This question was recently raised on my forum: Why do 95% of marketers fail? It should be noted that 98.7% of all statistics are made up on the spot. The question is also very general.
Even if you narrowed it down, its practically impossible to get an accurate statistic on the failure rate of online businesses. Still, people are curious what causes an online business to fail…
Michelle Waters replied to the post, offering the top 6 things that she has seen keep her clients from succeeding over the years:
1. Lack Of Action. I’ve talked to people who wanted to sell products online, read about selling products online and bought books about selling products online — but never actually DID it.
2. Impatience. Too many times, a client will setup an online store, add her products, tell a few friends about it, put her link in her sig line, buy an ad or two — and six months later when she’s not making $2,000 a month, she gives up, saying that internet marketing doesn’t work.
3. Life. This ie especially true in the work at home mom world. The client gets busy with kids and just simply doesn’t have time to devote to her business that is needed.
4. Lack Of Planning. If you fail to plan, you plan to fail. So many people start a business on a whim. They come up with an idea on Monday and by Friday, they’ve setup a free website, downloaded a free template and slapped in a few Paypal buttons. When droves of traffic don’t arrive by next Tuesday, they are on to the next thing because obviously, selling products online doesn’t work.
5. Negative attitude. “I’ll just use a free hosting account, in case this doesn’t work out.” “I don’t want to spend more than $100 on a site design, because this is just a small business and I don’t want to waste money.” Too often people in my target market view necessary business expenditures as a waste of money, instead of as an investment.
6. Getting Bogged Down In The Details. I have had a client who was upset because she thought the content area of her site needed to be moved ONE PIXEL to the left and she’d already used her two contracted revisions. I’m sorry — but one pixel is not going to keep people from buying your product.
Finding the perfect shade of purple that looks the same on every monitor in the world is not going to sell your products.
People often fail to be picky about the stuff that matters — like the content — and get bogged down in the details of stuff that amounts to a hill of beans. LOL!
This list was reprinted with permission from Michelle Waters. Visit her site to check out her free Product Selling tips & talk radio show.
Want to add to the list or comment on this topic? Leave your thoughts in the comments section below!
Best,
20 responses so far ↓
Top 6 Reasons Online Businesses Fail // May 19, 2008 at 12:53 am
[...] Go read the list on her blog, if you’re interested in making sure you don’t fall victim to these top 6 business killers. [...]
Sandy Naidu // May 19, 2008 at 1:11 am
Way too much planning (Analysis Paralysis)…And from my own experience - if there is one I can pick - Not having written goals and a big vision…It was when I finally realised the importance of these two, my mindset changed and in the process my income increased.
Trimming The Fat | Kendra L'$ Journey to Online Income // May 19, 2008 at 2:59 am
[...] is a great post featured at http://www.clicknewz.com on why so many of us fail to make money online, which is a great read and I find myself nodding my head as I have been guilty of all the points [...]
Alan (working on new baby help product) // May 19, 2008 at 3:06 am
I don’t think this is right, I think that only 98.6% of all statistics are made up on the spot!
Seriously though, I have seen these factors many times. I have been a professional web designer for years, and have seen people have sites et up, and then refuse to do any marketing because they don’t have time (ie won’t make time). Then they complain when the sites does nothing.
Oh well, I suppose this makes it easier for the 5% of us who are actually doing something!
Ta ra
Alan
Professional SEO Company // May 19, 2008 at 5:55 am
A very good analysis that I love to read. Thanks for taking the time to do this.
Lynn Terry // May 19, 2008 at 7:34 am
I can relate, Alan - I was also in web development for quite a few years, and it always amazed me that a client would literally expect a website to be an overnight success. Even when I included a full-blown marketing plan as part of the package.
But yes, in any industry the top % are the ones that follow-through, and continue working towards their goals…
Duane // May 19, 2008 at 8:55 am
Good post Lynn and Sandy
I think I’ve been guilty of all of these at one time or another in the past. Right now, I’m trying to eliminate all of them.
Duane
P.S. Your “statistic” gave me a good laugh and a possible business idea. How about something called “Statistics on the Fly”
Portland Real Estate // May 19, 2008 at 6:07 pm
Marketing is like rolling a wheel. It builds momentum, and as you said it takes time to get it going and many people don’t push hard enough for long enough to see the fruits of their success.
Stefani Partin // May 20, 2008 at 1:01 am
Great post! I fall victim to #3 quite a bit. I don’t mind though because family comes 1st!
Lynn Terry // May 20, 2008 at 7:27 am
I agree Stefani - family definitely comes first. My two children are the reason that I work from home, so I keep that fact in check at all times.
Being a single mother though, my online business provides our sole source of income. Part of my responsibility in putting my family first is as ‘provider’ - and so it all has to be kept in balance
Why People Fail in their Online Business | PikeMall Tech // May 20, 2008 at 9:37 am
[...] I started the day today, I saw an interesting topic about why most people most people fail in online business. After looking at these 6 short reasons, I realized that some of them struck a deep chord with me [...]
Mitch // May 20, 2008 at 11:27 pm
Number six is definitely what I think affects most of the people I know. I may not be great at it just yet, but I keep pounding away at it, while my friends keep saying year after year that they want to plan it out, but never start anything at all. Great post.
Kelly // May 21, 2008 at 4:11 am
One pixel? Oh my goodness… I’ve been that ‘anal’ before so I can totally understand it LOL!
Good list Michelle!
Prevent Business Failure By Taking Action // May 22, 2008 at 4:14 pm
[...] I recently wrote a list of top 6 reasons why businesses fail, which I published on the Self Starters Weekly Tips forum. Owner of the forum and long-time Internet Marketer Lynn Terry also published the list on her blog, Click Newz. [...]
Prevent Business Failure By Practicing Patience // May 29, 2008 at 4:19 pm
[...] A couple of weeks ago, I wrote a list of top 6 reasons why businesses fail on the Self Starters Weekly Tips forum. Owner of the forum, Lynn Terry, also published the list on her blog, Click Newz. [...]
Prevent Business Failure By Outsourcing // Jun 9, 2008 at 11:09 pm
[...] I wrote a list of top 6 reasons why businesses fail on the Self Starters Weekly Tips forum a few weeks ago. Forum owner Lynn Terry then published the list on her blog, Click Newz. [...]
Prevent Business Failure By Planning Ahead // Jun 13, 2008 at 10:24 am
[...] I wrote a list of top 6 reasons why businesses fail on the Self Starters Weekly Tips forum a few weeks ago. Forum owner Lynn Terry then published the list on her blog, Click Newz. [...]
Prevent Business Failure By Cultivating A Positive Attitude // Jun 19, 2008 at 4:59 pm
[...] I wrote a list of top 6 reasons why businesses fail on the Self Starters Weekly Tips forum a few weeks ago. Forum owner Lynn Terry then published the list on her blog, Click Newz. [...]
Leona // Jun 22, 2008 at 2:30 am
Thankyou for reminding me of these. I am trying to re-work by planning by Ready, fire, aim. The way I interprete it is to think of something, then do it, fix it up and refine it later. For me the art of doing is more important.
Prevent Business Failure By Focusing On What’s Important // Jul 3, 2008 at 1:01 am
[...] I wrote a list of top 6 reasons why businesses fail on the Self Starters Weekly Tips forum a few weeks ago. Forum owner Lynn Terry then published the list on her blog, Click Newz. [...]
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