Why do some websites fail as a business?

Unfortunately, the vast majority of commercial websites, big
or small, are failing to make their owners any money. Of course,
there are those which choose to be non-profit making, but sadly
most, not by choice, fall into that category anyway.

If we can address the reasons why websites fail to be profitable,
then you can stand a chance of preventing your website falling
into the "non profit making trap".

An over reliance on affiliate schemes : Affiliate schemes have
been a godsend for webmasters, allowing anyone with a website
to earn extra income through them. However, they can rarely
return enough to be the basis of a profitable business. Unless
you're happy with part time money, you shouldn't rely on affiliate
payments alone.

Virtual Malls :
An affiliate program on a larger scale, these
have become popular in recent years. However, unless they are
specialized , they suffer from not being targeted enough. Unless
you have the resources of Amazon.com, it's going to be hard work
making it pay.

Poor products :
The Internet is tailor made for entrepreneurs
who make their own products. Unfortunately, there's often little
quality control, but thankfully, people will eventually vote
with their feet. Offer poor quality, and the Internet is unlikely
to allow you to prosper.

Under delivering :
Websites that under deliver and over promise
can't hope to be profitable in the long haul. Because online,
there's always an alternative choice.

Lack of promotion:
"Build it and they will come" is a saying
that just doesn't cut it online. Like anything else in this world,
the customer must be first aware of you before he can buy.

Making it hard:
Websites that make it hard for the customer,
by not accepting credit cards or offering no guarantees are doomed.
If you want to use the 21st century technology of the Net, then
you must offer 21st century services too.

Ensure your website survives and thrives. Avoid the perils above
and build it on firm foundations.


SK Kor
Internet Marketing Consultant

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