Starting an Online Business All-in-One Desk Reference For Dummies, 2nd Edition

843 Pages·2009·17.43 MB·English

by  Shannon Belew

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Starting an
Online Business
ALL-IN-ONE
FOR
DUMmIES
‰
2
ND EDITION
by Shannon Belew and Joel Elad
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Starting an Online Business All-in-One For Dummies®, 2nd Edition
Published by
Wiley Publishing, Inc.
111 River Street
Hoboken, NJ 07030-5774
www.wiley.com
Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana
Published by Wiley Publishing, Inc., Indianapolis, Indiana
Published simultaneously in Canada
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ISBN: 978-0-470-43196-2
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About the Authors
Shannon Belew is the co-owner of several online businesses: allbizopps.com,
allsmallbiz.com, avespamedia.com, bizoffi ce.com, todayshomeoffi ce.com,
top10workathome.com, and workathome1.com. Bizoffi ce.com is a nationally
recognized, award-winning global provider of resources for small and home
businesses. Shannon writes the Huntsville Times column “Today’s Home
Offi ce”; has written magazine and newspaper articles; and founded the public
relations fi rm aVespa Media, Inc. Her clients have appeared in such venues as
Inc. magazine. She has also consulted for an Internet provider, advising com-
panies on developing and reengineering their online presence.
Joel Elad was a fan of the Internet before most people had ever heard of the
World Wide Web. He sells online as a PowerSeller on eBay with an impec-
cable customer satisfaction rating. He also runs his own e-commerce busi-
nesses: JoelElad.com focuses on selling educational products such as books
and DVDs about selling online, and NewComix.Com, which he co-founded in
1998, focuses on selling new comic books, Japanese manga, DVDs, and action
fi gures. He was the lead instructor for the Learning Annex in New York and
California for classes about eBay and advanced Internet sales, and he’s an
educational specialist trained by eBay. He also contributes to Entrepreneur
magazine, TrendGrinder.com, and SmartBiz.com.
After earning his MBA from the University of California–Irvine with an
emphasis on entrepreneurship and information technology, Joel co-authored
fi ve bestselling books focusing on online activities, including Web Stores
Do-It-Yourself For Dummies and LinkedIn For Dummies (both from Wiley
Publishing). He’s now a consultant to e-commerce companies, a trainer to
thousands of eager students at seminars and workshops, and a guide for
helping people attain the freedom of growing their sales and establishing
their own online presence.
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Dedications
Shannon: This book is dedicated to my family: my son, Holden; my daughter,
Wiley; and my husband, Tom. Thanks for your relentless encouragement,
love, and patience — and for always reminding me what is most important
in life.
Joel: This book is dedicated to the hardest-working man I will ever have the
privilege of knowing — my dad. Thanks for showing me the value of planning
and discipline, as well as love. You will always be my inspiration.
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Authors’ Acknowledgments
Shannon: Since becoming a published author, I have realized that two groups
of people deserve the most thanks once a book like this one is published:
the team of people that helped produce it and the great people who are kind
enough to buy the fi nished product!
That said, my sincere thanks to the entire team at Wiley Publishing that made
this book a reality, not once, but twice. This includes Rebecca Whitney, Jim
Kelly, Rebecca Senninger, Kyle Looper, and my co-author, Joel Elad. I am con-
vinced that this is one of, if not the, most talented and caring group of people
I could ever have the privilege of working with, or knowing. A special thanks
to Rebecca Senninger and Kyle Looper for their continued guidance.
Thanks also to all of those who choose to read this book and who are
inspired to become entrepreneurs. It is your ingenuity, creativity, and pas-
sion to follow a dream that not only makes this world go ’round but also
inspires the rest of us to follow in your footsteps.
Of course, I can’t leave out another important group of people. Thanks to my
in-laws, Jim and Freida Belew, for their support and love. Most importantly,
thanks to my parents, Ron and Janice Sanders, for inspiring me. You have
always encouraged me to stay on track with my dreams, even through the
many ups and downs of this crazy life. Every entrepreneur should be so lucky
to have parents like you in her corner.
Joel: I’d like to give a big thank you to Anthony and Yvonne Choi, James
Marchetti, Anita Cohen-Williams, and Hans Park for the contacts, information,
and support I needed along the way to fi ll in the gaps.
A special acknowledgement goes to my usual co-conspirator, Michael
Bellomo, who put me on the path of being an author and keeps me going with
a bizarre sense of humor mixed with a powerful dose of inspiration.
Most of all, I have to thank the Wiley team, which has been truly inspira-
tional: Kyle Looper and especially Rebecca Senninger, whose patience and
guidance helped make this book possible.
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Publisher’s Acknowledgments
We’re proud of this book; please send us your comments through our online registration form
located at http://dummies.custhelp.com. For other comments, please contact our Customer
Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax [phone].
Some of the people who helped bring this book to market include the following:
Acquisitions and Editorial Composition Services
Project Editor: Rebecca Senninger Project Coordinator: Patrick Redmond
Acquisitions Editor: Kyle Looper Layout and Graphics: Samantha K. Allen,
Reuben W. Davis, Andrea Hornberger,
Copy Editor: Rebecca Whitney
Melissa K. Jester, Sarah Phillipart,
Technical Editor: Jim Kelly Christin Swinford, Christine Williams
Editorial Manager: Leah Cameron Proofreaders: Caitie Copple,
Editorial Assistant: Amanda Foxworth Christopher M. Jones
Sr. Editorial Assistant: Cherie Case Indexer: Sharon Shock
Cartoons: Rich Tennant
(www.the5thwave.com)
Publishing and Editorial for Technology Dummies
Richard Swadley, Vice President and Executive Group Publisher
Andy Cummings, Vice President and Publisher
Mary Bednarek, Executive Acquisitions Director
Mary C. Corder, Editorial Director
Publishing for Consumer Dummies
Diane Graves Steele, Vice President and Publisher
Composition Services
Gerry Fahey, Vice President of Production Services
Debbie Stailey, Director of Composition Services
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Contents at a Glance
Introduction ......................................................................1
Book I: Online Business Basics ............................................7
Chapter 1: Starting from Scratch .....................................................................................9
Chapter 2: Turning Internet Dreams into Reality ........................................................17
Chapter 3: Getting Real: Creating a Usable Business Plan..........................................29
Chapter 4: Finding Money to Fund Your Online Start-Up ...........................................37
Chapter 5: Creating Policies to Protect Your Web Site ...............................................55
Chapter 6: Setting Up Shop: Everything You Need for Online Effi ciency .................63
Book II: Legal and Accounting ..........................................77
Chapter 1: Minding the Law............................................................................................79
Chapter 2: Choosing the Right Foundation: From Partnerships to Corporations ...87
Chapter 3: The Trademark-and-Copyright Two-Step ..................................................95
Chapter 4: Accounting for Taxes (And Then Some) ..................................................103
Book III: Web Site Design ...............................................127
Chapter 1: What’s in a (Domain) Name? .....................................................................129
Chapter 2: Designing Customer-Friendly Sites ...........................................................141
Chapter 3: Building a Site without Spending a Fortune ............................................155
Chapter 4: Finding the Host with the Most .................................................................177
Chapter 5: Writing Content that Search Engines Want to See .................................185
Chapter 6: Lights, Camera, Action! Taking Your Site Live ........................................195
Book IV: Online and Operating ........................................203
Chapter 1: Determining Your Revenue Model ...........................................................205
Chapter 2: Making Money with Affi liate Programs ....................................................231
Chapter 3: Turning Information into Profi t, from e-Books to Webinars .................243
Chapter 4: Paying Up with the Right Payment Options ............................................255
Chapter 5: Putting the (Shopping) Cart before the Horse ........................................265
Chapter 6: Taking Inventory .........................................................................................275
Chapter 7: Fulfi lling Expectations and Orders ...........................................................283
Book V: Internet Security ................................................303
Chapter 1: Understanding Security and Your Risks ..................................................305
Chapter 2: Developing a Security Plan ........................................................................315
Chapter 3: Attacked! What to Expect from the Net-Thief .........................................327
Chapter 4: Securing Your Site and Your Business .....................................................339
Chapter 5 : Overcoming Security Concerns in the Wireless World ........................347
Book VI: Boosting Sales ..................................................353
Chapter 1: Driving Traffi c, Driving Sales .....................................................................355
Chapter 2: Special-Edition Public Relations for the Web ..........................................361
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Chapter 3: Web Marketing at Work .............................................................................373
Chapter 4: Converting Browsers to Buyers ................................................................393
Chapter 5: Analyzing and Monitoring Your Customers ............................................413
Chapter 6: Mastering Search Engines, Optimization, and Rankings .......................435
Book VII: Retail to E-Tail ................................................457
Chapter 1: Knowing When to Put Your Store Online ................................................459
Chapter 2: Understanding the Differences between Real and
Virtual Customers ......................................................................................................471
Chapter 3: Window Dressing for the Online Display .................................................481
Chapter 4: Making In-Store Customers Loyal Online Shoppers ...............................489
Chapter 5: Staying Local, Getting Mobile with M-Commerce ...................................497
Chapter 6: Troubleshooting the Transition to E-Tail ................................................509
Book VIII: Storefront Selling ...........................................519
Chapter 1: Instant E-Commerce with Storefronts ......................................................521
Chapter 2: Mastering the Amazon ...............................................................................529
Chapter 3: Let’s Hear It for Yahoo! ..............................................................................541
Chapter 4: Making eBay THE Way ...............................................................................557
Chapter 5: New Storefronts, New Opportunities .......................................................575
Book IX: Fundraising Sites ..............................................591
Chapter 1: Raining Donations: Why Not-for-Profi t Is Big Business Online .............593
Chapter 2: Adding Online Moneymakers to an Existing Site ....................................599
Chapter 3: Getting the Donor Base to Come to You ..................................................615
Chapter 4: More Online Marketing Strategies for Nonprofi ts .................................625
Chapter 5: Legal Considerations for Nonprofi t Organizations.................................635
Book X: Niche E-Commerce .............................................643
Chapter 1: Discovering Niche Markets........................................................................645
Chapter 2: Discovering Niche Trends That Pay: Children and Boomers ...............651
Chapter 3: Blogging for Profi t .......................................................................................665
Chapter 4: Socializing (And Profi ting) in Second Life ...............................................677
Book XI: E-Commerce Advanced ......................................693
Chapter 1: Overhauling the Business ..........................................................................695
Chapter 2: Redesigning to Win New Customers ........................................................703
Chapter 3: Expanding Products to Increase Stagnant Sales .....................................719
Chapter 4: Bringing Former Customers (Back) Home ..............................................729
Chapter 5: Revisiting Marketing Strategies ................................................................739
Chapter 6: Hiring Experts to Get Business Rolling Again .........................................755
Chapter 7: Transitioning a Small Site into Big Business ...........................................767
Index .............................................................................781
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