Selling online is a great way to make money. It has fairly low overhead, can be done by businesses in any niche, and can be a source of passive income.
But there are some things to be aware of before you slap a product on your website and start collecting payments. Here’s a checklist to make sure that you set up your online sales correctly and legally. (Of course, you should also consult with a lawyer before starting any new business venture!)
Your Online Product Checklist
_____Does my state has a sales tax? Do I need to collect it myself?
_____Is there a fee for using an online payment collection platform?
_____Do I have Terms and Conditions on my website that address my online product sales?
_____Do I have a business bank account to link sales to?
As you can see, there is more to selling online products than simply making money. It’s very important to set up your online sales in a legal and financially stable manner, so that you don’t run into any problems in those areas down the road.
Where to Start With Your Online Products
If these questions have your head spinning a little bit, take a breath. The first step to take is to make sure you have a product that people want. So before selling anything, talk to your audience. See what kind of products they’re interested in getting from you. Do they want videos? Courses? A podcast? An e-book?
Knowing how your audience wants to consume content is step one. Step two is understanding what price range will work with them.
Think about some of the most iconic brands. Nike, Chanel, Coca-Cola. They all have loyal followers and they all have drastically different price points. Chanel can sell high priced items because it identifies itself as a luxury, and markets to people who have an extra $1,000 to spend on a purse.
Coca-Cola markets itself as the drink of families, friends, and every day people. Anyone can afford a coke, and everyone should drink their cokes with their friends, who are also drinking cokes.
Who are you talking to? What price points are good for them? How will you compound your sales? How are you going to reach new people and widen your audience over time?
Online products can create a passive income stream in any business, but only if it’s set up correctly and legally, and if it’s marketed towards people that actually want it. Set yourself up for success from the beginning and make sure that you follow the law. After that, sit back and let the money come to you.
[Related: How to Get the Most out of Your Products]