10 Reasons Why Internet Businesses Fail

You hear it all the time “why did my internet business fail” The reality is that running an Internet business is just as tough as running a traditional brick and mortar business.

Driving traffic, generating leads, challenging competition, and marketing strategy are just as prevalent online as they are even offline.

A resent study by one up web Research forecasts that the year 2010 will see over 80% of the population going online. It’s clear that as Internet marketers, in order to succeed, we have to challenge ourselves to find the reasons why businesses fail.

Finding a systematic approach for an online business is key to your success. Trisha Ahlman, CEO, Augment Marketing Group, recently released the result of poll of 35 unsuccessful Internet businesses and why they failed. In marketing business online, marketers have to devise plans of actions and take these serious if they want to succeed.
Below are the 10 reasons why Internet businesses fail according to Trisha Ahlman’s report.

1. Commitment - Some people are starters but never really finish anything. They are people who want to succeed but never really quite get there.

It boils down to commitment. When running a home-base or Internet business, you have to be committed and disciplined. According to one success story, “I learned when marketing my Internet business that commitment is a real key component. Having action plans, calendar of event, step-by-step instruction, and check lists have really helped with marketing my Internet business successfully”.

2. Budget – Internet business that failed did so because they lacked budget. The rule of thumb is 10% to 20% of sales, in most cases, depending on how aggressive you intend to be with marketing your Internet business. The question consultants face, “How do I develop a budget from sales when I first start?” The answer is that you have to have the mindset that you will spend a specific amount each month in marketing. Sure, there are grassroots Internet marketing techniques just like there are offline, but you still need a budget to get started. The research indicated that most who failed had no budget.

3. Resources – Lack of resources was a clear reason for failure based on the poll; including time, money, hardware, software and manpower to name just a few. A crucial point to remember when marketing an Internet business is that you should treat it just like any other business. If you lack resources in one area you have to make it up in another.

If you lack money for instance, put more time into marketing the Internet business. There are tons of free trials, low monthly subscription, and/or automated marketing software that can help multiply your marketing efforts.

4. Support – Lack of support from family members, team members or customer support depend on your business played a huge role in failure based on statistics. Running a business offline or online is really no different. As an entrepreneur you are working long hours you are committed and you are determined to succeed, then when you need to rely on a source for support, perhaps it’s not there.

Forget selling to consumers, your first sales job is to your inner circle of support. Make sure you have ultimate buy-in from family, friends and key support players.

5. Systems in Place – A systematic approach to marketing an online business includes developing an organizational chart, setting time lines when to launch products, service and PR campaigns. Developing an online business model, setting up a marketing account, marketing plan, and all others system that should be considered to run a successful online business is still necessary.

Those businesses that started marketing an Internet business without system in place or, at the very least, set it up on the front –end of there business -simply failed.

6. Planning – Writing down goals for sales budget, projection, campaign tracking strategies, as well as target audience, keywords, etc. played a huge role in failure across the board.

When asked, businesses polled did not understand the power of goal setting and planning.

Most didn’t even have plan for (3) three months out much less 12 months or (3) three years out. While the Internet change quickly planning is still important to success when marketing your Internet Business.

7. Strategy – “what do you mean long-term strategy? This is a home-based or Internet business. Why would I need to think of strategy? ”, commented one business concern.

Long-term vision is important to every business. Companies that failed did not take strategy into consideration when developing concepts for their brand.

There’s a simple solution for online marketers.

If you are marketing your Internet business with success in mind, write down your vision, mission and at least three to five core values. Begin creating a strong foundation for what you provide consumers even when marketing an Internet business.

8. Motivation – Attitude is everything and Internet business were consistently discouraged easily for those Internet business that failed Implementing core beliefs when starting an Internet business is just as critical for online marketing.

It’s highly recommended to get a dose of motivational inspiration on a daily basis or at least every other day when starting an Internet business. Getting easily discouraged is not on option.

9. Mentorship – The number #1 reason that Internet business failed was due to lack of mentorship. Most off line franchises are successful because they are team-centric and offer a ton of support, mentorship and coaching.

In order to sell more franchises, success is critical; therefore, it’s in their best interest to offer help. If you have an Internet business that dose not have some sort of mentorship program, team support, or coaching plan, you either needs to begin developing your own or research service that have mentorship programs.

10. Training – The number #2 reason why marketing an Internet business failed was due to lack of training through either mentors or through the chosen internet business franchises. Staying abreast of marketing trends and technique can only be achieved through training and instruction. Those who failed simply did not understand all the facts of marketing online.

If the Interne business is committed to marketing their Internet business, then they will seek training resources to support their success, if not, they will fail like the 35 polled Internet businesses.

In educating Internet marketers on how to develop strong brand on the Internet, those who sought professional training, advice, and mentorship were the first to experience success online. Many consultants today are taking a proactive, educational approach in working with beginners. “Marketing your Internet business doesn’t have to be hard if each of the 10 key concepts is thought out thoroughly”, said Ahlman.

Are you a beginner or a starter of an online business, Internet marketing or there about? You can contact Concept-Reality Incorporated for training and mentorship.

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