If someone asked me what was the biggest reason why my clients failed with their online businesses I would say this. Without a doubt it is what causes most webmasters to run out of cash and not make any money out of their online business.
They come into the online world all excited about their website and as newcomers to the market they will often suffer from shiny product syndrome. I know this because I have seen this many times myself.
You want your website to be perfect, therefore you design it, then you want changes and more changes and more changes. And you spend all your money on your design then it comes around to marketing and you have zero funds left.
I saw this last year with a client in the wellness niche. We had designed their website for them and it looked amazing. However I spent a lot of time on their website than I normally do because they always wanted something changing.
Before I knew it six months had past and we had spent six months just doing changes and making things pretty and they must have spent $20,000 on it. When in fact it looked not much different with the first design and they could have been $19,000 better off.
Then came the time to market it and they had no money left and the result was that very little marketing was done – maybe $600 worth at a maximum.
We then parted company because they didn’t have any money left they told me they were going to manage the marketing themselves and I left them to it.
I then watched…..and watched and waited.
Fast forward six months and the traffic I produced for them in the first month has dropped by half suggesting that a year into their online ventures and they have only 50 visitors a day.
Oh and to the shock of me and my freelancers they have completely changed the design – to the point where apart from the logo you can’t even tell it is the same site.
I also estimate that their design fees must have risen to at least $20,000 and with hardly any traffic it is not making the money it deserves.
Oh and for the record their product is amazing – so there is no reason why it shouldn’t have gone viral right now.
With a bit of number crunching this is what I have come up with based on the fact the product was already completed:
$1000 web design
$1000 keyword research, launch, social media set up etc
Even if they had gone down the boring route and just put up some Adwords at a rate of $0.40 a click and with a $18,000 fund they could have had 45,000 unique visitors coming into their website. As I know that their website was converting at 12% that means that they would have sold 5400 copies at $15 a month. Making them $81,000 – Adwords = $63000.
Plus it would also be recurring income.
I get it that we are not always happy with our design and I have changed my WordPress theme more than most, but I get it out and earning first and then the money I am making from the website can put into design work.
After all, you can update your website later. But you can’t reuse the same money twice can you?