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Turn Your Website
Into a Profit Spinner
Setting up and maintaining a
website isn’t cheap. If your company has a website that’s even slightly above
the brochure-ware level it’s probably costing you a fair sum of money each
month. The good news is that a website can earn income to offset its costs, and
can even become a profit spinner for your business in its own right.
There are a number of ways your website can make money, some more suitable than
others depending on your particular situation. For instance, unless you have
millions of ‘hits’ each week it’s hard to justify charging high rates for
providing advertising or sponsorships on your site, but if you experiment with
the variety of income earners that are possible you’ll find you’re able to cover
some, if not all, of your costs.
Sell Products on Your Website
This is the ‘clicks and mortar’ side of the business. Just as you’d sell
products to resellers or direct to customers from your premises, you can etail
them on the Internet - to customers as far away as the other side of the globe.
Almost anything can be sold from a website if it’s handled correctly. Do a
search for companies in your own line of business and check how they have gone
about doing it.
Set Up a ‘Members-Only’ Area of
Your Site
Do you have valuable information or other
content that could be placed in a separate section of your website and accessed
only by those who’ve paid for a password? Many content based websites operate
this way, and some are profitable from sales in this channel alone.
Sell Advertising Space on Your Site
You’ve seen them on most websites – a panel or banner of advertising from
another company, sometimes in a ‘popup’ form. Hopefully your site visitors will
be tempted to click through and maybe even buy the product – that’s money for
their business. Meanwhile, you charge them for advertising on your site. Even
though you might not have huge numbers of visitors it may still be worthwhile
approaching your suppliers and other businesses you have commercial dealings
with to see if they’d purchase a modest amount of advertising space on your
website.
Sell Website Sponsorships
This is not advertising, strictly speaking, although money does change
hands for displays of other company’s products or logos on a business’ website.
If you sell books via a website, for example, featuring a different book by a
particular publisher on the same page each week can make money for you.
Charge a Referral Fee or Commission
There are many variants of this channel, mostly depending on how
electronically sophisticated your website is. The essence is that visitors to
your site see something that interests them and they click on a link that takes
them to another site to purchase that item. You receive a commission on the
sale. In some cases you also receive a small amount simply for directing a
visitor to the site.
Sell in Partnership with Another Business
If you set up your site to acquire visitors’ names and email addresses -
perhaps by offering a free newsletter for example - you’ll soon build up a
substantial list of customers whose interests relate to the types of products
you deal in. This is valuable commercial information – these are really lists of
potential customers for a range of products from other businesses you could
partner with as well as your own.
For example, if you have a substantial database qualified by an expressed
interest in pets, you can receive income through a ‘partnership’ with a pet food
firm paying you to send information out about their products to your client
list.
These are the six basic ways of using a website to create an income stream.
There are others, but most businesses can use most or all of the above ways to
generate revenue from their website. Do some serious ‘surfing’ through other
websites that you regularly visit and see what they’re doing to make money. If
you aren’t capitalizing on visitors to your site perhaps you’re missing out on a
profitable income source.
Find Your Niche and Market To It
There are many definitions of a ‘niche’ market but essentially they’re a subset,
a smaller segment, of your existing target market. This is very important
because it means they may already be aware of you and are already prospects for
your company’s offerings.
Members of your targeted niche will share a similar set of characteristics. You
can exploit that by satisfying those common needs and catering to their
particular interests, and they can be extremely profitable if you provide them
with just what they want.
It all begins
with knowing the details of your wider audience. Who are they? What are their
interests? What do they purchase? What do they read? What TV shows do they
watch? Your niches are the separate subsets of this total market – these can be
broken down by such demographic factors as age, geographic location and income
as well as by more subjective categories such as personal taste and preference
in entertainment.
Just identifying
a niche segment isn’t sufficient to guarantee marketing success. It must enable
you to achieve enough sales and profitability to make it worth your while
setting up a specific campaign. Some of the basic requirements of a good niche
group to target are:
-
It can be measured quantitatively,
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It is large enough to generate a profitable sales volume
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It is accessible to your company's distribution channels
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It will respond to an affordable marketing spend
-
Repurchase intentions can be forecast
As an example,
assume your company manufactures sporting equipment. A typical niche within your
larger audience would be males 18-25 who play a competitive sport on weekends.
Once you’ve identified the niche and which of your products to sell into it
(deodorants and products for the treatment of sore muscles are two product
categories that would sell well to this niche), find suitable channels of
communication to get your product in front of them. You could market yourself at
their sporting fields through sponsorships or advertising in event programs for
instance.
Here are three
ways to capitalize on the opportunities that niche markets represent:
1.
Provide Something that Meets Their Specific Needs
Members of niche
markets see themselves as being relatively unique. The benefits you promise them
from whatever you’re selling must have some sort of special appeal to them. Most
niches respond to offers of something that’s new or really exciting. You might
need to buy in a new product or to modify an existing one to cater to them.
2.
Communicate in Their Language
Every niche has
its own language whether its computer jargon with IT enthusiasts or the latest
‘in’ phrase among the teenage market; you need to learn it so they’ll understand
you when you’re talking to them. Communicate with them from the position of
someone who knows them and understands their particular needs. Communication
extends to the visuals you use in your advertising as well – match the images in
promotional materials to reflect the appropriate age group, clothing styles and
so forth of your niche market group.
3.
Investigate and Test Before Committing
Niches are
really a new market area that you need to understand before charging into. See
what your competitors are doing in their marketing but try to find a unique
point of differentiation that will enable you to stand out from the others
selling to this group.
Then, before
making a large financial commitment for stock or advertising, use focus groups
or group discussions to give the products and materials a test drive so as to
gauge what the likely wider market response will be.
Protect Your Business from Sexual
Harassment Allegations
Sexual harassment
is a challenging and increasingly costly area for employers and the best way to
prevent your company - and yourself - from allegations of sexual harassment is
to actively take steps to prevent it from happening in your workplace in the
first place.
One of the
biggest problems is that most allegations of sexual harassment come down to a
‘he said, she said’ dispute in court. Juries seem to have more sympathy for the
accuser in such cases and even if the employer isn’t personally guilty of
harassment it’s possible that the business can become a defendant because the
jury perceives it has some sort of responsibility for what’s taken place.
This doesn’t
mean that an employer has to demand there be no physical contact between the
company’s employees; it would be impossible to police such a demand and equally
impossible to prevent it from happening. So, what are the limits for all
parties?
The first and
most important instance of sexual harassment to avoid is when an employee feels
they must submit to an employer’s or supervisor’s sexual advances to retain
their job or to gain a promotion. This carries with it a double edged penalty
where the employer is guilty not only of sexual harassment but also of unlawful
sexual discrimination against a person qualified for that position.
I t’s Not Just Demands for
Sexual Favors
An
important point to make is that sexual harassment regulations cover a lot more
than the demands for sexual favors. For example, courts have held that
photographs of naked women on a workshop wall can harass female employees, as
can a female employee phoning a male employee several times a day. It’s neither
the actions nor the mindset of the instigator that are in question - it’s the
perception of the recipient of the actions that matters most.
And even if the
recipient says nothing at the time, it’s unwise to assume that they don’t feel
harassed. Many cases are only brought months or years after the alleged incident
when the complainant leaves the company where the harassment took place. This is
why having strong anti-harassment policies in place and conducting appropriate
training is an essential part of removing the danger of harassment allegations
from your company.
If you become
aware that one of your employees is making a nuisance of themselves to another
employee, even if it’s taking place outside office hours, you have a
responsibility to intervene. First, discuss the matter with the target of the
suspected harassment to establish their attitude. If they really are offended
and feel harassed then raise the issue with the instigator of the nuisance and
insist that their unwanted actions cease. You should document the whole process
for any possible later developments.
While you, as an
employer, have no way of judging what any particular employee may consider
intimidating or harassing behavior it is up to you to respond to any complaints
you receive. If you see something happening that could be considered as
harassment then take immediate action to prevent its recurrence.
Prepare a Workplace Policy
Work with
your legal advisors to prepare a workplace policy that outlines the definitions
of sexual harassment and puts your employees on notice that such behavior won’t
be tolerated.
Conduct training
sessions for all employees that communicate the details of the policy and give
everyone ample time to ask questions if clarification is needed. Such training
is mandatory in some jurisdictions.
You and your
senior managers also need to be aware of anything happening in the business that
could later be used as the basis for sexual harassment allegations. Part of this
process will be to set up a confidential reporting system where employees who
feel a situation is developing with a co-worker, or even an outside party such
as a supplier or customer, can make a complaint.
Never assume
that a sexual harassment problem will sort itself out or gradually disappear.
It’s far more likely to simmer away and eventually become a much bigger problem
than if action is taken early in its development.
Although there may be some uncertainty about whether an
employee’s particular behavior really does constitute harassment, you need to
assume that the very receipt of a complaint is sufficient indication that the
target employee believes it is and that is your trigger for action.
Keep Up With New Products
New products are being developed all the time and
being aware of what is coming onto the market can be a positive competitive
advantage. There are a number of ways you can keep abreast of product
developments and new products on offer.
The Latest Trends are on Show
If you make a point of going to trade shows, and
of reading the articles about the shows you can’t attend, you’ll quickly find
out the latest trends in your industry. Whether it’s the technology of solar
swimming pool heaters or the latest fashions in children’s clothing, it’s on
show at a trade event somewhere before it’s released to consumers. And if it’s
newsworthy, it gets written up in the trade magazines that cover the world’s
major industry shows.
At these events you’ll also get to meet the
manufacturers and local distributors who often cooperate in putting their
products in front of prospective resellers. Networking is big at trade shows and
when something’s new it’s going to be talked about by everyone at the affiliated
gatherings. It’s where you spot what’s new and who’s got it, and can start the
negotiating process to obtain supplies for yourself.
Trade magazines that report on the shows are also good sources of information
about trends and product developments. All you have to do to keep up to date is
subscribe - no airfares or accommodation to worry about. If editors of trade
publications get excited about new products, they’re definitely worth
investigating.
Often affiliated with industry trade shows are the industry organizations whose
income depends on keeping their members up to date and competitive. Through
these organizations you can meet others in your industry from both your domestic
and overseas markets, and share information that can be useful about everything
from sourcing products to selecting software for your business.
Government can Help
Government bodies too can be helpful. Most
countries have export oriented public or semi-public organizations who have the
task of marketing their own country’s products to buyers in other regions. They
often have trade missions in other countries where they showcase their domestic
manufactures or produce.
Begin your search for knowledge by subscribing to the most popular industry
trade magazines from your own country and from overseas. Some may be available
at your local public library, but it’s not a wise idea to depend on them being
there just when you might need them, so pay for your subscriptions and deduct
the cost from your income when tax time comes around.
Use a search engine like Google to do a thorough search on the Internet, by your
industry, by the product types you’re interested in, and any other relevant
aspects. This is the cheapest information you’ll get and it won’t take long to
build up a picture of what’s happening in the marketplace.
See How It’s Sold and Marketed
When you do find a product you’re interested in,
see who’s selling it and check out their website to see how they’re marketing
it. You may find a package solution that includes not just a new product but
also ideas on how to market it. You’ll also have a guide as to pricing it.
Contact the selling organization and ask who their source of supply is. Get in
touch with them and see if there’s a distributor in your area. If not, you might
want to take on the distributorship yourself if the price is right. Otherwise
you can arrange a supply of the product directly with the manufacturer in most
cases as it won’t infringe on the rights of any existing distributor.
Obtain samples of the product and be sure it’s right for your market. Do some
limited market research with discussion groups to judge the level of consumer
interest. When you’re ready to go ahead, place your order; preferably this can
be done with more than one supplier to be certain of future supplies, although
if a product is really new and there’s no local distributor you may have to take
a gamble here.
Memorable
Quotation
“The best we can do is size
up the chances, calculate the risks involved, estimate our ability to deal with
them, and then make our plans with confidence.” – Henry Ford
How to
Make the Most of Your Newsletter
Be sure to read each article with the mindset "How could this apply to our business."
Take notes as you read and commit to having the ideas implemented by the time the next edition arrives. Also, make copies for team members. To really make sure something positive happens, work with your business development specialist to talk your team through the ideas and how to set a schedule for getting them implemented.
Cornerstone Business Solutions is here to help you get started.
An Important Message
While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.
Terms of Use
All rights to the content in this publication are reserved by RAN ONE Inc. Any use of the content outside of this format must acknowledge RAN ONE Inc. as the original source.
© 2006 RAN ONE Inc. |
