Product creation could be a frightening subject for a lot of Internet marketers to face. Some folks who get in the game with the intention of making a full time income are completely ignorant as to how an online business operates. One of the most profitable ways to create online cash is by creating a product that others are happy to pay for.

Product creation is legitimate method of generating money through internet marketing but many entrepreneurs get it wrong. They start by imitating their Internet marketing gurus by creating information products on Internet marketing in hopes of getting rich the way their heroes did. The problem is that they usually don’t know what they are doing and enter a highly competitive niche with very little marketing experience or connections.

Here are a few tips for effective product creation that may help you get on the right track:
Start by finding a profitable niche with low to moderate competition. If you conduct some rudimentary market research and keyword research, you’ll find many opportunities in areas that will surprise you. Amazon and eBay are two great places to brainstorm for product ideas.

Developing Your Product does not have to be a difficult project. You can find experts in the right field for your niche and pay them to write the material while an artist designs the packaging and website or blog. You can outsource the entire product creation part of the project after you conduct the research and testing to ensure profitability.

Sales and marketing strategies should be created while developing the product and learning about the market. Some experienced marketers use pay per click to drive traffic to their offer page; some folks outsource the entire marketing campaign to affiliates through ClickBank or other affiliate programs.

Product creation does not need to be hard, particularly when the merchandise is electronic. E-books, videos, audio and multi-media products sell very well. They are distributed immediately to customers electronically. Once you have a good feel for a niche market, try to service your customers with associated products and upgrades. If you want to earn money online through product creation, you must understand supply and demand. The majority of new online marketers fail miserably because they go after highly competitive markets or forget to research their chosen niche properly. You have to create your products according to the needs, wants and desires of the prospective customers.

It wasn’t always as easy to start a legitimate home-based business as it is now with the advent of internet. There are numerous home-based businesses out there but the sad part is that there are even more scams. If you can weed out those scams, the possibilities of legitimate home-based businesses are limitless. I am sure that you know several such success stories where people started their home-based business and went on to become successful millionaires.In this article I am going to list top 4 legitimate home-based business opportunities available on the internet that can be started with little or no capital.Information Product PromotionPeople are hungry for information. There are thousands of paid information products available on the internet and marketers promote them every day as their full time business. If you are an expert on a topic, you can create your own product or you can promote other people’s products as an affiliate. Many websites provide affiliate programs where you can promote products created by other people and earn 30% to even 90% commission. ClickBank is one such website that provides a variety of good quality product that sometimes can also be very easy to sell because all the work from developing a product to creating a sales page has already been done by experts and all you have to do is send visitors to the sales page through your affiliate link. This is probably one of the most profitable legitimate home-based businesses.ServicesThere is a huge market on the internet for service providers and freelancers. If you have skills you can leverage on your entrepreneurial drive such as graphic designing, copywriting, web development or maybe you are a research expert – you will always be able to find a huge demand for your services.ConsultationIf you are an expert, having a legitimate home-based business should be no problem for you – you can provide your expert advice through consultation services. For instance if you are a child psychology expert or a business reputation management expert, you’ll find that there are plenty of people out there who need your expert advice and are very willing to pay for it. Usually social networks like LinkedIn, Facebook and Twitter are great places to build credibility and find clients who need your help. Having a business website and writing for different publishing networks as an expert is a great way to promote your consultation business.Blogging for MoneyThe best thing about making money with blogging is that you do not have to be an expert on your topics. Some bloggers would disagree with this but the fact is that there are many well monetized blogs that are not maintained by experts. You can monetize a blog by contextual and banner advertising using programs like Google AdSense. Lead based CPA offers – provided by sites like NeverBlueADS are also great for monetizing a blog. Another great way to monetize a blog is by posting paid reviews for other websites. There are different websites that can help you find clients who want to buy reviews on your blog. SponsoredReviews is one such service but there are many more out there. Last but not the least, you can promote affiliate products from your blog by posting reviews with your affiliate links. These are some of the reasons why blogging has gained so much popularity as one of the legitimate home-based businesses today.

Marketing includes matters such as pricing and packaging of the product and creation of demand by advertising and sales campaigns. There are other options, of course, like product creation, resale rights marketing, joint ventures and the likes, but they are merely secondary to the above.

If you take the freelance route, it is important to ensure that all rights to profit from the final product, or any materials produced in its making, remain yours. Bookkeeping, physical product creation or delivery of goods can be done better with specialized help. Determining the purpose of the product is vital in niche product creation.

Implementation of Methodology – The choice of implementation of Six Sigma methodology depends on whether development is required on existing processes (DMAIC) or on new process/product design creation (DMADV). Determining what you really want to sell, something that you can be relaxed selling is the first step at the creation of a niche product. With the technological advancements in the hosting industry, from automated control panels and scripts that simplify creation of accounts; to complete turnkey solutions, there is no excessive need to worry about spending time on the actual product sold to the customer.

For instance, you should be prepared to either perform yourself or to subcontract the completion of the following tasks:- Product idea research (are there any existing products or patents already existing for this idea)- Product specification document training (what it will do, how it will look, how will it be powered, and how the user will interface with it)- Marketing study (what it will be named, who would buy this, how much would they pay, how will we get customers to purchase the product)- Schematic or electronic circuit design process- Creation of a bill of material or BOM and an approved vendor’s list or AVL for each component in the design, preferably with multiple sources identified, with a BOM and AVL for each assembly level in the product- Printed circuit board layout design process (single sided board, double sided board, or multilayer board; size of the PCB; board material)- Mechanical packaging design with user interfaces (displays, buttons, switches, key. This removes all product creation costs from your budget as a marketer.

No other database of affiliate programs offers such a possibility for profit on either the affiliate side or the product creation site. Your chosen niche should allow for the creation of more than one product or service.

There are several marketing strategies that are necessary in the creation of a successful e-commerce web site – Email marketing (broadcasting) of prospects/customers – Effective use of auto responders (generate automatic email messages) – Online Newsletter – Online Form / Survey to capture your prospect’s email address – Electronic Product Delivery (if you sold a digital product) – Advertisement (Ad) Tracking – Back End Sales – Affiliate program etc.