Most Entrepreneurs Are Leaving Buckets Of Money On The Table… And Putting Control Of Their Business In Someone Else’s Hands.

If you’re marketing on the Internet and you don’t have your own product to sell, you’re sabotaging your own business.

An internet business is no different in this respect than a brick-and-mortar business. If you don’t own the product, somebody else controls your business, plain and simple.  If something happens to that company, it can have a dramatic effect on your income.

I know from experience. I live in North Carolina, and Amazon announced earlier this year that they were severing their relationship with all affiliates in North Carolina to Avoid Taxation by North Carolina. I had absolutely no control over Amazon’s pull out of North Carolina.

In today’s market, we see the ripple effect when companies go out of business because of tight credit markets and the recession. It has a negative impact on anyone who is associated with a company that goes out of business. When you sell somebody else’s product or services, your success will always be at the mercy of somebody else’s business.

An example of this was when Chrysler and GM scaled back on the number of dealers in their networks. Although these dealers thought they owned their own business, they were only a sales arm of the manufacturer. They had no control over the total devastation of their business brought about by a decision made by their supplier.

If you’re marketing on the Internet and you don’t have your own product to sell, you’re sabotaging your business.

If for no other reason, you should develop your own product so that you maintain control over your own business. This fact alone should motivate you to create your own product, but if it doesn’t, there are seven other powerful reasons why you should create your own product. We are going to share the first three with you …

First, you can’t expand your marketing efforts through other people…

A very wise man businessman once shared with me that there are only two ways to make money in this world: you either have money which in turn allows you to make more money, or you must duplicate yourself through other people. Affiliate marketing is the way you duplicate yourself on the Internet. If you don’t have your own product, you can’t get affiliates to sell for you.

By having your own product, your old competitors become your new sales force…

Second, if you’re not selling your own product, you face fierce competition from other affiliates.

You’re always forced to ask yourself the following question: how do I differentiate myself from other affiliates who are selling the same product?

In the brick-and-mortar world, competition is a less significant problem. This is because geographic boundaries limit the effect the competition can have on your business. For example, if you have a store in one community, and your next competitor is 60 miles away, he’ll have little effect on your business. But on the Internet, your competitor is only one click away and that can have a huge effect on your business.

Third, it’s harder for you to be recognized as an authority in your niche market…

When you sell someone else’s product, you are just another player in a very large field. From a consumer’s standpoint, it doesn’t matter if they purchase the product from you or from a competitor. Once you create your own product, you take on a new status in your niche market. You will be considered an authority in your niche and that translates into increased sales.

The final four reasons for manufacturing your own product…

You will experience greater profits and put more money into your pocket. Wow, creating your own product could double, triple or even increase your income tenfold. For example:

Assume that you are selling someone else’s product and make a 50% commission, which is equal to $25 per sale. When you sell 1,000 units, your gross profit is $25,000. Now, let us assume that you sell your own product for $50 and keep 100% of the money. If you sell the same 1,000 units, your gross profit is $50,000. You doubled your profit and put an additional $25,000 into your pocket.

But, it gets even better…

You can also expand your sales by setting up an affiliate program. Let’s assume in addition to your own personal sales, you have 10 affiliates selling your program. What happens when each one makes 1,000 sales just like you.

First, you have expenses that weren’t there when you just sold the program yourself. Let’s say that 60% of sales goes to expenses such as commissions and other affiliate costs. You have 10,000 additional sales at $50 = $500,000 in sales. But, 60% or $300,000 goes out in affiliate costs and you net $200,000. The income you derive from affiliate sales is $200,000 and the income you get from your own sales is $50,000 for a total of $250,000. That is a tenfold increase in your net income.

But, it gets even better…

Now you control the price, so let’s say that you decide to raise the price by 10% or $5.00.  However, because you raised your price, you actually experience a 5% decrease in business. Your sales are now 950 units at $55.00 which generates a profit of $52,250. Your affiliate sales are also reduced to 9,500 units, which at $55.00 grosses $522,500. After you subtract 60% for affiliate expenses ($313,500) you are left with a profit of $209,000. When you add the $209,000 profit from affiliates to your $52,250, you have a total profit of $261, 250, which is an increase of $11,250 just because you control the price.

But, it gets even better…

When you sell someone else’s product, you are just another player in that niche market. It doesn’t  matter if someone purchased the product from you or purchases it from a competitor. But, once you create your own product, you take on an new status in your niche. You become an authority in your niche.

When you become an authority in any niche market, people tend to listen to what you have to say. That translates into increased sales. Isn’t this what you want? You got into business on the Internet to make money. More sales equates to more money!

But, it gets even better…

By having your own product, you add unique content to your website. Google loves websites with unique content. And, because you’re an authority, other websites will naturally link to you. Google also loves websites that have lots of one way links to them. They recognize these sites as authority sites and rank them higher in the organic search results.

If your ranking lands you on the first page of Google, you get more organic leads and this in turn leads to more sales and additional profits. All of this happens just because you have developed your own product.

Authors Bio

For the past 11 years, Randy’s principle business enterprise has been in the top 5 listings on Google for his industry. His list of clients includes the Department of Defense, Department of State, Municipalities, Fortune 500 Companies, College and Universities, and several hundred small businesses.

Today, Randy is using his acquired knowledge to help businesses learn how to grow through the savvy use of internet marketing techniques. His central focus is to take complex online marketing strategies and tactics and break them down into easy to follow step-by-step processes.

Randy has written and published articles on internet marketing strategies to show businesses how to make money online. You can access these resources and learn how you can make more money online at www.InternetMonetizationUniversity.com .