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How an Internet Business Can Outperform a Brick and Mortar Business

Author: Joel Teo

Many “how to become an entrepreneur” type books are being published everyday and people are flocking to franchise fairs to learn how they can ditch the rat race and start the business of their dreams. Many of such people start their brick and mortar business part time while they are still working and because it is offline causes them great stress and a great lack of sleep as they struggle to balance their day jobs and their part time business. An internet business on the other hand, if largely automated, can allow you to make money online even while you are sleeping. This article will highlight several aspects where an internet business can outperform an offline business.

Firstly, an internet business that sells an online service like service that can be highly automated can potentially outperform an offline business. An example of this is Amazon and Travelocity who are able to cut their costs of hiring staff by having people fill up the forms and book their travel tours.

Another similar but related example would be financial websites that have the latest financial figures which is more up to date than any offline financial magazine. The reason for this is because rapidly changing financial information is best transmitted in a medium that can keep up with the pace of change. Financial newsletters and magazines thus are turning to the internet to keep their readers up to date and leave their print versions to be consolidations of the major pieces of news for the week or month. Thus information business ventures that have fast quickly changing content would do better on the internet than offline.

Secondly, the home business industry has the possibility to do very much better online when compared to its offline counterpart. This is due to the availability of online automated sales systems online today which allow any internet business owner to generate leads, qualify and close the leads entirely online. Contrast this with the traditional home based business owner who has to pick up the phone can call through piles of cold lead lists. An internet home business can allow one to make money with very little setup costs as opposed to a traditional brick and mortar business.

A simple analogy would be in order to demonstrate this difference. Offline I have to pay a few thousand for rental store before I can test if a particular product can sell while online all I need to do is to spend a lot less to test the same product online. Similarly to test a new online business concept the return on equity to borrow a financial term is always very great as compared to an offline business.

Finally, niche marketing while not unknown to the offline world, is taken to new heights online where automated internet tools allow an internet business owner to target these highly targeted online niches and exploits them. The successful exploitation of such niche markets online can reap substantial profits for the internet business owner. The reason for this is that while very few people in particular area offline may be searching for a particular item, there might be a huge global demand for that item and as such may be great for the internet business owner. Thus starting an internet business catering to niche global markets may be more achievable with lower equity needed to fund start a startup venture.

In conclusion, the birth of the internet commerce world has unleashed many companies rushing in to cash in on the global rise in internet advertising. Starting an internet business today every than before looks like an ever increasing possibility and more and more people are choosing to start an internet business for the reasons mentioned above ever before to take advantage of the many forms of leverage that an internet business has over an offline business.

Joel Teo is a successful internet home business owner and internet marketer and he can show you how you can start your money making home based business. Go to http://www.massive-profits-online.com to learn how you can start making money by starting your own internet home based business today.

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