Online Businesses: The Good, the Bad and the Ugly

The Internet is a great vehicle for spawning small businesses. You don't need a truckload of venture capital, a dozen employees or expensive trappings.

And, there are many real examples of individuals who have built highly successful online businesses at their kitchen tables or in a home office. In fact, I know several folks who earn in excess of $500,000 annually without leaving home.

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But, good luck trying to find someone who has bought a "ready to go" online business and is now working two hours a day while traveling throughout the world as the advertsements promise. Of course, that doesn't count the "real people" you see in ads. Here are some of the problems with "packaged", "template" online businesses.

1. You might buy an expensive product online from Macy's, Sears or Dillards, but would you buy a TV, a piece of jewelry or a vacation package from a company you know nothing about? Neither would anyone else.

2. A ready made website can be online in less time than it takes to scramble eggs. But, that doesn't mean anyone will see it that soon. That's why the "earn $1,000 in your first week" pitch you hear in the TV ads is pure fantasy.

3. Some of the template websites that are part of the business opportuniy packages people buy feature products or services almost nobody buys online. Do you really think you can buy a website with pictures of beautiful beaches and sell vacation packages online?

4. If you have a website identical to dozens (or even thousands) of others, you will never achieve even moderately good search engine rankings. So, how will you get visitors to your site? You had better have a cost-effective method.

5. There is no brick and mortar business in which success is assured. Do you rally think online businesses are somehow different, as some advertisers tell you?

Lots of people do earn a fine living with online businesses, and you can be one of them. But there is no magic that comes from being online; the basics still apply. You need at least one good, reasonably priced product, a cost-effective way to reach your market, and a strong work ethic.

Making money online is not rocket science. But, it is something that requires more than a business in a box. Do not be fooled.