I read a news opinion column recently that claimed the great benefit of the Internet to small businesses was that it allowed every business to be built on the same footing - low startup cost and potentially unlimited exposure.
The article went on to say that if a business expected to compete in its niche online it had to give a lot of things away for free as that was the expected standard online these days.
Is the Internet business model really that different from the way business is done in the off-line physical world? Do solo entrepreneurs really have to give away a lot of their valuable information products in order to attract customers and expect product purchases?
I think it all depends. Yes, if your business is one of many similar operations and you can only differentiate yourself because you offer many freebies when all your competitors don't, then maybe your freebie strategy is critical.
But I'm not sure that you have to give away your secrets or your proprietary knowledge if it is something that only you have to offer.
The "freebie train" as it's sometimes called (one free offer or product after another just like a string of railroad cars) is really a two-edged sword. In my mind there are downsides to giving away a lot of value-packed gifts.
You see there are many freebie junkies, tire kickers, and surfing bums that never spend a dollar online. In fact, their whole strategy on the Internet is to find as many free things as possible. Is that really the type of customer or prospect you want to have at your site and on your mailing lists?
I would suggest you carefully consider why you offer free products and what it potentially means for your client base. You see, some business owners would rather cater specifically to prospects that have proven to make sizable purchases online. Some even rent mailing lists from brokers that target previous purchasers of "big ticket" items because they know these people are not necessarily freebie driven.
On the Internet, it's very difficult for one small business to compete head-to-head with other companies that have greater resources. That is part of the reason why I try to suggest finding a niche that is very deep and specialized.
It will be a place where others won't want to go. And even though the pool of potential prospects in that niche may not be great in number, you can safely assume that there will be enough interest to keep a small business profitable. Why?
Because even a customer base of 100 buyers can support a small time operator if they are all committed and if they buy on a regular basis. And you can assume that it will be possible over time to grow your niche because the Internet is still in a state of relative infancy.
F-R-E-E offers a lot of attraction for small business, but it can never replace the motivation behind loyal and rabid buyers contemplating and expecting valuable information from a business they trust in a niche that relates to their passion.
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Post#255 |
