list of home based business

MARKETING THE HOME BASED BUSINESS Preda Oana Universitatea Româno-American , Bucureúti, Facultatea de Rela ii Comerciale úi Financiar Bancare Interne úi Interna ionale, calea Crângaúi nr.23, bloc 13, sc.A, ap.2, sector 6, Bucureúti, e-mail ocpreda@yahoo.com, telefon 0722.356.408 Tion Monica Daniela Universitatea Politehnica, Timiúoara, Faculatatea de Management în Produc ie úi Transporturi, strada Cet ii, nr.10, e-mail moniiantu@yahoo.com, telefon 0742.082.225 Abstract. Lots of people are living their entrepreneurial dreams by running a business from home. Many entrepreneurs start with an idea to sell a product or service, working part-time out of a home office, kitchen or garage. Some leave the corporate world to become independent consultants, offering their skills to companies on a per-project basis. Still others turn their hobbies or sidelines as eBay sellers into successful home based operations. The paper presents an alternative way of running a business – from home. That's where e-mail marketing can do the difference. Here are some tips of how one should run a home based business, starting with describing the ideal marketing tool to be used in such a case, some ways to grow the business, tips to get started and tips for getting the emails opened. Key Words: home based business, e-mail marketing, e-newsletter, promotional e-mails 1.Introduction Whatever your skills or passions, the rewards to owning a home based business are undeniable. Be your own boss, make your own hours, enjoy more time with family, earn income doing something you've always wanted to do; you're free from the constraints of a traditional work environment. The flip side is that there's no marketing or sales department to bring in business and keep it coming. 2. The advantages and disadvantages of email marketing Advantages: • • • The advantage of a mailing list is clearly the ability to distribute information to a wide range of specific, potential customers at a relatively low cost. Compared to other media investments such as direct mail or printed newsletters, it is less expensive. An exact Return on investment can be tracked ("track to basket") and has proven to be high when done properly. Email marketing is often reported as second only to search marketing as the most effective online marketing tactic. It is instant, as opposed to a mailed advertisement, an email arrives in a few seconds or minutes. It lets the advertiser "push" the message to its audience, as opposed to a website that waits for customers to come in. It is easy to track. An advertiser can track users via web bugs, bounce messages, unsubscribes, read-receipts, click-throughs, etc. These can be used to measure open rates, positive or negative responses, correlate sales with marketing. Advertisers generate repeat business affordably and automatically Advertisers can reach substantial numbers of email subscribers who have opted in (consented) to receive email communications on subjects of interest to them 1124 • • • • • • • • Over half of Internet users check or send email on a typical day. Specific types of interaction with messages can trigger other messages to be automatically delivered. Specific types of interaction with messages can trigger other events such as updating the profile of the recipient to indicate a specific interest category. • Green - email marketing is paper-free Disadvantages • • Many companies use email marketing to communicate with existing customers, but many other companies send unsolicited bulk email, also known as spam. Illicit email marketing antedates legitimate email marketing, since on the early Internet it was not permitted to use the medium for commercial purposes. As a result, marketers attempting to establish themselves as legitimate businesses in email marketing have had an uphill battle, hampered also by criminal spam operations billing themselves as legitimate. It is frequently difficult for observers to distinguish between legitimate and spam email marketing. First off, spammers attempt to represent themselves as legitimate operators, obfuscating the issue. Second, direct-marketing political groups have pressured legislatures to legalize activities which many Internet operators consider to be spamming, such as the sending of "opt-out" unsolicited commercial email. Third, the sheer volume of spam email has led some users to mistake legitimate commercial email (for instance, a mailing list to which the user subscribed) for spam - especially when the two have a similar appearance, as when messages include HTML and flashy graphics. Due to the volume of spam email on the Internet, spam filters are essential to most users. Some marketers report that legitimate commercial emails frequently get caught by filters, and hidden; however, it is somewhat less common for email users to complain that spam filters block legitimate mail. • • 3.The Ideal Marketing Tool If running a home based business, one should take into consideration that the resources are limited. The challenge is to get business and keep it coming. That's where e-mail marketing can help without breaking the bank. E-mail marketing is a fast and easy way to do the following: • • • Reach out to your contacts directly and let them know you are open for business Encourage repeat and referral sales by reminding customers you're there Share your expertise so customers turn to you as a trusted resource • Create promotions that boost business and keep your brand alive E-mail marketing works for any kind of home based business, whether you're a jewelry maker or a dog groomer, a freelance accountant or an online seller of collectibles. There are two types of e-mail marketing that can build your home business: Create a newsletter--A simple e-mail newsletter will share free advice, insights, and success stories with current (and potential) customers. This sets up you as a trusted expert in the eyes of the people on your list. When they need what you offer, your e-newsletter will help make sure that you come to mind. Come up with a few content ideas for your newsletter -design tips, recipes or financial insights - and ask people in your network what they would like to read about. Customers, associates, friends and family are a great source of topic ideas. Newsletters should be short with just a few paragraphs of useful information. Email newsletters are a great way to build trust and customer relationships over time. If they include promotional content, they will also grow revenues. Either way, the key is to make sure your subscribers actually read them. When designing your newsletter always keep in mind the amount of time you can expect your reader to spend viewing your newsletter. Everyone today is information hungry, but always in a hurry. How you display your content within your newsletter can capitalize on this assumption. • 1125 The information included in the newsletter will depend on your business and the audience in which you are marketing, but here are three recommendations: • Announcements: Include recent information about your company and/or products that impacts your readers. For instance, you can include a link to an upcoming tradeshow where your company will be exhibiting or perhaps a seminar that your company will be sponsoring. Article: Include an article that relates to your products or services and helps your readers. It is also a great idea to develop a resource library that contains additional articles and provide a link for your readers so they can find more information on similar topics. • Case Study: Provide an example of a client who has achieved great results while using your products or services. This will help build credibility with your readers. Again, provide a link where your readers can view additional case studies. Those are three key items to include in your newsletter. If you include these you are keeping your readers up to date on recent information about your products or services, including an article providing value on topics affecting them and by providing a case study you are proving to your readers that others are achieving success by using your products or services. • Send promotional e-mails - Combine the newsletter's informational content with promotions that stimulate demand for your products or services. If you are in a gift-oriented or other retail business, the holidays create natural opportunities for promotions. If you are a consultant offering services, your business may be more cyclical or seasonal depending on clients' needs. You can also plan an event or a sale to create a business booster during otherwise slow times. A 10 percent off coupon, open house, or a free sample or consultation are examples of popular e-mail promotions. When most people see the term "email marketing", they think of opt-in email promotions. You know, where you buy a product and click on the "send me periodic mailings with news of related products and services from …(company name)". Then once a month you get a short email extolling the virtues of the new ….(product name), and inviting you to "sign-up for a free trial". This kind of email marketing has established itself as an effective direct marketing technique. The problem is when you apply this perception of email marketing to the other ways in which you might communicate with customers via email. This is often the case with email newsletters. Many websites and businesses don't understand that email promotions focus on acquisition, while email newsletters focus on retention. Email promotions seek to get the recipient to take an immediate action. The design and writing funnels the reader through a persuasive process which ends with a sale. And by sale, I don't just mean purchases, but also sign-ups, downloads, registrations, and other kinds of actions. The keyword here is immediate. Promotional emails are generally short-term in nature (unless part of a sequenced campaign). If the recipient doesn't respond more or less immediately to the offer, then chances are that the value of the email is lost. It has little long-term impact or influence on the recipient. Newsletters on the other hand are about building long-term relationships. They may, of course, include calls-to-action, but their prime goal is to strengthen the relationship between the customer or prospect and the publishing entity. The objective is usually to induce actions in and over the long-term. Newsletters aim to make the recipient of a newsletter much more likely at some time in the future to take the kind of actions ultimately desired by the publisher, and take them again and again if possible. Newsletters build long-term impact and influence. Promotions focus on persuasion, newsletters on trust and loyalty. Promotions look for immediate returns, newsletters for long-term benefits. Promotions make an offer, newsletters offer value. Confusing the two leads to all sorts of problems. Subscribers expecting a newsletter often find themselves receiving one-off promotions. Since their expectations aren't met, the response is low and unsubscribes high. The publisher then rejects the idea of a newsletter because "it doesn't work". • 1126 When you see companies bad-mouthing the email newsletter concept, it's nearly always because what they've actually been doing is selling customers on the idea of a newsletter, and delivering a promotion instead. Instead of giving subscribers valuable, trust-building content, free of overt sales pressure, they've been delivering advertisements. It's expectations that are key here. It's not the idea of sending commercial messages that's wrong, just the failure to meet the readership's expectations. Sending promotional emails to newsletter subscribers is much less effective then sending newsletters to newsletter subscribers or sending promotional mails to those who opted in specifically for such promotions. 4.Tips to Get Started 1. Choose a reputable e-mail marketing service provider. Features to look for include affordable plans, a variety of easy-to-use templates for different kinds of emails, e-mail list management, a commitment to e-mail marketing standards and best practices, and access to support and helpful resources. 2. Collect e-mail addresses. Even if your mailing list is just a few friends and family members, that's enough to get started. Grow your list by collecting names during your regular course of business, whether it's at a home product party or a chamber of commerce event. 3. Get permission. Before you send anyone a commercial e-mail marketing communication, remember to get permission. Permission is perishable, so don't wait months to e-mail someone after you get their contact info. And you must offer a way for recipients to unsubscribe or opt out of your mailings. 4. Make your first mailing count. This could be a simple announcement that you're open for business or an e-mail that welcomes people who recently joined your list. Thank recipients for joining and tell them who you are, what you offer and why you're e-mailing them. Your first e-mail is your opportunity to make a good impression and show the benefits of being on your e-mail list. Include a "forward to a friend" link so people can easily share your correspondence with others who might be interested in what you offer. 5. Create a schedule. Plan to communicate with customers via e-mail at least six times a year. Once a month is even better. If you plan to e-mail more often--and you may if you run events or weekly specials--make sure you are providing information your contacts value. Customers and prospects might not need your products or services at the moment they receive your e-mail, but the key is to keep your business on their minds. That way, when they're ready to buy -or when they hear of someone who needs your products or services - they'll think of you. Even if e-mail marketing is the only marketing activity you do, it can help you connect with customers and encourage referrals and repeat business. You don't even need to have a website to get started. As long as you have a computer in your home office, e-mail marketing is a great way to grow your home based business. One of the most important elements of your e-mail communications is the subject line. Next to the "from" address - which should be a recognizable company name - the subject line will determine whether your email gets opened. Writing a great subject line is a great challenge. You only have a few words to make it compelling, urgent and specific - without sounding too sales-like or misleading your readers. Here are some ideas for writing subject lines that will get great results. 1127 1. Keep it short and sweet. Do the best to keep your subject lines under 50 characters, including spaces, as most e-mail clients display 50 characters or less. A recent study done by an e-mail monitoring company showed that subject lines with 49 or fewer characters had open rates 12.5 percent higher than those with 50 or more characters. The study also found that click-through rates for subject lines with 49 or fewer characters were 75 percent higher than for those with 50 or more characters. Keep the subject line short and sweet. 2. Be specific. A vague subject line is a waste of prime real estate. A great example of this are monthly newsletters with subject lines like "The Green Thumb Newsletter: June 2008." This tells the receiver nothing about what they wll find when they open the e-mail and gives them very little reason to do so. A better approach for a newsletter is this: "The Green Thumb: 3 Tips for Summer Gardening." 3. Write it last. Many e-mail marketing services prompt you to write your subject line first as you are building your e-mail. It is important to determine all the elements of your e-mail first, then look for the most compelling topic to highlight in the subject line. When you are done with the body of your e-mail, read it over and pick the nugget that w ell entice your readers to learn more by opening your message. 4. Take some time. Don't just dash off your subject lines. Considering how important they are, take some time to think about them and write several - at least three or four - before choosing which one to use. Once you have a few subject lines you like, run them by a friend or colleague and see which one they think is most compelling. 5. Test it. When you have two strong yet different subject lines, test them. Split your list in half and use a different subject line for each group. After a number of tests like this, you will have a very good idea of what works for the people on your list. And the better you know your audience, the more effectively you can communicate with them. When you are tempted to rush through the process of writing a subject line, think about the number of e-mails you get every day. After the effort of composing the e-mail, it is ideal to ensure that people open and read it. 5.Tips for getting your e-mails opened In the beginning, e-mail marketing was seen as the perfect marketing tool: cheap, fast and measurable. Click-through rates were the only numbers that mattered, and people were still excited to receive - and open - just about every e-mail in their inbox. Meanwhile, things have changed. The explosion of spam and the sheer volume of e-mail people receive has ruined the effectiveness of e-mail as a marketing tool. Even perfectly legitimate e-mails are being trapped by spam filters or deleted –unopened - by wary recipients. E-mail marketing can still deliver a higher return on investment (ROI) than methods such as direct mail and newspaper and radio advertising. The truth is, spam and volume didn't kill e-mail marketing, but they did manage to create a few hoops you now have to jump through to get your e-mails delivered and opened. Here are some techniques for getting today's e-mails delivered, opened and acted on. 1.Manage Your "Subscribe" and "Unsubscribe" Requests One of the most important things you can do to minimize your problems - and maximize your profits - is to stay on top of your "subscribe" and "unsubscribe" requests. This is especially important if you don't have an automated system for managing subscriptions to your opt-in list. Always treat requests to unsubscribe from your list seriously. People who aren't promptly removed from your list after making an unsubscribe request can accuse you of spamming them, and you can quickly find yourself in trouble. 1128 Of course, it's just as important that people who ask to be added to your list are subscribed right away, since you never know which one of those subscription requests is going to end up being your best customer. If your subscribe and unsubscribe requests aren't handled automatically, you should take care of them right before you send out a mailing. This ensures that your list is as current as possible, and it also means that you don't have to deal with this chore on a daily basis. 2. Remove Duplicate Addresses Before you send any mailings, you will want to make sure that you don't have any duplicate e-mail addresses in your list. There will always be some people who will opt in to your list and come back later and sign up again, forgetting that they have already joined. Now, people are happy to get one copy of your e-mail, but start sending them multiple copies and just watch how fast they unsubscribe from your list - or worse, report you as a spammer. This kind of spam complaint is relatively easy to clear up, but it's still a hassle, and instead of having a potential customer who was so excited about what you had to offer that they signed up twice, you now have nothing. 3. Clean Your List Cleaning your list also means sifting through the messages that "bounce back" to you after a mailing, and deciding which ones should be removed from your list completely, and which ones you might want to try mailing again. "Bounced" messages, for whatever reason, weren't successfully delivered to the intended recipient. Most can be categorized as either "soft" bounces or "hard" bounces. • Soft bounces. These are messages that couldn't be delivered at the time they were sent, but may be deliverable at some time in the future. These types of bounces are usually caused by the recipients' ISPs being busy or their inboxes being full. Hard bounces. These are messages that can never be delivered. Hard bounces are usually caused by the user typing in an incorrect e-mail address when opting in to your list, or the subscriber no longer using the e-mail address they originally opted in with. Delete hard bounces immediately. If you leave these addresses in your list, you will just have to wade through unnecessary bounce messages every time you send a mailing, and that's a waste of your valuable time. More, if you continue to send e-mail to an address that's invalid, you can get into real trouble. Dead addresses are used as spam traps, and if you are found to be repeatedly sending messages to one of these addresses, you could have a problem with the ISP receiving them. E-mails that are returned as soft bounces, on the other hand, are the result of a temporary problem, so you would to re-send your promotions to all the soft bounce addresses a couple of days later. You will be surprised how many messages get delivered on the second try. And since you have already written the email, there's almost no extra work on your part. • 4. Divide Your List to Conquer More Subscribers Given the mountains of e-mail people receive these days, most only want to see what's relevant. And, unfair as it may seem, anything irrelevant could be considered spam, and reported as such. If the people on your list know the message you are sending is something they want, they will open it. Using e-mail to target different segments of your audience is one of the single most effective ways to market products or services on the internet. A 2006 report found out that e-mail marketers using segmentation saw click-through rates that are 72% higher than e-mail marketers who aren't segmenting their opt-in lists. You can segment them by whether or not they have bought from you, where they live, the brands they have bought, their age group, etc. There is no end of ways to segment your audience depending on the information you have collected - and e-mail automation makes it not only possible, but simple. 1129 5. Snag Your Recipients' Attention by Using Their Names If there's a "secret" to getting e-mail recipients' attention, it's this: Personalize the subject line. No other single technique will boost the response rate of your e-mails as much as personalization. Have you ever noticed that a great salesperson will find out your name and then use it every so often while they talk to you? It's a way of establishing trust and building rapport. And the truth of the matter is that nothing gets a person's attention faster than hearing or seeing their own name! By personalizing your subject lines, you also make your e-mail appear more authentic and safer to open, because recipients will be more likely to view your e-mail as coming from a trusted source. Unfortunately, typing each individual recipient's name into the subject line of every e-mail you send is just not practical! Once you grow your list to more than 50 or 100 people, it becomes unmanageable. It's way too time consuming. The good news is that there's great e-mail marketing software available these days that'll help you completely personalize your campaigns automatically, and save you tons of time and effort. 6.Conclusions E-mail marketing remains a highly effective tool for any business, and the success of your campaigns rests largely on the percentage of your messages that get delivered and opened. It's a little more of a challenge to make sure your e-mails get delivered and opened these days, but by keeping your list squeaky clean and sending highly relevant and personalized messages, you'll not only improve the likelihood of people opening your e-mails, you'll avoid being labeled a spammer. References 1. 2. 3. 4. 5. 6. Brownlow, M: "Why do email marketing?", Email Marketing Reports, January 2008 Dilworth, Dianna. (2007) Ruth's Chris Steak House sends sizzling e-mails for special occasions, 2008 Marketing Sherpa, The Ultimate Email Glossary: 178 Common Terms Defined, 2007 Pew Internet & American Life Project, "Tracking surveys", March 2000 – March 2007 www.wikipedia.org www.emailbrain.com 1130