and then you can
decide which online businesses fit with the time you are willing to invest.
Would you prefer to work out of your home or have an outside office?
Where you work is important too. For many, a major benefit of having an
online business is the luxury of working from home. Another advantage is to
work while you travel or from remote areas. Not all online businesses guarantee
complete mobility and staying home, but you can decide on these critical
lifestyle options before choosing which specific online avenue to pursue. It’s all
up to you—for a change.
If you already have a physical “bricks-and-mortar” business location, do
you want to use the Web as a marketing outlet? There are many ways to run a
successful online business. Traditional storefronts and catalogues can be mirrored
on the Web site, which expands the sales capacity significantly, but you
must make sure that there is enough inventory and internal organization to
accept, fill, and deliver incoming orders. The other option if you have an existing
bricks-and-mortar setup is to use the Web site as a responsive marketing
force and information source for your business. The design and content should
urge customers to come to your location and return to your site.
What kind of start-up costs are you considering? Budget is everything. Research
the investment you will have to put into the Web site. Ask around to see
how much people are spending on their online presence, and remember that
you can grow gradually as funds and profits permit with an online business.
There is no rule saying you have to spend everything you’ve got in the beginning
to succeed in the long term.
Would you like to develop an idea and sell it, or sustain the management
and grow the business in the future?
Want to run your business from home but not have to be there 24/7 to
answer the phone? No problem! For every challenge there is an opportunity.
There are companies that will answer and screen your calls based on scripts
you provide, provide information to your callers, take your orders and messages,
and offer a whole myriad of professional and personal services; they can
even screen and respond to your e-mail and fax messages, do research for you,
and provide a ton of administrative services. One such company that I am affiliated
with is PatLive. I have arranged a special deal for any of my readers
who are interested in this service—go to http://www.patlive.com/signup/ssc for
this special offer if this is something you might be interested in.

What is your risk comfort level? Trying anything new is slightly nervy. Just
remember that if you embark on the online journey now, you share a common
technology learning curve with those who remember what it was like before the
Internet existed. Soon this group will be extinct, so this is the time to go for it!
What are your revenue and profit expectations? (Fun question, isn’t it?)
How rich do you want to be? Seriously, there is huge potential for major profit
in online business. While picking the right virtual business for you, make sure
to factor in the start-up costs and continuing operating costs. Begin with a
modest revenue projection (to stay on the safe side), and if the result pleases
you, stick with it.
Do you want employees, or are you looking for a business you can start and
maintain on your own? If you are planning to have a staff to run your business,
how many are you comfortable with? Employees are an added responsibility. If
the online business you choose to enter requires employees, make sure you are
prepared. What do you know? What are you comfortable with? What do you
enjoy? If you are going to be spending lots of hours in your new e-business, it
might as well be doing something you enjoy.
Once these questions have been answered and you have done a lot of soulsearching
with regard to defining your objectives, it is time to take a closer look
at all the e-business opportunities that are available to you. The next chapter
offers this closer look.