Unless you are what is known as a "power salesman" the products or services you choose to promote from your home based business can make or brake your business.
Quality products or services are obviously much easier to market than inferior products, so how do you choose one for your business model?
Here are two strategies that can help you select a product or service with a high potential for becoming profitable.
Product selection usually boils down to cost vs. volume.
- Most home based business owners model their businesses around products that are relatively inexpensive and operate on a lower profit margin.
A home based business that enjoys a high volume of visitor traffic and a high sales conversion rate is able to operate and grow with a lower profit margin.
The lower profit margin is compensated by the increased number of sales made.
Many affiliate marketing programs, two-tier affiliate programs and multilevel marketing programs successfully operate this way.
Selecting relatively low priced high volume products such as digital products, basic commodities, website hosting packages, domain names, health supplements, training courses, etc. are all good selections to make for the volume business model.
Many successful home based Internet marketing business entrepreneurs select inexpensive quality digital products to promote as an affiliate, that pay generous commissions.
- The next strategy for selecting profitable products focuses on high ticket, low volume items that earn more money per sale.
The direct sales business model fits well with high ticket products.
High ticket items include products such as business opportunity plans, personal coaching for Internet marketers, classic automobiles, discount travel programs, airplanes and other physical products, etc.
With high ticket products, a home based Internet marketing business entrepreneur can earn from several hundred to several thousands of dollars per sale with a relatively low volume of website traffic.
The difference between the two strategies is the arena you are pulling potential customers from on the Internet.
Even though traffic volume is not as much of a concern as it is with low priced high volume commodities, it is essential that your web traffic is lazer targeted to the product you are promoting.
Even though you will not get as many daily searches from Google, proper SEO strategies must be used with targeted keyword phrases (long tail keywords) to funnel specifically targeted traffic to your site.
Both strategies benefit from the use of multiple websites to promote specific products and increase web traffic.
The type of product you select for promotion determines how much money you will earn and how much daily website traffic you will need to convert into paying customers.
In a perfect world we would all prefer promoting big ticket, high volume products, but in the real marketing world, strategic online profit strategies for selecting products are helpful in making your home based business profitability a reality.
