The Facts about the Internet Marketing ~ Online Businesses Exploration
Why only Business?
A reason for so many jobs today is just a business started by some company. Companies have their industries and there by help people find some job in their industry with handsome salary.
From our basic needs to the most complex communication systems of the present day technology are all businesses. If you take the example of the food we eat, we get it from the farmers for some cost. The farmer just won't go on producing food if he is not paid for what he is doing. Then comes the case of daily needs and then the entertainment. All these are the resultants of the businesses what people have selected. And such businesses are not unique but there are thousands. No matter how many businesses people select, they always face some competition. Monopoly is achieved only in some cases and even the highest earning businesses today are in greatest competition from around the globe. This competition is prone to increase as the globalization proceeds further and further.
What does the companies do to sustain these competitions?
The companies advertise and they try to get customers attracted towards their products or services. Pharmaceutical companies generally spend a lot of their revenue on marketing.
It is said that there are companies which spend about 60% of their revenue for marketing. A medicine costs 100 units. Its actual manufacturing cost could be as low as 5 units, they spend the 60 units for marketing the product and take the remaining 30 units as the profit.
| Product Cost | Manufacturing Cost | Marketing Cost | Profits |
| 100 | 5 | 60 | 30 |
60% of the money is being used for marketing and this really makes a lot of difference to the markets.
Who are getting the 60%?
Out of this 60% some amount will be used for consulting some consultancies and some part of this will be used for advertising.
Advertising looks lighter...
For a normal customer, advertising looks really lighter than anything. But advertisements really does is a great deal. Why there are TV channels coming up? The advertisements in the TV channels will be bid for some thousands of dollars. When a cricket world cup is showing up in a TV, the bidding goes very high. The companies try to sponsor the events.
Ask yourself the questions...
- Why the TV channels are broadcast for no cost?
- Why are the magazines appear cheaper than what the printing and paper costs sum up to?
- Why the news paper cost is cheaper than what just the paper is worth of?
- Why does any TV channel needs to show the sports live for free?
- Why the TV channels repeatedly advertise for their own programs? What is the use if the program is watched by many?
- Why the boards beside the roads?
- Why the scrolling ads in the news channels?
Why make an online business?
The answer to this question is the simple case where we pay all our phone bills, electricity bills, water bills online, the banking goes online. The transactions are all shifting from offline to online. In the future all the buying, selling and mortgaging properties will all go online. The only thing what the people look for online is a safe dealer online. The commissions and the transactions are all online then. The money flow then would be completely on the web from one website to other.
How much money does this make?
There are websites which are ready to spend 25$ for a single visitor no matter how long he stays on the website.
And now about the online businesses
- Why gmail, yahoomail, rediffmail and many other are for free?
- Why many of the websites and their services are free?
- Why are all social networking websites are for free?
Why should I bother about all these and put this here?
The answer is same. I want to show ads on this blog in case if this blog becomes popular, I make a good amount of money I believe.
The Facts about the Internet Marketing ~ Online Businesses Exploration
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