Home Based Internet Business. What to Watch Out For and What to Avoid

Making money on the Internet is certainly possible, but if you're considering a home based Internet business to supplement your income or to make up for a job loss, you need to tread carefully. Here are five common mistakes people make when starting an Internet-based home based business, and how to avoid them.

The first mistake when starting a home based Internet business is to enter a field where there is either too much supply or too little demand. For example, there are many companies that offer to start a travel agency in your home if you pay a few hundred dollars for training and the use of an industry computer, this is a good example.

The problem with starting a home business using the Internet like this is that the Internet has made travel agencies disappear. Most people now make their reservations online. Instead of investing in what has passed, why not consider up-and-coming categories such as article brokering and search engine optimization?

Another big mistake that many people make is choosing a web host that does not offer the services they need; while you may be in a hurry to register your URL and start generating revenue, it is important to take the time to research web hosts. You may be in a hurry to register your URL and start earning money, but it is important to take the time to research your web host, because it is a lot of work to change after you have used one.

A web host should be able to provide you with value-added services such as e-mail, offer some kind of guarantee against downtime (when your server goes down and you cannot access your website), and deal only with legitimate companies so that your IP address will not be banned from advertising on their site. (If your host is banned, you will be banned). In addition, a good web host will offer several website building services at low prices, such as templates for your own use and reasonably priced website design.

Also, do not advertise before you launch your website. This is common sense, but it is a mistake that many people who start a home based Internet business make. They are usually happy with the URL they get and want to advertise it, but they don't think about how it will make their customers feel to click on a link to a website they are excited about and have no content on.

You wouldn't advertise a phone number that isn't working, but you wouldn't advertise a URL that doesn't have a website up and running yet either. Many Internet businesses are losing potential customers because of this problem.

Equally important is the payment setup on the website. Customers want to buy right away if they are ready to buy, not leave a message on an 800 number or send an e-mail and wait for a response. In today's competitive Internet business, online checkout is a must. It is best to accept both credit cards and payment services such as PayPal. In a recession, many people may have problems paying their bills, and the more options you have, the better.

Have no idea about shipping. Well, you have a sleek new website for your home based Internet business and have advertised everything you can think of. Orders are coming in like mountains. But are you able to fulfill them? If you're selling a product and haven't set up a sales channel, or if you're selling a service and can't fulfill your promise, you're in big trouble. No matter how good your Internet business is, your reputation depends on your ability to satisfy your customers.