I have read countless books and attended seminars regarding online and offline business. The truth fact is that you will find many of these factors hold the truth for both online and offline businesses. So what makes an internet business profitable with millions of website around? They are very much common sense reasons but vital factors that many internet marketers failed to follow. So here goes…

1. Strong Demand for the Product or Service.

There is nothing worse than creating a service or product and find out that little or no one is interested in buying. Another pitfall in "Internet Selling" is that some business owners sell stuff online so that people can easily find in shopping malls or along the streets. Instead, you must find an area where there is already a high demand for a particular product or service, and then you sell the solutions to problems where millions of people are willing to pay for it. A good point to start thinking is to ask yourself what is your passion. This is very important as you will need extra strength to carry you through the difficult times.

2. Passive Income.

Just like any author of a book, he gets paid every time someone bought a book from the bookstore. By doing this, this author is creating a stream of income that will give him time and freedom to do other things like spending more time with our family. Of course passive income doesn’t come automatically. Online business is almost the same as tradition brick and mortar business. We have to work on it. But the best part for online business, when the thing kicks off, the others are automated.

3. Low startup and Running Cost.

Comparing to online business, a brick and mortar business cost a lot more to set up and operate. There are many successful internet giants that require millions of dollars to set up and maintain. E.g. Yahoo! Google, Amazon. There are however super high yield business that anyone can set up and operate for less than $500 if you know how. The truth fact in my humble beginning, I do not have a lot to start with. Thus, it pushes me to be more careful and creative and use every dim to the max.

4. Ideally No Inventory.

An ideal internet business probably has little or no inventory. The reasons are very simple. Inventory cost a lot of money. No.1 – to purchase or manufacture stock; No.2 – to store inventory; and No.3 – Shipment. While you can indeed make a lot of money from inventory related business, it is a lot of work at the same time, especially if one is holding a full time job. You may want to consider to go for business where the product or service is digital (immediate delivery over the internet). So if you decided to sell physical goods over the internet, you might want to consider a manufacturer and distributor to take care of the storage and shipping for you.

5. Global Reach.

One of the most amazing aspects of the internet is that your audience is "The World". Instead of just selling to your countrymen where the market may be too small to make your venture a profitable one, your niche markets will be selling to the world which will have huge potential. The good thing about selling to the niche markets is that it is a lot easier to advertise and dominate the markets when there are approximately 935 millions internet surfers online daily. A very good example will be teaching your parrot to speak Chinese when this can bring in hundreds of dollars in profits!

6. Products that have High Profit Margins.

Whether in an online or offline business, you must sell a product where you can earn high profit margins. In this case you will be able to invest more in your marketing campaign. In fact, selling of information products or intellectual properties online such as e-book, software, DVDs, MP3s will be most ideal. Though they may cost a lot of money to produce in the first place, they can be downloaded for unlimited times on the internet!

And yes it may be hard work on a weekly basis if you want to succeed. But within a few weeks you will see your business growing if you are on the right track and you will find the success that other people only sit and dream about in time to come.