All Systems Go Here's how to get sales of your new product off the ground, using the Internet as your launching pad.
By Don Debelak
Opinions expressed by BIZ Experiences contributors are their own.
There are two ways to successfully sell your invention on theInternet. One is to launch your own site, link it with other sites,learn how to work the search engines and offer free information tolure visitors to your site. The downside: Setting up and developingyour own site is expensive because you need to work virtually fulltime to pull in traffic. It's even more expensive if you haveto hire someone to do the programming.
The other Internet strategy is to sell your products to onlinemerchants who have active sites that already draw plenty ofvisitors. In many ways, this is the ideal setup for inventors.Unlike most retailers, Internet merchants can buy a few units ofthe product, put them on the site and then see how they sell. Ifthey don't sell, the merchants haven't lost much. If theydo sell, you could win big.
What types of products are well-suited for selling online? Theideal product is one that isn't widely sold but has a core ofdedicated consumers. For example, most people don't buyreplicas of Air Force bomber jackets, but a small group of peopledo. When those people search for "bomber jackets" online,the few sites that sell them come up as a match.
Widely available products don't work as well online. Ifproducts similar to yours are widely available, people may not findyour products among the many others in an Internet search. They maybe able to easily find competing products in a store, and you mighthave to compete with discount merchants.
Products related to areas where there is a large amount ofInternet activity also sell well online. For example, singles andpeople who are getting married have many sites that cater to them,with which inventors can form links.
Finally, the ideal Internet product is relatively easy toproduce. Sales may be modest, and you'll probably need
To cover the costs of setup, production and patenting on yourown.
Your goals for selling on the Internet should also be modest.Here are some reasonable goals to aim for:
- Initiating sales of your product: So that you can eventuallyintroduce it to broader markets.
- Establishing a base for sales to a certain market: For example,you might launch a Web site to sell one horse-grooming product,with the goal to eventually make the site a central spot for anextensive line of horse-grooming products.
- Creating a sales channel to produce modest sales in addition toyour main sales channel: Internet sales can provide an extra$30,000 to $40,000 per year.
- Generating testing data from customers: The Web can be a goodway to get feedback and testimonials.
Be aware that most inventors who sell solely online never moveinto major distribution, so if you want the option of sizableretail sales in the future, you should also sell your product tocatalogs and local retailers.
Money Matters
What kind of costs can you expect when selling online? Whetheryou're launching your own site or selling through existingonline retailers, you will probably have to pay for the initialproduction of your product yourself. Since Internet sales aretypically modest and not a predictor of eventual success,manufacturers will be reluctant to give you extended terms. (Oneexception: If you sell to catalogs, landing a catalog order shouldgenerally be enough to persuade a manufacturer to offer youfavorable terms.)
If you sell to Internet retailers, you won't have to worryabout the cost of Web site design and maintenance. But if you setup your own site, plan on setup costs of $2,000 to $10,000, plusmonthly charges of $100 and up. Also plan on spending at least fourhours per day marketing, promoting and updating your site to ensurea consistent flow of traffic. To cut costs, some inventors simplyproduce a prototype and put it online to see if it sells. Theydon't produce the product until they receive enough orders tojustify production costs.
Do Your Homework
If you're thinking of launching your own Web site, start bygoing to search engines and putting in search terms that might leadpeople to your site. What types of sites come up? Your sitewon't get many vsitors if the search produces a large number ofvery popular sites. Keep using as many search terms as you can tosee if there are any terms that pull up a limited number ofmatches.
As you search, write down all the domain names that come up soyou can see what names you could use that aren't already taken.Visit a domain registration site to see if your potential names areregistered.
If you plan to launch your own Web site, you'll need toattract visitors with a comprehensive marketing program thatincludes:
- Content: Everyone who comesto your site should learn something useful. Don't just focus onselling your product; instead, address the problem that bringsvisitors to your site. For instance, if your product keeps leavesfrom clogging rain gutters, people coming to your site most likelyhave problems with maintaining trees on their property. To helpthem, you could provide information on pruning trees, compostingleaves and such. Adding content also creates more keywords on yoursite for search engines to find.
- Connections: Search enginesalone aren't enough to get people to your site. Users need toremember and type in your URL. For that to happen, your site needsto get publicity from newsletters, associations, relatedbusinesses, end-user groups, schools, experts in the field and anyother group you can think of.
- Creating buzz: The Internetcan create instant word-of-mouth. Offer something fun andintriguing-funny or irreverent lists, stories or cartoons-thatpeople can forward for free, listing your site as the source.
- E-mail lists: Developing ane-mail list isn't worth the trouble if all you do is mailproduct offerings to past visitors. Be sure to offer informationabout something of interest to your target group.
- Online events: Contests,promotions, interviews, guests and chat rooms on hot topics are allways to create excitement and get people to your site. Schedule anevent at least once per quarter.
- Becoming a resource: Yourstock in the online world goes up when you become an authority on atopic of interest to your target customers. Develop a relationshipwith noncompeting sites that attract your target market. Offer towrite articles, do surveys and answer users' questions, orfrequently contribute to chat rooms to establish yourexpertise.
- Offline promotion:Don't overlook traditional promotional venues as a way topromote your site. Send press releases about your site tomagazines, newsletters, trade shows, cable TV programs and othersources of information your target customers use.
For more on promoting your Web site, visit www.virtualpromote.com (especially the"TipWorld" section), or check out the book Increase Your Web Traffic in a Weekend(Premier Press) by William R. Stanek.
Down to Earth
You may launch your online sales effort with visions ofgrandeur, but you'll stand a better chance of success if yourexpectations are realistic. Here's what to expect:
- Only a small percentage of people who visit your site will buy.You need lots of visitors. It may take two months or longer toattract a significant number of visitors. Don't getdiscouraged, as long as you are aggressively promoting yoursite.
- Offering free items, especially ones that can be downloaded,will dramatically increase traffic.
- People will buy extra products if you offer them when you shipyour product.
- You'll get orders from around the world. Overseasdistributors may request your product.
- It may take awhile to recoup start-up expenses, so try toproduce the product yourself.
- If you're selling through Internet retailers, expect smallorders at first.
- You'll get many questions by e-mail. Answer them within 24hours, or you'll lose sales.
Adapted from BIZ Experiences Magazine's Start-Up Guide#1813, Bringing Your Product to Marketby DonDebelak