Beware of Low-Cost models when you want to do business

Beware of Low-Cost models when you want to do business

From Faisal Khan

Have you been dreaming about the lifestyle that online business brings you? More freedom, more flexible schedules, a proposal for the future, and, why not, good money too. I have been on this path of digital entrepren...

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So I have decided to create this post to bring you clarity. And by the way, save thousands of wasted dollars and surely months or years of efforts in vain.

I'm going to start with a good dose of reality. Most online business ideas lead you right to a bad deal

If you stop for a few minutes to do a Google search on "Online business", I guarantee that you will find a lot of posts that guarantee you hyper profitable online businesses, easy to start, without investment.

And that everyone is going to present you a very large list of online businesses that succeed. It is only enough to read the first paragraph of these posts to understand what kind of information they are serving you: the typical content written by an SEO or a publicist who has never started an online business in his life.

Basically, in most of the proposals, the contribution of value is little, if not zero. Which, leads you directly to low prices and a Low-Cost model. I know that there is a lot of literature on the Internet that sells you the benefits of a Low-Cost model. Worse yet, completely free.

It may be that, for some multinationals with unlimited financial and human resources, engaging in a price war to kill the competition and then reclaim all the available market is a viable strategy. Very risky, but doable.

But the Low-Cost model for a micro-business does not make sense:

- Or you find yourself with many orders, which you cannot deliver because your time is limited and you cannot contract because your prices are too low.

- Or you find digital models that are based on a high turnover (a high sales volume) because the commissions are very low, but you never get to have digital platforms that generate enough visits and thus allow you to earn some money with advertising. , since you cannot assemble a powerful team of writers.

In both cases you lose, after years of suffering at the head of a business that demands a lot from you and gives you very little joy. You have to focus on quality, not low prices. For example, you should make sure you have a high risk payment gateway to deal with the complexities of payments. And it cannot be obtained for free. 

So?

Doing business is reasonable. The internet is just a medium. Don't be fooled by minimal lure and sacrifice. Everything has a price. Do everything from the simple to the most complex. Step by step. If you can get through it all, success would be yours.

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