March 2018 Posts

What Happened To The Binary Options Industry?

The binary options trading industry is an incredibly easy concept that sounds ideal for anyone who wants to participate in the market with little prior experience. In hindsight, with the simplicity of the process, it’s no wonder how big the industry became. And with how big the industry became, it truly is no surprise that it became one of the biggest breeding grounds for scammers worldwide. Although trading platforms such as Nadex are still fantastic, legitimate trading services, you still need to be wary of the majority of binary options companies out there. So, let’s take a look at the industry as a whole and get a better understanding how all this happened.

What Happened To The Binary Options Industry?

White Labels

SpotOption, an Israeli based software company and platform provider, was responsible for the white label layout used by most of the fraudulent binary options scams. At one point, it provided the platform for 70% of the binary options brands out there. They created a template that any binary options company could use. A turn key solution where all you have to do is fill out your brand logo on the white label and boom – you’ve got a personalized binary options company ready to “trade”. The scammers within the industry started out small, but over time it became the norm. Now, these platforms are almost all smoke and mirrors designed to trap the investments of victims of this fraud.

Kingmaker, Bank Breaker

The most important thing a business can have is good marketing. Everyone wants their name to be the most well-known and that’s where affiliate marketing comes in. As binary options companies began competing for web traffic, the competing price for affiliate marketing steadily rose. As scammers offered larger and larger sums for advertising, legitimate companies had a choice to make: either to lose all traffic and essentially go bankrupt or become fraudulent themselves in order to rake in traffic and keep the lights on.If you can’t beat them, join them. Sadly, the second option tended to be the road more traveled by, and millions of people have been defrauded as a result.

What Is Happening Now?

The binary options market is under siege by governments and authorities all over the world. The FBI, the Israeli police, the London police force, and countless others have been cracking down on these fraudulent operations more and more, with a series of raids and arrests happening since early 2017 on both sides of the Atlantic. With the binary options ban in Israel, the main haven for these scammers, operations are closing down or moving overseas to places with less regulation, like Romania. A simple search on job forums in Israel and you can see for yourself there are many “opportunities” to work abroad – forex/binary experience a plus. Binary options fraud has taken a hit, but the multi-billion-dollar crime wave is far from over.

What Will Happen?

With the downfall of the binary options industry and the survival of the scammers, the binary options fraudstersare quickly pivoting into a new scam: cryptocurrency. Using the same old tactics, the same fraudsters, and the same technology, the scam continues under a different name. Remember that you only need to make a single mistake in order to fall victim to binary options scams and to be as vigilant and educated as possible.

Select Product to Sell Online Strategically and Identify Your Target Audience

Opening a new online business is exciting but the competition is extremely fierce. So, your first step will be to choose the right product, which will affect other decisions. It includes forgetting –

  • Pretty theme
  • Catchy company name
  • Shipping options you wish to offer.

These decisions are crucial but it is even more vital to get foundation based correctly like what product to sell and how to price them.

Select Product to Sell Online Strategically and Identify Your Target Audience

Significance of selecting product strategically for selling online

Online business is comprised of multiple parts and each one gets affected and influenced directly by the kind of items you choose to sell. Without solid product line there will be plenty of uphill battles and struggles before your business starts.

Choosing a niche is very difficult because there are countless options available for choosing. Make sure there is a potential market for the chosen product and you actually earn profits.

How product selection affects other business parts?

Product you choose to sell online will directly impact business –

Branding and design – For example, if you choose to sell auto parts then you will not wish to select a frilly logo or website with pink background. Your brand needs to support your product line therefore make sure they blend flawlessly.

Marketing – Marketing budget and outlets you select will depend on your targeted audience. Target audience will be determined on what your chosen product has to offer.

Your judgment – Remember you will b spending more times with these products. Therefore, sell a product, you find interesting and not get bored soon.

Decision on what to sell as well as who to target online must not be taken lightly. Therefore, conduct a thorough market research. For this let’s look at other aspects more closely.

How to determine your target audience?

Once you determine what product to sell, you will need to consider target market or target audience. Identifying your customer base early helps to plan marketing strategies, set prices, and establish brand story.

For example, if you are choosing to sell motorcycle equipment then the characteristics and traits of your target audience will be totally different than those selling luxury handbags. You can read Zippy Passive Income blog post to get an idea of identifying your target audience.

About your target audience

Basic demographics – It will include statistical characteristics like gender, age, employment status, ethnicity, etc. Getting to know your audience helps to understand potential commonalities of this group.

Psychographics – Psychographics focus on personalities, activities, interests and more. Understanding their behaviours and attitudes empowers you to fulfil their needs and wants.

Price sensitivity – Does your product line fall in synch with target audience budget? Does your product compel you to stay focused on economical shoppers, high end consumers or in-between?

Customer motivation – Develop a customer profile using questions like – why is your consumer searching this product? What will compel them to buy? Are they buying practical things or luxury goods? Are they worried about seller’s reputation or price?

Extra perks – Countless online retailers sell the same product as you. It is crucial to make your business stand out. Consumers find extras appealing like stellar customer service or free shipping.

After getting an idea of your target audience, it is time to connect. Use or join same social channels, forums, clubs, online discussions, etc. Offer solutions to their issues besides selling products. Establish yourself as an expert, which allows building trust and credibility amongst consumers.