Richness and Reach – Implications for the Internet Entrepreneur

The concept of richness and reach as illustrated by Evans and Wurster in “Blown to Bits” (1999) has been a major contribution to our understanding of Internet business strategy.

This is the argument in a nutshell:

The economics of information and the economics of physical things differ fundamentally from each other. When a tangible good is sold, the seller does not own it anymore. When an idea, software or a research paper is sold, the seller still possesses it and could possibly sell it once more.

Information can be replicated without any noteworthy cost and can be distributed over the Internet at a very low cost. Other than information, tangible goods are location-based and many times wear out.

In the traditional economics of things products are subject to a universal law – the trade-off between richness and reach. Because information is imbedded in products in a physical mode of delivery, companies can choose to have a very “rich” product or to have a lot of “reach”, i.e. have a wide audience either in terms of geographical reach or breadth of customer target groups. The meaning of “richness” can vary depending on the context; for example a scientific research publication or a highly sophisticated stereo are rich in information. The scientific research paper has a very small audience in a given location while the sophisticated stereo will be very specific and expensive. Hence their “reach” is low.

Along comes the Internet. The more the bundle of tangible product and information becomes dissolvable, the more obsolete becomes the trade-off between richness and reach. A good corporate Internet strategy will hence add both richness and reach to the existing business strategy at the same time.

For digital or fully digitizable products the trade-off between richness and reach does not exist. We can add as much richness as we want and still have global reach. A very “rich” business can be described as a very specific one. In fact, for new web site business on the Internet it is necessary to be very “rich”, i.e. to be very “niche”.

The more specific the theme or topic of a web site, the more targeted will be the visitors that come to the web site from the search engines. On the one hand it will be easier to be on top of the search engines with very “rich” niche content, on the other hand – whatever the revenue model of the web site may be – the conversion rate will be higher as traffic will be targeted. Because “reach” is given on the Internet and only subject to the limitation of language, we have to truly excel in “richness” in our online businesses.

Why Is My Online Business Unsuccessful?

Being unsuccessful in business doesn’t mean you’re a bad person. It doesn’t mean you’re lazy, and it doesn’t mean you’ll never be successful. When you’re unsuccessful in a business venture, it simply means that the specific business model you are following in that moment is not successful. It means the tools, techniques and strategies you are executing are not working. Unsuccessful business models use unsuccessful marketing methods and publicizing techniques. When your business is unsuccessful, it means you must change what you’re doing.

Fact #1 – ANY Online Business Can Be Successful, and ANY Online Business Can Be Unsuccessful

It’s a well-known fact that any business can be successful, and any business can be unsuccessful. What it really boils down is:

  • Do you have the proper tools, techniques and technology to make your business successful
  • Do you have the drive, motivation and determination to overcome the many obstacles you’ll be faced with
  • Are you confident in your business idea
  • Did you do the best job you could do at planning and research

As previously mentioned, any online business model can be a success or a failure. So, just because you have an outside the box idea that no one else thinks will work, doesn’t mean it will be an unsuccessful online business. The world is over populated with pessimistic people who see nothing but bad outcomes. As an online business owner, it is your job to steer clear of pessimists. They will do nothing but slow you down and hold you back from reaching your goals. Which brings us to fact #2.

Fact #2 – With A Pessimistic Mindset, You’re Already Unsuccessful!

It’s bad enough to be surrounded by negativity, but if you allow these influences to cause a negative shift in your own way of thinking, you’re in deep trouble! One thing you must always remember is your mindset plays one of the most important rolls in the success or failure of your online business. Of course we all become discouraged from time to time. Something doesn’t go the way we expected. Something we took months to plan ended up being a dud. Our dream really turned out to be a frightening nightmare. It happens to the best of us. It happens to us all. But do not let these temporary setbacks ruin your outlook on the future success of your business.

Lets say for example, you’ve just worked all day and you’re on your way home from work. You arrive at home, kick back, grab a cold drink and turn on the tv to relax for a while. After watching a few hours of TV, you proceed to hop online to check your email and see whats new. You suddenly realize nothing is being accomplished with your online business venture. It is still in the same unfinished state as it was a month ago. Nothing is getting accomplished. Your idea of a successful online business is not progressing as quick as you’d like. As a matter of fact, it’s not progressing at all! Just like rush hour traffic, the online business you originally thought up is now at a standstill. So, what do you do now? Do you let pessimism creep in and sour your mood? Do you prematurely throw up your white flag and quietly surrender?

Challenging moments like these can be pivotal points in the direction and flow of your online business. You may feel as if the challenge is too tough, and that you’re not strong enough to whether the storm. The fact of the matter is that you wouldn’t be where you are today if it wasn’t for your persistence to keep moving forward. So, if you’ve made it this far, why turn back?

Whatever you do, don’t let negativity take full control over the situation at hand. Always remember that dark nights bring bright days.

Fact #3 – We Must Do Homework Our Entire Lives, Not Just In School!

This is a concept a lot of people can’t seem to grasp on to very easily. In life, and especially in business life, you must always do you homework. And what exactly is homework?

  • Taking the time to research successful and unsuccessful business models
  • Studying the basics of what it takes to have a successful online business
  • Being able to distinguish between good information and bad information (facts vs opinions)
  • Quizzing yourself on various topics of business. And if you don’t have an answer, go find it!

Doing homework for the success of your business can be done in many ways. Some people may not have the time or patience to research successful and unsuccessful business models. Some of us may not be able to distinguish between good and bad information. Luckily, there are options available. Options such as:

  1. Hiring someone to perform the research for you
  2. Subscribing to newsletters that only feed you factual information
  3. Keeping up with the latest trends and internet publications from reliable and reputable sources

By doing any or all of the above, you’re able to save time and accelerate the process of learning both the principles of successful business and the unsuccessful business strategies. These days, hiring someone online can be a quick and simple process. Subscribing to newsletters allows you to sit back and allow the information to flow in directly to your inbox. Keeping up with the latest trends from reputable online sources can be done with a few mouse clicks.

The Common Denominators of Unsuccessful Businesses

By far the most common traits held by all unsuccessful business entrepreneurs:

  1. Being lazy and failing to move forward with a project. Remember: There’s a reason the word lazy contains the last 2 letters of the alphabet. When you’re lazy, you’ll finish last (or second to last).
  2. Creating excuses for everything that doesn’t get done. Remember: No excuses, no exceptions!
  3. Unwillingness to change. If you don’t change, nothing changes. Period.
  4. Self-Destruction in the form of excessive drugs, excessive alcohol, a lack of sleep, a lack of proper nutrition, etc.. These things only impair your ability to think and focus clearly.

Remember: Even The Most Successful Online Businesses Were Once Unsuccessful!

Finally, always remember that even the most successful online businesses were once unsuccessful. There are many attempts at creating a source of steady income online. Most fail and few succeed. But the businesses that succeed are the businesses that do their homework and remember that a pessimistic mindset is toxic.

25 Valuable Tips for Online Entrepreneurs in 2017

These tips for Online Entrepreneurs were complied for entrepreneurs and ordinary people who are interested in the best way to earn money online.

Many people are turning to the internet to make money thanks to the number of opportunities available on the web.

However, not everyone is successful in producing income as well as others, and often times end up failing or just quitting altogether.

In most cases this is due to selecting the wrong business model or not choosing a specific niche, poor planning and high expectations.

Becoming a successful entrepreneur is no easy accomplishment. Sacrifice, hard work and an unwavering determination for achieving greatness are required. So is surviving your mistakes — because they will happen.

During the holidays we tend to disconnect entirely from work. After a few splendid weeks being detached, it’s especially hard to get back to focus. A study established by Glance Networks, found that most businesses don’t get back to normal productivity levels until usually three weeks after New Year’s Day.

However, with some planning, you can get back into things faster than your competition and set your business up for a productive month (and year). Before you enter the world of online entrepreneurship it is important that you do your homework.

To help you in this respect given below are 25 valuable tips you can do right now to hit the ground running in 2017.

25 Tips for Online Entrepreneurs in 2017

Invest In a Good Internet Connection

If you are online, you need a good internet connection. Without a fast internet connection, you could miss out on orders and customer questions. In short, your business could be paralyzed.

Choose The Right Business for You

Make sure you pick the right kind of business to start with. There are many options from selling products to starting a blog to trying your hands at MLM (multi-level marketing). It is very important that you study the industry and then pick something you have real interest in and are passionate about.

You can also choose a business idea or niche that you have experience or knowledge about regarding any topic of your choice. In case you know nothing, it is important that you take a few online entrepreneurship courses to expand you’re thinking and get your creative juices flowing.

Solve A Problem You Have

Go after solving a problem that you have. Something that’s near and dear to you, not some random market opportunity. Because, when things get hard, if you’re chasing just the dollars, or a random market opportunity, you’re not going to be able to have the determination or the passion, to stay with it.

Be Creative

Believe it or not, most ideas on the internet are copies of one another from giants like Orkut to Google to Facebook. Remember that it is okay to copy as long as you can do better than the original. If you are going to provide people the same thing, see how you can do it differently. This point is very important as many people often get inspired by a business but then lose due to stiff competition simply because they couldn’t outdo competitors.

Create a Work Space Devoted for Business Only

When starting out many online entrepreneurs work from home. The people you live with will likely interrupt you. It’s hard to focus on important business when people are trying to have a conversation with you. Create a space just for work only, nothing else.

Time Management The Key

It is very important that you remember the time gap. Big companies like YouTube are not earning big profits yet, well at least not as big as they can. You need to know that if you are doing everything right you will eventually take home a huge chunk of money but you need to be a little patient with everything.

Many people start an online business and close it within a few months losing all hope. You need to plan carefully and see when you expect to break even. It is best to go for a business model that requires little to no investment as this is one of the main benefits of online entrepreneurship as in numerous cases, you need nothing more than your time and efforts.

Get Started Early

Its best to get things done earlier in your day to ensure that you get scheduled task done before the day can get away from you. Distractions can rear their ugly heads. The best time to grind is 6-7am get up 8am hit the gym 9-2pm grind.

Implement An Exercise Plan To Your Daily Routine

Hitting the gym can be great for productivity. It gets your blood pumping and can help your brain function better to think more clearly and effectively. You should consult with a physician to ensure you are healthy enough before starting any exercise plan.

Plan Out Meals Ahead Of Time

It is very helpful to plan out your meals ahead of time so that you may stay fueled while you are working and have food ready to go so that you don’t need to take breaks to cook or go out and get food.

Plan Daily Task Monthly And Weekly

It is important to plan what you are going to be working on specifically on a monthly, weekly, and daily basis. Plan out what you want to accomplish in a year and plan out the major tasks that need to be done to reach those goals on a month to month basis.

At the end of the month plan out what to focus on during the next month week by week and day by day. Once the next month is planned out, plan the most important tasks that need to be done in the next week on a day by day basis. This way when you get up in the morning you can look at your list.

Paint A Picture For Long-Term Success

The New Year is a perfect time to set goals for all facets of your life. People who openly make resolutions are 10 times more likely to achieve their goals than those who don’t, and those odds for success increase to 50 percent when you write those goals down.

Strip Away Productivity Blockers

What was holding you back or frustrating you last year? I’ve found it’s the little things that end up wasting the most time. Like Social Media browsing! But the good news is that identifying time-sucks is the first step to eliminating them.

Set Rules About Email And Social Media

Ask yourself do you really need to be on Facebook or any of the social media sites for work. After self-evaluation, if you do, try to get in and out as quickly as possible without getting sucked into non business Facebook or social media activities. Use a timer to monitor the time spent and do not go over the selected time slot for no reason. The same goes for email.

Organize Your Web Assets

This extends much further than just organizing your business. Your web assets are everything from your website to your social media profiles to your hosting account. These need to be in order. All appropriate assets should be optimized for your brand. For example, your social media and webpages should have the same relevant keywords. They should be incorporated within an integrated marketing plan. It is important that they should be completely updated with the latest information about your company.

Protect Your Brand’s Online Reputation

Online business is all about reputation. The slightest mistake can taint your brand forever. The key is control. Setup a Google Alerts notification for your brand. That way, you’ll be able to inspect any mention of your brand. Have a firm set of branding and social media guidelines, so anyone posting on behalf of your brand is aware of what you expect from them.

Learn to deal with customer complaints and adopt a mindset of solving problems; even if the customer is wrong. You should be aware of social media channels your competition is using. And you should inspect keyword usage from all your competitors using the variety of tools Google provides.

Maintain Customer Data Safely

One problem business owners have is that they need to be able to keep data safely. You have a legal obligation to protect any customer information obtained online. For example, you should store information on separate devices and have a number of secure backups.

Do You Know Your Competition?

Any good business will know its competition. You need to know who you’re competing against so that you know why customers choose you over others, or vice versa. Nowhere is this more important than in the online world.

Stay On Top of the Latest Trends

The online world is one that is constantly changing and evolving. It evolves faster than anything you’ll see in the real world. Furthermore, you’ll see social media trends evolving all the time. You need to be on top of this so you too can be on the cutting edge of online marketing and branding.

Don’t Run From Risks

Just like a brick and mortar business, online businesses also face risk, which is why you need to prepare in advance. For example: If you run a website there is always the risk of it getting hacked etc. You should keep these points in mind and plan accordingly. Always have security and proper backup so that you don’t end up in trouble.

Be Persistent

No business becomes an overnight success story. This is something you’ll have to accept if you want to enter the business world. Persistence will pay off in the end if you continue to do all the right things. You need to be consistent and stay focused on your goals.

Follow Your Heart

Simply put… the ability to do what you’re passionate about, and discovering a new way to live with purpose. There is a true saying “Certainty is more dangerous than ignorance.” “It’s up to us as entrepreneurs, to see the world as it should be –not necessarily how it is. When you think you’re sure of the way things are, that’s when you will get passed up and you don’t see the opportunities that real entrepreneurs foresee.”

Know When to Call It Quits

Sometimes an idea will fail. The biggest challenge for an entrepreneur is to know when an idea has failed. It’s no point trying to revive a dead duck. So don’t be scared to change course if necessary.

Success Takes Hustle

Hustle is an act of focus, not frenzy. Hustle is about subtraction and addition. It’s not about doing more, it’s about focusing on the things you need to do, in order to move your business forward.”

Promote, Promote, Promote…

It is very important that you promote your business. No one will know about it till you make them. You can use methods like blogging or advertising (Google etc.) to reach your target audience so that more and more people will know what you have to offer.

Don’t Give Up

“Don’t give up, don’t take anything personally, and don’t take no for an answer.” Refuse to accept failure as an option.

In Conclusion

Running a business is fundamentally risky. Regardless to the method you use online or offline. Taking the time to learn and progress is one of the best investments you can make to alleviate these risks.

We are hopeful that these simple points will make things easy for you.

Ultimately, the best thing you can do for your business is start 2017 with a positive attitude that will set the tone for the rest of the year.

Are you an Online Entrepreneur? I would love to hear more tips you could offer the online entrepreneur. Just drop them in the comments below!

Are you interested in learning more about online entrepreneurship? Check out my website in the resource box! It is by far the best tool to have to get you started earning the right and ethical way to online entrepreneurship success!