Who said nothing is for free?Written by Nicole Seekely
So many people wonder how companies can afford to give away freebies. I received 250 business cards for free other day and my friends couldn't understand how I got so much free stuff. I said, "You just fill out a survey and they send you something." But there's much more to it than that. One of main reasons companies give out free samples is to give customers an incentive to go to their site. Often times, users will buy additional items if they're on sale. Giving out freebies is not only a cost effective way of promotion but also can be a viral marketing strategy since most people who request freebie tell their friends about it, who tell their friends about it, etc. Still, giving away free offers can create a major dent in company's budget. Some businesses offset price of freebie by having sponsors. There are many ways to go about this. Many have co-registration checkmarks on form, or request person's e-mail address to keep them updated on new products. It's important to keep cost of freebies down even if there are sponsors. Generally, freebies are .50 cents to a dollar, but it depends on kind of arrangement each company has with post service. Another big reason companies offer free samples is to get return customers. Giving away freebies is a great way to generate trial and awareness. Obviously, if a user receives a product in mail, tries it, and likes it, they're going to probably buy it next time they see it in grocery store or online. Normally companies expect 10 percent of
How to Become a Dot Com Millionaire (Part 1)Written by Jim Barrington
The news is full of bright young things earning instant fortunes from Internet. Virtual businesses are not just domain of young. In this 2-part article, James Barrington of Netsightuk.com shows you how to join growing ranks of successful e-entrepreneurs and get wired for success.
Firstly, it is important to remember that over 80% of existing Internet firms will dissolve within next year without making a single penny in profit. Stories about instant fortunes made from Internet are often hugely inflated and, whilst founded in fact, money is often invisible and has not been converted to cash in owners bank account. The title "Internet Millionaire" is not simultaneous with profit or hard cash. For every successful Internet business, there are hundreds still trying to attract attention of investors, and many will simply not succeed. It is expensive and very hard work to start a long-lasting and profitable Internet venture. This is reality and it is fickle. Still want to proceed? Read on.
>From very beginning you need to understand Internet will take you in front of a worldwide audience of potential customers. An understanding of how Internet works is desirable but not essential. You only need to know that one computer containing your information can communicate with others on a global scale and this can be used for selling your services using Internet as road network. Similar to way you would stop at a motorway shopping mall to make a purchase on your journey, people also stop at your virtual shop (website) to browse around and buy your products. The rest is all mechanics and if you have no wish to be technically literate, then leave it up to programmers and designers, as this will be their job.
Rules for Success Setting up an Internet business is not same as setting up a venture in physical world, however same basic tenets of business apply. They are: - (a) Research (b) Planning (c) Positioning (d) Forecasting (e) Market Testing
Broadly speaking this covers following research areas: - 1) Viability - Is there a need for your concept, products and services? 2) Market - How big is it? Who are competitors, customers, and suppliers? 3) Trends - What are buying habits and market influences? 4) Triggers - What turns people on to make their purchases? 5) Positioning - What will make your venture different from others? 6) Costs - How much will it cost for you to service/supply to market? 7) Revenue - How will you generate revenue in order to achieve profits? 8) Profitability - How much profit can you make over a given time period? 9) Growth - How will venture grow and evolve in a controlled way?