Internet Marketing Strategy and Philosophy

Considerations:

This section pulls together thoughts (in the form of an annotated checklist) about the process of introducing an unknown product to the masses and doing this successfully. It is probably too late to alter the product for your current launch, but it is important that you consider some web site design criteria for future product releases. Given that you have the product in a reasonably releasable state, have invested significant time and energy in developing that product, and are just looking for launch information, such will be the focus of this section.

It is prudent to assume that it will take months to design a competent web site and to promote it properly. If you are looking for a positive cash flow from the Web in under six months, you will probably be disappointed. We suggest that you have patience with this project, that you have staying power (financially), and that you be dedicated to properly implementing a successful Web strategy. It is not uncommon for a site to take more than a year to generate a living for the small business owner doing it themselves, so have a backup plan at all times!

Do you have any intent to sell your product yourself?

This is an important question. Many product development organizations are great at the design and development of market-driven products, but they cannot sell their own products. There are business models in existence that recommend that you take your product to a large company with retail shelf presence and "sell" them the sales rights. These partners will typically commit to 25,000 units at approximately 5% to 15% plus the wholesale cost of the goods, if they will even commit to anything. And you will probably be paid on Net 60 terms after the end of each calendar quarter. On a $100 retail product, you would get $3.75 plus your material costs times 25000 units, or about $100,000 profit. How much did you say you spent to develop this product in time, money and expertise? Let's assume that the scenario mentioned above is not your choice or you would not be at this site.

Do you have any intent to sell this product through a traditional retail channel?

Here is the problem: traditional retail stores won't acquire products directly from a start-up. If you have other successful products on their shelves, and if you can demonstrate that you have a big bank account (so that you can issue refunds for returned goods), then they may carry your products. But that is very rare during a product launch period. The retail stores you want and need are typically on contract with major distribution outlets, themselves often billion-dollar businesses. For a company to get a contract with these distributors takes money and time, and you probably can't afford to participate in enough marketing programs (depending upon the product this could be easily over $100,000) or take the six months necessary to get onto their price list. The best time to get onto their list is when you are already a success (have their stores asking them for your product), and since you are in a launch stage with no market presence, this is not in today's cards. So, let's assume that this is not your first choice, either.

Selling your products via the Web.