Getting Started with Selling Online

 

Introduction

If you are developing your application to sell on the web and are unsure of how to get started, this guide may be helpful to you.  This paper is a companion to “Getting Started with Satellite Forms.”

 

I have tried to create an objective document.  For many reasons, this is difficult to do and still impart the necessary information to the user.  Therefore, I will place items of personal choice at the bottom of the sections and set them off with italics, so the reader can clearly see my biases.

 

You can view my final product, Pocket Practitioner, on the web at http://www.pocketinformatics.com.   All links described in this paper are available at http://www.pocketinformatics.com/satforms.  The product, and this guide, will continue to evolve.  If you notice errors, please contact me, as I will update it periodically. 

 

Jon Blackman, M.D., M.S.

jon@pocketinformatics.com

 

Web Hosting

For the new programmer, building the application is only the beginning.  There is still the issue of developing a web site.

How web hosting works

Actually, this turns out to be surprisingly easy.  The only problem is that there are so many choices.  The bottom line is that you choose a web host and pay a small fee to establish your presence on the web.  Prices vary, and some sites are free, so shop around.  Each web host gives you a certain amount of space for your site, and typically you will be able to use the smallest storage option.  Other options include email, FrontPage extensions, shopping carts, and more.  You will usually be charged a flat fee, with some sites charging more if your site has a lot of traffic.

 

These sites are regularly reviewed in the major PC magazines, and you may want to search their archives.  I chose DellHost.  It was relatively inexpensive and seemed to have the features I needed plus the ability to grow over time.

How to obtain a domain address

Again, for those who have not yet established a domain address, this is easy.  The least complicated method is to chose your web host and then use their methods to obtain a domain name and link it to your site. 

 

Another place to start is at Network Solutions http://www.networksolutions.com.

Web Design

Once you have chosen your web host, you need to design your web site.

Microsoft FrontPage 2000 and others

A popular solution for Web design is Microsoft Front Page 2000.  It works well for the individual user as well as small to medium size businesses.  If the web host supports FrontPage extensions, all files on the desktop can be modified and published directly to the web.

 

Some web hosts give the user free tools that must be used on their site.  Also many other programs exist for creating web pages.  Again, the only problem is too many choices.

 

I didn’t look any further than FrontPage, as it was included with Office 2000.  I followed the tutorial in Microsoft Front Page 2000 Step by Step, used Running Front Page 2000 as a guide, and I was up and rolling in a weekend.  I probably could have done it in less time, but I got caught up in all the great themes at PixelMill  http://www.pixelmill.net.

How do you get your application from the Web to your users?

It is not obvious how it is that you can click on an object on a web page and it “magically” starts to download itself to your computer.

 

The answer is that you create your executable file (with InstallBuilder or others), place it on  the web page on your desktop computer, create a link to the file, and upload your files and links to the Web.  When your user clicks on the link, the web browser will recognize that the linked file has an “.exe” extension, and will ask the user if he/she wants to download it or open it.  Simple and elegant.

E-commerce

Now that you can deliver your application, you might want to sell it to others.  A detailed explanation of this subject is beyond the scope of this paper, but there are a few key points worth mentioning (at the risk of over-simplification).

 

Again, this topic is regularly reviewed in the major PC magazines, and you may want to search their archives for a current article. 

Shopping carts

Your web host may offer you the option of a shopping cart.  This is a product that allows you to keep track of items before you send them for credit card processing.

Credit card processing

You have two options regarding credit card processing:  do it yourself or have a service do it for you.

 

If you process credit cards yourself, you need to talk with your banker to determine how this is done.

 

You have two options if you use a service:  a banking service or a commercial software service.

 

If you use a banking service, you will typically pay a monthly charge (perhaps $100) and a small percentage for each transaction.

 

If you use a commercial software service (like PalmGear or Kagi), the service will process the credit card and take a larger percentage of the sale (5-20%) as a commission.  However, this type of service will typically not have a monthly service charge.

 

For each of  these models, the service will send you an email with the user’s email address and whatever other information you feel is necessary to process your order.  These may include name, address, and the Palm User Name, for example. The service will also periodically send you a check, or electronically send funds to your bank, for all sales minus their charges.

Business Considerations

There are still a number of items to consider before you start selling your product.  Although this is mentioned at the end of this paper, these items need to be considered early in your product development.

Develop a Business Plan

You need to think about your business, and it is helpful to write down a business plan to determine where you are headed and how to get there.  You may be able to find help in your community with local business leaders, who often support new entrepreneurs.

 

Elements of a business plan may include the following items:

·  Business History: Provide a foundation which explains what brought the business to this point.

·  Product or service:  Specify the product or service and describe what distinguishes it from others in the market.

·  Market: Explain and quantify the present market and future opportunities.

·  Competition: Provide convincing evidence of having a realistic view of the competitive environment and a workable strategy for penetration and maintenance of market share.

·  Marketing strategy: Describe how the opportunities described in “Market” will be exploited.

·  Manufacturing and operations: Describe how, where and at what cost the product will be manufactured.

·  Management: Describe how the company will be run, by whom, and how they’re qualified.

·  Risk factors: Assure investors that possible risks have been identified and that strategies exist for coping with them.

·  Financials: Provide a quantitative summary of the projected financial performance of the business which is consistent with all other parts of the plan.

·  Overall assessment: Integrity of components; Key strengths and weaknesses; Changes needed to become viable; Would we invest in this? Recommended funding sources.

 

I was tempted to skip this step.  However, I was urged to complete the above checklist by one of my patients, who offered to review it with me.  I finally took his advice, and I  made a number of very helpful changes as a result of this review.

Legal issues

There are a number of legal issues with regard to setting up a business. 

Registering your business

The following checklist was listed in the October 17, 2000 issue of PC Magazine:

 

·  File a DBA (Doing Business As).  Before you begin doing business your should register the venture’s name at the state or the federal level.

·  Get a tax ID.  You will need a tax ID when filing returns, and it’s useful when setting up a bank account for your business.

·  Establish a business address.  If you are starting a new business and working from home, we recommend that you use a post office box rather than your home address.

·  Set up a merchant account.  You’ll need a merchant account to accept credit card payments online. 

·  Be prepared to deliver.  Shipping can be time-consuming and costly.  Initiate relationships with shipping companies or partner with an order fulfillment company.

Trademarks, copyrights, and patents

As a first step, you should visit the United States Patent and Trademark Office http://www.uspto.gov.  There you will quickly find links for FAQs, for searching for current or pending trademarks, and for information on how to register your trademark.

 

Another helpful site is NameProtect  http://www.nameprotect.com .  If you decide to perform a full search before you register your trademark, this is one option.  Be aware that some internet companies charge you for a search of the government registry that your can do on your own for free.

 

You may chose to have an attorney take care of these details for you, and in the end that may be the best solution.  However, it helps to become educated, and these sites will help you get started.

Other legal issues

Keep in mind that that there may be other legal issues as you develop your business, and consultation with an attorney periodically may be appropriate.