eCommerce v.s. “Making money online”
Tuesday, January 29th, 2008Both terms “eCommerce” and “Making money online” are relatively new and not good defined.
The way I understand it, both are talking about earning some money with the help of the World Wide Web. But at some prospective they’re antagonists.
eCommerce means selling something via Internet – goods, services, anything, which is produced. One of the ways of increase sales is – promotion. Â Let’s say, because we sell something successfully via Internet, we can spend some part of our revenue for promotion (let’s say roughly 20% of total revenue).
There the “Making money online” comes. In most cases it means – promoting product and getting some part of promotional budget as a commission (let’s day roughly 10%).
All possible kinds of promotion via Google, affiliate programs, banners, SEO, SEM, etc, etc are about paying 10% of your eCommerce budget to some “online money makers”.
So, which market is better for you: 100% of eCommerce or 10% of “making money online”?
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Of course, it’s a tricky question. IT doesn’t matter for your personal success, which market are you it. Hell, the whole IT-market is nothing compare with Pharma or oil business. What matters is what you can do on your position.