Paths To Profit Online

By: Brian Hack

The path of least resistance is by nature the course most traveled. In economic terms this path is most difficult to measure at start up because no personal experience is present and so we must rely on the experience of others to guide us. Other persons experience at this point is theory and sold using a variety of techniques that every internet entrepreneur must choose from to get it.

My first impression of web marketing tactics was that there were many people offering their experience for sale as a quick and easy way to earn extraordinary income. Understandably there was no mention of what experience was brought to the theory of success before start up. Claims like “If I can do it anybody can, broke to riches in 30 days.” were allegedly proved by pictures of bank or pay statements. However, there was still a leap of faith or trust that did nothing to clear the view of start-up reality even after buying.

Competition for sales to new marketers is fierce because every one that has gone before tries to copy the tactics they have purchased only to discover a saturated niche. Competition in a saturated market is the first object lesson delivered and once learned used to open the door to the next level of opportunity. Alternatively, the experience may also be considered as a rite of passage that tends to be implied, not stated, and so acts to filter the short run opportunist from the long term business builder.

To help business builders better understand the economic value of experience, bitter and sweet, I’ll construct a simple view of start-up to better characterize the short and long term view to prosper.

Everyone who has chosen to earn money online enters the market at some point, and at some time. They bring whatever knowledge and skills they may have to bear upon the single goal of selling something for profit. Start-up then begins at this point and continues until income meets or exceeds what was being earned upon entry. In other words the first marker of progress is income replacement.

Income replacement occurs when average monthly income from internet business meets or exceeds present income. For example, $3,000 a month means the replacement income target would be $36,000. The time it takes to get there is the actual time it takes to start-up. Since there is no way to forecast this variable, genuine offers will usually include a disclaimer to this effect.

Time then is relative to variable factors like how much time you spend to learn, to build your business, and recover from choices that lead you in directions that may differ from your goal. While some may argue that the lower your present income is the shorter the start-up will be, the other side of that coin is setting a target income that enables a standard of living you need or desire. Now standard of living implies another variable of setting an appropriate income value as your start-up milestone.

Notwithstanding the well meaning and important value of being all that you can with visions and plans for future achievement, present reality is a stark contrast. For the purpose of this discussion it is the place from which measurement begins. So we must start by making a distinction between the present and the future standard of living.

To begin then, a standard of living is a measure of what you can afford to purchase with your present income. Typically, as income increases so does the standard of living. However, a common approach to improving living standard is to leverage earning potential by taking out a loan to buy what you feel improves your standard. This is a basic concept of leverage used both personally and in business. This form of credit is based on an optimistic forecast that the person or business can meet the payment obligations according to the terms. What makes this optimistic is to assume the basis for the ability to pay will stay the same or improve. Sometimes it doesn’t.

In economic theory, theory and practice are the same. In reality they differ. After all, why would anyone want to start an internet business with little money or time to invest except in the event the reality of their financial situation compels them to seek a path of least resistance to sustain or improve a standard of living. Now let’s return to putting a value on present standard of living and set an economic cornerstone.

First let’s disconnect living expenses from debt. This places present standard of living without debt as a number value or target value for replacement income. Debt and current income are variables. Time and experience then becomes your main assets on the path to prosperity where debt is short term, standard of living is paid up, and income meets demand. Once this point is reached start-up matures to business operation for the purpose of sustainability and growth. So the day you start to do business on the internet until you have paid your debts and have reliable recurring income that pays for your ongoing standard of living and business operating expenses is the day start up ends and business begins.

To put the time factor into some perspective here is an excerpt from an interview Ewen Chia did with Graham Hammer.

“Ewen: When did your 'big break' come and what was the turning point that changed everything?

Graham: My “big break” came when I set up Profit-Plan in 2002, but you’ve got to understand that “big breaks” don’t just “happen”. They are worked-for and hard-earned.

Let me explain… I started planning and constructing Profit-Plan in mid 2002 (it actually launched in late January 2003). But before I could construct the site, I had to learn how to write HTML pages, and I began that process in 2001. (I still write my pages “by hand” in raw text. I just feel it gives me more “control” over how the page looks.)

So a journey that appears to have begun in January 2003 with the launch of Profit-Plan actually began in 2001 when I picked up a book about HTML code. Profit-Plan was an instant hit, not least because the headline read….“Make a profit today, or your money back today” (which I guess shows the power of a great headline).”

The path of least resistance still requires the learning and practice of skills whether you pay large sums for trial and error or take a path of lower cost. The question is how much are you prepared to spend in time, money, trial and error to start-up your business. Fortunately for those with limited budgets there are options to start-up faster in a collaborative online workspace at low cost. The h4h.biz projects are well on their way to becoming the workspace of choice for those determined to walk the path to prosperity online.

Brian Hack currently authors and publishes H4H :: Residual Income Digest Express, www.h4h.biz a web site that analyzes internet business opportunity for the purpose of long term personal and business growth. Contact author@h4h.biz

Article Source: http://www.marketingarticlelibrary.com

Please Rate this Article

Not yet Rated