Online Business Factors Impacts Success and Failure

Online Factors

Through my years of consistent learning, observation and implementation of online marketing strategies for different types of businesses online, I’ve analyzed that “BUDGET”, “Demand”, “Efforts” and “ROI” are main factor of their success and failure. These factors are commonly neglected and have cause a lot of time and money to a lot of business. Here’s my personal hypothesis which can be wrong or correct, I just want to share my thoughts to help business owners and marketers be more aware of these factors and their impacts to one another.

Efforts Determines Business Success or Failure

Search Engine Optimization and Search Engine Marketing are two weapons for success of  online businesses. These are online strategies that consists with a lot of efforts that connects to bring success to online businesses. Efforts impacts the online budget of business owners because the more efforts the business needs to compete online the higher the budget must be. (that is if the owner does the effort himself so this theory will not be applicable). Here are scenarios that will illustrate my theory:

Scenario #1: If  the business have an in house online expert receiving a fix salary doing the effort, possibly he’ll still ask for budget for Tools and other online expense which impacts the company online budget.

Scenario #2: If the business hires an individual freelance who offers low rate compensation with an objective to save cost for the business, the ROI will probably just enough to pay the amateur/starter who works on the project or sadly will not even reach the rate of the freelancer. Why? because Low rates = Mediocre efforts, trust me I’ve worked with a couple similar type of individual.

One thing I notice commonly in legit/for real online marketing experts they don’t work on a low rate because they make sure the right amount of efforts are implemented in order for the business succeed. So when I say right amount of efforts, i mean a lot of efforts.

Efforts are defined through an intensive reliable research and analysis which reflects data metrics from the Google Analytics, Insights/Trends, Webmaster Tools or whatever online marketing tools. The amount of effort increase the online budget also increases.

BUDGET Affects Effort Impacts Business Success or Failure

Businesses with low budget are probably doing the online marketing efforts their selves which I assume only understand a non-detailed elements of SEO and SEM hence it will have an average ROI but not enough to keep the online business to prosper. Or they will hire a freelancer that will work for a low budget to do the efforts, however base on research low paid marketers are mostly starters and high paid freelancers are experts.

So do you think there’s a probability that a low paid marketer can make the business prosper? Personally, I don’t think so. I don’t conclude that low budget companies don’t succeed online there are some who are successful but they’ve reach that stage in a longer timeline unlike high budget companies gained the same conversions earlier. I’m saying that it could be a factor of success and failure and also amount of ROI gained over a timeline of efforts.

To justify my statement above, businesses with higher BUDGET usually succeed online faster than low budget businesses… Let say you’re an SEO/SEM Specialist who handles two different projects, one have a high budget which can afford to implement SEM on top of the SEO efforts and the other one pays you a minimum fix amount for SEO….

Which project do you think will have a high ROI?

Which of the two projects will be the first to gain sales?

Think about it….

My point is, budget determines that amount of SEO/SEM Efforts which impacts online success and failure. This hypothesis maybe not applicable in some business modules however it’s an element of online business that is commonly being neglect by business owners and marketers. I always convey this factor to all of my projects before implementing any efforts, I always explain this matter to the client for them to know what to expect for their business before I’ll do SEO or SEM for their website.

Online DEMAND Affects Marketing Budget Impacts Success or Failure

Let’s formulate an equation…

High Demand = High Sales Rate
Low Demand = Low Sales Rate
High Sales Rate = High Competition
High Competition = High Budget
High Demand + High Budget = Positive ROI

There are many businesses failed online because of lack of knowledge and research before implementation. There are types of business that are perfect for online sales generating and there are some which are not. One factor that can I notice that affects business success or failure is the statistical online “DEMAND” of the business’ products/services. This is an extension of the BUDGET FACTOR, which defines the amount of budget needed for a project.

It’s like the basic theory of Economics that is when the DEMAND goes high the price goes high as well and affects the supply to decrease. Applying same theory in an online marketing perspective, if the demand of what you offer online is high the competition goes high as well affecting the amount of budget in order to compete.

I advice all business owners and marketers that before doing anything efforts, make sure to do an accurate initial research within the online industry metrics which are:

  • Keyword Research
  • Competitive Analysis
  • Demographics Analysis

These will determine if there are possibilities of success for the business considering competition rate, budget demand and online demand. If the analysis has a positive data then start everything you have to do in an SEO or SEM approach.

Amount of ROI Affects Efforts and Budget Impacts Success or Failure

This factor is not commonly neglected but failed to realize. This is mainly concerns marketers and seo if they don’t meet the business objectives within the timeline agreement they usually get cut off from the project. As an SEO Specialist my failures are those project I failed to reach the target ROI or whatever online objectives the project demands. One of my personal working values/ethics that I implement for all my projects is to get each of them a high ROI from their online budget. So it’s a challenge for any marketing/seo expert if they’re working on a high budget project because the must reach the ROI to exceed the budget rate.

In an owner perspective, low ROI is equivalent to lose of money because they have to cover up the remaining amount for the online campaign’s expenses. If not, they will lower down the budget and the efforts implementation which is not advisable for an on going project. So make sure you’re entrusting you’re online business to a legit individual or company to avoid this problem.


These factors impacts one another and affects the business success, so analyze the business/project well to define correct efforts and online demand that will take the business/project to success by which with the right budget for the overall online marketing campaign.


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