Online Marketing and The Importance of Planning

By:  Jasmine Sandler, Contributing Writer, Agent-cy

I have seen too many good people attempt an online business without a well-researched plan. The results have been disastrous--major investments lost, business failures, and even broken marriages.


As a veteran of online marketing for both web-only (pure play) businesses and traditional firms that use the web as a vehicle in their marketing mix, I have witnessed both failures and successes online. For any of you who are considering a business online or who have already invested in such a business, the following two-part article has been developed to help you use the web to most effectively avoid the minor and major pitfalls inherent in this medium and navigate the best (online) opportunities for your business to help ensure your success.

Admittedly, my first entrepreneurial experience in building an online community failed to the tune of nearly $200,000. In hindsight, the domain name was the cause of that failure. For the pure play online business, you cannot rely on the opinions of your family and friends alone. You absolutely must ask a sample of your intended online audience whether or not they like, they understand, they agree with, and most importantly, if they see business potential behind your domain name. Your domain name, and how your intended audience perceives it, is of eminent importance. A domain name, if developed properly, becomes a brand, thus creating brand awareness and value behind that brand, and it has the power to yield a positive perception. Obviously, you’ll want to ensure your brand (domain) is one that your audience can positively identify with. An agency or consultant can help you find that sample audience to determine the validity of your online business name.

If you are a pure play new online business, ask yourself this—is this just an idea, or is this a developed business plan? If it is just an idea, then go back to the drawing board and develop your business plan. If you are planning to use the web to strengthen off-line sales of a product or service, then you need to know if this business has the potential to reach your goals. You must ensure that there is a demand from your intended audience. A comprehensive business plan will outline your competitive threats, as well as high-light how your target market will perceive your product or service.

Analyzing my current clients, I would argue that the ones who are the most successful are the ones who have the right resources in place with the right programs working for each resource, all driven toward a common client goal. If you are involved setting up a business online or establishing an online community, you want to be cautious but open-minded about whom you bring in and how many resources you employ in the beginning. Upfront planning for the right resources is important.

Any business these days must have an experienced online marketing person as a resource. This resource is essential whether you possess the funds to have an agency on retainer or if you can only afford to have one person working a few hours a month. This person should be able to help you bring in effective resources including a web designer, developer, and specific technologies as well as the right online marketing programs (PR and advertising) for your specific business, timeframe, budget, and online audience development goals.

The most important issue for a pure play business is investing in web marketing. Firstly, you must be willing to set aside a reasonable web development and marketing budget. Although the web itself is practically free to use, experts behind a brand’s success online have real value: they are not and should not be considered free. However, because the web possesses a wealth of useful information, you stand to benefit greatly from doing your own research in marketing online to prepare you for the programs you may undertake with an expert. Remember, just as it is my job is to run an online PR and marketing agency, it is your job to run your web business.

The best way to ensure cost effectiveness is to utilize your expert help in creating a budgetary plan. This plan should include, but is not limited to, the following expense items:

1. Web design and branding as necessary

2. Web development, including community development as necessary

3. Online market planning

4. Online marketing programs: e.g. SEO work, PR development and outreach, media buying, aid search marketing; affiliate marketing management

5. Web management and monitoring

6. Ongoing research

7. Technology investments

8. Copywriting
As with any marketing vehicle, you must undertake your business with an understanding that the investment will be an ongoing monthly expense for most items. Be prepared to self-fund this project for at least a year or more, because it is best to avoid bank loans and venture capital if possible. These things put unnecessary pressure on your opportunity to develop the business at the appropriate rate of time and money spent.
Conservative expectations are a must with a pure-pay online business. I have spoken with thousands of people from many different businesses who all think the web is the easy way to make money. Contrary to their beliefs, going into business online is the same as leasing a store or office space in the real world. It requires ongoing investments of working capital, key management committed to the success of the business, effective branding, smart marketing strategies, and of course, customers. Your online marketing expert can help you determine what your goals should be, based on your specific business, industry, competition, and resources.
Both online and traditional businesses that use the web as a complementary marketing vehicle sometimes make the mistake of launching a new technology, or marketing program online just to mirror the actions of their competitors. This desire to keep up with competitors solely for the sake of keeping up is misplaced and can be fatal to your business. Never add anything that is not tied into the specific marketing goal pre-set by your expert.

As with any other online marketing program, your best weapon is knowledge. I have been involved in web education as part of my client work, and I have worked with agencies for the last several years. Opportunities, technologies, and marketing programs online are always changing. It is important to have people working for you who are constantly educating themselves on the best ways to navigate these online opportunities. It would be wise for one involved in an online business to take any available courses in online marketing and web business.
The smartest way to plan for success in growing a business online is to have a team of specialized experts, a common goal, financial backing to develop the business for two-three years, and a trusted person or team who has the experience in web marketing to guide your strategies toward yielding favorable results. Every person on your team must be accountable for at least one item to help grow your business. You must know and manage what that item is. Always ask for feedback from your target audience and the experts around you on your business, its name, your web site, your marketing programs, and your offers. The web is a great place to find, build, grow, and sustain a loyal audience. If you follow these initial steps, you will be on your way to making that happen.