Thread: Critique my site layout and business plan

I’ve been juggling the idea of starting a conventional type business like an e-commerce store or drop shipping biz but I’ve had this unique idea for a while and I’d like to know what you think.

Basically this is a niche site about auto racing that allows fans the opportunity to read reviews and information about certain tracks and races. I’ve learned that starting businesses that help people is key to success and I’ve also learned that there is a market for a site like this.

The design

I’m not a web designer by any means, I just did this layout on Microsoft Word so I know what to how my web designer.

The home page is basic which is what I’m aiming for. When the user arrives on the homepage the title is on the top and there is a table of about 20 or so tracks listed. Ads will be displayed on both sides and the user can choose what track he/she is interested in viewing. Here is a rough sketch of the home page:

http://i81.photobucket.com/albums/j2...itedesign2.jpg

After the user chooses a track a new page will appear with which the site is based on. Here is what that page would look similar to:

http://i81.photobucket.com/albums/j2...itedesign1.jpg

I'll be managing all the pages with Joomla since my designer is building it using open source management.


The Business Side

So I feel like I have the mechanical side finished but I’m still working on the numbers. The site will produce the majority of income from advertising and affiliate sales. As you can tell from the second page, I will be using Orbitz and GreatSeats.com as my partner companies.

Orbitz affiliate program looks like this:

What can we offer you?

• We pay commission on:
  
  • Air: $5.00 USD for each air ticket
  • Hotels:
    
    • $6.00 USD for each retail hotel transaction
    • $12.00 USD for each merchant hotel transaction
  • Car Transaction: $4.00 USD for each car transaction.
  • Cruise Transaction: $25.00 USD for each cruise transaction.
  • Vacation Packages: $30.00 USD for each vacation package transaction.

GreatSeats.com offers 8% on all tickets which is the best I could find. $8 on a $100 transaction doesn’t sound amazing but the Orbitz numbers don’t look amazing either. I personally wish I could sell the race tickets directly but I’ve been researching for hours and I can’t find any way to do this.

This is where I’ve decided to bring in advertising. I was thinking about Google Ads but that seemed a bit slowlane. I’m now thinking about having my web designer leave advertising spaces and then sending out a business letter offering advertising space for race tracks and their races. I think if I could establish sufficient traffic I could make a killing because race track promoter’s marketing budgets are huge. Overall the site design is going to cost me about $500-$1,000.

I’d like to ask you two questions:

1.) Is it too risky to bank the success of my site on advertising? Would affiliate sales be able to carry my expenses?
2.) What do you think of my idea?

Thank you

Originally Posted by djs13

I’ve been juggling the idea of starting a conventional type business like an e-commerce store or drop shipping biz but I’ve had this unique idea for a while and I’d like to know what you think.

Basically this is a niche site about auto racing that allows fans the opportunity to read reviews and information about certain tracks and races. I’ve learned that starting businesses that help people is key to success and I’ve also learned that there is a market for a site like this.

The design

I’m not a web designer by any means, I just did this layout on Microsoft Word so I know what to how my web designer.

The home page is basic which is what I’m aiming for. When the user arrives on the homepage the title is on the top and there is a table of about 20 or so tracks listed. Ads will be displayed on both sides and the user can choose what track he/she is interested in viewing. Here is a rough sketch of the home page:

http://i81.photobucket.com/albums/j2...itedesign2.jpg

After the user chooses a track a new page will appear with which the site is based on. Here is what that page would look similar to:

http://i81.photobucket.com/albums/j2...itedesign1.jpg

I'll be managing all the pages with Joomla since my designer is building it using open source management.


The Business Side

So I feel like I have the mechanical side finished but I’m still working on the numbers. The site will produce the majority of income from advertising and affiliate sales. As you can tell from the second page, I will be using Orbitz and GreatSeats.com as my partner companies.

Orbitz affiliate program looks like this:
GreatSeats.com offers 8% on all tickets which is the best I could find. $8 on a $100 transaction doesn’t sound amazing but the Orbitz numbers don’t look amazing either. I personally wish I could sell the race tickets directly but I’ve been researching for hours and I can’t find any way to do this.

This is where I’ve decided to bring in advertising. I was thinking about Google Ads but that seemed a bit slowlane. I’m now thinking about having my web designer leave advertising spaces and then sending out a business letter offering advertising space for race tracks and their races. I think if I could establish sufficient traffic I could make a killing because race track promoter’s marketing budgets are huge. Overall the site design is going to cost me about $500-$1,000.

I’d like to ask you two questions:

1.) Is it too risky to bank the success of my site on advertising? Would affiliate sales be able to carry my expenses?
2.) What do you think of my idea?

Thank you

1) No, I wouldn't consider it risky. The only risk you have is if the visitors you have accumulated decline and/or if the visitors you have on your site is badly matched against your advertisers services (means the advertisers will get lower sales convertions, hence making your service less desirable).
2) What I think of your idea is basicly this:
-You need to do is get unique visitors to your website. The visitors need to match the advertisers products/services. A specialized DM campaign would be smart. Would raise your start-up budget a bit, but would reach the right crowd directly. Visit DMA's website and ask them to connect you with quality list owners (DMA = Direct Market Association). Then rent a list and make your offer to the list. Write it yourself or have a copywriter write something for you.
-Wait for the response and then have the visitors sign up on an opt-in maillist when visiting your website. Try to get as much information about them as possible so that you can describe your opt-in list to the advertisers. The more the advertisers know about what they pay for the easier it will be to convince them to advertise.
-Have every advertiser to sign up on a 12 month advertising agreement. Don't agree to month by month advertising. You need to secure cashflow for a year so as to know you aren't going out of business next month. It makes it easier to run a business that way.
-If you have an opt-in mail list then you could use that mail list as a treat (extra value) for the advertisers. So as to increasing their brand awareness to your opt-in readers.
- In your opt-in maillist you can also offer sponsored articles about your advertisers corporations. Have them pay extra for this or raise the month-by-month price and offer the sponsored articles free of charge.

Just some tips you might want to try out.

DJ,

How is this venture been going?

Would you be able to explain the processes, design and management software that you have gone through so far and how was your experience with the developer (I assume you have already approached a developer judging by what you have told us)? I have read some great posts especially from servicefly but another perspective couldn't hurt.

There really is no community based 'web 2.0' site for racetracks and events. As far as interactive sites for cars there is exotic forums (like LP, FChat, Sixspeed) but as far as I am aware nothing for race tracks or race series.


Perhaps a portal could be developed in sections like so:


1. A home page based on a similar system to Digg where users can submit news and reviews about race tracks, F1 races, Nascar races, news regarding these races etc. and vote an article up or down based upon the quality of the post. Clicking on an article would lead the viewer to section 2 of the website where they could read the full article or otherwise would lead to the site the article originated from if it is not original content.

2. Branching off this would be a Blog/News site where the articles are posted by yourself, users or editors. Readers would be lead to this section if they choose to click on an article from the home page that is hosted on and written originally for your site.

3. A third facet would be a forum. Due to the fanatical fandom of Nascar, F1 etc this would have the potential to be a popular forum for race and car fans. A community could develop here which would create loyalty (look at the bodybuilding.com forums to see what I mean)

4. The fourth facet would be the main revenue source. Race track owners, driving schools, race promoters, car tuners etc could pay a membership fee for a profile which would give them the opportunity to promote their business, pimp out events. Fee paying users would have various levels of access depending upon what they pay ranging from the ability to post articles to the ability to send mass PMs to users.


I probably did not make myself very clear I am quite tired right now and battling to stay awake but essentially offering users the ability to produce content and rank it (forums, news sections and home page) and advertisers the ability to promote their businesses and also produce content would be the makings of a good social network with a healthy user base.

I will shoot you off a PM on another matter so when you get the chance check it out.

Hey Michael.

I actually never went through with this venture. The idea was unique and helped the customer (which is critical) but after reading MJ's post about being the driver not the passenger, I realized that profiting off of Orbitz and NASCAR.com affiliate products was a hard way to make a profit. I don't think I was thinking big enough when drawing out this plan.

But yes, I sent you a PM and an e-mail with an attachment so check that out and tell me what you think.

-- DJ

Originally Posted by djs13

Hey Michael.

I actually never went through with this venture. The idea was unique and helped the customer (which is critical) but after reading MJ's post about being the driver not the passenger, I realized that profiting off of Orbitz and NASCAR.com affiliate products was a hard way to make a profit. I don't think I was thinking big enough when drawing out this plan.

But yes, I sent you a PM and an e-mail with an attachment so check that out and tell me what you think.

-- DJ

Interesting you mention that, you should not assume your first site out of the gate is going to launch you into exponential wealth. While being an affiliate of those comapnies might not make you a million, you will gain something more valuble. the experience of what works and what does not. My sites have been through revision after revision from re-learning basics. the more i learn the more i see where to profit and what i did wrong in the first step. you improve and if it doesnt work in the end you still made a little or atleast gained a lot of knowledge. My advice is to go for the site or atleast take action with something and learn as you go.

Hey Lighthouse.

I agree with you. I think my biggest problem is my limited funding which has made me think twice about launching some projects that won't see any returns. I agree though that sometimes it's better to "ready-fire-aim" because learning by doing is the best way. I have literally a handful of potential ventures and their business plans and I'm going to pull the trigger on one of them by the end of November. I'm just verifying which one I'm willing to risk some of my savings on.

Limited capital can be good it teaches you to get your hands dirty. i started what i had with literally $0 now i know a lot of what i know by doing, learning, and doing some more. Now i am capable of better management because i have been there done that so i can give better direction when i hire out, allowing me to manage more efficiently. of course you don't want to go in blind folded, but there is a lot of OS software out there that you could at least download and learn in baby steps. with the Internet you can virtually teach yourself as a search term is a type away to figure something out. Good luck in what you decide to do!