4 Deadly Traps to Avoid in Building Your Online Business During the Recession

March 22, 2009 - Written by Gyutae Park  

money trapA few days ago, I described how to build wealth online amidst financial chaos. Even though the economy is falling apart around us, it doesn’t mean you can’t take advantage of an emerging medium (the Internet) to build and grow your business. Opportunity abounds, but the real question is, what will you do with it?

In my previous article I went over the process of creating a successful business during the recession. I talked about what to do online and how you can capitalize on a “bad” situation. Today, I want to take a different angle and provide some tips on what not to do. What are some of the things you should avoid to make sure you’re progressing on the right track?

4 Deadly Traps to Avoid in Building Your Online Business

1. Information Overload
The Internet holds an abundance of information, which is both a blessing and a curse. On one hand, you can pretty much access any bit of knowledge you want but on the other hand, you can literally spend your entire lifetime “researching” contradicting ideas and not accomplishing anything. Avoid this at all costs. Rather than spend a lot of time looking things up and making sure you’re an “expert” before getting started, take action and don’t look back. Of course careful planning is important, but there comes a point when you need to drop the books and the feeds and simply dive in with your venture. Action brings clarity and there’s no better teacher than experience.

Do your market research and learn the basics of your business, but don’t get carried away. Have a few role models you can emulate but learn to think creatively for yourself. After all, as an Internet entrepreneur, you need to be unique to stand out and be successful. Too much information is useless and won’t help you. Strive to learn by doing.

2. Procrastination and Inactivity
With the down economy, it’s easy to make excuses and wait until everything gets “better”. It’s easy to get comfortable and not stretch yourself to be successful with your business. No one said it was going to be a walk in the park. Don’t let procrastination keep you down. Set a weekly schedule for yourself and associate yourself with other positive-thinking entrepreneurs for moral support. It definitely makes a huge difference. I suggest getting in touch with others in your area through Meetup.

3. Business Opportunity Scams
With widespread layoffs, there are tons of scams out there for “business opportunities” promising Internet riches working at home with little effort. Beware of these scams. If it sounds too good to be true, then it probably is. Dishonest people are looking to take advantage of others who have just lost their jobs and are desperately looking for ways to make ends meet. Phony “business opportunities” run rampant these days, especially online where most people don’t know exactly how Internet marketing works. Develop a solid business foundation and learn to think for yourself rather than have to follow some “system” that will supposedly generate you millions with a click of a button (sound familiar?).

4. A Weak Business Foundation
Remember, the Internet is just a medium that is used for business, not some sort of a gold mine in and of itself. Your website can be extremely profitable, but it’s important to note that all business principles still apply. In other words, you need a good product or service idea that fulfills a market need and is sustainable with a solid business model. It’s easy to buy into the Internet marketing hype (which caused the dot com bust of 2000), but you need to treat your sites like businesses because that’s essentially what they are.

Are you falling prey to any of the four traps mentioned above? There’s a huge opportunity to make money online with an Internet business in the next few years, but it’s not easy to be successful in this industry. A few words of advice to get you on the right track – avoid information overload, procrastination and inactivity, business opportunity scams, and weak business foundations.

Has this article uncovered any problem areas or mistakes you’ve made in your online business ventures? Leave a comment below.

If you like this post, subscribe to the RSS feed. Get the latest updates delivered straight to your email or news reader.
Posted in Articles, Business Motivation, Internet Marketing
Winners Circle - Internet Marketing Case Studies
Related Posts:

Comments

14 Responses to “4 Deadly Traps to Avoid in Building Your Online Business During the Recession”

tom on March 22nd, 2009

I think the scams are the biggest thing especially for those looking for a quick fix, who lost their job and are in shock and basically can’t think straight.

Gyutae Park on March 23rd, 2009

Hey Tom,
I would say that’s pretty accurate. There’s a big opportunity to sell people on “how to make money online” with the down economy. Unfortunately, that means a lot of shady people will sell people garbage and profit off of it.

 
 
Mike Huang on March 23rd, 2009 Subscribed to comments via email

Scams…well, it’s pratically 90% of all the affiliate campaigns on the Internet. It’s amazing how a lot of bloggers including John Chow still sell advertisements to those sites.

Gyutae Park on April 3rd, 2009

It’s true… a lot of the CPA offers on affiliate networks are for shaky business opportunities or dieting scams. I don’t like playing in that area for that very reason.

People sell advertising to those sites because well… it makes a ton of money. There’s no denying that. People always want the easy way out so they’ll continue to fall for the scams.

 
 
Boomerbud on March 23rd, 2009 Subscribed to comments via email

Heya Gyutae I really appreicate this site it is a Dandy. Your a very articulate young man and the infomation you deliver is very informative.

I am newly laid off after 27 years with the same outfit so I have been looking around the internet to gain a better understanding of what’s happening in cyberspace. Man it is easy to become dazed and confused, with all that happening online. Millions of people trying to promote themselves and what they have to offer.

I’m thankful for all the insightful info you offer as it gives me a base to build on, and as a result I may be able to avoid the pitfalls that you bring up in this post.

Gyutae Park on April 3rd, 2009

Boomerbud,
Thanks for the kind words – they’re very much appreciated! Sorry about being laid off, but I’m glad you’re getting your feet wet in the Internet marketing space. It’s definitely exciting times here and I hope you see success in the near future. Read some of my past articles and let me know if you have any questions. I’d be happy to help.

 
 
Erica on March 24th, 2009 Subscribed to comments via email

Good post… I especially like the part about procrastination. Procrastination is a killer in so many start up businesses, as well as functioning businesses.

Gyutae Park on April 3rd, 2009

Hey Erica,
Procrastination is definitely a killer. Here’s a post that might help you. http://www.winningtheweb.com/public-accountability-deadlines.php

 
 
Kai Lo on March 26th, 2009

There are so many “Make $5000 part-time no experience needed” scams out there. People who are desperately in need of cash to survive would most likely fall for those. No matter what the economy looks like, networking with other people in similar niche helps a lot for support.

Gyutae Park on April 3rd, 2009

Agreed. A lot of shady marketers play on people’s emotions and manipulate them to buy things that are really too good to be true. There’s a line between good marketing and scams.. and it’s best to train yourself to know the difference.

 
 
bags on March 30th, 2009

Agreed. Easy to fall prey to the info overload problem. Build a base of knowledge, then dive in and learn by doing!

Gyutae Park on April 3rd, 2009

Totally agree with that. There’s so much information out there and it’s easy to get sucked into research mode for longer than you should. Get started and learn through trial and error. It’s the best way to see real results.

 
 
Funny Images on April 7th, 2009 Subscribed to comments via email

These are some common mistakes. I think many people forget about the “too good to be true” idea and still fall for scams… and procrastination also screws many people over (I procrastinate all the time and it only leads to negative results). If one can miss these 4 traps, then they should do pretty well.

 
Jeff Scott on April 16th, 2009 Subscribed to comments via email

Procrastination is the biggie. It’s the one that kills most people.
You can read all the motivational books in the world but trying to put into action what they tell you is another thing altogether.

But to say, “Just do something” is the best piece of advice you can get.
Move, take some sort of action, anything and do it daily. It’s like any habit. It takes time to become established.

 
Name (required)
E-mail (required - never shown publicly)
Website
Your Comment (smaller size | larger size)

Trackback responses to this post

Gyutae's Top Picks

Recent Readers

Blogroll

Connect with me