How I Shot Myself In the Foot.. No, Wallet!

I need to let you in on some very important information. Not only will this information save you lots money, or possibly the life of your entire business, but it will allow you to increase your profits through multiple businesses.

First off, operating an online store is a fabulous and lucrative pastime, so kudos on making that decision. But before getting into the thick of it, heed my warning, you do not want to make this same mistake: only maintain one distributor for each of your online stores. Two if you MUST.

I know what you might be thinking right now, "But the more products I have, the bigger the selection will be and I'll end up selling more -- therefore I'll be making more profit!" And that's exactly what I thought at one point, too. But unless you are charging sky-high prices or maintaining an inventory of your entire stock, then this thought is only half true.

It is true that you may end up selling more, but the reality of the situation will quickly appear and you will be losing money with nearly every sale. And this is all centered around one simple, and easily glossed-over factor: shipping.

Let me tell you a true story. Many years ago for one of my businesses, I had this grand idea of creating a recreation room super store. So I found four distributors for billiard equipment and recreation room accessories, one for board games, one for pewter products and one for candles and other neat decoration items. It sure seemed like a good idea at the time; I would be able to sell people everything a person would want and need to setup a recreation room with one shopping cart. I could virtually feel my wallet getting fatter. Then reality hit when I sold my very first order.

The customer's order consisted of 1 or 2 small products from nearly every distributor I had. Through the online store's software, I had it setup to charge shipping based on the customers final price. When all of the items were tallied up, the customer was charged about $9.00 shipping, which was reasonable for the size of the order. But when I turned around to order the products from my distributors, I needed to pay $5.00 shipping at this one, $3.00 at that one, $4.00 here and there, and $3.50 at a couple others. My shipping costs totalled nearly $20! That amount was way too much to pass on to my customer when they were just ordering a few small items. They would have cancelled their order and moved on to one of my competitors.

After that fiasco, I quickly reconsidered the direction of my business.

So if you've got great idea that would involve more distributors, try opening a second online store. There isn't any rule that says you can't run 2, 3, or more online stores! In fact, you might want to do that anyways -- having multiple streams of income is a proven way of making the big bucks.

Even if your stores are selling basically the same products, you will be able to better corner the market at Yahoo! Shopping, or whatever place you are selling.

Having multiple business will also give you the opportunity to test advertising with one store and see if sales grow or shrink in relation to the others. You could even provide links to your other stores and advertise them as "sister sites." If your customers trust one of your stores, they'll automatically trust your "sister sites."

Do you see why you should have only 1 or 2 distributors per online store? It is very important to keep this in mind for the long term success of your business. Not only that, but it gives you a valuable opportunity to create multiple income streams.

Copyright © 2003 by Palyn Peterson

About The Author

Sign up for Palyn Peterson's FREE 13 day intensive email course and discover the 16 necessary basics and 5 advanced internet marketing techniques. You'll also receive a free $gift$. http://FutureInternetMarketing.com/guide.htm

This article is free to publish with resource box. If using this article, please send a brief message to palyn@futureinternetmarketing.com

---

Google News Updated : Sat, 30 Aug 2008 00:25:40 GMT Boeing union leaders recommend strike - MarketWatch Washington Post Boeing union leaders recommend strike MarketWatch - 1 hour ago By MarketWatch Leaders of the International Machinists and Aerospace Workers on Friday rejected Boeing's third and final contract proposal and recommended its workers vote to go on strike. Union Leaders Reject Boeing Contract Offer Wall Street Journal Boeing Union Urges Workers to Reject Offer, Setting Up Strike Bloomberg Bizjournals.com - guardian.co.uk - The Associated Press - TheStreet.com all 1,041 news articles Publ.Date : Fri, 29 Aug 2008 23:15:15 GMT Earwax: Too Much of a Good Thing? - WebMD eFluxMedia Earwax: Too Much of a Good Thing? WebMD - 5 hours ago By Kelley Colihan Aug. 29, 2008 -- The body is a miraculous mechanism. Consider the once-lowly earwax. People used to try to remove it. Leave That Ear Wax Alone Washington Post National Guideline Against Ear Poking eFluxMedia MSNBC - RedOrbit - MedPage Today - eMaxHealth.com all 36 news articles Publ.Date : Fri, 29 Aug 2008 18:32:14 GMT Microwave baby killer convicted - BBC News BBC News Microwave baby killer convicted BBC News - 3 hours ago A US court in Dayton, Ohio, has convicted a mother of murdering her one-month-old daughter by burning her to death in a microwave oven. Video: Prosecutor: Ohio Mom Killed Baby in Microwave AssociatedPress US jury convicts mom in microwaved-baby case International Herald Tribune ToTheCenter.com - WZTV - NBC6.net - Dayton Daily News all 689 news articles Publ.Date : Fri, 29 Aug 2008 20:30:22 GMT Obama’s Plane Palin Problem - FOXNews BBC News Obama’s Plane Palin Problem FOXNews - 2 hours ago by Major Garrett Reporters covering Barack Obama heard the news aboard Obama 1 (the campaign for the first time chartered a second plane for the swelling press corps), just before takeoff. Video: Raw Video: Schwarzenegger Praises Palin kcratv “Tougher in Alaskaâ€� host Geo Beach discusses Sarah Palin Christian Science Monitor CBS News - Chicago Tribune - The Star-Ledger - NJ.com - Seattle Post Intelligencer all 5,468 news articles Publ.Date : Fri, 29 Aug 2008 22:07:29 GMT Aid agencies scramble to help flood victims - CNN CBC.ca Aid agencies scramble to help flood victims CNN - 39 minutes ago (CNN) -- The grinding misery triggered by the massive floods in a downtrodden part of northeastern India and across the border in Nepal persisted Friday, with government and aid agencies swinging into action to help the 2 million-plus people fleeing ... India: Up to 2000 feared dead in Bihar floods guardian.co.uk Millions displaced in Bihar floods PRESS TV Reuters India - CNN International - New York Times all 551 news articles Publ.Date : Fri, 29 Aug 2008 23:45:57 GMT Protests Rise in Thailand In Challenge to Regime - Wall Street Journal GulfNews Protests Rise in Thailand In Challenge to Regime Wall Street Journal - 1 hour ago By JAMES HOOKWAY and STEPHEN WRIGHT BANGKOK -- Waves of antigovernment protests spread beyond Thailand's capital Friday as clashes between police and demonstrators intensified, forcing the closure of several regional airports and disrupting rail ... Thai protest alliance not so happy with democracy The Associated Press US asks Thailand to end crisis through democratic means AFP New York Times - BBC News - guardian.co.uk - Reuters all 2,421 news articles Publ.Date : Fri, 29 Aug 2008 22:33:23 GMT US Economy: Spending Slows, Inflation Accelerates (Update1) - Bloomberg Washington Post US Economy: Spending Slows, Inflation Accelerates (Update1) Bloomberg - 6 hours ago By Shobhana Chandra Aug. 29 (Bloomberg) -- US consumer spending grew at a slower pace in July as the impact of the tax rebates faded and a pickup in inflation eroded Americans' buying power. Bonds fall on mixed economic reports CNNMoney.com Consumer spending flags, but confidence rises Reuters Wall Street Journal - New York Times - MarketWatch - AHN all 520 news articles Publ.Date : Fri, 29 Aug 2008 18:25:06 GMT Automate Your Blogging RSS to HTML

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Product Marketing for Internet Based Home Businesses

All small business owners, especially those internet based, are concerned... Read More

Internet Profits the Smart Way: Let Your Business Fund Itself

Although many Internet marketers spend thousands of dollars on Internet... Read More

9 Pointers for Evaluating a Business Proposal

Finding a business opportunity on the net is easy. But... Read More

5 Powerful Tips To Beat The Biggest Problem ALL Marketers Face

I bet you can't tell me... the single biggest problem... Read More

Internet Marketing: 5 Innovative Internet Marketing Strategies To Generate Tons Of Orders

There are two different groups of online marketers.First group: those... Read More

Seven Sure Steps In Building Your Reputation Online

If you have to part with your hard-earned money for... Read More

Internet Marketing: 10 Motivational Insiders Tricks To Attract Thousands Of Visitors

If you have a website but not attracting many visitors,... Read More

Paris Hilton? Your Online Marketing Fails Because You Market As If You Were Ms Hilton

Are you Paris Hilton? Is your name instantly recognizable when... Read More

Getting Targeted Traffic by Standing Out In The Crowd

Have you ever seen the trading floor in action on... Read More

Mortgage Marketing: What To Expect From Your New Website

The day has come for your new website to go... Read More

Web Coach Tip: 3 Quick & Easy Ways to Identify Your Target Market

#1 ~Look at your past customers~Notice trends in the type... Read More

What Does It Take To Become An Internet Marketer?

I have heard many people say all it takes to... Read More

The Right Way to Use Other People?s Articles on Your Website

Article Marketing Creates a Steady Flow of Fresh ContentArticle writers,... Read More

Hype! Has The Internet Gone Too Far?

I remember back in the 1980s (history for many of... Read More

5 Easy Ways to Establish Your Brand Online

The Internet is a practical and accessible tool to build... Read More

Marketing to Today?s ?Distracted? Consumer

The average person today is exposed to a never-ending deluge... Read More

8 Excellent Ways to Sell Your Back-end Products More Successfully!

A back-end product is a product that you attempt to... Read More

Do You Really BELIEVE You Have What It Takes To Make Your Website A Success?

Last week, on a cold, dark Friday night I stood... Read More

Avoid The Sharks

They hang around your web site. Not buying, just lurking.... Read More

Internet Marketing - Advantages and Disadvantages

Everyone seems to be jumping on the internet marketing bandwagon... Read More

Identifying Top- and Bottom-Line Growth Strategies for Your Web Business

Defining Top-Line versus Bottom-LineAn Internet business improves their "top line"... Read More

Having The Right Attitude And Start Becoming A Problem Solver

Do you really want to make money online?Do you want... Read More

Single Best Way To Turn Visitors Into Rabid Buyers

Did you know that, on average, only 2% of visitors... Read More

HOLY TRINITY: The Three Focal Points Of A Successful Online Venture

"For which one of you, when he wants to build... Read More

Make Extra Sales with your P.S. - Internet Marketing

This "little" test I ran was in dedication of Corey... Read More