Looking for ways to earn quick cash? How about setting up an online marketing business? There are plenty of opportunities to make money online but most beginners don’t stand a chance of making enough money to cover their monthly expenses. If you want to grow a profitable online marketing business, follow these proven steps.
Study The Online Marketing Industry
One of the most important things you need to do if you want to succeed in any venture is to study the industry. The same concept applies to the online marketing industry. You want to establish a business that will provide value and improve people’s lives, but you also need to understand how to make money from this venture. To start, review the following points:
Estimating The Size Of The Market
The first step to create a profitable online marketing business is to figure out the size of the market. What is the demand for your product or service in the marketplace? How many potential customers can you attract? The better your estimate, the better your understanding of the industry. You need to set a realistic expectation about what you can and cannot achieve with your new business. The following estimation examples will help you form an idea of how profitable your business can be.
Estimating The Average Order Size
The next step to establishing a profitable online marketing business is to estimate the average order size. Simply divide your yearly income from the previous step by 12 to get the average order size per month. This number will give you an idea of the revenue you can expect to generate per month. You can round up to the nearest thousand to get an accurate figure, but don’t worry about going too high or low. Small business owners who underestimate or overestimate the average order size of their business incur unnecessary risk.
Know Your Customers
Before you start doing any marketing, you need to know your customers. What do they want? How much do they pay? What actions do they take before buying your product? Do they call or email you? These are all important questions you need to answer to understand your customers’ needs. Without knowing who your customers are, how can you develop products that they will value? Your answers to these questions will guide your marketing efforts and help you find the most profitable audience.
Once you know who your customers are, it’s time to move on to the next phase of your marketing plan.
Determine Your Marketing Mix
The last step in the process of creating a viable online marketing business is to determine your marketing mix. This is a critical decision you need to make. What marketing tactics will you use to attract and retain customers? There are four basic types of marketing, depending on the type of audience you are trying to reach:
- Mass Marketing (Traditional Marketing): This is the most common method of marketing. You want to reach as many people as possible, right? Well, you can use mass marketing to accomplish this goal. The catch is that you need an audience that is receptive to your message. If your target audience is mostly made up of people with a similar cultural background and you are trying to market to them, then you will likely have a hard time converting your leads into paying customers.
- Personal Marketing (Direct Marketing): This type of marketing involves one-on-one communications with the customer. You want to develop personal relationships with your customers and use these connections to directly market your products. The key is to understand your customers’ needs and wants in order to create targeted marketing messages that will make them receptive to your offers.
- Educational Marketing (Infomarketing): This method of marketing involves educating your customers about your products. You want to spread the word about your company, its offerings, and why customers should choose you. One of the best ways to do this is through a well-designed education campaign that covers everything from basic information about your company to in-depth product reviews. As a small business owner, your time is likely limited. You can choose to develop a training program to educate your customers or hire an external party to do it for you.
- PR Marketing (Public Relations): This type of marketing is similar to interpersonal marketing with the exception that it includes third-party endorsements and mentions. You want to gain recognition for your company in the press, right? You can use public relations to gain editorial coverage in well-known publications. The key is to develop a press kit that includes all the relevant information journalists need to cover your story. Once you have established yourself as a subject matter expert, you can choose to pursue a variety of PR opportunities to benefit your company.
The decision-making process for establishing an online marketing business is not easy. You need to take into consideration your skills, experience, and finances. However, if you follow these steps, you will be able to form an idea of how much money you can expect to make per month and what type of risks you will have to take on.