Why Do So Many Home Internet Marketing Businesses Fail Within the First Twelve Months?

Why Do So Many Home Internet Marketing Businesses Fail Within the First Twelve Months?
By Jonathan C Lake

About 70% of home-based businesses will succeed in their first three-years, compared to 29% of other business ventures, according to the Home-Based Business Institute. This should be balanced against another set of statistics that show that approximately 90% of people starting a home internet marketing business fail within the first twelve months.

Why this discrepancy?

The reasons for this failure to succeed in a home internet marketing business appear to be due to a number of factors.

1. Peoples view of an internet business.
2. The type of product offered by each business
3. The expectations of those starting a business.
4. The basic training available for different types of business.
5. The startup costs.
6. Industry standards

Let us briefly examine each of these factors.

1. There is still a great deal of ignorance about Internet Marketing. Even now with the success of Amazon and Ebay, the general public do not associate these as part of an Internet Marketing Industry. There is still also the underground feeling that an internet marketing business is not quite Kosher. This is probably due to the self image as promoted by the Internet marketing Industry itself.

2. Most Home business opportunities offer a physical product or service. Apart from the big retail internet players, the products on offer appear insubstantial. There has though been a move forward in as much as more offline companies offering services and physical products, such as discounted holidays, have seen the benefit of moving into the Internet arena. Most of the products to date have been targeted towards the more established marketer and not the beginner.

3. Most of the legitimate home business opportunities have a history and a recognized expectation of progress towards profitability. They follow established business practices. The Internet marketing business though is still partially stuck in a gold rush mentality. Although it mostly decrys the lottery mentality, its advertising and marketing is still mainly targeted to that audience. When it cannot deliver the would be new marketer quickly becomes disheartened.

4. Perhaps this point is the most important. Established home businesses generally have a good training programs or the business entered into already has clearly defined and working practices and skills. Internet marketing though is somewhat different. The skills needed are more varied and flexible. The industry itself has had difficulty coming to terms with this and has so far settled to providing training for specific products that are more suited to the established marketer. Things though are changing rapidly. Some in the industry have recognized the need for basic training and support. They have taken a mature attitude and looked towards the model of cooperative learning. This is in its infancy but knowing the industry I can see it developing very quickly.

5. There is not much difference between startup costs within all the small home businesses. Statistics put it at 40-45% of businesses require approximately $5000 capital. The difference comes again within the realm of marketing. Nearly all Internet marketing opportunities fail to give any realistic figures on total startup costs. The industry is still geared towards selling products rather than the needs of their customers, new marketers. This though again is changing. Realism has entered the arena and there is a new transparency emerging within a few leading marketers as to the true startup costs of an internet marketing business.

6. Most home industry businesses are subject to fairly strict standards of business. The internet marketing industry to date has been an unregulated playing field where anything goes. With such a worldwide industry it has been almost impossible to establish and maintain any form of business practice. Fortunately the industry is beginning to regulate itself if in a somewhat arbitrary way. External regulation would be almost impossible and probably not acceptable but more needs to be done to limit the extremes of some practitioners.

To summarize the Internet marketing Industry, although young in terms of history is making great efforts to become a mature industry. We all know that it is indeed possible for a few to make a very good income within a short time. With an understanding of what the new internet marketing business owners needs, realism, basic marketing training, support and products which meet their needs. With the sort of progress made so far the statistics should soon show a much more positive picture.

Internet Marketing is a legitimate business and should take its place amongst the seventy percent of home businesses that survive and succeed during the first three years.

Jonathan C Lake failed at retirement and became an internet marketer and writer. Before attempting retirement he spent forty years as a health professional and educator. Now living in Italy he is still obsessed by education and skills training and works in partnership with his son developing and running a growing internet marketing business and is mentored by the TurnKey Mentoring Club and is a member of the Six Figure Mentoring Community.

http://www.yourlongtermincome.com
http://www.old-salty.com

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