Starting a small business, be it self employed or a partnership, has to be the most courageous things that anyone can do. There are a lot of unknown variables that can strike fear into the heart of any small business owner or owners. This includes issues of the workforce, supply and demand of your products or services and the market are always a concern because these can not be predicted. If you do all the research, market studies and prepare intensively, launching your business can be an act of faith, as you will not be able to tell if you will be successful or not.
The modern age has opened up a frontier for small business owners and that is the internet, as they do not need a store offline. However, this still includes risks and if anything the unknowns are even more exotic because the online marketplace is distributed, estimating the market need as well as the potential demand for a product can seem like a cryptic nightmare. The costs of handling money and the resources to help small business succeed were few and far between and hard to use at best, which is why by comparison the internet marketing world is a relative heaven for small businesses due in no small part to online marketplaces and resources such as Clickbank.
Clickbank
Clickbank and other online merchant accounts help out small businesses to get started by making it possible to accept payments online, even when they are just getting started out. The majority of online purchases are done with a credit card, however to do business directly with credit card companies to accept payments online was a nightmare, as they were lots of requirements to set up. This required a lot of money and proof of the health and safety of the business, both of which are in short supply when just starting out.
Clickbank puts all of that at your disposal for an amazingly low investment, which is a simple one time fee of $49.95, to get your first product approval and a small commission on each sale. For that they operate virtually as your online banker accepting payments, managing the credit card transactions and the relationship with the credit card companies and faithfully handling the money to be passed to you on a routine basis. If you are selling your products through Clickbank, you might have hundreds or thousands of transactions per day from just as many customers. However, Clickbank handles the financial management and customer interaction, so you just have to sit back and collect the returns on your sales.
The marketplace atmosphere on the internet is very different from the traditional business model as night and day. Small business people must be light on their feet and adapt to change and new things quickly in any market. The business model for running a business with Clickbank at the heart of what you are doing, does require a massive paradigm shift in how you do business, meaning new methods to promote and a lot of research to see if your product can make a difference.
Sales and Commissions
You can always be actively involved in the sales process, however it is possible to run a healthy and very active small business selling digital products, to a huge customer base and completely give up the sales side of the business model entirely. Clickbank, as a merchant, has an army of sales people called affiliates who are ready to pick up your product and promote it to their large existing customer base. They have, that are active, 150,000 internet marketers on Clickbank and everyone of them can sell your product if they wish. There is no risk to you and Clickbank manages the relationships with the affiliates and distributes their commissions, if they have made a sale.
To take advantage of the affiliates, you will have to grant a slice of profit in the form of a commission to them as their reward for doing your sales for you. You can consider this a business expense for promotion and advertising.
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