Can Using the Internet for Business Hurt Your Bottom Line?

If you’ve been in the Internet business for any length of time, you’ve probably read helpful articles about the advantages of using the Internet for your business.

However, have you also noticed there are some disadvantages to this medium as well?

1. Building personal relationships

A truly successful business is built around personal relationships.

How do you create that in the world of anonymity that so many online shoppers enjoy?

Yes, you can write posts that speak to the heart of their concerns, but this doesn’t meet the level of a face-to-face meeting.

It’s better to sit down and create a personal relationship–one that will encourage loyalty and a more personal interaction.

If you develop a professional “friendship” with your clients, they are going to support both your offline and online presence.

Typically, this can only be done with a brick-and-mortar environment or a direct selling experience.

That’s why personal relationships can be categorized under the disadvantages of Internet entrepreneurs.

2. Security of records

The security of your company records in a brick-and-mortar business is based on how well you lock them up, where you store them and what systems are in place around the building.

In fact, you can even incorporate the help of a security deposit box to maintain security of those papers that must not be shared.

However, in an online office, you are vulnerable to attack from a myriad of directions. This requires a whole new level of digital security that can significantly increase your costs.

Also, you need to be vigilant and make sure the necessary updates are completed. Record attacks are not going to stop simply because they couldn’t get through the first time.

Instead, they are going to come back with a stronger attack force and attempt to break through your firewall more efficiently.

The disadvantages of Internet include online security because it requires you to stay on your toes and stay knowledgeable about your new potential attackers.

3. Expanding your company presence

In the brick-and-mortar world when you want to expand, you just build or purchase a new building. Then, you fill that location with your merchandise and start to market to a new customer base.

Once you start spreading the word and word-of-mouth referrals begin to pour in, you may find that people drive long distances just to see your unique collection of inventory.

This instantly gives you a chance to talk with them and meet their needs on a greater level. If they know you are ordering items that speak specifically to their needs, they will return again and bring more shoppers with them.

Clearly, this is one of the disadvantages of Internet companies–there is already enough established competition that already provides this service to them.

4. Spam and porn comment links

I’m not sure why they do, but spammers and pornography distributors take every single opportunity to post links to their pages, even if it’s on a completely unrelated content page.

On my blog, I’ve had people attempt to post about everything from business opportunities to obscene pictures when the post is about learning to write!

They do not have respect for anything but their page views, so you need to be extra vigilant and moderate every comment.

If you had a brick-and-mortar store, you would not have to keep people from standing in front with their banners and sending business to their own locations.

However, that same standard does not apply to online companies. Rather, you are open to spamming through comment links on a regular basis.

You can make money online but you need to be aware of the disadvantages of Internet companies just as much as the potential benefits.

Only an educated entrepreneur will be able to prepare for these and head them off before they create lasting damage.

If you have had any particular experience with these, please share them below!

We’d love to hear how you overcame the disadvantages to build a successful online company!

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