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How do I Run a Profitable Online Business?

Article Details
  • Written By: Laura M. Sands
  • Edited By: Heather Bailey
  • Last Modified Date: 08 December 2017
  • Copyright Protected:
    2003-2017
    Conjecture Corporation
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In order to run a profitable online business, it is important that you first understand the basic principles of business, including supply and demand, sales, marketing, and the hallmarks of excellent customer service. Operating an Internet business can be somewhat similar to operating a brick and mortar business in terms of understanding your market, as well as your target consumer’s spending habits. While a profitable online business can be run through third-party auction sites, more often than not a strong web-based business requires a fully functioning website. In light of this, it helps to understand how to attract visitors to your site, as well as how to convert them into actual customers.

A profitable online business supplies products or services that are in high demand. In order for you to capture a sizable share of your target market, however, it is important to first diligently research the industry you intend to enter. Whether your company is large or small, identifying competitors and keeping a constant eye on their progress, as well as their shortcomings, is vital to your overall success. Understanding the current economy, including the patterns of spending among your target customer base, is also crucial to building a profitable online business.

The Internet is a busy marketplace filled with competition and other distractions. In order to attract visitors to your website and create a profitable online business, it is important to understand how search engines such as Google and others operate. While it is difficult to fully understand the complicated algorithms that drive search engines, a basic education in search engine optimization (SEO) can help improve your search engine ranking position, number of page views and improve overall profits. SEO involves strategically placing common keywords that consumers use to search for the product you are selling or the service you are providing on your website in such a way as to attract more visitors.

Beyond employing SEO to improve the number of visitors or website hits you receive, you must also design your site to include a call to action. Without specifically asking customers for their direct business, your website may appear to be nothing more than an informative brochure. In order to convert visitors into actual customers and grow a profitable online business, a specific marketing plan must also be created and implemented.

While planning a profitable online business, some may benefit from learning how pay per click advertising works. Essentially, this calls for an initial investment with a search engine to strategically place advertisements for your business on relevant websites and search results. The amount of initial capital needed for such an advertising campaign may vary, but it is important that you clearly understand how such advertising works in order to minimize any potential losses while maximizing your results.

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