To identify your business idea you have to follow a few steps. Through which they will help you identify your idea. First, let’s identify the business model to know how to approach our idea.
The business model
There are three levels to this business model. The content of your website, then the traffic it generates and the conversion of that traffic into customers.
The graph allows you to understand it better.
All business models are summarized like this on the internet. It is about attracting visitors who need our help. Success lies in providing information efficiently and clearly in a market niche that you already know.
If the Internet user finds valid information to solve their problems on our website and we earn their trust, why not buy from us? Or why won’t you believe that a product works if we recommend it to you?
But what we want to do is focus on issues that allow us, in the end, to make an economic transaction. Everything else will be wasting time in reference to our goal. Remember the Pareto rule that 80% of our profits are due to only 20% of our efforts.
Quality content
It is essential to create a business model on the internet. You have to create a website with good content and of interest to Internet users. Quality content is appreciated by search engines and when someone types the information they are looking for on the internet, you will have a better chance that your website will come out in the top positions. Although we will see that quality content is not the only thing, far from it, so your website is attributed a ranking in search engines to position yourself.
On the Internet, the lack of trust is what prevents Internet users from taking action. It is not that it is an unethical world, but if in the first four months of 2009 there were 400 scams online in Spain alone, it is enough for everything to be magnified in a world where the lack of perspective due to the ignorance of things is at the fore order of the day. In reality, the probability of scam is twice the probability that you will be struck by lightning 0.00005%.
Traffic
It is necessary to connect with the more people the better, it is necessary to serve as a reference to these people in the subject on which we focus our efforts. Content is the way to get that traffic through search engines.
Conversion
By conversion I mean getting money. It can be obtained by ads that you put on your website, by sales of products that you recommend that are not yours or by the sale of your own product.
For the first, Google Adsense is used, you get money but only if your traffic is very high. I do not recommend it because you let your visits leave your website, without perhaps having had the opportunity to explain that you have a good product that may interest them.
By selling affiliate products, I mean that you can recommend a product that you know works to people looking for a solution to a problem. The percentage of the sale varies a lot but you can earn up to 75% of the price of the product. To do this, the product you recommend must have a “affiliate program”.
With your product it is another way to earn money and be you who manages your own affiliate program, deciding the% to give to your affiliates.
It is important to use the advantages that the internet offers on the shipment of the products. The best thing is that it can be sold directly online to avoid logistics costs and waste of time in management. For example, an ebook, a video that educates about something, music and software.
In following articles, we will explain in detail these processes that lead to the sale of a product.
NICHE SELECTION
This part is critical for the development of your business. We must give it our full attention. But by following the indicated steps you will choose a winning product.
Brainstorming
The best is brainstorming. Do not choose a single idea that seems appropriate, but consider many possibilities. Grab a pen and a piece of paper and start writing everything you can think of, it doesn’t matter that at first you just write things without much meaning. Write them simply, once you have started you will see that you will be able to write about much more things than you thought.
It is good to let the subconscious work, so it can be a process of several days. Take other afternoons or free time to write about your ideas. It is very possible that you will come up with ideas or improvements to your previous ideas in the next few days. You will see how your subconscious will start to work and will give you good answers.
The best thing is to focus on the things you like to do, on your hobbies. This will give you a competitive advantage over anyone else and you will enjoy your own business.
To do this, you have to rely on questions such as:
- What do I spend my free time on?
- What conversations do I have with other people that interest me?
- What jobs have I done previously?
- What have I learned in my previous jobs?
- What things am I interested in and would like to learn more about?
- What things do I know better than most people?
- What am I better at than most people?
- What problems have I solved before for people?
Being informed of the latest news and reading the newspapers with some frequency will keep you informed of what is needed and what is not. Also surf the internet and see what websites are on your topic.
It is very likely that there are already websites that deal with your topic, but it is not worrying because it means that it is a market niche that gives benefits, although it will be necessary to assess the competitiveness that there is. We will see the study of competitiveness in another article, for now it is interesting that you have more ideas with a tool like the one provided by Google Adwords. It tells you the number of times a word is searched on the internet during a period of time, for free.