memenode (21 November, 2011)
Easier said than done though.
bogart (21 November, 2011)
It just struck me that web business is going the way of offline business where the corner shops were replaced by franchise chains, supermarkets, and department stores. So it would make sense for us to move towards product creation, or be service providers.
This is like what I was thinking, but on steroids where there is a monthly subscription element, and an initial sales boost via partnering with marketing specialists with email lists. Also, I am not restricting myself to US buyers.Product creation is a good angle. If you can make $20 from 50,000 people, that's a million dollars. The US has 50 states. So, you would have to sell 1000 items in each state or 3 items per day.
If you build affiliate websites, you are in competition with anyone that has basic computer skills that decides to build affiliate sites, but if you develop a product, there is much less competition since it requires your specialist skills, and knowledge to create the product. But you still need to put it in the face of potential buyers, so you may need to partner up and revenue share with specialist marketers for this purpose, or form a team/company.
I think it was the author of a report called "the death of Adsense" that highlighted the Internet Marketing Food Chain where Adsense advertizers are at the bottom, affiliates are in the middle, and product creators are at the top.
[QUOTE=Andy101;187546]Shipping a product internationally can be quite difficult. It's simple to ship a pair of Nike's from China to the US. But should you try to ship them to Germany. They will flag them at customs and charge $50 VAT.
That's the problem with the online business. That you need to develop a product and create the marketing and distribution to sell it.
For instance, on paper if you could sell 1 hemp shirt per day in each of the United States. That's 50 shirt per day. Let's say you sell them for $60 and it costs you $10 to make each shirt. For arguments sake, you make $20 per shirt. So, your business is making $30,000 a month.
The problem is buying the industrial sewing machines, hiring a CAD designer to make the patterns and finding the right material. You'd probably go broke before you could put it all together.
Adsense pays well. Many times better than most affliliate programs. Though the right affiliate can pay much more.
My product will be delivered digitally, so it costs nothing to make once the development is completed.
LOL - sorry, but you would have to be crazy to do this yourself when you can outsource it to say China/India etc.The problem is buying the industrial sewing machines, hiring a CAD designer to make the patterns and finding the right material. You'd probably go broke before you could put it all together.
International VAT is certainly a problem, but it is added to the bill of the customer, so you either make another sale or you don't. On balance, you make more sales if you think outside of the box of the USA, and you will win more friends for your business I think
It's kind of annoying to have required fields on an order form of: state, and zip code for international orders when these terms are specific to the USA. And sometimes, the dagned telephone number check fails to validate because it doesn't tally with the required format.
Digital products will make your life a lot easier.
Outsourcing may not be the answer. American Apparel produces all their clothing in Los Angeles California (American Apparel - Wikipedia, the free encyclopedia)
China/India is going to be cheaper. But you don't have the same control on the quality and materials. Most of the big chains in the US Malls basically are selling shirts that cost a few dollars to make in the $60 price range. There's so much cost cutting that you rarely see fabrics like silk or hemp.
It doesn't see to be that hard to start your own clothing line How to Start a Clothing Line - wikiHow
Even with a staff of 3-5 people and a few industrial sewing machines, you would be surprised on how many quality shirts you could produce per day.
It used to be tough to sell clients on the importance of valid/standards compliant and semantic code. It is only a matter of time before it evolves into using location-aware services. One of the main changes in web development has been the shift between static and dynamic pages.