Myths
and Traps of Earning Money on the Internet
by
Nach M. Maravilla
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For
a new online entrepreneur, the Internet is a wild frontier
full of promising unknowns. The newbies often think of the
Internet as the new business medium that produces overnight
millionaires. The Internet is THE wave of the future, and
everyone who wants financial success simply must be on board.
A
number of new entrepreneurs are particularly seduced by stories
of "I-got-rich-quick-on-the-Internet." For these
newbies, the Internet is the new nirvana of financial windfall,
where making money is as easy as 1-2-3.
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But,
nothing could be farther from the truth. Here are some of the common
traps and myths that new online entrepreneurs fall into on the Internet.
1.
Build it, and they will come.
This is the biggest fallacy on the Internet. A common misconception
that companies and entrepreneurs who are new to the Web have is
that people will visit if they put up a Web page. They falsely believe
that merely having their own site is enough to keep their traffic
soaring and cash register ringing. In order to have a popular site,
you've got to offer something to the user -- unique and quality
content, interactivity, fun, and freebies --something more than
an 800 number. Users may come to your site once, but to keep them
coming back you've got to have fresh original content and product
offerings that they can use.
2.
Give it for free and they will come.
Extending the first fallacy above, entrepreneurs oftentimes think
that having some freebies on their site is enough to entice people
to visit and, more importantly, buy their products or services.
While the word "Free" is a powerful come-on for visitors
on the Internet, it is not always a guarantee that people will indeed
come to get the freebie on your site. Take the case for example
of one of the leading search engines, Altavista. Altavista created
a free ISP service, thinking that it can lure more people into the
search engine and earn additional revenue by serving ads through
rotating banners common with free ISP services. Unfortunately, their
expectations were not met and Altavista shut down its free ISP offering.
3.
Get rich quick on the Internet.
Unless you have been hiding in a cave, you should know that a number
of dot-coms have been falling from the sky these past few months.
Many dot-coms failed because they held the false belief that having
a flashy web site is enough to solicit venture capital financing,
even though they have no solid business models. Some dot.coms who
were able to get venture capitalization got carried away by the
first round of funding but could not get the next round because
of unprofitability. The Internet is a business medium. Like any
other business, the basic business principles still applies.
4.
Send emails to an "opt-in" list dying to receive your
product offerings.
The word "opt-in" list is a much-abused term on the Internet.
Unscrupulous marketers prey on unsuspecting newbies, selling them
mailing lists of people supposedly interested in buying their types
of products. These new online entrepreneurs then send out thousands,
if not millions of emails, hoping that financial reward will come
as soon as their emails are opened. However, instead of sales, all
they get are hate mails, aside from being cut off by their ISPs
and web hosts. Not only will their reputation go up in flames, they
become officially called as "spammers," the menace of
the Internet.
5.
Join affiliate programs and start earning money.
Many newbies fall into the trap of believing the hype that participation
in affiliate programs is the way to go on the Internet. Some even
set-up their own web sites with the sole purpose of putting up affiliate
banners. While it is true that affiliate programs are gaining in
importance in overall e-commerce efforts, you will never earn the
thousands of dollars promised by the web marketing gurus prone to
hype. Affiliate programs are merely additions to your revenue streams,
and NOT your sole revenue source. It will only work if the programs
you participate in have a good fit with the contents of your site.
5.
Purchase business opportunities.
Business opportunities on the Internet abound. When you surf the
Internet, bizopps are just about everywhere from getting paid
to surf, buying reports with reseller rights to MLM opportunities.
Some will be downright scams, while other programs are not worth
spending a minute of your time. Don't be surprised to find out that
thousands of others are selling the same exact product; others even
with the same exact Web page as yours. Only a small percentage of
these programs will earn for you a few hundred dollars. Be extremely
wary of business opportunities on the Internet, and make sure you
do a careful cost-benefit analysis before paying for anything.
About
the Author: Nach M Maravilla is
the publisher of Power Homebiz Guides. For a step-by-step guide
to starting a business, order the CD-Rom or Download "Power
Home Business Ideas" from PowerHomeBiz.com
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