Writing Analysis

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Business Proposal

My name is Kyle Bennett and I am writing to you to in search of a venture capitalist. I am currently a senior at X school where I am obtaining a Bachelors degree in Business Administration with a minor in Sports Management. My business venture is, in my eyes, will be a very important piece to accruing a steady income. I have begun to develop an e-commerce business during my college career, which I believe can become very successful. It will appeal to anyone who has a desire to earn money using the internet and a computer. It could mean a potential for people to not have to work behind a desk eight hours a day and start working from home for a couple of hours a day. This could mean that they could keep their day job and make money online in their spare time. This could mean financial freedom for myself to the point where I will be out of debt and in the black in the financial sense. I have started to develop a simple, but effective website for my business which will enable me to show my service to consumers in a way that has never been shown before. The site is short in nature, but very powerful in the amount of information people can get from it. I am creating an affiliate/referral based business. This is one of the newest phenomenon’s to hit the World Wide Web. It is a way for businesses to cut costs on marketing and not have to pay for marketing until they sell a product or service. I will become an affiliate of several different online companies to market their products or services. Furthermore my website will also promote referral based businesses which are a great way to generate income. I feel this e-commerce business has the potential to become great with the right marketing and stable business plan.

The business is very simple in nature; I will market to and from my website to introduce consumers to information about ways to make money or earn free gifts online. For Example, a consumer will come to my website and search through information on how to make money online with the sites I have provided with my affiliate link attached with it. When the consumer clicks through my link they will have the option, given the information on the site to decide if they want to purchase the program. If the customer chooses to, they can buy the product and I will receive a percentage of the sale for generating the purchase. People search the internet everyday to try and find a way to generate income on the internet and I will be connecting them to this information through my site. The information consumers will want can range from ways to create an eBook to sell online to, how to make money online doing possibly the same thing I am. I have registered with the company, ClickBank. ClickBank is a company who is connected with companies that have sales pitch sites to promote their products. Being a registered user of ClickBank, I can use them to become an affiliate of thousands of companies. I can create a “hoplink,” which is a link to a certain pitch page that I am promoting. This link has my referral id attached to it and when someone purchases the product through my hoplink, I receive my percentage. As a marketer for ClickBank and an affiliate of many companies I will be able to bring together a consumer to the seller’s website and create revenue for each sale completed. The more people I can bring to the website, the better my chances are of making a sale.

When Customers visit my web page, they will have an opportunity to register on a referral website. An example of this is, www.xbox3604free.com. This type of site is called an incentive based program. These sites give away free products and money to their referrals. The reason they can do this is they make the user view and purchase sponsors products. The site will require a certain amount of sponsor ads to be fulfilled in order to receive your free gift. Furthermore, after completing the sponsor offers, you must then refer a certain number of friends and family to do the same. The bigger the free gift or free money the more sponsorship offers and more referrals you need to accumulate. The sponsors on these sites pay a good amount of money to be on these sites and they can afford to give away free products and money. Once I am registered on this site as a user, I can have my own referral link to the site where people can register under my referral. Once they register, they must complete an offer from a sponsor on the site. After that is completed, they need to refer others to do the same. For each referral I get to register under my link, I receive a point. When I have accumulated enough points, I can exchange them for gifts or cash in my PayPal account. The process will continue to revolve as I refer more people to the website to register. I will attempt to have multiple different referral sites on my web page where people can register for the one that is most fitting for them. The more choices I offer to the customer the more sales and referrals I can generate. The more I can generate the more profitable my site becomes, rather, how I become more profitable.

The costs for this great business will be relatively low. The cost of the site will be free since I am using a free site through my school. The main costs will be for advertising my website. My initial plan is to create a video to upload on to YouTube. In my video, it will tell a little about myself and it will then go on to tell the viewer about my site and convince them to check it out and learn how to make money and free gifts online. I would post the video under the title, “make money online.” I would use keywords like, money, make, online money, make money online, income, internet income, and so forth. The main reason for the venture capitalist is to fund the marketing on Google and other search engines alike. I would need cash for paid per clicks advertising. I will post my site to the keywords above and more so my page would come up on relevant searches on the internet. Furthermore, I would like to post banner ads on social networks like Myspace and Facebook. I feel that if I posted on these social networks can improve my customer base considering a lot of high school and college students use these networks and they are certainly looking for ways to make money. I, myself, do not have the income to afford to pay for the cost of this type of advertising. In addition to the online ads, I will need money to create flyers to post around colleges in the area with the website and a promotion ad on it. The total variable costs will depend on what the pay per click price we would set with sites like Google. The fixed costs would be the price of photo copies of the paper ads that would need to be created to post at local colleges and the price of banner ads.

The website will be fairly simple as well. I do not want people to get lost in my website and leave the website because they can not find what they are looking for. I would like my website to be easily navigated by the consumer. I want the home page to be a short article about myself and how the system works. At the bottom of the page I want to create a link that will take the user to a page where they can search through different services my site has to offer such as, making money online and referral websites. The name I have chosen for my website will be www.moneyonlineforyou.biz. To own this domain name it would be a fixed cost that would also have to be accounted for. I feel that this domain name could be appealing to consumers and make them want to visit the site to see what it is all about. Plus this domain name is unique, so when people on the internet see it they will know it very well and will be able to remember it.

The competition will be competitive seeing that almost anyone with an internet connection can become a threat. As of today there are several videos and websites out promoting affiliate websites on the internet. Google is a heavy competitor because they have millions of users who put up sponsored ads on Google’s site. You can find many affiliate users posting on the sponsored link side of each page. I will be able to do this as well and become a part of the advertising in the future. As far as I have seen there are not very many websites out which promote the referral based businesses. My site will differ from others out there in the way that I will give the user many different options to look through and decide which one is right for them. My competition normally promotes one site per web page they have. I will have many different sites to choose from on my page making my site better than the competition, therefore, enlarging my target market. My site will beat the competition for the sole reason that I am showing them many different options that will catch their eyes. The competition I have seen on the internet normally tries to solicit only one type of program, therefore I believe my website will out perform the competition.

The expansion of my business will only increase if I find more affiliates or referral businesses to become a part of. I will try to increase my affiliate base to increase the information on my site to give the consumer more of a choice making my site larger. If I discover more powerful affiliates to promote or a referral site that becomes more appealing to consumers I will have to start promoting it on my page. In a sense I don’t feel like there is a pure way of expanding the business other than the fact of expanding the website. To expand the website I could start selling products on my site. For example, I can purchase rights to eBooks and sell them on my website. I will have to set up my site to where I can take PayPal or Credit cards. While continuing to add more information to my site to make it more informative to the reader, I am sure this way can expand my business.

The main threat to an e-commerce business like the one I am proposing is a way to drive consumers to my site. I will need to be able to promote and advertise in such a way that it appeals to my target market. This will be the main challenge for my business. If I can not bring consumers to my site I will be unable to generate an income. Another challenge for my site will be to convince people to use one of my affiliate sites or referral incentive sites. I must prove to them that this particular product is right for them and entice them to purchase it. Another threat is that I must make sure that my website is genuine and believable. If people can not trust my website I will not be able to make a sale. I must set it up in a way to show people that I am sincere and what I am trying to do for them is a legitimate thing. I do not want people to come to my site take a quick look at it and leave because they do not like what they see. I want them to spend a substantial amount of time looking at the affiliate referral sites on my page increasing my chances of making a sale. Remember, If I can not bring people to my site and make them look at my products, I can not become profitable.

Overall I believe that my company can become very successful. I am in a low start up cost business which can produce amazing profits. Seeing that once my company is up and running with the proper advertising, it can run twenty four hours a day, seven days a week. People are always on the internet at different times of the day, meaning, if I advertise properly my site can be viewed at anytime and people can buy products and information from my site to generate income for my business. This is a very simple model, but the potential for my business to succeed is enormous. I hope you find this business venture interesting and informative to you and I look forward to speaking to you in more detail in the upcoming weeks about my business.