Monday, 12 July 2021
The Secret Formula To
Building A Thriving
Business in 2021
By Melissa Williams, Staff Writer
In this article, I’m going to expose the information that leading ecommerce experts don’t want you to know. After spending the best part of the past 12 months speaking to thought leaders in the ecommerce industry, I can finally reveal what they are doing to fill their bank accounts. If you’re really serious about joining the marketing elite and making serious money in this lucrative industry, you can’t afford to miss this!
It’s no secret, ecommerce is big business. Global order volume has gone through the roof over the past year, and it’s not just the big players who are benefitting. Entrepreneurs the world over are trying to get into this space now more than any other time in history. And some of them are succeeding. Shopify, the e-commerce giant, reported that their revenue more than doubled to $988.6 million for the first quarter this year. That equates to around 500,000 new stores on the Shopify platform alone! But the sad reality is that an inconsequential number of these stores will never get off the ground. Here’s why:
BUILD IT AND THEY WILL NOT COME
Why is starting your own online store such an aluring opportunity? It’s not only because of the current explosion in online sales around the world. It’s also because the barriers to entry these days are virtually non-existant. With platforms like Shopify and Woocommerce, it’s as cheap to start an online store as a modest dinner for 2. Add an ecommerce gold rush to a zero barrier industry and you get an erruption of entrepreneurs trying to jump onto the opportunity.
“Start an online store today. It’s quick, cheap, and easy. You can have your online store up and running in only a few hours. And you will start generating traffic and making money almost instantly.”, said almost every ecomm guru with a sales funnel.
Really? Anyone who honestly believes that you can build a business that will generate the kind of income you can survive on by spending 24 hours and as many Dollars needs a reality check. Is there any business in the world that you can start with a few bucks that can do that? No. And ecommerce is no different.
Any business that can generate that sort of income demands endless hours of hard graft and a huge amount of skill, risk tolerance, upfront capital, research, education, and knowledge, to stand any chance of long-term success. And again, ecommerce is no different.
Sadly, the old adage of “Build It And They Will Come” is simply not true in the ecommerce space. So herein lines the first issue. It’s so quick, cheap, and easy to set up the actual tech infrastructure to sell online. But what an overwhelming majority of new entrants in the market don’t realise is that a great, functional storefront only makes up a tiny fraction of what is required to build a successful business. Have you considered what happens once your site is up and running? The fundamental question is “how am I going to generate traffic?”. Generating traffic is easy. Pay Google or Facebook a ton of your hard earned cash and they will send you traffic! But that’s not good enough. The real fundamental question should be “how am I going to generate a reliable and scalable stream of high quality traffic that converts profitably?” You see the difference?
Diving into any sort of traffic plan, marketing campaign, boosted post, or whatever you want to call it, is futile unless you have a comprehensive grasp of:
1) how much traffic you need to generate, and
2) at what cost, at what CPC, and at what CPA (or conversion rate),
to be profitable in the long term. In order to figure this out, you need to have a good sense of what your net margins after all expenses are going to be. If your projected net income (not turnover) is higher than your cost of generating traffic, you have the first foot in the door.
It’s easy to calculate these metrics (and if you keep reading, I’ll give you a free Business Viablility Calculator so you can start working this stuff out for yourself).
THE SECOND ISSUE
Once you’ve done a few calculations, you might be astonished at how much money you’re likely going to need to invest in traffic to reach your revenue and profit goals. Herein likes the second issue. Most people start their online stores without having the faintest clue about the commercials… the basic numbers we’ve just discussed. So they launch, spend a few Dollars on Facebook or Google ads, get zero return, and quit. I personally know people who have spent in excess of $5,000 on traffic without generating a single sale. I know others that have gone into debt to the tune of hundreds and thousands of Dollars, who’ve generated revenue, but zero profit. I’m sure you can imagine how quickly you can drain your savings when you’re investing in ads that don’t generate profit. It becomes like a gambling addiction for many people as they spend more and more, obsessing over meaningless traffic, waiting for that first sale, without knowing why their ads aren’t converting.
So, what do you do? We know that starting an ecommerce store is not a quick, cheap way of generating sustainable income. But what if we understand that and accept it, and are prepared to put in what we think it will take to succeed? If you have a rock-solid plan, good source of supply (with plenty of margin), and the commercials make sense, you might be inclined to save up before starting, or to borrow money, to fund your initial traffic. Either way carries an enormous amount of risk.
Just because the commercials make sense, that is still not enough to prove you have a winning formula. And investing any amount of money, whether your own or money you’ve borrowed, without a proven formula, is a high risk gamble at best.
THE SECRET FORMULA EXPOSED
I hope you’ve made it to this part of the article, and if you have, you’re going to thank yourself later. Because I’m about to share The Secret Formula to Building A Thriving Ecommerce Business in 2021. The formula is an actionable plan consisting of a powerful, proven, low-risk market-entry strategy, and the top 5 secrets for success that industry heavy-weights don’t want you to know. Apply the knowledge you are about to aquire and you’ll be well ahead of the thousands of other new entrants in this industry.
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