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eBay or a "regular" Internet business -- which is better?

By Jim Kobialko

One of our readers, Mike, recently wrote us to ask, "Is it better to start with a website or on Ebay?"

 
Derek asked me to answer this question, because I'm team lead for IMC's successful eBay mentoring program -- and because I've helped hundreds of client start their own profitable online business, both on eBay and in the "regular" Internet world.

 
Mike, I've had dozens of people ask me your exact question. And what I always tell them is, there are pros and cons associated with both eBay businesses and regular Internet marketing businesses. Both options can lead to highly successful -- and enjoyable -- online careers.

 
But which one will work best for you?

 
That really depends on -- you.

 
To show you what I mean, here's a general "personality profile" of the type of client who can do really well starting out as an eBay seller:

 
You may want to consider eBay as your first choice for online success if you...

 
    * Have no computer skills -- The great thing about eBay is, you don't have to know the first thing about website design or HTML to get started. eBay provides you with all the easy-to-use tools you need to list your items for auction and start selling right away.

 
    * Aren't able to spend a huge amount of time upfront on your business -- A "regular" Internet business takes a lot of time to set up -- as much as 40 hours a week when you're first starting out, if you want to get it up and running quickly.

 
      After all, you have to find your niche market, develop your product, write your salescopy, set up your website, optimize it for the search engines, organize your pay-per-click campaigns -- there's a lot to be done!

 
      With eBay, you can skip a lot of the set-up process and get started right away.

  * ARE able to spend an hour or two on your business, several days a week -- To be a successful eBay seller, you have to make it part of your weekly routine.

 
      You need to set aside some time to source your products, create your listings, and prepare your items for shipment (assuming you're not using a dropshipper). None of these chores takes a huge amount of time -- but they HAVE to be done consistently if you want your eBay business to thrive.

 
    * Don't have a lot of money to spend up front -- With eBay, you don't have to pay for things like hosting, web design (assuming you're not going to do it yourself), product development, or advertising.

 
      It only costs a dollar or two to set up a regular eBay auction listing -- how's that for a low start-up cost?

 
    * Are looking for a steady, reliable source of income -- eBay businesses -- unlike "regular" ones -- aren't affected by external factors such as algorithm changes by the search engines.

 
      With a regular business, you can be sitting pretty in the #1 spot for your best keywords -- then find yourself dropped to the 40th page of results overnight!

 
      (If you're a savvy search marketer, you can drastically reduce the chances of this happening to you. But it does take work to keep on top of what's happening in the search engine world.)

 
    * Want to start making money RIGHT AWAY! You can get your items listed on eBay and start making money TODAY, if you want. You won't make a million dollars overnight, but you can achieve a dependable stream of income in a very short time.

 
In contrast, here's a general "personality profile" of the kind of client who tends to best by starting with a "regular" Internet business:

 
You may want to consider a "regular" Internet business as your first choice if you...

 
    * Know your way around a computer --You certainly don't HAVE to have any computer skills to start your own Internet marketing business, but it helps. At the very least, it shortens the amount of time you have to spend learning how to set up and market your business.

 
    * Are eager to learn a LOT of new stuff in a very short time -- This goes hand in hand with my first point. Unless you're already a marketing savvy computer genius, you will have a fairly steep learning curve ahead of you.

 
      But most successful online business owners think that's all part of the fun ;-)

 
    * Are prepared to spend a LOT of time on your business in the initial development stages -- Yes, some people are able to have an online business up and running in a matter of days. But these tend to be people who are computer savvy and already know the basics of Internet marketing.

 
      (Or they're just lucky. That certainly happens, too.)

 
      But if you're a total newbie and don't know the first thing about HTML, web design, copywriting, or marketing strategies like pay-per-click and search engine optimizing, chances are getting your business set up will take several weeks of round-the-clock work.

 
    * Love the idea of setting a business up -- then just walking away -- This is where all that hard work proves worth it!

 
      Unlike an eBay business, which requires regular work on a weekly basis, once your "regular" Internet business is fully set up, you can automate it completely and it'll keep churning out the profits whether you've got your hands on the wheel or not.

 
So as you can see, both of these options have their pros and cons. (I'd say the pros definitely outweigh the cons in both cases, though!)

 
Of course, the beauty of running an eBay business OR a "regular" Internet business is that you don't have to stick to just the one. If you start on eBay, you can expand your business to the "regular" Internet world as well.

 
Alternatively, if you have a "regular" Internet business, you can sell your products on eBay!

 
By taking advantage of both options, you can introduce your products to whole new audiences and get a lot more traffic coming to your site. And more traffic means more sales!

 
So I hope that helps, Mike. If anyone else has any questions about eBay, fire away!

 
Just email them to questionsforderek@marketingtips.com and we'll do our best to answer them in upcoming issues of this newsletter.

 
ABOUT THE AUTHOR: Derek Gehl specializes in teaching real people how to start profitable Internet businesses that make $100,000 to $2.5 Million (or more) per year. To get instant access to all his most profitable marketing campaigns, strategies, tools, and resources that he's used to grow $25 into over $60 Million in online sales, visit: http://www.marketingtips.com/tipsltr.html