June 2007
Monthly Archive
General27 Jun 2007 11:01 am
Don't Neglect The Humble Check
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Don’t Neglect The Humble Check
by: Jason Schwartz
Internet commerce is an instantaneous purchase medium. A customer sees the product he or she likes; enters credit or debit card details; the product gets shipped. Simple. No messing around with mailing out checks, no waiting for the merchant to cash the check. For online merchants, too, the process is straightfoward and convenient. There’s no waiting for a check to arrive; no worrying about whether the check is good and no delays in shipping the product.
Consequently, it is easy for online merchants to assume that there is no value in offering check payments as a purchase option. Indeed, in competitive industries where margins are tight, the sheer time cost and risk involved in accepting checks makes it an unprofitable choice. And, anyway, everyone uses credit or debit cards these days. Right ? Wrong.
Here’s some facts for all you ecommerce entrepreneurs to consider:
The 2004 Federal Reserve Payments Study ( http://www.frbservices.org/Retail/pdf/2004PaymentResearchReport.pdf )shows that checks are still the most popular non-cash payment method, with a total dollar volume over 20 times that of credit and debit cards added together. Further, a recent publication by the Minnesota Attorney General’s office indicates that 11% of Americans have no credit card at all. That figure doesn’t even include the millions more people who are maxed out on their cards.
Can you REALLY afford to neglect the 30 million plus Americans that don’t have credit cards and the millions more that prefer to use checks over any other form of payment ? After all, these are your potential customers too !
ACCEPTING CHECKS ONLINE
Even being aware of the huge numbers of new potential customers, accepting check payments can still appear problematic to ecommerce based merchants. The possibility of bad checks, the delay in receiving payments, the additional paperwork - all these things increase costs and reduce profits. However, the recent Check 21 legislation and the increased availability of electronic check solutions to businesses of all sizes means that ecommerce merchants can now accept check payments online, by phone and fax easily and virtually risk free.
HOW ELECTRONIC CHECK PROCESSING WORKS
Accepting electronic check payments is a simple process. The merchant simply transmits the customers’ check information to a transaction processing company. The processor then moves that information from the customer’s bank account and that of the merchant. It’s easy, convenient and, most importantly, means that the clearing process is much faster than traditional paper check transactions. Best of all, there is no delay in receiving payment, it’s inexpensive and will increase your clicks to sales ratio dramatically.
CHOOSING A CHECK TRANSACTION PROCESSOR
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There are a number of transaction processors who will compete aggressively for your business. Many of them offer easy integration into your current shopping cart or a standalone solution. One click export to your current accounts software is also a standard feature. The main points online merchants should consider when selecting a company to handle check payments are as follows:
- No Application Fee - Some payment processors charge a fee just to apply to use their services. For obvious reasons, these are best avoided.
- No Monthly Minimums - Smaller ecommerce companies should be looking for check payment processors that do not have a set monthly minimum number of transactions.
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- Flat Fees or Percentage of Check Value - Some payment processing companies charge a percentage of the value of each check processed, while others offer a flat fee per check. While the flat fee option makes it easier to predict costs and is the best choice for many, it is worth doing the math to decide whether this is the best route for your company.
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- Check Verification - In order to reduce the risk of bad checks, real time check verification is a must have service. The best of these is the SpeedChex ATMVerify system, which has access to over 170 million accounts. This allows users to determine whether an account is currently overdrawn, frozen or closed thus determining whether a check is likely to be returned.
Offering electronic check payments as a purchase option is the only effective way that online merchants can tap into the consumers preferred payment option and still reduce risk, receive funds fast and ship goods quickly. So, don’t neglect the humble check.
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About The Author
Jason Schwartz is CEO of Creative CashFlow Solutions ( http://www.ilovechecks.com ). Established 1998, his company offers online check processing, check verification and free electronic check recovery services. You can visit the website at http://www.ilovechecks.com.
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General23 Jun 2007 11:02 am
20 Extra Hous Per Week: What Would You Do?
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20 Extra Hous Per Week: What Would You Do?
by: Daniel Tangredi
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While I was in college, if you would have asked me what I would do if I had an extra 20 hours to spend in a week, the first thing I would have told you is that I would definitely NOT spend it studying. I actually would have gone down a long list of hobbies and activities I would like to do if I had the time. So when my co-workers asked me to find out what owners/managers of sign companies would do if they had an extra 20 hours per week, I was very interested in hearing the responses. What types of activities are sign shop owners doing with their spare time? Was there a common activity or hobby in the sign & graphics industry? Or would I hear several different responses?
The Results
The results were unexpected to say the least. By my fourth call I started to hear a common trend forming among sign shop owners. None were used to having leisure time, or so it seemed. In fact Marion Ward, the owner of AWC Signs, told me he hasn t had 20 extra hours in twenty years. I wouldn t know what to do he said about having time off from the shop. Marion explained that he has been in this industry for quite a long time, and was soon going to retire. Just the thought of having extra time on his hands was completely foreign to him. Does Marion represent sign shop owners as a whole? Is the sign & graphics industry really so busy that owners/managers don t even have time to think about leisure activities? Or, are shop owners unaware of how easy it is in this day and age to save time?
The next person I talked with was also surprised by the question. Randy from Bama Signs told me he never thought about it . Never thought about saving time I asked Can you think about it now and tell me what you would do? After a little probing and a little time to think about the question, Randy said he would most likely spend the time fixing up houses which he liked to do on the side to make a little extra money. This was getting interesting. Already two people who never thought about having a couple extra hours or even the ability to save time for that matter. Two people who were surprised simply by the question itself.
Increasing Productivity
Being the Gen-Xer and fresh out of college guy that I am, I have always looked for ways to make things easier. Isn t that what we do in college, look for ways to spend less time but get the same or even better results? At one time, my goal was to figure out how to work less but get paid more (I hope my boss isn t reading this) without cheating of course. This is what most owners or business graduates call Increasing Productivity . Well, in this day and age with so many advances in technology, there is always a way to work less and get paid more, therefore increasing your productivity. In fact I now work for a company that helps shops do just that.
Software It s amazing!
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SOFTWARE! The amazing world of mouse clicks, GUI interfaces, pricing screens and automation. A brain, or what techies call a processor, that thinks even when the power is turned off, or so some of us think. A world where you don t have to be the only one estimating jobs, because your pricing is built into the software. Where you can fill out customer information one time and never have to re-enter it again. Where you have the ability to duplicate information and go from estimates to orders, easily and effectively by simply converting and cloning. A world where you can set automatic reminders that tell you who needs to be called, what needs to be done, and when to do it. Where it s possible to truly, never again be in management overload , so you can actually relax and enjoy your cup of coffee in the morning. A world where you can search through hundreds, thousands, even millions of customer records/information in a matter of seconds, rather then hours or days. Imagine the p!
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ower and control given to you in this world. This is the world I have come to know and this is the world I have come to love. The world where we all can work less, take advantage of technology, and still increase revenue and productivity.
The Scared Stigma
So why aren t more business owners jumping onto the software train . Could it be that computer software and new technology scares them? It seemed to scare Marion Ward when I spoke with him. Is there some stigma behind software that leaves the non-Gen Xer s afraid? If so, to those people I say Do not be afraid . These advancements in technology will make it easier for people such as Karen Bouknight of A Plus Signs & Graphix to Relax and just chill as she easily put it when I spoke with her. It will give Mike Bayliss of Bayliss Signs Plus more time to Play Golf as he stated he would like to do more. It will give us all a chance to Take a vacation and take off along side of Bill from Grafx Sign & Design.
Whether it be estimating and business management software like Cyrious Software, or some other software package that helps you save time, my only question is what would you do if you had an extra 20 hours per week?
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About The Author
Daniel Tangredi
For more infomation on Cyrious Software go to http://www.cyrious.net or call 1-800-552-1418
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General22 Jun 2007 11:00 am
The Ecommerce Business Plan
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Simply put, business plans can make or break your business. Starting a Drop Ship business online is no different from starting a traditional non-online business. With the strong emphasis individuals place on writing business plans for starting up non-internet-based companies, it is equally crucial to prepare a business plan for your online business.
A business plan serves many important purposes for the online business. First, because the business plan has a detailed list of the tasks to undertake, it is a call to action for you to promote your business actively and not procrastinate on your marketing efforts. Second, it provides a blueprint that describes your company effectively: the market, the products and the steps you need for effective marketing. This serves to guide your business through the months ahead.
Business plans normally comprise of five sections:
1) The Objectives. This section will describe the objectives for the venture, and the mission statement that defines the online business. It states both the financial and strategic objectives and is normally about one page long. There should be a concise description of the Drop Ship business at the start. A brief example:
Magical Stores Online is an internet company that provides quality tools and resources for magic tricks. We aim to consistently provide magicians with reliable tools for conducting magic tricks, and also accurate information and guides on how to properly perform the magic tricks with our tools. In our first year online, our target is to have U.S. $400,000 in revenues and $100,000 in profits. This can be achieved by attracting an average of about 5000 visitors to our website every month through effective internet marketing. Our strategy is to attract recurring traffic to our website by continually updating the useful resources and information on our website. Magicians will constantly return for more useful tips on magic tricks. This cuts our marketing costs drastically and adds to our profit margin.
2) The Executive summary. The executive summary should contain a few important details. It should outline the basic model of the company, how the business functions, the market environment, and also the business opportunity in the market. A continuation from the previous example:
Magical Stores Online is a retailer of magic products on the internet. We specialize in card and coin tricks and stage magic, and classify our products according to age group, skill level, features, and the occasion they are used for. Magicians can browse the product catalogue on our website and buy their products with a shopping cart software. They can choose to pay either by credit cards or by checks. We use a third party credit card merchant to process our payments, hence eliminating the need to have a merchant account ourselves. A profit is realized whenever a sale is made, because we obtain our products at a wholesale price and we sell them at a retail price. Since our supplier, Company XYZ, drop ships the products directly to the customers address, we do not need to hold any inventory. Our market comprises of magicians of any age group who specialize in card and coin tricks and stage magic. The opportunity lies in the internet as a marketing medium for magic products. Since the rise of the internetin the mid 1990s, we find that the major magic product retailers do not use the internet effectively to market their products. With effective internet marketing skills, we believe that we can reach a wider audience than the other major players, thus claiming a large market share.
*Note that in a real business plan, the business owner should aim to provide a more detailed version than the examples given above. The examples here only serve to illustrate an overview of what the basic business plan should encompass.
3) Marketing Strategies. In this section, you will describe the steps you intend to take in order to market your business effectively on the internet. There are a few basic marketing methods available on the internet. Mentioned below are three of the most popular methods.
- Email Marketing. Ezines and newsletters are powerful tools. It is simply the most cost-effective form of marketing on the internet. Sending out email promotions or newsletters to your subscriber base costs virtually nothing, except for the time you spend on writing your newsletter. With the web form on your website, you can capture the names and email addresses of the customers who subscribed to your newsletter. I do not recommend that you send your subscribers with product promotions regularly, but you should continually provide them with useful tips and information. In this way, you establish your credibility as an expert and maintain a strong relationship with your customers, instead of appearing as someone just out to make money. Promotions for your products should only be sent out about once or twice a month.
- Search engine optimization. Optimizing your website for high search engine results on google, yahoo and msn, is a powerful way of getting large volumes of traffic at low cost. However, you have to put in a lot of effort for a long period of time, as top rankings do not appear overnight. There are two factors for search engine optimization: On-page or Off-page optimization. On-page optimization involves tweaking the page title, header and meta tags to include the website keywords. It also involves scattering the keywords throughout the page to improve the site relevancy. Off-page optimization, on the other hand, is much more important than on-page. It involves soliciting links from relevant websites. The more the websites that link to your site, and the higher the importance/relevance of the website linking to yours, the higher your website will be ranked on the search engines. Google places a very strong emphasis on this.
- Pay-per-click (PPC) Search Engines. This requires you to pay a sum of money for every visitor that clicks through the search engine to your website. The higher the amount you pay, the higher your website will be ranked on the PPC search engine. The basis for profiting with this marketing tool is by bidding less than the amount that each visitor to your website is worth. Overture is definitely the market leader for pay-per-click search engines.
4) Competitive Analysis. In this section, you have to analyze the strengths and weaknesses of your competitors, and the factors that will differentiate your products or services from your competitors. You have to analyze your competitors and record what makes them so successful, and also the weaknesses you can capitalize on to get an edge in the market. For example, competitors may not be using email marketing effectively to promote the products to customers. You can capitalize on this by using newsletters more intensively, establishing your credibility as an industry expert. To differentiate an online Drop Ship business, it is more viable to provide a reliable service from your website. This usually means providing a wealth of tips, articles and information for your visitors. This will attract them to continuously return to your website for the latest tips and resources that will benefit them. Fast response to their email queries and also fast shipping are also good services you can provide.
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5) The financial projection section. In this section you can project the profit-loss statements and the cash flow statements for your business. The profit-loss statement records the monthly profit/loss realized over the months, while the cash flow statement records the difference between revenue and expenditure over the months. The costs for an online Drop Ship business will include:
- One-time costs for software like shopping cart software, email marketing software, and also search engine optimization software.
- Recurring costs for the wholesale price of the products, web hosting fees, a proportion of revenue paid to your third party credit card merchant to process your payments, and also internet marketing costs.
This section will be useful for you to gauge how your Drop Ship business performs according to your expectations.
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In conclusion, business plans do not only apply to real-world businesses, but are equally critical to online businesses as well. They serve as blueprints of the companies and also as strong calls to action for the aspiring internet entrepreneurs to achieve their success in ecommerce.
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*You are welcome to reprint this article as long as you include the Author s resource box with the article and the entire article remains unchanged.
About the Author
About the Author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you ll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com
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General21 Jun 2007 11:00 am
10 Winning Ezine Publishing Tips
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10 Winning Ezine Publishing Tips
by: Ken Hill
1. Share your personality with your subscribers. Your subscribers are more likely to want to buy from someone they feel like they know.
2. Involve your subscribers in your ezine by asking them to send in their profiles, tips and advice, or by asking them to send in their articles for publication in your ezine.
3. Include testimonials or endorsements for your business within your ezine.
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Ask for feedback within your ezine and on your site to gather more of these for your products or services.
4. Periodically run surveys or polls that give you direction on where to take your ezine.
Keep your polls or surveys short and to the point. Only ask questions you need to know at the time.
Also provide a bonus or freebie for taking your polls or surveys to increase the number of your readers that participate in them.
5. Write articles. Your articles will give you an effective way to share your tips and expertise with your subscribers.
Your articles can also be used as a powerful promotional tool that boosts your subscriptions.
6. Run an “Ask The Editor” section.
This section will not only provide answers or solutions to your subscribers’ questions but is also an excellent way to increase your status as an expert in your field.
7. Provide a bonus or freebie for subscribing to your ezine. You could provide ebooks, email courses, or access to your membership site as a bonus for subscribing.
8. Provide your subscribers with special sales on advertising in your ezine.
Your subscriber only specials will help you to get more of your subscribers to purchase ads for the first time and will also help you to get more of your subscribers to advertise in your ezine on a consistent basis.
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9. Promote affiliate programs to your subscribers by recommending their products.
If you’ve already gained the trust of your subscribers, writing recommendations will be very effective in increasing your commissions. Only recommend products that you know deliver.
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10. Swap recommendations with other ezine publishers.
You could recommend another publisher’s ezine in your own words in exchange for that publisher doing the same for you.
You could also set up a recommended ezine section where you and several other ezine publishers promote each other’s ezines.
In addition, you could successfully increase your subscriptions by swapping recommendations in your welcome message or on your “thank you” page that your new subscribers are taken to after subscribing to your ezine.
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About The Author
Article by writer, Ken Hill. Learn tips and techniques to help you successfully start your own ezine. Visit Ken’s site today at http://www.netpromarketer.com for more articles and a great tutorial on ezine publishing.
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General16 Jun 2007 11:00 am
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General11 Jun 2007 11:01 am
The Viability of Blogging to a Niche Market
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Copyright 2005 Mal Keenan
Niche marketing is an old and very successful marketing strategy whereby a company focuses on marketing and selling to a clearly defined segment of potential consumers. The company earns by supplying a unique product or service to this narrowly defined market which other companies have not met or provided.
Are there potential buyers online? According to the Central Intelligence Agency s latest figures, there are over 185.55 million internet users in the United States alone, of these around 139.52 million active users. The Computer Industry Almanac which compiles statistics on global internet users, records a staggering 934 million users for 2004 and this market continues to grow.
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Do these users buy online? Statistics gathered on internet users, show they do and their numbers are increasing. For instance, in December 2004, online sales rose by 53%, from $795 million of the same month 2003, to $1.22 billion 2004, (gathered by CMP Media a service provider of information and marketing services to the technology and healthcare industries). For each unique marketing hook, product and service, your business blog can tap in, that s how many niche markets you can serve.
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The next question then to answer: Can your blog be the perfect vehicle for reaching and marketing to your niche?
You should realize that successful blogs go a step further in providing excellent content, as well as regular updates or new content. Most websites provide these services. Rather it is the ability of these blogs to provide the author and the readers a venue for one-on-one conversations, in an impersonal medium. By sharing commentaries, thoughts and opinions, the author positions himself or herself as being an authority in his or her field of work. If you write content that is relevant to their needs, they ll remember and keep returning to your blog.
But that s not all; you need to have an abiding passion for the subject matter or product you ll sell. Without this, your blog won t stand out and carve itself a niche apart from the other blogs.
In essence, a well researched and crafted business blog is a potential revenue center. It has the authors personal touch and speaks to the need of this particular consumer. As every marketing analyst knows, when a seller understands his or her consumers well, this seller gets their business.
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About the Author
Mal Keenan is editor and publisher of the Home Business Tips Blog:
http://www.home-business-tips-newsletter.com/blog/
Visit his Internet Marketing Plug In Training site for great strategies and step by step processes in running a successful online business:
http://www.pluginprofitstraining.com/
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General09 Jun 2007 11:01 am
Paypal Primer
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Paypal Primer
by: Jakob Jelling
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To conduct business on the Internet, whether informal, one-time only transactions between two friends, or a full-fledged business selling products or services, payment arrangements have to be made. Before 1998, this often meant either checks sent through snail-mail, or very expensive, and often hard-to-obtain, merchant accounts for online credit card processing. In 1998, PayPal was introduced to fill the payment processing gap.
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PayPal now has about 50 million members, but was originally introduced to provide a payment processing service for online auction buyers and sellers, in particular, eBay. Since then, PayPal has grown into the premier third-party payment processing service. In fact, PayPal was so successful that eBay bought the company in 2002, replacing their own Billpoint service with the far superior PayPal service.
PayPal is free to join, although buyers are no longer required to join in order to pay for goods and services from seller members. Many people are still afraid to do business online, and won’t provide their credit card information. Scams certainly abound in cyberspace, but PayPal is a solid, reputable company, and there is little to fear.
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For sellers, PayPal offers much lower processing fees than many other third-party processors. PayPal rates are not much higher than those of merchant account processors, and there are no ongoing fees. You only pay PayPal fees when you make a sale. It is also much easier and faster to set up a PayPal account than a merchant account. Some sellers complain of unjustly frozen PayPal accounts, and as with most any service, there are plenty of horror stories surrounding other PayPal actions. However, many more buyers and sellers have used PayPal from the beginning with no problem at all.
PayPal offers transfer of funds to and from a PayPal account through e-checks, debit and credit cards, and instant transfer from other members’ accounts. They offer debit cards to allow you to make purchases against your account balance, just as you would with a bank debit card, a money-market interest rate on the balances in some accounts, seller and buyer protection services, invoicing, recurring billing, shopping cart, and many other tools that online merchants may need.
By Jakob Jelling
http://www.sitetube.com
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About The Author
Jakob Jelling is the founder of http://www.sitetube.com. Visit his website for the latest on planning, building, promoting and maintaining websites.
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