Picking a Product is Your First Step

• This is probably the most important step. You will not only put money into selling this product, but also you will put your time, and soul into it. Take the time to think about several products, lay out the pros and cons, and then pick one. You've got to LOVE it, want to know everything about it, and be willing to devote a lot of time to it.

Your product must have a big profit margin

• Profit margin is the cost of buying your product (cost of goods) minus the price you will charge. Unfortunately, even if you love a product, don't choose it if it has a small margin. What do I mean by small? Below 30% is very low, I suggest 50% or more. Just remember, you are a small website not Wal-mart; you will get sick of the business if you have to sell 1,000 items to support your family. This is the most common mistake people make, and one that I made with MyNiceTie.

Another mistake I made with MyNiceTie was that I chose a product in an industry that is shrinking. No one is wearing neckties anymore! Don't make the same mistake, choose a product in a market that is growing.   

Product Ideas

• I could list a bunch of products, but so could you. Just think of all the things you use. Think of the products that you love to buy. If you, your friends, and your neighbors think something is useful, then you can bet that other people will too. One product that people don't usually think about is information. If you have never thought of information as a product, then wake up because people are getting rich teaching people stuff online. You write an article, make a movie, make a pod cast, and post your content on you site strategically surrounded by advertisements. I see this as the future of the internet for beginners.