Endowment effect. Have you ever heard of it?
Behavioral economists call this effect with an even cuter name – the divestiture aversion. This refers to the cognitive bias that we give more value to something when we own it.
So why should you concern yourself with the endowment effect aka the divestiture aversion? It’s because most of the time, you have to reassess the situation and see if you are really doing the right thing. But how do you know that you’re doing it right or wrong? If you are an internet marketer and you earn less than $1000 each month, then something must be wrong. You might need to change your approach and reassess your market once more
Here’s what you should do:
- If you’re already in a great market, then use it to revive your energy and passion to do better.
- If you find that the market you’re in sucks, then choose to get out – NOW.
- If you have a great idea, get it in! Assess if it’s an idea that is worth pursuing.
- If an idea/s of yours is not working, perhaps it’s high time that you remove it completely from your system.
- If you’re unsure or you lack the confidence to do something, then change. Do some research and find out the best approach how you can do things better.
Create your own inertia
What is inertia? Inertia is the “tendency of a body to stay in motion in a straight line unless acted on by an outside force powerful enough to overcome it.”
Most of the time, people answer two kinds of lack that hold them back to reach success: not enough focus and not enough time.
Focus and time go together. When you get confused or you jumped around from one thing to the next, you lose valuable time. What’s even sadder is that most of the time, you face some serious setbacks, then you give up, and after everything you’ve done to pursue the better things, you turn back on making “easy money” and quit on the job that pays more in the end.
So what should you do to avoid it?
- Be confident. If you know that you’re idea is something that will work, focus and stick to it no matter what.
- Choose wisely. Do not settle for anything less than what’s best. If you’re going to engage yourself in something, choose something that has potential.
- Stay focused. The road to success is decorated with many distractions, keep your mind focused to it.
- Fix your mindset. Just like staying focused, your determination depends on your mindset to do things as long as you need to until you find the results you’re looking for.
These four things would be the foundation of everything you’ll learn from here.
Most people pursue their passion when starting their business but the balance of things should still be kept. Likewise, starting an online business is real as it gets. It’s not a hobby that you can just expect to make money because you love it.
That is, your business is not “affiliate marketing”. It’s only one of the ways how your online business makes money. Even if you want to transform your hobbies into an actual business that you can promote online, you should find something that you can market with a good potential. You don’t have to be too competitive. You just have to know how to assess the market where you want to be in.
Steps to assess your market
“Feeding” a hungry crowd is the easiest step you can take to find success in any business. Given that, here are the three important things you should look for in a potential market:
- There should be a crowd. A demand can only be great if there is a crowd who needs it.
- They should be hungry. People who desire for something are your best clients especially if you are the one to provide for what they need.
- They should want to be fed. Hungry people will pay for those who can feed their hunger.
Now, don’t worry just yet about the money making process. Once you assess these three things first, making money for you would become easier to do.
A practical example
Say for example, you really like cars and you happen to have a shop selling used cars and new cars.
To start your market assessment, you should start with a keyword research tool to see if the potential market you’ve though of is profitable. The thing is, you have to see which keywords are being researched inline to your chosen market.
The next step is actually optional but it’s recommended that you understand whether or not your chosen market is actually with potential. This is just to say that after getting all those keywords, you have to see the amount of traffic that each one gets.
This process will filter the thousands of keywords that you may have found during your research and help you see whether the competition is too big to fight for you or if you have a chance to turn it into a profitable venture.
Keyword research tools filter out keywords with the highest demands yet with moderate competition. This allows you to see beforehand if a potential market is worth pursuing or not.
Finding the secret…
From the thousands of keywords that you can find, keyword research tools allow you to identify keywords that are actually profitable. Most of the time, it checks out that the best market is not about people who wants to buy something, it’s about people who want to make something.
In short, you would be able to sell more products to people who are interested in actually making the products than people who just wants to buy them.
A few more helpful ideas
From the first assessment, you learn that while there are plenty of opportunities out there in every market, not everyone is solid enough to make a profit. The keyword tool is actually just the start of your online business. The actual process of building your brand and business online would take more time and is more than a few clicks here and there on a keyword research tool.
Idea #1: CREATE A BLOG. Not just any blog. Create a blog aimed at your target market. At the same time, you can also use it to sell your products or offer your services to individuals who might be interested. If you don’t have any idea on what to do with your blog, start with producing good articles for your major content like tips and other helpful information.
Idea #2: SHOWCASE YOUR PRODUCTS/SERVICES. If you have something to offer or sell, make sure that your clients know it. set up a website wherein people can see your product or service offerings with enough information on it.
Idea #3: DO SUBSCRIPTIONS. If you want a steady stream of clients and a steady cash flow each month, you can create subscriptions that charges people a fair and affordable price for each month. When you do this, just make sure that you also provide them with valuable content so they their money’s worth from you.
Idea #4: BE PERSISTENT. Success takes time to build and it’s the same way when you’re just starting with your market. Work hard and be patient. It might take some time before you see some concrete results but if you do things right, your hard work will surely pay off.