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Why every Internet business should have its own product
A fairly standard piece of advice you'll find on marketing web sites is that Internet entrepreneurs must have their own product because "you get to keep most of the profit".
However with some affiliate programs offering 20%, 30%, 40% or even 50% commission rates, a lot of web businesses find themselves wondering if that recommendation still applies. Usually the thinking goes something like this:
"If the sell a similar product myself, I have to deal with (a) additional work, for example customer service, (b) have increased set up and running costs, and (c) don't have the economies of scale of "big company X" so actually earn less per sale."
But while this reasoning might be true, what it neglects, is the benefits of having your own product go far beyond the profit per-sale, and include:
When you analyze things further, and decide what product to offer, you should concentrate on the benefits that you want from your product. For example, if your main goal is to acquire customers, provided you can develop and deliver the product cheaply enough, you may even want to make the product free to maximize your rate of customer acquisition. All things being equal. a golfing store that gives away a million free booklets of golfing tips is going to sell a lot more golf clubs that one that just waits for traffic to arrive.
So to sum up, the marketing gurus are right after all - although perhaps for different reasons than the main one that is often put forward - offering your product really does put you in the driving seat.
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