11 IN 1 BOOKS BOOKS • Online Business Basics • Legal and Accounting • Web Site Design • Online and Operating • Internet Security • Boosting Sales • Retail to E-Tail • Storefront Selling • Fundraising Sites • Niche E-Commerce • E-Commerce Advanced Inside — your Google AdWords ™ gift card worth $25 Starting an Online Business A L L - I N - O N E 2nd Edition Making Everything Easier!™ Open the book and find: • Successful mobile marketing techniques • How to sell through niche communities • Tips for designing your Web store • How to get the most benefit from product reviews • Ten valuable functions of Yahoo! Merchant Solutions • Special marketing tools for nonprofit organizations • How to turn Linden dollars into U.S. currency • Your free $25 Google AdWords™ gift card Shannon Belew is co-owner of several online businesses including Bizoffice.com, a nationally recognized, award-winning global provider of resources for small and home businesses. Joel Elad is the author of Web Stores Do-It-Yourself For Dummies. He started his first online business in 1993. $29.99 US / $35.99 CN / £19.99 UK ISBN 978-0-470-43196-2 Business & Economics/Small Business Go to dummies.com® for more! Boost your bottom line with your $25 Google AdWords™ credit — see inside Get your share of the online business with the information in this complete, fully updated reference. Learn to create a business plan, build a customer-friendly site, set up shop on Second Life®, keep your books, and promote your business — the free $25 Google AdWords gift card inside will help with that! • Plan for success — build a business plan that translates your ideas into a profitable enterprise • Account for taxes — choose software to help you manage taxes, balance sheets, and all that accounting stuff • Site efficiency — create a Web site that helps your business make money • All in order — find out how to fill orders, pack and ship merchandise, and manage stock • Safety first — create, budget for, and implement a plan to protect vital computer equipment • Spread the word — explore the PR and advertising tools that best promote your business online • Virtually real — discover what sells best in Second Life and how to earn real money from your virtual store • Maximize exposure — use m-commerce, Yahoo! Small Business, and other options Online Business Basics Legal and Accounting Web Site Design Online and Operating Internet Security Boosting Sales Retail to E-Tail Storefront Selling Fundraising Sites Niche E-Commerce E-Commerce Advanced Starting an Online Business A L L - I N - O N E Belew Elad 2nd Edition spine=1.68” 01_431962-ffirs.indd iv 01_431962-ffirs.indd iv 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM by Shannon Belew and Joel Elad Starting an Online Business AL L -I N - O N E FOR DUMmIES ‰ 2ND EDITION 01_431962-ffirs.indd i 01_431962-ffirs.indd i 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM Starting an Online Business All-in-One For Dummies®, 2nd Edition Published by Wiley Publishing, Inc. 111 River Street Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http:// www.wiley.com/go/permissions. Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/ or its affi liates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book. LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ. For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit www.wiley.com/techsupport. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Control Number: 2009922581 ISBN: 978-0-470-43196-2 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 01_431962-ffirs.indd ii 01_431962-ffirs.indd ii 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM About the Authors Shannon Belew is the co-owner of several online businesses: allbizopps.com, allsmallbiz.com, avespamedia.com, bizoffi ce.com, todayshomeoffi ce.com, top10workathome.com, and workathome1.com. Bizoffi ce.com is a nationally recognized, award-winning global provider of resources for small and home businesses. Shannon writes the Huntsville Times column “Today’s Home Offi ce”; has written magazine and newspaper articles; and founded the public relations fi rm aVespa Media, Inc. Her clients have appeared in such venues as Inc. magazine. She has also consulted for an Internet provider, advising com- panies on developing and reengineering their online presence. Joel Elad was a fan of the Internet before most people had ever heard of the World Wide Web. He sells online as a PowerSeller on eBay with an impec- cable customer satisfaction rating. He also runs his own e-commerce busi- nesses: JoelElad.com focuses on selling educational products such as books and DVDs about selling online, and NewComix.Com, which he co-founded in 1998, focuses on selling new comic books, Japanese manga, DVDs, and action fi gures. He was the lead instructor for the Learning Annex in New York and California for classes about eBay and advanced Internet sales, and he’s an educational specialist trained by eBay. He also contributes to Entrepreneur magazine, TrendGrinder.com, and SmartBiz.com. After earning his MBA from the University of California–Irvine with an emphasis on entrepreneurship and information technology, Joel co-authored fi ve bestselling books focusing on online activities, including Web Stores Do-It-Yourself For Dummies and LinkedIn For Dummies (both from Wiley Publishing). He’s now a consultant to e-commerce companies, a trainer to thousands of eager students at seminars and workshops, and a guide for helping people attain the freedom of growing their sales and establishing their own online presence. 01_431962-ffirs.indd iii 01_431962-ffirs.indd iii 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM Dedications Shannon: This book is dedicated to my family: my son, Holden; my daughter, Wiley; and my husband, Tom. Thanks for your relentless encouragement, love, and patience — and for always reminding me what is most important in life. Joel: This book is dedicated to the hardest-working man I will ever have the privilege of knowing — my dad. Thanks for showing me the value of planning and discipline, as well as love. You will always be my inspiration. 01_431962-ffirs.indd iv 01_431962-ffirs.indd iv 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM Authors’ Acknowledgments Shannon: Since becoming a published author, I have realized that two groups of people deserve the most thanks once a book like this one is published: the team of people that helped produce it and the great people who are kind enough to buy the fi nished product! That said, my sincere thanks to the entire team at Wiley Publishing that made this book a reality, not once, but twice. This includes Rebecca Whitney, Jim Kelly, Rebecca Senninger, Kyle Looper, and my co-author, Joel Elad. I am con- vinced that this is one of, if not the, most talented and caring group of people I could ever have the privilege of working with, or knowing. A special thanks to Rebecca Senninger and Kyle Looper for their continued guidance. Thanks also to all of those who choose to read this book and who are inspired to become entrepreneurs. It is your ingenuity, creativity, and pas- sion to follow a dream that not only makes this world go ’round but also inspires the rest of us to follow in your footsteps. Of course, I can’t leave out another important group of people. Thanks to my in-laws, Jim and Freida Belew, for their support and love. Most importantly, thanks to my parents, Ron and Janice Sanders, for inspiring me. You have always encouraged me to stay on track with my dreams, even through the many ups and downs of this crazy life. Every entrepreneur should be so lucky to have parents like you in her corner. Joel: I’d like to give a big thank you to Anthony and Yvonne Choi, James Marchetti, Anita Cohen-Williams, and Hans Park for the contacts, information, and support I needed along the way to fi ll in the gaps. A special acknowledgement goes to my usual co-conspirator, Michael Bellomo, who put me on the path of being an author and keeps me going with a bizarre sense of humor mixed with a powerful dose of inspiration. Most of all, I have to thank the Wiley team, which has been truly inspira- tional: Kyle Looper and especially Rebecca Senninger, whose patience and guidance helped make this book possible. 01_431962-ffirs.indd v 01_431962-ffirs.indd v 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our online registration form located at http://dummies.custhelp.com. For other comments, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. Some of the people who helped bring this book to market include the following: Acquisitions and Editorial Project Editor: Rebecca Senninger Acquisitions Editor: Kyle Looper Copy Editor: Rebecca Whitney Technical Editor: Jim Kelly Editorial Manager: Leah Cameron Editorial Assistant: Amanda Foxworth Sr. Editorial Assistant: Cherie Case Cartoons: Rich Tennant (www.the5thwave.com) Composition Services Project Coordinator: Patrick Redmond Layout and Graphics: Samantha K. Allen, Reuben W. Davis, Andrea Hornberger, Melissa K. Jester, Sarah Phillipart, Christin Swinford, Christine Williams Proofreaders: Caitie Copple, Christopher M. Jones Indexer: Sharon Shock Publishing and Editorial for Technology Dummies Richard Swadley, Vice President and Executive Group Publisher Andy Cummings, Vice President and Publisher Mary Bednarek, Executive Acquisitions Director Mary C. Corder, Editorial Director Publishing for Consumer Dummies Diane Graves Steele, Vice President and Publisher Composition Services Gerry Fahey, Vice President of Production Services Debbie Stailey, Director of Composition Services 01_431962-ffirs.indd vi 01_431962-ffirs.indd vi 2/18/09 9:39:29 PM 2/18/09 9:39:29 PM Contents at a Glance Introduction ......................................................................1 Book I: Online Business Basics ............................................7 Chapter 1: Starting from Scratch .....................................................................................9 Chapter 2: Turning Internet Dreams into Reality ........................................................17 Chapter 3: Getting Real: Creating a Usable Business Plan..........................................29 Chapter 4: Finding Money to Fund Your Online Start-Up ...........................................37 Chapter 5: Creating Policies to Protect Your Web Site ...............................................55 Chapter 6: Setting Up Shop: Everything You Need for Online Effi ciency .................63 Book II: Legal and Accounting ..........................................77 Chapter 1: Minding the Law............................................................................................79 Chapter 2: Choosing the Right Foundation: From Partnerships to Corporations ...87 Chapter 3: The Trademark-and-Copyright Two-Step ..................................................95 Chapter 4: Accounting for Taxes (And Then Some) ..................................................103 Book III: Web Site Design ...............................................127 Chapter 1: What’s in a (Domain) Name? .....................................................................129 Chapter 2: Designing Customer-Friendly Sites ...........................................................141 Chapter 3: Building a Site without Spending a Fortune ............................................155 Chapter 4: Finding the Host with the Most .................................................................177 Chapter 5: Writing Content that Search Engines Want to See .................................185 Chapter 6: Lights, Camera, Action! Taking Your Site Live ........................................195 Book IV: Online and Operating ........................................203 Chapter 1: Determining Your Revenue Model ...........................................................205 Chapter 2: Making Money with Affi liate Programs ....................................................231 Chapter 3: Turning Information into Profi t, from e-Books to Webinars .................243 Chapter 4: Paying Up with the Right Payment Options ............................................255 Chapter 5: Putting the (Shopping) Cart before the Horse ........................................265 Chapter 6: Taking Inventory .........................................................................................275 Chapter 7: Fulfi lling Expectations and Orders ...........................................................283 Book V: Internet Security ................................................303 Chapter 1: Understanding Security and Your Risks ..................................................305 Chapter 2: Developing a Security Plan ........................................................................315 Chapter 3: Attacked! What to Expect from the Net-Thief .........................................327 Chapter 4: Securing Your Site and Your Business .....................................................339 Chapter 5 : Overcoming Security Concerns in the Wireless World ........................347 Book VI: Boosting Sales ..................................................353 Chapter 1: Driving Traffi c, Driving Sales .....................................................................355 Chapter 2: Special-Edition Public Relations for the Web ..........................................361 02_431962-ftoc.indd vii 02_431962-ftoc.indd vii 2/18/09 9:41:10 PM 2/18/09 9:41:10 PM Chapter 3: Web Marketing at Work .............................................................................373 Chapter 4: Converting Browsers to Buyers ................................................................393 Chapter 5: Analyzing and Monitoring Your Customers ............................................413 Chapter 6: Mastering Search Engines, Optimization, and Rankings .......................435 Book VII: Retail to E-Tail ................................................457 Chapter 1: Knowing When to Put Your Store Online ................................................459 Chapter 2: Understanding the Differences between Real and Virtual Customers ......................................................................................................471 Chapter 3: Window Dressing for the Online Display .................................................481 Chapter 4: Making In-Store Customers Loyal Online Shoppers ...............................489 Chapter 5: Staying Local, Getting Mobile with M-Commerce ...................................497 Chapter 6: Troubleshooting the Transition to E-Tail ................................................509 Book VIII: Storefront Selling ...........................................519 Chapter 1: Instant E-Commerce with Storefronts ......................................................521 Chapter 2: Mastering the Amazon ...............................................................................529 Chapter 3: Let’s Hear It for Yahoo! ..............................................................................541 Chapter 4: Making eBay THE Way ...............................................................................557 Chapter 5: New Storefronts, New Opportunities .......................................................575 Book IX: Fundraising Sites ..............................................591 Chapter 1: Raining Donations: Why Not-for-Profi t Is Big Business Online .............593 Chapter 2: Adding Online Moneymakers to an Existing Site ....................................599 Chapter 3: Getting the Donor Base to Come to You ..................................................615 Chapter 4: More Online Marketing Strategies for Nonprofi ts .................................625 Chapter 5: Legal Considerations for Nonprofi t Organizations.................................635 Book X: Niche E-Commerce .............................................643 Chapter 1: Discovering Niche Markets........................................................................645 Chapter 2: Discovering Niche Trends That Pay: Children and Boomers ...............651 Chapter 3: Blogging for Profi t .......................................................................................665 Chapter 4: Socializing (And Profi ting) in Second Life ...............................................677 Book XI: E-Commerce Advanced ......................................693 Chapter 1: Overhauling the Business ..........................................................................695 Chapter 2: Redesigning to Win New Customers ........................................................703 Chapter 3: Expanding Products to Increase Stagnant Sales .....................................719 Chapter 4: Bringing Former Customers (Back) Home ..............................................729 Chapter 5: Revisiting Marketing Strategies ................................................................739 Chapter 6: Hiring Experts to Get Business Rolling Again .........................................755 Chapter 7: Transitioning a Small Site into Big Business ...........................................767 Index .............................................................................781 02_431962-ftoc.indd viii 02_431962-ftoc.indd viii 2/18/09 9:41:10 PM 2/18/09 9:41:10 PM