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Internet marketing

  1. 1. 1. AN INTRODUCTION TO INTERNET MARKETINGINTRODUCTION How significant is Internet marketing to businesses? Today, the answer to thisquestion varies dramatically according to who is answering. For companies such aselectronics company Cisco, the answer is ‘very significant’ – Cisco sell $9 millionworth of hardware using the Internet each day. For fast-moving consumer goods(FMCG) companies such as Unilever the answer is ‘insignificant’ – the majority oftheir consumer sales will occur through traditional retail channels in response topromotional campaigns in traditional media. In 1998 advertising expenditure forInternet placed adverts was estimated at £8m, compared to £3 billion for TV andradio adverts. Does, the relatively unimportance of the Internet to companies such asUnilever indicate that Internet marketing is of specialized interest only? We believenot, because the interesting question to ask is "how significant will Internet marketingbe to businesses in the future; in 2, 5, or 10 years time?" This is the question manycompanies are asking themselves today, and is why it is important to understand thisrelatively new marketing phenomenon. For example, Unilever is starting to use the Internet as part of brand buildingfor its new products. In 1998 it launched its Mentadent toothpaste in the United Statesusing traditional media campaigns and also offered samples in response to users 1
  2. 2. clicking on an advert placed on health-related web sites. It received more than 40,000requests for samples, far exceeding its expectations for this new medium. Ifbusinesses do not understand and start to apply the new marketing techniques andtechnology in this way, then they may not only miss an opportunity, but may evencease to exist. The media portrayal of the Internet often suggests that it is merely analternative for traditional advertising. In fact, the Internet can be readily applied to allaspects of marketing communications and can and will need to support the entiremarketing process. As we move into the new millennium, organizations will useInternet technology in the form of intranets and extranets to support the operation ofthe internal and external value chains. This book will cover all the different ways in which the Internet can be usedto support the marketing process. Many organizations have begun this process withthe development of web sites in the form of electronic brochures introducing theirorganizations’ products and services, but are now enhancing them to add value to thefull range of marketing functions. When reading this book, we would encourage a healthy cynicism in thereader; to adopt a questioning approach. When referring to the case studies andestimates of growth, ask what are the tangible benefits that have been delivered andwhat are the growth estimates are based on? 2
  3. 3. FROM THE INTERNET TO INTRANETS AND EXTRANETS Intranet and extranet are two terms that have arisen in the 1990s to describeapplications of Internet technologies that do not involve communicating withcustomers, but rather with company staff (intranet) and third parties such as suppliersand distributors (extranet). While everyone connected to the Internet can access acompany Internet web site, only those who have been given authorisation can accessan intranet or extranet. This relationship between the Internet, intranets and extranetsis indicated by Figure 1-3. It can be seen that an intranet is effectively a privatecompany Internet with access to staff only. An extranet permits access to trustedthird-parties and the Internet provides global access. In section 1.7 we considerpossible business applications of the Internet, intranets and extranets.Intranet A network within a single company which enables access to companyinformation using the familiar tools of the Internet such as web browsers. Only staffwithin the company can access the intranet, which will be password protected.Extranet Formed by extending the intranet beyond a company to customers, suppliers,collaborators or even competitors. This is again password protected to prevent accessby Internet all users. 3
  4. 4. The relationship between intranets, extranets and the Internet 4
  5. 5. THE INTERNET AND THE MARKETING CONCEPT It is perhaps best to begin with the basic American Marketing Associationdefinition of marketing:Marketing is the process of planning and executing the conception, pricing,promotion, and distribution of ideas, goods, and services to create exchanges thatsatisfy individual and organizational goals.What Is Marketing?The definition summarized above has four critical features. These are: MARKETING IS A PROCESS. A process is a particular method of doing anactivity, generally involving a series of steps or operations. The classical marketingapproach involves four broad steps: market analysis, market planning,implementation, and control. Market analysis involves searching for opportunities inthe marketplace, upon which a particular firm with unique skills can capitalize.Market planning Requires segmentation, target market choice, positioning, and the design ofthe marketing mix (also termed the 4Ps,or marketing program).Marketimplementation includes the systems and processes to go to market with themarketing program. Finally, marketing control refers to the informal and formalmechanisms that marketing mangers can use to keep the marketing program oncourse. Analysis, planning, implementation, and control collectively provide aprocess for marketing managers to follow in the design and execution of marketingprograms. IT INVOLVES A MIX OF PRODUCT, PRICING, PROMOTION, ANDDISTRIBUTION. Strong marketing programs do not involve one action, such as thedesign of a great product. Rather, the most successful marketing programs involvemixing the ingredients of marketing to deliver value to customers. This mixing entailsblending the right amounts of the 4P ingredients, at the right time, and in the right 5
  6. 6. sequence. Too often, marketing programs fail because they allocate too many (or toofew) resources in an uncoordinated way. IT IS ABOUT EXCHANGE. Marketing is not successful unless two partiesexchange something of value. The buyer may exchange time, money, or services,while the seller must exchange something of value to the buyer. The traditional retailcontext provides the simplest illustration of this principle. A given consumerexchanges money for a particular good or service. However, exchange also occurs ina wide variety of contexts, many of which are non monetary. These include bartering,volunteering services, and political donations. IT IS INTENDED TO SATISFY INDIVIDUAL AND ORGANIZATIONALNEEDS. The aim of marketing is to provide a satisfactory outcome for both the firmand the customer. Firms can have highly satisfied customers if they provide servicesfor free. However, those organizations are not likely to have a long life. The key tomodern marketing is simultaneously satisfying the customer, the firm, and itsshareholders. In the long run, the firm must have a positive cash flow or show a clearpath to profitability for investors to maintain confidence.What Is Internet Marketing? If traditional marketing is about creating exchanges that simultaneouslysatisfy the firm and customers, what is Internet marketing?Internet marketing is the process of building and maintaining customer relationshipsthrough online activities to facilitate the exchange of ideas, products, and services thatsatisfy the goals of both parties. This definition can be divided into five components:A PROCESS. Like a traditional-marketing program, an Internet-marketing programinvolves a process. The seven stages of the Internet-marketing program process aresetting corporate and business-unit strategy, framing the market opportunity,formulating the marketing strategy, designing the customer experience, designing themarketing program, crafting the customer interface, and evaluating the results of the 6
  7. 7. marketing program. These seven stages must be coordinated and internally consistent.While the process can be described in a simple linear fashion, the marketing strategistoften has to loop back and forth during the seven stages. BUILDING AND MAINTAINING CUSTOMER RELATIONSHIPS. Thegoal of marketing is to build and create lasting customer relationships. Hence, thefocal point shifts from finding customers to nurturing a sufficient number ofcommitted, loyal customers. Successful marketing programs move target customers through three stages ofrelationship building: awareness, exploration, and commitment. It is important tostress that the goal of Internet marketing is not simply building relationships withonline customers. Rather, the goal is to build offline (as relevant) as well as onlinerelationships. The Internet marketing program may well be part of a broadercampaign to satisfy customers who use both online and offline services. ONLINE. By definition, Internet marketing deals with levers that are availablein the world of the Internet. However, as noted above, the success of an Internetmarketing program may rest with traditional, offline marketing vehicles. Consider,for example, the recruiting and job-seeking service Monster’s successcan be tied directly to the effectiveness of its television advertising and, in particular,its widely successful Super Bowl ads of the past two years. EXCHANGE. At the core of both online and offline marketing programs isthe concept of exchange. In both the online and offline worlds, exchange is still theheart of marketing. In the new economy, firms must be very sensitive to cross-channel exchanges. That is, an online marketing program must be evaluatedaccording to its overall exchange impact not just the online exchange impact. Hence,online marketing may produce exchanges in retail stores. Firms must be increasinglysensitive to these cross-channel effects if they are to measure the independent effectsof online and offline marketing programs. 7
  8. 8. SATISFACTION OF GOALS OF BOTH PARTIES. Mr. X person is a loyaluser of the website Each day he arises and checks the weather in hiscity as well as the weather in cities he will be traveling to during the week. He isclearly satisfied with and loyal to the site. To the extent that canmonetize this loyalty most likely, in the form of advertising revenue both parties willbe satisfied. However, if the firm is unable to meet its financial obligations toemployees, suppliers, or shareholders, then the exchange is unbalanced. Customersare still happy, but the firm is unable to sustain its revenue model. Both parties mustbe satisfied for exchange to continue. The use of the Internet to advertise and sell goods and services, has becomealmost a necessity for businesses in the twenty-first century online or offline.Unfortunately for some, this industry moves very quickly and it can be quite difficultto penetrate the market or stay up to date with current trends.GOOGLE, MSN, YAHOO this were the companies which are now leading in India inInternet Marketing. 8
  9. 9. What business benefits can the Internet provide? The reason is an additional source of revenue made possible by an alternativemarketing and distribution channel. The marketing opportunities of using the Internetare indicated by the traditional marketing strategic grid for targeting new markets andproducts. The Internet can be used to achieve each of the four strategic directions asfollows: 9
  10. 10. Market and product strategic grid1. Market penetration. The Internet can be used to sell more existing products intoexisting markets. This can be achieved by using the power of the Internet foradvertising products to increase awareness of products and the profile of a companyamongst potential customers in an existing market.2. Market development. Here the Internet is used to sell into new markets, takingadvantage of the low cost of advertising internationally without the necessity for asupporting sales infrastructure in the customer’s country.3. Product development. New products are developed which can be delivered by theInternet. These would typically be information products such as market reports whichcan be purchased using electronic commerce.4. Diversification. In this sector, new products are developed which are sold into newmarkets. Companies can use the Internet to adopt new approaches to selling productswhich involve positioning in one part of the grid or in multiple quadrants. Examplesof these applications are in the activity –using the Internet for new markets andproducts.The following picture shows the companies which are engaged in Internet Marketing. 10
  11. 11. THE 4CS:The New Four P’s of Internet Marketing When given the task of introducing a product to market there are simpleobjectives to focus on called the “Four Ps of Marketing”, which help define yourMarketing strategy: Product, place, promotion and price. What is the Product youintend market? Where is the Place it will be sold? How will you implement thePromotion of the product/service? And finally, what is the Price including the cost ofmarketing and sales? These are still relevant and important questions to address when marketing aproduct or service today, but does the Internet require another dimension to consider?When leveraging the Internet for your business is it just another channel to transactcommerce or a medium to promote or advertise your business? Do certain aspects ofyour product require an Internet presence for particular features to work? Can youreduce the cost of doing business and offer better pricing through self-servicecustomer portals? We believe the Internet does effect these four basic Ps objectivesand adds a set of it’s own four correspondent objectives that extends beyond thesebasic four.We call these the 4Cs of InternetMarketing. Reduced to the most basicobjectives of an Internet business, theyalso help define a web site’s primarypurpose. They are: Content, Commerce,Customer care, and Converting to leads.Lets look at each of these individually andhow they extend the original four Ps. 11
  12. 12. Many of today’s products are not functionally simple, and when combined with otherassociated technologies or services, they are often complex to become a completesolution. Even consumer products often require a brand or mark to help influence thebuying process going beyond the basic product features. They too must conform oradapt to an operating environment that shapes perceptions about their value to aconsumer. Buy a can of tuna and be assured it is “dolphin safe” to influence anenvironmentally conscious shopper that taste is not the only criteria when selectingthe right product.Content extends to Product In the first Internet Marketing 4C, Content is an extension of Product. Someobvious examples of Internet businesses that created unique content as the actualproduct are web sites like Wall Street Journal’s where current newspaper orInternet only subscribers (for a small fee) can customized news alerts according totheir own specific interest. The not so obvious cases are when software vendorsprovide additional support or advice via their web site. Adobe offers forums andexchanges to its customers, which contain tips and techniques on how to better usetheir products. This provides an additional edge when marketing the product orservice if you can provide relevant content for free or fee to prospective customers.Would your product or service be enhanced by content that helps support yourcompany as an industry thought leader or good citizen?Commerce is the Place to Shop The Internet is and always will be a virtual Place. It may reflect the physicalworld with “shopping malls” and storefronts, but its mere existence still requirespeople and traditional support mechanisms in order to operate. It is a separate place orstate that has its own set of protocols and rules for communications, but will remainwithin the constraints of a physical world. 12
  13. 13. E-commerce centric Internet businesses like Amazon are a prime example ofCommerce, the second C in our Internet Marketing 4C’s. Transacting business solelyor partly via the Internet offers customers the convenience to shop and order on-lineat their schedule, and even business-to-business high technology companies such asCisco have incorporated commerce successfully in fulfilling customer orders. Whendeciding if your web site warrants a commerce function the type of products you sellshouldnt decide it, but instead if having a place your customers can access 24 hours aday, 7 days a week would be viewed as a service bonus.Customer Care will affect Price Managing personal and business information is becoming more challenging astime constraints shorten individuals’ days. Quick and multiple ways to access accountdetails is also becoming a requirement in an information rich environment. The oldadage that “time is money” has a new characteristic in the hyper-productiveorientated business world and that is “saving time is priceless”. In establishing whatthe market will bear for the price of a product or service, another dimension to thepricing formula is the cost of doing business with a customer. The more direct support, a higher pricing model will be required. Can yourweb site offer self-service customer care to help reduce the product prices? In thisthird C of the Internet Marketing 4Cs, providing superior Customer Care can reducecosts and allow improved pricing dynamics. Providing customer account status andrecords via the web site can reduce calls to support personnel and in the example ofon-line banking is viewed as a customer benefit in managing their accounts at theirown discretion. From access to secured account records to support forums or on-linetraining is your Internet business providing customer care to help manage pricingconstraints or extended service? 13
  14. 14. Converting leads is the next level of Promotion As large and expansive as the Internet is it’s simply amazing one-on-onerelationships can still be developed. The shear numbers of people and businessesconnected to the Internet is staggering and its growth in adoption is unmatched as anew communication medium. Radio and television don’t even come close in terms ofyears it has taken the Internet to reach such a mass audience. But is the Internet justanother promotion channel similar to print ads or television? It may share somecommonalities, but has one unique attribute – interactivity. While other mediums alltalk TO the customer, the Internet enables dialog WITH a customer. As you promote your product or service when a connection is made theInternet allows you to interact with that prospective customer and convert them to alead. In the last of the Internet Marketing 4Cs, Converting Leads is about turningpassive awareness into active interest. Using a variety of web draw mechanisms suchas advertising or search engine marketing, a lead conversion is about filtering throughthe web traffic to help qualify and identify those visitors who are the right prospectsthat have aligned themselves to your offerings. Does your web presence allow forinteractive dialog with its visitors and help qualify themselves to your offerings? A well-rounded Internet business will have aspects of all four of the Cs, but should focus on one or two as their primary business purpose. Balance is necessary, while having a targeted objective will help design your long-term strategy. Do you have a plan A or B that supports your Internet Marketing 4Cs? 14
  15. 15. SWOT Analysis for Internet Marketing Restaurants ought to make bigger napkins, since some of the most productivebusiness ideas seem to come to mind over a meal. The SWOT analysis techniquelends itself to napkin planning and snapshot insights. To conduct a SWOT analysis,draw a vertical line in the center of your napkin (or whiteboard or flipchart),intersected by a horizontal line. Now you have four quadrants where youll sketchyour companys situation. Strengths Weaknesses Opportunities Threats Though a great deal of research may lie behind whats in each box, keep itsimple and incisive. Collecting these facts and ideas together in one place energizesyou to see the big picture. Use it as a brainstorming tool. A strategy formation tool.Note that the first pair of categories -- strengths and weaknesses -- refers to yourcompanys INTERNAL nature, while the second pair of categories refers toEXTERNAL opportunities and threats.Strengths In the first box list all the strengths your company possesses. Dont be modest.Spell them out. If you do this with others, you might begin by brainstorming wordsthat characterize your company and writing them down as fast as people say them.Then use those ideas to construct a profile of your companys strengths.Weaknesses In the second box list weaknesses, areas your business lacks or doesnt havethe personnel to cover well. Be honest. Its better to face the bad news now rather thanconstruct an unrealistic marketing plan that is doomed to failure. 15
  16. 16. Opportunities The third box is for opportunities. When you look at the market (and werelooking particularly at the Internet market in this series), what do you see? WhatARENT your competitors doing that customers need? Look for gaps. Of course, thisis related to a competitive analysis; none of these elements of a marketing plan standalone; theyre all interrelated. Gaps may not last long. What you see as an opportunitytoday may not exist in three months. A SWOT analysis is only a snapshot in time, nota permanent document.Threats The final box is to list threats to your business. What trends do you see thatcould wipe you out or make your service or product obsolete? What are yourcompetitors doing to push themselves ahead? What new dot-com start-up is trying tomove into the market? Heres an example of how a SWOT Analysis might look for a fictional animalgreeting card site,, specializing in pictures of ground-clingingcreatures such as slugs, snails, and puppy dog tails. 16
  17. 17. Strengths Weaknesses • Unique idea, no one else is even • Small opt-in customer list, most close site users seek to remain • Strong artistic team includes some anonymous of the finest slug and insect • Few advertisers interested in this illustrators in the country strangely targeted market • Excellent animation abilities • Perl script that runs the site is • Source of inspirational card slow and needs to be rewritten in inscriptions for all occasions a compiled language • Experienced and innovative • Lack of interest from venture company officers. capitalists. • Single stream of revenue is advertising, and that is slim pickins.Opportunities Threats • No real competitors in our precise • Chemical companies are space. producing more effective snail • Much traffic from students at UC bait that may destroy gastropod Santa Cruz (Banana Slug is their populations in our lifetime. mascot) sending cards to each • Large card sites such as Blue other. Possible joint venture with Mountain alumni association and the ( Official Pacific Northwest Slug might want to take over the slug Page and mollusk traffic and edge us • Seek advertising from French out. restaurants and their suppliers. • Possible books sales such as: Slugs and Snails (Minipets), Field 17
  18. 18. Guide to the Slug, and Creepy Crawly Cuisine: The Gourmet Guide to Edible Insects. • Possible sales of Turbo Snails to browse algae in fishtanks • Partnership with CyberSlug Adoption Center • E-commerce venture selling scarab jewelry • Possible advertisers among pet supply and fish supply stores, bug jewelry manufacturers • Possible affiliate program with snail bait companies • Possible cross promotion with Conchologists of America Obviously this company has some real problems -- no effective revenuemodel -- but at least theyre looking at alternatives. This is what a SWOT analysis cando for you, and may be the germ of an idea that will revolutionize the snail and slugcard business as we know it. 18
  19. 19. 2. SELECTION OF PRODUCT OR SERVICE One of the first things we have to decide when setting up an Internet business iswhether we want to sell a product or a service, both of which have their ownadvantages and disadvantages. 1. Products:Advantage: • Unlimited income potential because we are not constrained by times the way we are with a service. The more products we sell, the higher our income will be... particularly once we have automated our business!Disadvantage: • Requires stocking and shipping (or drop shipping from a supplier) unless we can deliver it electronically. These costs eat into our profit margin. • Generally requires that we fill large numbers of orders to make a reasonable living, unless we have a product with a very high profit margin. 19
  20. 20. Proportion of goods purchased online in Europe. Source KPMG. 1998. The above Figure indicates a no. of products that are purchased in Europe. Aconcern over security of transactions is one barrier which will need to be overcomebefore wider consumer use of electronic commerce. Organisations such as Mastercardand Visa are working with other partners to develop a Secure Electronic Transaction(SET) standard for securing payment card transactions over the Internet. 20
  21. 21. 2. Services: The Internet provides both a communication and distribution channel for theprovision of faster and more effective service delivery. Access to organisationresources and information, the interactive nature of the Internet and the linkage ofInternet technology to other information technology hardware provide a wide rangeof opportunities for marketers to improve the service delivery process.Advantage: • It is easier to make a profit quickly because the entire price of a service is paid directly to us (minus any overhead we incur providing the service). • Once weve sold our clients on our service the first time, theyll likely come back again and again.Disadvantage: • We are limited to a modest income because we can provide only so many services each day (unless we hire employees).If we want to make quick money online the best way is to sell services. And talkingabout services the single most chain that binds more than 100+ million people whoregularly use the Internet is ‘Information’. Yes! It is the need for information. 21
  22. 22. Information is a Hot Product! There is a reason the Internet has been deemed "The Information SuperHighway" — the entire medium is based on the concept of instant access toinformation! Every day there are millions of us online e-mailing friends and businessassociates, seeking financial services, looking for medical information, checking realestate listings, chatting on newsgroups, looking for weather forecasts, researchingproducts and services... the list is endless! Its no wonder the Internet is revolutionizing the way we use information!Open 24X 7 days a week, the Internet has become a kind of Information ConvenienceStore where we can instantly find whatever we need with very little effort. For instance if we are selling a book say ‘Internet Marketing’ priced at $50which costs us a mere $3 and still the customer is paying for it. Our customers are notpaying for the "value" of the book itself— they are paying for the value of theinformation we provide! 22
  23. 23. Information products have the following advantages: Information products are easy to produce. There are almost no costs involved in publishing an information product. Information products can be delivered electronically. Delivery is instant. We can automate our business entirely through e-commerce. If we are selling a product that requires physical delivery, then our goal shouldbe to minimize the associated problems so that they become a non-issue for theconsumer when they are making their buying decision.We can do this by: Offering free delivery (Perhaps with purchases over a certain dollar figure?) Offering a wide variety of delivery options including overnight courier and economical "snail mail." Ensuring that our product is delivered in a timely fashion Do NOT run out of stock - this is just bad business. The bottom line is that when we are providing a service the way we can beahead of the competitors is by providing something ‘EXTRA’. That ‘Extra’ can besome free item, additional service, discount… or anything, which can be useful to ourdirect customers. The success formula is ‘PRODUCT’ + “EXTRA” 23
  24. 24. COMING UP WITH OUR OWN HOT PRODUCT OR SERVICE IDEA:The key parameters to be considered when coming up with our own product orservice are: • What are we interested in? • What are we passionate about? • What subject or topic do we have a lot of knowledge about? • What are people always coming to us for advice about?Some of the product ideas are as follows:1. Develop a new product or service by researching potential competitors in ourarea of interest to find out what their best-selling product is... and figure out a way toimprove on it!2. Check out the newsgroups, discussion boards, and chat rooms where our targetmarket hangs out And accordingly ask their opinion about their expectation from aparticular product or service.3. If we already have an existing customer base, we should do an e-mail survey!Surveys are not only a great way to improve on any existing product or service wemay offer, they are also a great way to discover fresh product or service ideas. 24
  25. 25. In fact, statistics have shown that our current client base is-a gold mine... andthat as many as 36% of the people who have bought something from us previouslywill buy again if we have something similar to offer4. Check out consumer review web sites to find out what people like and dislike about our competitors products.Some of these websites are:http://www.consumerreview.comhttp://www.consumersearch.comhttp://www.epinions.com5. Join an Affiliate Program and promote someone elses product for a referral fee.The advantage is we dont ever worry about... Collecting the money Packaging the product Shipping the product Customer service... or anything else for that matter! We just do the promotion and collect our referralfee from the resulting sales!6. Compile a certain type of information and then package it as an eBook.7. One of the easiest places to look for product ideas is in our own industry. Yesit is we who are the best who know about our own industry and can right really usefuldata for others to refer regarding our industry. 25
  26. 26. For example, if we were in the cellular phone industry, we might know thatnew Sales people really need a quick-reference training manual that lists all of thefeatures and benefits of cell phones.8. Another really powerful product idea is to locate a problem... and then develop aproduct or service to solve it OR in other words conducting ‘NICHE MARKETINGON THE NET’9. Create a tutorial for a popular software product that we use. For example, wecould use a program such as Lotus Screen Cam (A 15-day trial version can be foundat to create a movie-like presentation.It will record all of our screen actions along with a voice track. All we need isWindows 95 (or higher) and a sound card.10. A newsletter is a great way to earn a large income very quickly. In fact, if ournewsletter covers an in-demand topic and we build up a large subscriber base, wecould potentially take advantage of numerous streams of revenue including: Paid subscriptions Advertising Product promotions Selling our customer database11. Create a "Tip-of-the-Day" Newsletter. If we have valuable information that will solve a problem or fill a need, thenwe may be able to set up our very own "tip-of-the-day" newsletter, sharing a quicktidbit of information with our subscribers every day.. For a small fee, of course. 26
  27. 27. For example, if we are a stock broker we could write an “Investment Tip of theDay” newsletter. Or if we are a real estate agent, we could set up a tip of the daynewsletter called "Increasing Our Property Value”, each day giving people new tricksand ideas for increasing the value of their home.12. Sell unique or hard to find products on auction web sites.E.g.: We can sell some of the antiques, which are available easily in our area but arehard to find elsewhere and command a good price.13. Create an online community and sell memberships and advertising.E.g.: is a cool site for fun loving surfers on the net started justin 2002 and having a customer database of 2000 hits every day and managed by asingle individual with zero investment.BEWARE INFORMATION PIRACY NEXT DOOR This has been the growing concern for information to be sold online. There’salways a chance that our information will be liked in some form or the other. It maybe any format say text file, document, PDF file, Custom built file, HTMLdocument … the common thing among all these is lack of security. So how do wedeal with this?The solution is the software eBook Pro.How does this work? Its simple...1) When we create an eBook using the eBook Pro software, we can actually specifywhat information our visitors need to enter in order to unlock the free eBook theyhave downloaded off our web site. 27
  28. 28. 2) Once they have entered the information required to un-encrypt and register theireBook (first name, last name, e-mail address, phone number, etc... as little or as muchinformation as we want!) the eBook is fully unlocked and we are automatically sentall of their contact information! By capturing the names and e-mail addresses of thesepotential customers, we gain the power to market to them again and again for FREEuntil they either buy our product or ask we to stop contacting them!What about the customers who download our eBook but dont buy our product?Simple! Survey them... find out why they didnt buy... and then make the necessarychanges to eliminate their objections to purchasing! Tills alone will increase our salesin less than 24 hours!For the detailed functioning of eBook Pro Check: http://www.ebookpro.comDROP SHIPPING – THE CONCEPT"Drop shipping” is simply an arrangement between us and the manufacturer ordistributor of the product we sell whereby the manufacturer or distributor – NOT WE— ships the product to our customers.Heres an example: Lets say Anjali Mukherjee wants to set up a site that sells skincare products. Instead of filling her basement with cases and cases of stock, and thengoing downstairs each time an order comes in, Anjali Mukherjee puts together a dropshipping arrangement with a manufacturer who ships the products to her customersdirectly. And the best part is that the manufacturer will happily ship the products usingshipping labels with Anjali Mukherjees companys name, address, and logo instead oftheir own. The product arrives at the customer’s house a few days later, and theynever know that the product wasnt shipped directly from Anjali Mukherjeeswarehouse! 28
  29. 29. Lets say Anjali Mukherjee has a product called the "Total Skin Care Package," pricedat $97. A customer visits her site, places an order, and is billed $97 plus $1 forshipping and handling. Anjali Mukherjee then sends her distributor e-mail with hercustomers order and shipping information. The manufacturer packs up the customersorder, puts Anjali Mukherjees shipping label on the package, and mails it out viaUPS or FedEx, usually within 48 hours. The distributor then bills Anjali Mukherjee for the WHOLESALE price of the"Total Skin Care package" — in this case, $64 plus $11 for shipping and handling.Since Anjali Mukherjee has passed the shipping and handling fee on to her customer,she has just netted a profit of $33. And all she had to do was send her manufacturer e-mail! The most important advantage of using Drop Shipping is that we are free fromthe hassle of physical handling of goods.Choosing the Drop Shipper • Through manufacturers contacts • Through Trade magazines. A couple of resources to check out for listings of trade magazines are: 1. SmallBusiness101 ( 2. Yahoo’s listing trade of magazines ( /News_and_Media/Magazines/Trade_Magazines/) 3. sells a "Consumer Products Source Directory" that claims to provide listings of dozens of trade magazines. 4. The Thomas Register ( provides listings for thousands of companies broken down by product, brand name, and company 29
  30. 30. name. It takes some time to get used to navigating through this site, but it can be a great resource.Common Drop Shipping Problems — And Simple SolutionsOf course, no business model is without disadvantages — and drop shipping ourproducts can lead to some serious problems if we arent careful. Below are a few ofthe most common problems, along with some solutions.Problem #1: Shipping DelaysThere may be shipping delays if the drop shipper does not confirm the order as soonas we sent him the order via e-mail.Solution: Insist on prompt order confirmation from our drop shipper. Ask them tosend confirmation e-mails or faxes to us when theyve processed our order.Problem #2: Tracking Shipping StatusSometimes the customer wants to know where exactly has the goods reached. i.e., thestatus of their goods.Solution: Most of the delivery services (like UPS or FedEx) now offer onlinetracking services. If a customer calls to check the status of their shipment, we caninstantly tell them where their package is by entering their tracking number at theUPS or FedEx web site. Better yet, include the tracking number in our confirmatione-mails to our customers and let them track their orders themselves.Problem #3: Drop Shipper Backs OutOccasionally, a manufacturer or distributor will simply back out of their dropshipping agreement with us. They may decide that the work involved in packagingand shipping their products for us simply isnt worth the trouble. 30
  31. 31. Solution: Unfortunately, well never really know how reliable our partners will beuntil weve placed a few orders from them. When we are setting up our agreementswith our drop shippers over the phone, we should be able to get a good sense of howreliable they are based on how they answer our questions. This is one of those areasof our business where well have to follow our instincts!Problem #4: High Shipping CostsFinally, we can run into problems with shipping costs if we work with a number ofdifferent manufacturers and distributorsSolution: We can avoid this problem by just using one manufacturer or distributoron our web site. Keep in mind that many distributors deal with thousands of products(usually related to each other), so we can usually source all of our products with onedistributor. Of course, our site may never run into this problem. 31
  32. 32. 3. TWO KEY APPROACHES TO MAKING MONEY ONLINE! Basically, there are two key approaches to making money on the Internet. Thefirst is referred to as a "sales web site" and the second is referred to as a "portal website."SALES WEB SITE The first approach to making money from our web site involves directlyoffering a product or service for sale. This method is fairly straightforward- We caneither offer a product or service on our web site, or we can offer free informationdesigned to lure people to another page where we have a product or service available.This is the most popular way of making money online because its relatively easy toset up, and if we do it right, we can begin making money almost overnight. Just about everyone decides to set up their web site with the intention ofselling a product or service first because they do not have the time and/or money thatis required to develop a portal web site. 32
  33. 33. PORTAL WEB SITESA portal web site is basically an entry page onto the Web. Yahoo! And AltaVlsta, for example, are both portal sites. They are designed to attract a large, general audience, offering a broad range of information that includes weather, stocks, news, and horoscopes, as well as services such as shopping, free e-mail, and entertainment updates. Referred toas “horizontal” portals, these sites are designed to draw repeat visitors from allwalks of life.On the other hand, "vertical" portals” (also referred to as "niche" portals and“portals”) are developed with a very specific market in mind. A vertical portalfocuses on a small portion of the general audience, striving to meet their needs forinformation, products, and services by becoming the online resource for that segment.Portal sites are not discussed very often because they dont generate instant cash andthey require a substantial investment of time (six months or more) and money.However, once these sites are successful, the payoff can be huge and the timecommitment involved in maintaining the site from that point on is minimal.A good example of a portal site can be found at has been a success because it offers daily news on theautomotive industry and free information on all things automotive (including new andused car prices and dealer invoice costs). The site generates over three hundredthousand visitors a week (thats millions of hits a month), and this allows them to sellpremium advertising space. 33
  34. 34. They earn over $100,000 each month in advertising fees from corporations likePenn2oil and Auto Advantage alone... never mind the profits they earn from otherproducts and services.There are three ways we can profit from a portal web site:1) We can sell a product or service by providing them with quality information. Thisrequires us to have an e-commerce site that is equipped to take payment online,process orders, ship product, etc..2) We can recommend the products or services of others to earn a referral fee. With(his option we dont need an e-commerce enabled web site because we dont actuallysell any product or service.3) We can sell advertising space on our site.The following are examples of organizations that will broker space on our site if wehave a high enough visitor count to Justify banner ads: Burst Media ( commission (50%). Real Media ( 30% commission. Double-click ( most well known banner advertising agency on the Net. 34
  35. 35. 4. INTERNET MARKETING STATISTICS Constructing a successful Internet Marketing Campaign is challenging andknowing where to focus the campaign is half the battle. Internet MarketingStatistics can give you the required knowledge that helps to refine an InternetMarketing Campaign. This part of eBusiness Strategy Guide contains comprehensivestatistics of Internet and search engine usage.Internet Marketing Statistical Information Below are the most recent statistics of World-Wide Internet usage, searchengine usage stats and search engine relationships. This is very helpful to determinewhat search engines should be concentrated on and why to use Internet Marketingas your primary source of marketing.Active Internet Usage by CountryHow many people are actively using the Internet? Below is a table showing thenumbers of Internet users from around the World from mid to late 2004.Country August 2004 September 2004 Growth % ChangeAustralia 8,817,815 8,850,479 0.37% 32,664Brazil 12,019,552 11,992,791 -0.22% -26,762France 14,222,597 15,197,078 6.85% 974,481Germany 29,215,331 30,073,931 2.94% 858,600Hong Kong 2,673,388 2,483,261 -7.11% -190,127Italy 14,930,690 16,622,066 11.33% 1,691,376Japan 35,646,372 36,277,805 1.77% 631,433Spain 7,466,380 8,498,602 13.82% 1,032,222Sweden 4,694,397 4,646,457 -1.02% -47,940Switzerland 3,321,652 3,170,841 -4.54% -150,812UK 21,783,154 22,505,058 3.31% 721,903United States 137,038,072 135,423,830 -1.18% -1,614,242TOTALS 291,829,401 295,742,198 1.34% 3,912,797 35
  36. 36. UK SEARCH ENGINE USAGE STATS Knowing what search engine is winning the Search Engine War and holdsmarket share is incredibly important to your Internet Marketing success, Searchengines account for over 90% of all traffic referrals to websites, targeting the topthree or four search engines which account for over 85% of all search engine trafficis the key to creating a good Internet Marketing Campaign. Sourcing accurate UK search engine usage stats is very difficult, so wemonitor and track our top performing Clients websites, producing live and veryaccurate UK usage stats. Three of our clients’ sites from various market sectors aredisplayed below to give an indication of the ever changing search engine marketshare. The above website operates in the home and garden market sector 36
  37. 37. The above site operates in the financial sector The above website operates in the insurance market sectorMore search engine usage stats Below we have also included another pie chart from a leading UK Web Analytics Company, which provides further insight into the market share of UK search. This chart represents an average of UK search engine market share. 37
  38. 38. Search Results Provider Chart Search engine relationships are almost as complex as the algorithm each search engine use for ranking a website in their organic results (Search Engine Optimisation). Knowing which search technology powers each search engine, can further help you to know where to concentrate your Internet Marketing efforts.Search Engine Organic Results Paid Results (Pay Per Click) Directory Results Provided By Provided By Provided ByGoogle Google Google Open DirectoryYahoo! Search Yahoo Oveture Yahoo! DirectoryMSN Search MSN Overture (Soon to be MSN) noneAOL Search Google Google Open DirectoryTerra Lycos LookSmart Google & Lycos Open DirectoryAlta Vista Yahoo Overture Open DirectoryAsk Jeeves Teoma Google noneTeoma Teoma Google noneAllTheWeb Yahoo Overture noneHotBot Yahoo Google & Lycos noneLookSmart LookSmart LookSmart none 38
  39. 39. INTERNET MARKETING STATISTICS CONCLUSIONWith all the above statistics it is clear that using the Internet for marketing andgenerating leads is a powerful tool. Whatever Internet Marketing method you use,search engines will be your primary traffic source. 90% of the time, evenadvertising on another website will provide traffic that originated from a searchengine. With this in mind, why use an Internet Marketing Service if it is notobtaining targeted traffic directly from a search engine to your website.The search engines you should focus on are Google, Yahoo and MSN, in thatorder. Concentrating on these three search engines account for somewherebetween 80 and 90% of all search engine traffic. 39
  40. 40. BUILDING AN EFFECTIVE SALES WEB SITE! If we want to do business online, then we need a web site. Our web site will be our advertisement, our storefront, our customer service representative, our sales person, and our cash register. Our web site is our business! So no matter what Internet marketing techniques we choose to employ, our web sitewill ultimately be our key to success online. The phrase "surfing the Net” suggests how visitors to our site approach the Internetin general; they come in, sniff around, and move on. If we dont snag themimmediately we will lose them forever. Thats why it is so important that we pay careful attention to every aspect of our website development. If customers dont stick around, to buy what we are to offer becauseour web site loads at a snails pace... its too cluttered... too hard to read... or difficultto navigate, we wont get a second chance! A well-designed web site is an integral part of a successful sales process.Choosing a Web Host: We simply cannot afford to do business with an unprofessional web hostingcompany; it will cost us clients, revenue, and credibility. Once weve lost thesethree essentials, we have nothing left... nothing but a massive headache that is!We need to do our research and find a reliable hosting company. Just think about how many hundreds of thousands of dollars it could cost us if... Our site goes down for just 2-3 hours a month We are forced to spend days chasing their technical support staff for an answer to a critical question 40
  41. 41. There is a hardware failure and we lose all of our information including our site content... and the list goes on and on. It can literally cost us our business!And remember... our web host is responsible for making that vital connectionbetween us and our customers, so be sure that we take the time to get to know themwell before signing any contracts or agreements.Purchasing a Domain Name:There are three key reasons why we need to purchase our own domain name:1) Our web host cannot hold our hostage! We can easily move our domain name toanother host.2) Should we be forced to move our web site from one host to another, customerswill still automatically find us because our domain name has not changed.3) If we have a "slick" domain name, it can entice people surfing the web to visit oursite before someone elses.For example, lets say we performed a search for the keywords "Internet businessmarketing" in a search engine, and received the following results:http://www.nmbmsinternetcomhttp://www.internetusage.comWhich one would we go to first? Obviously wed head to The domain name lets us know that this site isdefinitely related to our search 41
  42. 42. We need to get our own domain name and get it quick. -. They are going REALLYFAST! It is getting harder and harder to find really good ones. About 5-6 years ago,when the Internet was still very new, a few people saw an opportunity. Relying on theidea that the Internet was going to become massive, they started buying up domainnames. Why? So when the Internet did become huge - and the large corporationsdecided it was time to capitalize on this new marketing medium — they could turnaround and sell these domain names for 1,000 times the price they paid! Imagine if we had purchased or whenthey first became available! We would be a millionaire today with almost no work orinvestment on our part.The domain recently sold for $7.5 million! sold for $1,000,000! also sold for $1 million dollars ... and the list goes on and on.DO IT OURSELF VS. HIRING OUT: PREPARE TO DO EVERYTHINGOURSELF!Because we will initially be testing many different ideas on our web pages andchanging our site quite frequently, we should make an effort to learn HTML. Thatway, we will NEVER have to deal with the following problems:1) If we cannot make the changes ourself, then we cannot expect the changes to bemade on time. We will be forced to wait until our Webmaster has a spare moment tomake the changes for us.2) We cannot make the quantity of changes we will need to. If we have to ask ourweb master to make these changes each time, then we will not be able to make asmany adjustments as we would probably like. 42
  43. 43. 3) We cannot expect the changes to be made the way we pictured because theprogrammer may have a different understanding of what we are trying co accomplish.4) Its really expensive to do business this way! These changes will cost us an "armand a leg” - and all for work that we could have done ourself for FREE! Learning HTML is easier than it might sound. Unlike learning French or otherlanguage, most of it is self-explanatory.We can use a lot of HTML editors, and these two are by for the basicDream 43
  44. 44. WEB SITE DESIGN STRATEGIES FOR THE SERIOUS ENTREPRENEURToday, most business purchasers looking to buy a product or service start the processby using a search engine to find vendors and product information. How can you makesure that your business is found when these people are looking for you or yourcompetitors? You need to make sure you rank high in the search engine results, for asmany search terms as possible, and hopefully for many of the terms that are searchedon more frequently. The first step toward ranking high in the results for the mostcommon terms that people search is to have the right keywords as part of your onlinepresence.• You have to get on the first or second page of search results. If you are not onthe first or second page of search results, it is almost like not being there at all.• Shorter search phrases are searched more often. Usually more searches occur for“marketing” than for “online marketing” and both of those terms are searched morefrequently than “small business online marketing”.• It is usually more difficult to get ranked on the first or second page for popularsearches. Because people know that “marketing” is searched more often than “smallbusiness marketing”, more people are trying to get onto the results for “marketing”and it is usually more difficult to get highly ranked for the more frequently searchedterm.Here are a few rules that we should follow when developing and maintaining ourweb site: 1) It must be fast loading. 2) Collect e-mail addresses and make a good database so as to maintain regular contact with our customers 3) Limit our visitors choices on the main page 4) Never include links to related sites on our main page. 44
  45. 45. 5) It must be simple to navigate.6) Be consistent.7) Be wise and careful when choosing colored backgrounds.8) Think creatively when developing our links.9) Provide text alternatives for all graphics and links.10) Use descriptive and meaningful file names11) Java, animation, and wild graphics should be avoided to quite an extent.12) Let visitors know who we are.13) Guide visitors through our web site.14) Make it easy for people to buy from us!15) Consider adding a shopping can.16) Accommodate the customers who wish to order offline.17) Be ready with fresh content.18) Kaizen should be always a part of our website.19) Total automation is key.20) Suggest "book marking" our web site!21) Hyper-link to our sales message!22) Keep our purpose in focus at all times! 45
  46. 46. 5. WRITING KILLER SALESCOPY! Far too many Net newbies get caught up in the glitz and glamour of web sitedesign, and completely neglect their copy. They slap up carelessly thought-throughboring statistics... unrelated information... or nothing at all... and then wonder whytheyre not generating sales! Spinning graphics and cool colors ultimately will not sell our product or service.Our salescopy will. Well-written, compelling salescopy is truly one of the mostimportant factors in determining our business success or failure online. Copy is everywhere on the web - its not just our salesletter! Its in everydescription, every button, every link, every heading... its everything that we write!.Now we will see some of the specific building blocks, which will create top-notchsalescopy... copy that SELLS!1. Use Attention-Grabbing Headlines Good headlines can increase the response by as much as l, 700%. This hasbeen proven over and over again. We can have the exact same body (called copy) inan ad and Just change the headline to dramatically increase our sales. They sayheadlines pull in 80% of the orders if done correctly. Let us take an example. John Edward is a commodity broker and client of JayAbraham who arranged for 2/3 banks financing on gold purchases. In other words, ifwe wanted to buy $10,000 worth of gold, we would only need $3,333 in cash... thebank would finance the rest. His headline read: “Buy gold with two thirds bankfinancing!” This headline, accompanied by good ad copy, made thousands andthousands of dollars even month- Because he was making $10,000+ a month, he wasinitially pretty happy and didnt consider that he might be able to improve on hissuccess... a HUGE MISTAKE! 46
  47. 47. John snapped out of his trance and decided to test some other headlines. He ran a fewdifferent ones, and each one pulled a little better (about 10%). However, about 3weeks later, he ran this headline: “If gold is selling at $330, send me $ 10, and I willbuy all we want!” Well this headline increased sales over 500%! Yes... all chosemonths he was making $10,000+, he could have been making $ 50, 000+. And this isjust we example of how Important a good headline can be!2. Answer The Question, "What’s In It For Me?" Killer salescopy doesnt focus on the features of our product or service. Itfocuses on how the visitor will benefit from these features. This is a subtle differencethat people regularly miss when writing their salesletter.Let me give an example that will illustrate this point. Our friend Anil has decided to scan marketing his office chairs online. Hebuilds his web site and posts a salesletter that says: Hi we should buy my officechairs because they are the best in the industry. My chairs are made from soft leather,theyre really sturdy, and theyre easy to adjust. They only cost $500, so buy onetoday!"Not surprisingly. Anil does not make a single sale. So Anil comes to us for advice.We help Anil rewrite his copy to read as follows:"Do we leave the office in agony each day because our chair – the chair that we areforced to sit in for 8 hours each day - is really uncomfortable?Does our backache? Do we feel stiff and sore because our chair was poorly designed?Well, dont despair! We CAN be comfortable at work! Here at Anils Chairs, we havedesigned an office chair so comfortable that sitting in it will be a pleasure! 47
  48. 48. Well sigh with relief the first time we sit down and settle back against the silky softleather... And well be thrilled with the easy-to-adjust height and back support thatmake being comfortable incredibly easy! This quality is unparalleled in the industry... And the amazing part is, ourchairs cost $100 less than our next closest competitor! So not only do our chairs savewe money... they help we avoid the excessive discomfort of back pain caused bysitting in an uncomfortable chair! Thanks to our chairs, we can now leave work each day feeling ready to enjoyour evening off. Plus, well save time using our easy-to- adjust height and backsupport- Why would we want to struggle with awkward levers that dont really do thejob, when we could be sitting back, relaxed in one of our chairs?" Here we see, answering the question, " Whats in it for me?” is all aboutinforming people how our product or service could save them time... save themmoney... reduce Stress in their lives... help them to improve their relationships, etc.... Emphasize benefits and solve problems! Make this the focus of everything wewrite, on every page of our web site. Dont try to SELL visitors the product orservice... HELP them!3. Educate Our Visitors By taking the time to educate the consumer, we are building credibility. Weare presenting ourself as an expert in our field - someone who is knowledgeable andtrustworthy! And once our visitors trust us, they will buy from us! For example, if we were selling an exercise video, we would want to explainto our visitors exactly how using our product would improve their lives. We wouldalso want to let them know what makes our video better than the others that arecurrently on the market. Perhaps a special team of doctors designed our exercises, orperhaps our video contains motivating, current music instead of old show tunes. 48
  49. 49. 4. Establish Credibility And Develop Rapport Rapport is very important! Part of what will draw our visitors through ourcopy is the personal relationship that we develop with them. The sooner we establish credibility and develop rapport, the sooner ourvisitors will begin to trust and accept what we are telling them. We see, by being up-front with our visitors about who we are, they will feel more comfortable doingbusiness with us. They will be less likely to think that we are hiding something fromthem or that there must be a "catch”.5. Know our Audience (Market Segmentation) It is critically important that we have a clear idea of whom we are trying tosell our product or service to. Know our target market! What do they need? What dothey want? Who are they? How old are they? What kind of education do they have?What are their requirements? We should keep our target market in focus at all times when writing oursalescopy We cant sell to everyone, so should not waste our time and money trying.6. Be Clear and Concise Make our copy as simple as we possibly can. We should avoid using largewords and long sentences - this distracts the reader from our message. Also, weshould not assume anything... explain everything! We dont want our visitors thinkingabout what were trying to say. We want them to be absorbing and understandingeverything easily! A good habit to develop is reading our copy aloud to ourself. Does it soundlike were talking to a friend? If it does, weve done our job. 49
  50. 50. 7. Keep Our Offer Focused Make sure the value of our site is immediately apparent! If visitors cantinstantly tell what our site has to offer, theyll leave. Weve all arrived at a site, only toleave seconds later because we couldnt figure out what it was about. Our visitors areno different! Be sure that our site has a focus and that our focus is immediately revealed inour titles or headings. Even a site that sells thousands of products should have afocus. For example- Office products - thousands of products, one focus! Or evenDVD downloads ~ thousands of rides, one focus!8. Our Copy should be Easy to Read Dont use all capital letters in the text of our sales message. It slows theaverage reader down 30% and can be very annoying. Only use of caps when we wantto emphasize a point, but also consider holding the text. Used sparingly to emphasize benefits, holding and Italics can be veryeffective. Unfortunately, some people get carried away... AND THEY MAKE THEIR TEXT EXTREMLY HARD TO READ BY DOING THIS! In short try the text read by reading it ourself and note the conformability levelin each case.9. Write To Be Scanned We need to write our salescopy so that it can be easily scanned. Our sitecontent should be broken up into well-defined sections, and we should be sure to useholding and Italics to emphasize main points and benefits. 50
  51. 51. 10. Transfer Ownership When writing our salescopy, we should be sure that we transfer ownership tothe reader by using the words you” and "your.” This makes our writing much morepersonal! For example, we should say things like,"Your widget will be delivered in 5 days...""You will learn...""You will receive..."11. Make Our Sales Message Exciting Make our copy exciting by using "glamour words" that pique the readersinterest.Some examples of words that motivate people to buy are: Love, Safe, New, Benefits, Right, We, Alternative, Security, Sale, Now,Value, Fun, Save, Gain, Money, Happy, Advice, How to, Discover, Introduce, Easy,Our, Proven, Penetrate, Suddenly…………… Some words to avoid because they make people want to stop reading are:Buy, Difficult, Death, Obligation, Wrong, Failure, Decision, Fail, Bad, Deal, Cost,Sell, Taxes, Liability, Worry, Loss, Hard, Contract…………12. Long Salescopy Works Online marketers generally preach long copy as a “no-no”. Theyll tell us thatwe should stick to using multiple short pages" that contain a single, completethought. The key here is that if people are interested, they will read as much as we 51
  52. 52. can write. It all depends on our business, our market, and the product or service thatwe are trying to sell. We should take the time to test both strategies on our web siteand see which works best for us.13. Dont Let Them Know That Were About To Sell Them Something! It is important that we dont tell our visitor up front that we are trying to sellthem something- They see, no matter what were selling, how great it is, or what afabulous deal were offering, people wont sack around if they think that we are goingto ask for their money.14. Publish Testimonials To really explode our sales, we need to convince our visitors that other peoplehave benefited from doing business with us. The most effective way to accomplish this is by using the almightytestimonial! This one simple trick could actually increase our sales by a phenomenal250%.15. Ask For the Order Ask for the order! Ask for the order! And then ask for thye order again! Itcannot be emphasized further. We have no idea how many people simply do not askfor the order. Marketing gurus have proven time and time again that we will increase oursales by at least 80% simply by asking for the order. 52
  53. 53. 16. Provide a Strong Guarantee Weve all been burned before- - - and every time it happens, it becomes harderfor us to trust anyone. Guarantees help to alleviate any anxiety the customer may befeeling about ordering from us. If we are marketing a quality product or service, thenwe should not be afraid to back it up.17. Offer A Bonus! Offering one, two, or three free bonuses makes closing our sale much easierfor a couple of reasons: A bonus increases the perceived value of our product- People feel like theyre getting more bang for their buck. By making the bonus a "limited time offer," we create a sense of urgency. If they dont order today, tomorrow, or this week, they wont receive the bonus offer.18. Test Our Offer Many people think there is one magic formula that, once discovered, willgenerate instant results when marketing online. There is no one trick or technique thatis going to make us rich overnight. Instead, it is the process of testing, evaluating, tweaking, and re-testing thatwill ultimately earn us the big money.19. Target Our Market Using Surveys The easiest and cheapest way for us to learn exactly who our target market isand what they want is by doing a survey of our customers! Surveys are a fantastic way of gathering tons of critical marketing informationabout the people who are buying our products! They indicate exactly what our 53
  54. 54. strengths and weaknesses are, giving our marketing strategies extra punch as webegin to apply what they teach us.20. Never Bad-Mouth our Competitors Never "bad-mouth" our competition. This is not only bad business etiquette,but it will haunt us later as it dramatically decreases our credibility in the long run.21. Include A PostScript This is a really great place to repeat a key benefit and emphasize that thereader needs to take action NOW & order to receive the special price or the limitedtime bonus offer. Here, its a good idea to focus on what will happen if the customer does NOTtake action immediately. Talk about the time they will waste... the money they willlose... or the pain they will cause themselves. Point out that by ordering.22. Pricing Our Product One of the biggest mistakes made when marketing any product or service isthe pricing. Pricing should never be based on cost! Always charge the maximum anygiven customer is willing to pay and base it on what the competition is getting for acomparable product or service. A very simple trick for getting a higher selling price than our competitors witha similar product or service is to somehow add value to our product. Offer somethingthat our competitors don’t. For example... Offer free bonuses Be an industry leader in customer service 54
  55. 55. Provide special information to make our product or service more useful or efficient Offer specialized knowledge about the product or industryAgain, the key is to offer something that our competition doesnt!23. Proofread, Edit, And Proofread Some More! We are what we write. Therefore we have to make sure all of our salescopy isgrammatically correct and free of spelling errors. Simple things like poor spelling willmake us appear unprofessional — much like dirty fingernails in a job interview! We should edit our copy as though our business depends on it... because itdoes! Nothing destroys credibility faster than copy that is full of spelling andgrammatical errors. We should never rely solely on our spell checker! It wont catchthose oddities of the English language like a misplaced "ewe" instead of "we," or"our" instead of "were."24. Removing Objections to Buy There are three things every online consumer wants, no matter what productor service they are looking for: 1) Online consumers want to know they are making a smart decision! 2) Online consumers want to know that they’re getting a bargain! 3) Online consumers are looking for instant gratification!25. Hiring and Working With Professional Copywriters If we hire copywriters we have to keep the following things in mind: 55
  56. 56. 1) Make sure they have quite a bit of experience writing salescopy specifically forthe Internet.2) Check their references.3) Read samples of their writing and ask questions to make sure that they are,indeed, the authors.4) Be prepared to pay for quality writing. 56
  57. 57. 6. ORDERING PROCESSES AND PAYMENT TYPES Far too often, online business owners focus all of their energy and attention ondeveloping a fabulous web site, writing killer salescopy, getting a top-rankingposition in the search engines, and driving large volumes of traffic to their web sites...and completely disregard their ordering system. Did we know that we could lose as much as 75% ... 85% -... Even 95% of oursales because our ordering system isnt user-friendly enough? All of our hard workcreating the dynamite web site, writing the compelling salescopy, and drawing hoardsof traffic to our site is all for naught if our ordering system has not been tested andtweaked. We want our customers to be able to slip through our order form like agreased pig on a water slide. The first thing that a visitor will do when they arrive at our web site is scrolldown the page. If they see an order form at the bottom, the game is over. Weve justtold them that were about to try and sell them something.People come online to research, not to buy!So we want our salesletter to appear like an article full of free tips and information...not a hard-core "sales pitch”.At the bottom of our salesletter, we should include one link to our order form. Itshould be subtle and inconspicuous in nature. For example:"Click here now to receive this special offer”If we want to capture the business of every buyer who arrives at our order form,then we need to offer a wide assortment of payment options. Cover all of the bases byincluding: 57
  58. 58. 1) Direct online ordering via a secure server.2) An 800 number available 24 hours a day, seven days a week with liveoperators.3) An order form which customers can print out and fax or mail in.1. Automation - How Does It Work?We should have a completely automated system which can perform the followingtasks.1) The credit card is approved in "real time" while the customer waits for a fewmoments.2) The money is deposited to my merchant account.3) The order is e-mailed to a fulfillment company who ships the hard copy of thebook.4) The customer is sent a confirmation of the order by e-mail.2. Accept Credit Cards - Or our Business Will Suffer By accepting credit cards we give our business a measure of credibility — wewont appear like some "here today, gone tomorrow" basement operation.Accepting credit cards online we will actually make our job a whole lot easier... We wont need to make as many trips to the bank because everything is deposited electronically. There is way less paperwork to do. 58
  59. 59. We wont need to worry about bounced checks — credit cards are almost equivalent to cash. Tracing orders for customer service is really easy. The most profit is made from online orders because were not paying fees for live operators with the 800 number... or wasting precious time processing the manual order-form orders. ... and much more!How to Get a Merchant Account? 1) Get our own Visa/MasterCard or any other accounts with a local bank. 2) Get Visa/MasterCard or any other accounts through a broker. 3) Hire a fulfillment house and use their credit card accounts.3. Adding Shopping Carts to our site – Types, AdvantagesSo, What Exactly IS a Shopping Cart?A virtual shopping cart is a lot like the metal one at the grocery store – with a wholelot of features added on. The virtual cart collects the products that visitors to our sitehave an interest in purchasing, and shoppers can "add" or "remove" items as theyplease, just like with a real shopping cart.Once the shopping cart hears back from the merchant account, it...1) Generates a customer receipt and e-mails it to the customer,Then2) Sends us a fax or an encrypted e-mail that contains the customer details and orderinformation.... And at that point, we can fill the orders. 59
  60. 60. Different Kinds of Shopping CartsThere are literally hundreds of shopping carts available for we to choose from;however, they all typically fall into one of the following three categories:1. ASPs (Application Service Providers) provide the shopping cart as a service tous. The ASP hosts the cart on their server and gives we everything we need to run it.Signing up with an ASP is like paying someone to take care of the whole process forus.2. Shopping cart software is just what it sounds like - software that we pay a flat feeto license. In this case, we are responsible for installing and hosting the applicationour self.3. Customized shopping carts are ones that we build our self. In my opinion, theresno need to write our own shopping cart software unless we have VERY specificneeds and TONS of money! The average small business web site doesnt typicallyneed this level of customization. And given the wide-range of cost-effective softwareand solutions that are now available, theres certainly no need to go through all thetrouble and expense. So well leave this option out for the rest of our discussion.Some online Resources available for getting shopping cartsThe following list of shopping carts covers a range of options and includes the bestIve found for compatibility issues: Securenetshop ( is an ASP that uses HTML pages for set up and offers a variety of options, including customer tracking. Cost $229 per year plus $149 for a merchant account and payment gateway. Goemerchant ( is another ASP that will look after everything for we. The merchant account is included as part 60
  61. 61. of the package, and they provide custom "copy & paste" tools that make set up relatively painless. Cost $59.95 per month plus $29.95 annual fee. Miva Merchant ( is a software package that can be hosted either on our server or on a remote server. It offers browser- based administration, a wizard set up, and pre- configured payment processing. Miva Merchant provides plenty of room for expansion, and sells a variety of compatible business-management programs. Cost $595. Quikstore ( is a software package that must be hosted on our server. Its a solid product for a low price. It offers a wizard set up, a configuration editor, a catalog wizard, and more. Well have to pay extra for the payment gateway, but Quikstore suggests a compatible one. Cost $199.95.4. Protect our Business from Fraudulent Orders and Online Credit Card CrimeThe following techniques have been specifically designed to help us reduce theamount of credit card fraud that our business experiences: 1. Keep records of phony names and addresses, problem customers, and bad credit card numbers. 2. Collect as much customer information as we can 3. Take the time to verify the address of each order possible. 4. Keep an eye out for unusual orders. 5. Both American Express and Optima cards have a four-digit, non- embossed CID number printed on the-front end of the card. It appears on the right border of American Express, and the left border of Optima. Ask customers who place orders with these cards for the CID number. 6. Visa card customers will have a non-embossed number appearing above the first four digits on their card. Ask them for that number, and verify that it matches the first four digits of the cards account number. Also note that all Visa accounts begin with the number "4." 61
  62. 62. 7. Watch for unusual orders placed with free or web-based e-mail addresses8. If we suspect a fraudulent order, take a moment to check it out. Check their e-mail address by visiting their ISPs web site or their personal domain. (For example, if we are given the e-mail address then we would go to http: / / To prevent scamsters from entering phony credit card numbers, well have to interface our order form with a real-time processing system. At the very least, well have to use this CGI script which will check for valid credit card number syntax.10. Have our CGI script record the IP address. We can compare the e-mail address to the IP address. If they are from different sources, we can be sure that something is not right and investigate. When we receive a numerical IP address, we can check it using such programs as WS Ping. Of course, there will be times when we do not get a matching site name. When this is the case, try phoning etc...11. Place anti-fraud notices on all of our online order forms.12. Use the free Who is Lookup Tool at to determine who owns the domain and where they are located.13. Call the customer.14. Dont be afraid to get the authorities involved 62
  63. 63. 7. HARNESSING THE POWER OF E-MAIL E-mail gives us the power to contact people again and again, promoting ourproducts, our service, and our web site, whatever we like... for FREE!This is impossible offline! Unfortunately, too often this power goes to the heads of newbie marketers.This is where the trouble begins... and their business ends! A poorly designed e-mail campaign is a dangerous thing. We can enrage 90%of our e-mail list... we can be bombed, flamed, or even sued by thousands of people(very, very rare though)... we can be accused of spamming and our ISP can cancel ouraccount... and the list goes on!The key elements of a successful e-mail marketing campaign are:Three E-mail Marketing Strategies 1) We can e-mail our salesletter directly to our customers and include link to our order form. 2) We can use the "two-step" approach that involves mailing a letter to our customers containing information that will be of interest to them... and then directing them with a link to our actual salescopy. 3) We can e-mail the businesses online that deal directly with our target market to discuss promoting/selling our product on their sites. Link Partner Pro can assist us by gathering targeted e-mail addresses and names from related web sites, giving us the power to e-mail them about possible joint ventures or links. 63
  64. 64. Developing a Successful E-mail Marketing Campaign Whatever method we choose, there are some key steps that we need to followif we want our e-mail campaign to be successful. The steps involved are:Step 1: E-mail a "targeted" list of people who will be interested in our offer Our job is NOT to sell our product to everyone. Not everyone wants ourproduct. We should focus our energy on the people who do! Those who have opted-into our mailing list, our customers and leads, and individuals who have requestedinformation from our autoresponder are all excellent prospects!Step 2: Personalize each and every e-mail People are more likely to read (as opposed to delete) e-mail that is addressedspecifically to them and that presents their e-mail address in the "To:" field There are a few programs available that will take our customer database ande-mail each address individually, personalizing our letters so that we receive a muchhigher response. There are two of these programs that I highly recommend: Mailloop and MyEmail Manager. These e-mail and business automation options allow we to automateall of our e-mail chores, so that we can focus on growing our business rather thanmaintaining it. 64
  65. 65. Step 3: Our subject line is key Good subject lines (and headlines) make the difference between e-mail thatautomatically hits the trash bin and e-mail that is opened and read. The key here is toemphasize benefits.Some examples of good subject lines might be:"Learn how we can safely lose 30 pounds in 4 weeks!""Get a better rate on our mortgage using this secret trick!"The headline "Whats in it for me?" Its the best pulling headline/subject line by far- it works like wildfire!Step 4: Summarize our entire sales pitch within the first paragraph The first paragraph should make reference to our headline, building furtherexcitement and motivating our potential customer to continue reading. Just becauseweve convinced them to open the e-mail with a compelling subject line doesnt meanthat were home free... We need to build more excitement and make them curiousabout whats to come!Again, the key is to focus on benefits!Step 5: Test our e-mail on a small percentage of our opt-in list When trying to increase the response to our offer, we want to test the headlineor opening paragraph, our offer, and our pricing. Testing our offer and our salescopyis the cheapest and most efficient way to maximize our sales profits! In fact, thisshould be an ongoing part of our business. Instead of sending our latest promotionalletter to our entire customer base, try sending it to a small test group. Doing a trial runwill allow us the opportunity to iron out any kinks, saving we time, money, andhassle! 65
  66. 66. Step 6: Make it easy to read It is not quite necessary to elaborate this. In short the message should be short,precise and properly formatted so that it is easy to read.Step 7: Our e-mail should be easy to reply to If mere is an e-mail address listed in our message, make sure we have the"mailto:" prefix before it (i.e. We should do this becausemost e-mail programs have a "hotlink" feature that will allow users to simply double-click on the e-mail address to automatically start a new e-mail.Step 8: Develop a killer signature file An electronic signature — also referred to as a "sig file" — is a three to sixline footer that we can attach to the bottom of our e-mail messages and public forumpostings. It tells the person were writing to exactly who we are and how they cancontact us. We can include our auto responder address, our e-mail address, our officetelephone number, our company name and slogan, etc... Whatever we like! Unlike a lot of other blatant advertisements, a sig file is universally acceptedso take advantage of this perfect opportunity to plug our company, our products, ournewsletter, etc....Building an Opt-In E-mail List Opt-in e-mail is the opposite of "spam." When people voluntarily sign-up toreceive our electronic messages, they are "opting-in" to our mailing list. Becausethey have actually requested information from us, our messages are not considered tobe junk mail, spam, or unsolicited e-mail. 66
  67. 67. All online businesses can benefit from having an opt-in mailing list of some kind!Opt-in e-mail lists generally fall into 6 categories.... 1. New Content Notification 2. Free Reports and eBooks 3. Resource Updates 4. Free e-zine/newsletter 5. Contests/Sweepstakes/Surveys 6. Our Customer DatabaseCollecting Targeted E-mail AddressesThe best places to look for e-mail addresses are: In our customer database In lists of ad respondents Autoresponder logs Subscriber databasesA few third-party list providers who offer targeted opt-in e-mail lists are:PARTY E-mail AddressesPostmaster Direct http://www.postmasterdirect.comYesMail http://www.yesmail.comE-Target http://www.e-target.comList-Universe http://www.list-universe.comFocalex 67
  68. 68. Spam vs. Bulk E-mail: Whats the difference?Spam, also referred to as "UCE" or "Unsolicited Commercial E-mail," basicallyinvolves sending e-mail to large lists of people with whom we have no previousrelationship. The e-mail addresses may have been "harvested" from AOL orCompuServe forums and member directories, classified ads, public newsgroups, etc... Bulk e-mail, on the other hand, involves e-mailing our previous customers,newsletter subscribers, opt-in e-mail list, etc... These are individuals who havewillingly given we their e-mail address.The Elements Of A Successful Bulk E-mail Campaign1) E-mail our targeted opt-in e-mail list.2) Make our e-mail short, "to the point," and offer the reader a benefit.3) Follow all of the formatting and etiquette things described above.4) Make it easy to reply to by including "reply to this e-mail" or "call our 800number" or "visit our web site at,” etc...5) Consider offering something FREE if we dont have a solid rapport with thepeople in our opt-in e-mail list. 6) We will be most successful if we save the selling for our web site. The purpose of our e-mail should be to quickly generate interest... and then direct the reader to our web site or auto responder. This is where the free offer can be helpful. 68
  69. 69. 8. STARTING IN-DEMAND NEWSLETTER Newsletters are one of the most powerful tools for generating traffic andsales... now and for years to come! An electronic newsletter is a breeze to produce.There are no printing costs, no mailing hassles, and no mailing expenses. Basically,whatever we charge is pure profit!Free Subscription vs. Paid Subscription Newsletters1) Free subscription newsletters: Hearing the word free sounds pretty odd right?The question that arises in our mind is that "Why in the world would I give mynewsletter away for FREE?” We should not underestimate the power of a free subscription newsletter — itcan be a highly valuable marketing tool! People who subscribe to our newsletterwill become very loyal customers if we show them that we are honest, credible, andthat we really do know what we are talking about. They will not only buy what we areoffering now, they will also buy entirely different products that we offer in thefuture because we will have established our credibility and developed a rapport withthem.2) Paid Subscription Newsletters: If we have information that people are willing topay for, then a paid subscription newsletter is a great way to earn huge profits withrelatively little expenditure. 69