Why is the failure rate in internt marketing so high?

It is a well documented fact that the failure rate in internet marketing is so high. Much higher than the average failure rate for offline businesses.

Why is the failure rate with internet marketing so high?

 

In my opinion, big % of the "businesses" on the internet are crap and thats the reason for the high failure rate. I mean some of the stuff i see would have never materialised in the offline world. While on the internet you can start the same thing without major risks or costs.

 

That was a good one. Good reason i would say. Any more points?

 

I agree, in the offline world you have to be much more strict and serious with your business. The startup costs are exponentially greater in the offline world then the online world. That being said a lot of what we see online would never even be looked twice at in the offline world.

 

Hey Waxman,

I think one of the BIG reasons so few "make it" Online has a lot to do with the
sheer volume of information out there!

Let's face it, there is no "best way" to make money Online, there's literally
hundreds of ways to skin this cat... but anytime you try and concentrate
on 1, along comes the next "BIG THING" that will make you millions and off
you go!!!

So many jump from one to the other and never give themselves a shot!

And it's not because nobody is telling you... everywhere you go to learn
how to make money Online you are warned, yet, very few take the hint!

Cheers, Pete

 

Good point, Pete.

Also, many people are tricked by the "easy money" lure, and then find out it is a lot of hard work that requires many special skills:

HTML Knowledge
Good writing ability
Good grasp of English
Business sense
Perseverance
Customer relations
Positive attitude
Salesmanship
Quick learner
Etc.

Waxman1000, I am curious about how you came up with the 98.4% failure rate that is mentioned on your eBook download page. How is it even possible to know exactly how many try and how many of those will fail?

Just wondering...

 

I would venture to guess that most are dumb and lazy, especially dumb, if not downright stupid. They do amateur methods that don't work, like signatures, and posting in Twitter and in social networks. Many of them don't seriously advertise.

And many of them want free stuff, methods handed to them on a silver platter without working for it, without doing any of the research needed.

I mean, look at the posters on this board. Good example.

 

because most people dont know what they are doing.....

they dont read. dont make a littl study out of it. all they can see is money money money... and all that green blinds them from the real marketing oppertunities

 

Yeah, this happens in all industries were entry requirements are so low. Not surprising.

 

Survival among the fittest.

Never give up attitude...


And so on

 

Because in offline business, you're not going to spend the time and money to rent an office, get a logo, etc., and then slack off.

But on IM, you can be like "yeah, I'm an internet marketer," but then you can spend all day browsing forums and spend 10 minutes setting up an affiliate link somewhere and then complain when no one clicks on it.

 

That's all great feedback on this subject. Yes, probably "dumbness" is the biggest cause for noob-failure. Thinking you can make big bucks without actually doing the research and heavy lifting.

 

Think the barriers to entry are almost none existent in internet marketing, so everybody thinks they can make it.
I learned in economics that as the barrier to entry in any industry becomes weaker, the failure rate becomes higher. Kind of an inverse relationship here!

The feedback is really impressive one this one! Anymore points?

 

People throw around big numbers for failure rates online. I've seen them too.

However, I haven't seen a truely scientific study on the matter.

I would say if you looked at the numbers you would have a might higher rate.

1. the study seems to just survey anyone that says they went into internet marketing for themselves.
2. there is no survey of company website
3. nor is there any Threshold criteria
- did you go into internet marketing for yourself or a company
- did you dedicate at least 20 hrs a week to internet marketing
- what lvl of internet marketing knowledge did you start out with
- what lvl of internet marketing do you currently have
- did you apply yourself for 6 months at least

I bet if they applied that criteria and only counted 5 yeses as making the cut, you'd find 20% failure rate. In the outside world there's a high turnover rate for businesses as well. It's 70% i believe, fail within their first year. This is of businesses with physical addresses. On the internet, it's far easier to get into, and with dedication get results.

You cannot count someone that says
- i'm starting online marketing
- i quit one day later

that's like a kid that takes up the flute and gives up the next week.

 

Too many people start internet marketing with little knowagle and information and fail, the other half which do end up failing, it's because they never stuck to a single method, if you swap between methods of internet marketing, you never get anywhere. You have to stick to one method until it's earning you a good income and you don't have to do much to keep it up, then you open up other sources of income. Hardly any internet marketers living the internet lifestyle rely on one source of income, they have mutlipul sources to insure they are earning the maxium amount of money per month/year.

 

I think it is because they're broke before starting their business by buying some crap overpriced IM products that's not working at all ...

 

People think because it's online they do not need to put in the yards to make money that somehow the money will come pouring in after their first article or PPC campaign. It's a business which a majority of people do not recognize and in the end they yell scam without actually putting in enough time and effort to actually give it a proper shot.

 

maybe these days, many free items ebook around so person don't pay anymore. more so, in the economic bad times.

 

I would say only one thing. People just tend to read lot and actually take less actions to apply those strategies.

It is all about practical work. You just cannot make good income overnight. You have to reall work hard to get those recurring comissions per month. That's why I think. Most importantly, you need to treat it as a serious business.

 

I would say it's very competitive in the online marketing these days.

Everyone would apply new strategies to make more sales and visitors than others.