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Understanding Sales is Crucial to Online Business Success

Aug 17, 2007
Back when the internet was having its hay-day with dot com ventures, companies were spending money, giving away shares, and basically making flim-flam deals - because that is exactly what it was. These companies were spending shareholder's money like there was no tomorrow, but they were taking in little or nothing in sales. That is precisely the reason why we had the dot com bust.

It is the sales that drive any company. That is the source of revenue - that is where the money comes from. Without sales a company will go broke which is just what thousands of dot com businesses did. In order for your company to grow and prosper you need to understand the sales process. One of the most baffling things many companies and organizations do when they downsize departments is cut the sales force. Don't they understand where their revenues come from?

Whether you are running a business online or offline, you need to understand sales. There are several characteristics of sales. There are markets, and within markets there are specific target markets, each with their own set of hot buttons.

There are sales processes, too. When a person purchases a product from you, there are very specific actions that you need to complete as well as specific actions you want your new customer to take. You need to understand where this new sale fits into your marketing funnel and how to direct this new customer to more products and sales.

There are up-sells, down-sells, and related product sales. There are various sales metrics. In order to maximize your sales and your profits you need to fully understand each of the seven characteristics of sales.

Earning money online is actually quite simple. You need to understand two concepts: 1 - you drive targeted traffic to a website, and 2 - you convert those visitors into revenue. Whether you sell that visitor a product or are just paid by an advertiser, it really is that simple. While you can pass that visitor on and be paid just for the click, you will earn hundreds of times more by capturing the visitors email and/or by selling your own product.

Once you have sold your visitor their first product, you need to have systems in place to follow up in order to make repeat sales. There is ten times as much profit on the backend as there is on the first sale you make any customer. Fully understanding how important these systems are and having the proper systems in place is one of the key aspects that separates two companies selling similar products where one company sells $4 million and the other company sells $50,000.

In order to take your business to a multi-million dollar level it is imperative that you fully understand sales. Without this critical information, your online business could end up like one of the dot com companies of days gone by: Great at spending money, poor at sales, and gone broke in the process.
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