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  1. #1

    How to Succeed Online

    The first dot-com boom was a period when the normal laws of business were
    temporarily suspended. But the laws of business cannot be suspended for long. They
    eventually re-assert themselves. They came back vigorously much like the law of
    gravity suddenly re-asserting themselves.

    The Schumpeter creative destruction at the end of the last boom had some
    good effects. It created the technical and market infrastructure needed to support this
    second, more sustainable boom. This has created tremendous opportunity for

    Like a brick-and-mortar firm, the new will rise or fall on the fundamentals. In
    addition to a solid business plan, a new needs additional elements to succeed.
    This article provides a survey of the basics you need to get started.

    Hosting and E-Commerce

    Choose a domain name ( and a hosting company at which to host it.
    Your choice of hosting company is important because their reliability and ability to
    increase your capacity smoothly as needed are crucially important. Your e-commerce
    hosting account is likely to start out as a "shared" hosting (less expensive option) and
    later may grow to a "dedicated" server (more capacity but higher price) later, if needed.

    However, the good thing about hosting is that if your host turns out to be unreliable or is
    unable to scale up to meet your needs, you can always switch hosting companies. Just
    make sure that you register the domain name under your name and not theirs from the

    Decide if the goal of your website will be to capture leads (which can be done through
    simple contact forms), which you will then follow-up on later by phone and/or email.
    Alternatively, is your goal to make direct sales from your website, in which case you will
    need a shopping cart system. Regardless of your goal, you should also provide good
    quality content on your website that will capture your prospective customer's interest.

    Most hosting companies offer a shopping cart (such as Miva Merchant) with their e-
    commerce hosting accounts. Find out which cart they offer, and do some research to
    make sure it is a reputable system. Find out how user friendly the system is for non-
    technical people to setup and maintain an online store.

    In addition to the hosting and shopping cart system, you will need a merchant account
    that will enable your business to accept electronic payments (e.g., credit cards). You
    may already have a merchant account, especially if you now run a brick-and-mortar
    business. For online transactions, you will also need a Payment Gateway (such as or Verisign). The Payment Gateway authorizes payments for online
    businesses. Generally, these services will interact automatically with both your shopping
    cart system and your merchant account. Once setup, all this happens behind the
    scenes so your website is selling your products or services day-and-night, without you
    having to be directly involved. Someone from Australia could buy something from your
    site while you sleep.

    It is imperative that you have the ability to update your shopping cart easily. It is crucial
    that you have control of this process, as it is likely you are going to want to make
    changes over time.


    It is a given that you need a professional looking, well-organized website to sell online.
    This does not mean fancy. In fact, fancy can work against you, as it can confuse your
    visitors. Your designer can integrate your new website with your shopping cart system.
    Make sure you retain a designer who has specific experience in the shopping cart
    system you wish to use.

    While you will likely hire a design firm to do the initial website design, it is important that
    you have the ability to update the website. This means the design firm needs to put
    some sort of content management system (CMS) in place or learn to use one of the
    Web design/maintenance software packages (such as Dreamweaver or MS FrontPage),
    if you do not already know how to use one. You do not want to have to call your website
    designer every time you want to make some minor change or addition to your site.

    While the designer will develop your site initially, it is important to give some thought to
    this process so you can provide plans and guidance to your designer. What are the
    goals of your site? Do you want leads captured with a contact form? Do you primarily
    want direct sales captured through a shopping cart system? If you have more than a
    few items, your database design becomes very important.

    Make sure your design consultant has solid database design experience (ask for
    examples and references). How do you organize the products so people can quickly
    find what they are looking for? What market segments will be visiting your site and how
    do you appeal to each? Both site and product navigation are key components of a
    useable site.

    The next step is to determine the various pages that will comprise your site, what
    content will go on each page, and how it will all fit together. While you map this out,
    always keep your goals in mind -- direct sales, sales leads, etc.

    A good way to start this process is to go out on the website and carefully analyze what
    similar businesses have done. You can probably get a decent e-commerce website
    starting at about $500 for the design.

    Once you have done the research, draw up plans for the various pages of your site to
    provide to your designer. In addition, since you have been surfing the web, you may be
    able to provide your designer with examples of sites as models of how you want your
    site to look. This will be helpful to your designer in thinking through what you want.

    Achieving Your Independence

    During the early stages while you are getting a shopping cart and a website setup, it is
    important to spend some time learning the basics of how to maintain them. You could
    discuss this with your designer ahead of time, to make sure that you can get some initial
    training on updating both your site and your shopping cart. You absolutely do not want
    to have to call someone every time you want to change something on your website or in
    your shopping cart system. The truth is that once you learn how to do it, making
    changes to your website and shopping cart system is simple.

    Now What?

    You now have a website giving you an online presence and the ability to capture leads
    or make sales directly. Now, how are you going to get people to people to visit to your

    While clearly a survey article like this cannot answer these questions definitively, it can
    at least serve as a starting point. It is important to do some research and find some
    articles on each of these topics.

    Search Engine Marketing

    At some point -- if your business experiences enough growth to pay for it -- you will
    likely consider hiring a professional search engine marketing consultant to help you.
    Until then, you need to make some solid progress on your own.

    Search Engine Optimization

    To increase your site's ranking in Google and other search engines, it is crucial to have
    quality content on your website that includes reference to the keywords that you want to
    optimize. The place to start optimizing your site is during the planning and design
    phase. This is definitely something you will want to read about further, and discuss with
    your designer from the beginning.

    Once you complete your site, you will want to seek out reputable directories and other
    sites relevant to your industry, and request to have your site listed in these. Ideally, the
    link provided on these sites would reflect the keyword you are trying to optimize. For
    example, if you are optimizing "financial planner in Seattle" you would make sure that
    the clickable link is "financial planner in Seattle" not just This is
    easy to do in HTML.

    Some directories require payment to be included. Some are worth it; some are not. Be
    choosy but err on the side of sites that have a high rank, the Google toolbar (available
    for both Internet Explorer and Firefox) can be a valuable tool in determining the
    Pagerank of a particular site. For example, Yahoo Directory charged $300/year for
    expedited consideration of your submission, which Yahoo organizes by topic. We have
    found this to be a worthwhile $300 for our websites.

    Pay Per Click (PPC) Advertising

    There are a number of services out there that provide PPC like services, including
    Google AdWords, Overture (Yahoo), and You will likely want to start with
    Google and then expand to one or more other services over time.

    Maximizing conversions is your goal but you need to define exactly what a conversion
    means to your business. Generally, it is either a lead (normally a customer submitting a
    web form requesting more information) or it is a direct sale (a customer actually
    purchases your product or service directly). Your website can offer both of these
    primary types of conversions or focus on just one - or it is possible you have other
    measures of success you want to measure.

    If your goal is to get leads, then that is the sort of conversion your website and
    advertising should encourage. In addition, do not forget to ask your prospects to request
    more information or whatever the action you are seeking.

    One of the most effective ways to get qualified leads to your site in the first place is
    through pay-per-click advertising. It is important to read and become familiar with pay-
    per-click advertising, and then to continue to learn and refine by doing.

    In Google AdWords, you set a daily budget (say $20 to start) and a maximum bid on
    specific keywords (say $2.50). You only pay when someone clicks on your ad.
    Therefore, if you are bidding $2.50 you might only pay an average of say $2.45 per
    click. It depends on the keywords you choose and how much you bid. Spend some time
    choosing good keywords. Google Adwords has tools to help you choose the most
    powerful keywords. You will also want to embed some special code in your website to
    enable Google to track conversions.

    I have learned through experience that it is best to start with a low bid and increase it
    incrementally depending on the number of clicks and conversions you get. Your goal is
    not to outbid the competition but to get the maximum number of clicks (and ultimately
    conversions) for your budget. Your optimal bid, at your budget, may be much different
    from the optimal bid for a larger competitor with a much larger budget. The way to find
    that sweet spot that maximizes clicks for your budget is to start low and increase your
    bid until you find the optimal bid. That should be your bid for the time being.

    Through systematic trial and error, it soon became apparent that the Google Search
    Network had a much higher conversion rate than the Google Content Network. I
    responded by dropping the content network completely and focusing exclusively on the
    search network, which resulted in an immediate increase in our conversion rates.

    Over time, I was able to optimize Google AdWords. Now, it pretty much runs on its own
    and brings in a predictable number of leads and direct sales. We make adjustments
    here and there, and regularly run tests using different landing pages and so on.

    Article Marketing

    By putting your knowledge in articles for the benefit of others, the benefits that flow back
    to you are substantial. You can build a reputation as knowledgeable in your field,
    resulting in leads and more sales. In addition, part of the process of article marketing
    means including a bio of yourself. This bio usually includes links back to your website,
    thus helping increase the PageRank of your website. That means that people who do a
    search for relevant keywords are more likely to find your website.

    You increase the effectiveness of your search engine optimization efforts by making
    clickable links back to your website the actual keywords you wish to optimize - such as
    "Guatemalan Shade Grown Coffee" -- not just a simple URL, such as

    This process takes months to show results but the effort and the patience are well worth
    it. Our site went from the fifth page of Google results to page 1 in about a year. It took
    sustained effort but it was worth it as we get many more leads and sales because of this
    time investment.

    The fact is that you have much more to gain by sharing information than by hoarding it.
    The most effective means to disseminate your knowledge is to write articles and publish
    them on the Web. In return, you can get a higher search engine rank, sales leads, and
    new business. If you diligently share your knowledge with the world, rewards will flow
    back to you in due time.

    Email Marketing

    A crucial but often overlooked component of starting an online business is to have an
    email marketing solution in place and integrate email marketing into your operations
    from the beginning. This insures that you collect customer email addresses and ask
    them from the beginning if they want to receive emails from you. Email can include
    invoices (often automated), product updates, announcements, special promotions, and
    email newsletters.

    Email is a powerful tool that can help you reduce costs and increase efficiency but
    perhaps even more powerful is the power of email to increase customer loyalty and
    retention. As the provider of a product or service that your customers need, you also
    have information that could benefit your customers as well. If you produce a newsletter
    and regularly put in the time to create useful content, you will increase your mind share
    among your customers and they will very likely think of you next time they need to make
    a purchasing decision.

    Provide consistently good content and special deals for the subscribers to your
    newsletter. Make sure that your customers feel they are getting multiple tangible and
    intangible benefits from listening to what you have to say.

    At a minimum, an email marketing service should make it easy for you to create eye-
    catching emails, manage multiple email lists, and place newsletter sign-up forms on
    your website. There should be powerful list management, robust reporting, and

    Your email marketing service should include an easy way to track the results of your
    email campaigns. Who opened your email, how many times, and when? Did they click
    on the link you provided? Did they purchase anything or submit a lead? The service
    should enable you to track message reads in real time, and read detailed reports online
    or export them to a spreadsheet.

    In addition, your email marketing service should give you the ability to manage multiple
    lists and divide lists into multiple segments. Last, but not least, it is preferable that your
    email marketing service provider give you a private IP address, rather than one you
    share with other customers. A private IP address is preferable to a shared IP address,
    because with a shared IP address you are vulnerable to the shared IP address being
    blacklisted because of the mistakes of other customers of your email marketing service
    provider. With a private IP address, you are the only one who sends email through your
    IP address.

    It is also important that your email marketing provider knows the CAN SPAM regulations
    and makes it easy for clients to comply with them. Knowledge of and compliance with
    CAN SPAM is crucial for successful email marketing implementation, and with earning
    and keeping the good graces of ISP's and other networks. In addition, nothing will ruin
    the good will of your customers faster than spam. On the other hand, properly
    implemented permission-based email marketing is one of the most powerful forms of
    marketing. Done well, email marketing can earn you a reputation as an expert and help
    you make giant leaps in customer loyalty.

    This article is a primer, a survey, of the topics you need to consider from the beginning
    to have a successful online business. You will want to research each of these topics in
    much greater depth than I covered them here. It is worth your time to read articles on
    each of these topics, and even invest the time to read books as well. The effort you put
    in educating yourself about the various components of starting your online business will
    pay off, making it well worth the time investment.
    Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.

  2. #2
    Join Date
    Jun 2009
    Toronto, Ontario
    i'm surprised this post got no responses. it is a very good article.

  3. #3
    Join Date
    May 2008
    Your article was delightful to read. Thank you for sharing!
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  4. #4
    Join Date
    Mar 2009
    Here Today - Gone to Maui
    I just read this myself, and even though it was written in 2006, it's still highly relevant.
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  5. #5
    Join Date
    Apr 2010
    I have tried most of these methods over the past few years and have been pretty successful with them. SEO has been one of the most beneficial methods for me as it generates organic traffic. Article marketing is useful too but requires a lot more time and effort I find.

    Great post with lost of useful info though.. Anyone starting out trying to make money online should seriously give this a good read.. Thanks!
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  6. #6
    Good post. Very Good. I will be saving this webpage.

  7. #7
    Join Date
    Mar 2010
    The post was really good but it was mainly dedicated to web hosting business so it didn't got that much response!

  8. #8
    Join Date
    Aug 2009
    Riverside, CA
    A very good read.
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  9. #9

    Thumbs up Good

    Your article is good, but i think there are many ways out there waiting for us to discover them, through which we can increase the traffic to our website

  10. #10
    This was a extremely amazing article. Great read for my behalf. Thank you for sharing.

  11. #11
    Join Date
    Jun 2010
    Salford, Manchester
    Good read. Informative and still applicable after all these years. Organic SEO has to be one of the best ways to get your site ranked in google.

  12. #12
    Join Date
    Jun 2010
    North America
    I'm new and just read the whole article. Great read. Added to favorites.

  13. #13
    Join Date
    Jul 2010
    Is indeed a good read, i'm glad there are people out there who contribute like this!

  14. #14
    Thank you so much, This helped me alot

  15. #15
    Join Date
    Jul 2010
    The part that really hit home for me was the Article writing part. I never thought of that as a viable way of promoting your business. I suppose showing what you know though can make people more comfortable in doing business with you.

  16. #16
    Even though it's geared toward hosting customers I think this is valuable information not just for customers of web hosts, but anyone with an online business.

  17. #17
    Join Date
    Aug 2010
    Somerset, UK
    extremely helpful, thanks for the post its on my favourites now as a reference

  18. #18
    Join Date
    Feb 2008
    Houston, Texas, USA
    I think the article is missing an important section about making a habit of taking regular backups. It's important for survival.

    Joe / UNIXY
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  19. #19
    Join Date
    Aug 2010
    Somerset, UK
    Quote Originally Posted by UNIXy View Post
    I think the article is missing an important section about making a habit of taking regular backups. It's important for survival.

    Joe / UNIXY
    Extremely good point!

  20. #20
    Join Date
    Nov 2010
    London, England
    This article was very imformative, and was very enjoyable to read.

    Thanks for sharing it with the community!

  21. #21
    Join Date
    Oct 2008
    This article is very helpful. I tried all methods buy didn't succeed on online sales. My all customers are from local market.
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  22. #22
    Join Date
    Jan 2011
    Thank you for posting this article. Was very informative.

  23. #23
    Join Date
    Aug 2010
    Lahore, Pakistan
    Very good article. Thanks for such good suggestions.

  24. #24
    really helpful article.... thanks for sharing.

  25. #25
    Join Date
    Feb 2011
    I agree,

    Very good article. The one thing I've been avoiding is email marketing as I personally hate getting spam. And yet I'm looking into it starting with a company (no idea which one). The trouble is, Do I have to provide a list of emails? I certainly don't want to give them a list of all my friends and then send them...(dare I call it) spam!
    So how do you get a targeted list?

  26. #26
    Join Date
    Feb 2005
    London, England
    Very nice article, every unestablished host should read, some great tips!
    Jon Black

  27. #27
    Thanks for posting, interesting information!

  28. #28
    This really helped me, thanks!
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  29. #29
    Join Date
    Apr 2011
    Hey, thank you...

    there is some really good stuff in this,

    ( i have bookmarked it ) =)

  30. #30
    Advertising is the crux you must do it, but you also must target your ad money carefully as to not waste clicks or views

  31. #31
    Thanks so much! This has helped me.

  32. #32
    Join Date
    Apr 2011
    San Antonio, TX
    great reads. learned a bit here.

  33. #33
    Great post for anyone starting a hosting business

  34. #34
    Join Date
    May 2011

  35. #35
    Good points, I agree about having a solid business plan. New business owners should take into account some of the trends looking 5 years ahead and try to keep their services focused. Offering a few niche services in this industry can set you apart from the competition.

  36. #36
    How many people here have tried email marketing?

  37. #37
    Excellent thread!!!! Just helped me so much thank you.

  38. #38
    Email marketing is somewhere i really need to investigate. It's so true about keeping in contact with your customers so they think of you when they have a purchasing requirement.

  39. #39
    I really enjoyed reading this article,
    Big Thanks, & Appreciation
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  40. #40
    Thanks for your article gave me a few good tips

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