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Should I Sell a Product or Service Online?
One of the first things you
will have to decide when setting up an Internet business
is whether you want to sell a product or a service,
both of which have their advantages and disadvantages.
Products:
- Advantage: unlimited income potential
because you are not constrained by time, the way
you are with a service (the more product you sell
the more income you make - especially when you are
automated).
- Disadvantage: requires stocking and
shipping (or drop-shipping from a supplier).
- Disadvantage: generally requires you
filling large amounts of orders to make a reasonable
living, unless you have a product with a very high
profit margin.
Services:
- Advantage: it is easier to make a
profit quickly because the entire price of a service
is paid to you (except for any overhead).
- Advantage: services can generate a
great residual income because the client may want
to hire your services again and again.
- Disadvantage: you are limited to a
modest income because you can provide only so many
services each day (unless you hire employees to
perform services for clients).
In my opinion, selling a product
online has, by far seen the biggest profit potential
in the long run. Once you get a successful product,
you can automate the system and move on to new products
that will generate multiple streams of income.
If you need immediate cash flow, providing
a service is the fastest way to produce instant income...
but it will never pay off as big, in the long run, as
selling a product with a high profit margin.
If you sell a service, think about
how you can transform it into a product. One of
the best examples I can think of is regarding the people
who submit websites to search engines. Because the competition
got so fierce and their business began to suffer, some
wrote and sold reports revealing how search engines
work and tricks for getting sites listed higher etc.
The reports were priced at $20 -$100, and the entrepreneurs
in our example found new markets to tap.
Click
here for more
and
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ABOUT
THE AUTHOR:
Corey Rudl is the owner
of four highly successful
online businesses that
attract more than 6
million visitors and
generate over $5.2 million
each year. He is also
the author of the #1
best-selling Internet
Marketing course online.
To
check out his site that's
JAM-PACKED WITH THE EXACT
INFORMATION YOU NEED to
start, build, and grow
your very own profitable
Internet business, I highly
recommend visiting his
website - The
Internet Marketing Center.
Click here!
This
guy really knows what
he's talking about!
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