What Are The Steps In Creating An Online Business

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Many people ask me what are the steps in creating an online business. The answer is amazingly simple. But today, I’m going to make it even simpler for you.

There are only 3 steps in creating an online business.

Step 1: Select an online business model
Step 2: Create a website that executes the business model
Step 3: Promote the hell out of it!

Step 1: Select an online business model

There is one powerful online business model that I particularly prefer.

This business model was popularised by Mike Filsaime, who named this model as Butterfly Marketing.

Here is how the model works:

- You giveaway something that people want, in exchange for their email addresses.

- When these people opt-in to your list, you present them with a one-time-offer, usually a high value product at rock-bottom price. The conversion rate for a one-time-offer is usually 10%.

- You run your own affiliate program and encourage your subscribers to refer more people to your site.

- You can follow up with your list, recommend more products to them and make more sales in the future.

I like this business model because of 3 reasons:

1) You are building a list.
2) You make instant cash!
3) It’s a viral model, where your subscribers become your affiliates, who in turn refer more people to you.

So now you have it, a powerful business model that you can use to create an online business.

Let’s move on to step 2……

Step 2: Create a website that executes the business model

So, how do you create a website that can do everything that I mention above?

In short, you need a script.

Please don’t ask me what is a script. All you need to know is if you install a script to a server, you can have a website that can do all kinds of stunts that the script wants it to do. For example, if you can find an Ebay script and install it, you’ll get a website similar to Ebay. Get the idea?

So where can you find such a script?

You can either buy a ready-made one or get a freelancer to write one for you. A simple script will cost you about a hundred dollars. A multifunctional one can cost you a thousand dollars.

And here comes the good news……

I’ve created one for you, for free!

The script I’ve prepared for you comes with the following features
- everything discussed in Step 1
- a banner rotation system
- an exit popup system
- a complete autoresponder and list management system

We’re still working hard to wrap up everything and should be ready to deliver to you next week. But today, I would like to take this opportunity to give you a preview.

Take a look at the demo site here > User Demo

Take a peep into the demo Admin back office here > Admin Demo

Like it? It will be yours soon if you are a LeadsLeap member. (If you are not a LeadsLeap member yet, it’s not too late to join us.)

Ok, now that you know how to create a website that executes the business model, let’s move on to Step 3.

Step 3: Promote the hell out of it!

Well, just promote the hell out of it using all the traffic generation methods you have read, heard and seen. There is no short cut to this step.

There you have it - the 3 simple steps in creating an online business. I hope next time, you are the one who answer this question “What are the steps in creating an online business?”.

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    110 Comments »

    Comment by Colin Klinkert
    2008-10-18 01:30:08

    Nice Post mate, 3 simple steps, if you master them you’re golden… Keep em coming

    Comment by streetsmart
    2009-09-22 09:47:15

    Thats great……

     
     
    Comment by Mary
    2008-10-18 04:20:53

    Yes, I like it a lot! I am still curious about what is in the admin area. But I look forward to the finished product!

    Comment by Kenneth Koh
    2008-10-18 10:52:00

    Mary, you don’t have to be curious. You have access to the admin area via the link above. Take a look at it now and look at all the features available.

     
     
    Comment by Larry Cribbin Subscribed to comments via email
    2008-10-18 04:33:49

    I might be thick but could I use this with other programs i’m involved in!?

    Comment by Kenneth Koh
    2008-10-18 10:57:47

    Larry, whatever program you are involved in, this script can promote all of them (well, provided they are all targeting the same group of people). The business model that the script delivers is THE BASIS of some of the most successful internet business out there. Build your own list, make instant cash for future growth and keep growing your own business. If you can achieve this, you can promote any other business you want.

     
     
    Comment by Marc Marseille
    2008-10-18 05:49:39

    Ilove it Kenneth..How soon will be able able to activate it and start promoting. You said next week,is is Monday?…I’m ready!

     
    Comment by Jill Webb
    2008-10-18 06:52:30

    Looks like you’ve come up with an amazing idea Kenneth. Can’t wait to find out how and when I can get started!

    Thank you once again for your continued good advice and practical support.

     
    Comment by Tom Goymour
    2008-10-18 07:10:21

    Kenneth, if this works as smoothly as it sounds (and i have no reason to doubt it!) then you might just have solved one of the big all time problems for beginners; - keeping it simple but also effective.
    I can see how this will work with something I am working on of my own at the moment, and as that also includes Leadsleap as a primary program it should hang together well.
    I look forward to getting access to the finished product

     
    Comment by Tracis Subscribed to comments via email
    2008-10-18 08:30:30

    This sounds totally awesome. I’ve trying to figure out how to make my own splash page and what is that people would what of value that I can give for their email. I’m kind of starting to figure out that promoting you busines outright is somewhat a waste of time. But my list seems to be growing with some of the things I have been learning and this will be very helpful.

     
    Comment by keith amburgey
    2008-10-18 08:30:34

    Kenneth,
    This sounds like what I have tried to find since I have been on the internet, today has been rough and you in 5mine have brightened it, Thanks Man
    Keith

     
    Comment by Timothy Millar
    2008-10-18 08:57:27

    Lovely Idea, I really look forward to learning all there is to this and saving a ton of money in the process. I have a blog already but my question is ; How do I incorporate it with the site?

    Comment by Kenneth Koh
    2008-10-18 11:02:40

    If you already have a blog, it would be better to install this script to a new domain. It would be perfect to have the script and a blog to work together. The script is your list building weapon. Your blog helps you to build a long term relationship with your list. Nothing is more perfect that that.

     
     
    Comment by Rich
    2008-10-18 09:12:24

    Looks great Kenneth, I will be looking forward to seeing the completed site. Still I have the nagging problem of finding a product or service that will be perceived as a great value.

    Thanks again:

    Rich

    Comment by Kenneth Koh
    2008-10-18 11:06:57

    I’ll address this issue in my blog in the near future, probably the next issue.

     
     
    Comment by Traci Subscribed to comments via email
    2008-10-18 09:47:36

    I think this will be such a helpful tool for everyone trying to figure out how to get leads. I’ve sort of realized that promoting your business outright isn’t helpful and have been trying to come up with better ideas on what is it that people online want and consider to be valuable so that I can design squeez page to give things of value to gain subscribers. I’m learning but I’m not quite there yet.

    Thank you Kenneth for helping us all out.

     
    Comment by Jaunesk
    2008-10-18 10:17:32

    Hi Kenneth

    I like your step 3 promote the hell out of it. I was talking to a friend 2 days ago and he was interested in those autopilot money making scheme, I remember I told him what ever the scheme sales letter is saying, you still need to do one thing, that is Marketing and Promotion to build your business.

     
    Comment by John
    2008-10-18 11:41:56

    Nice work Kenneth,

    I have a question: Can this great tool only be used to email to the same list, or can it be set up with multiple lists for different products.?

    Comment by Kenneth Koh
    2008-10-18 12:39:30

    There is only one list in this script. You must understand that this script is powerful for you to build a list in a broad niche such as internet marketing or weight loss for example. If you want to build a list on weight loss, then you should create a new domain, install this script and give away a weight loss related product and build a list on weight loss. Same goes for internet marketing or any other niche.

     
     
    Comment by John
    2008-10-18 13:03:01

    Hi Kenneth,

    So if I understand you correctly I can use the script on multiple domains ?

    Comment by Kenneth Koh
    2008-10-18 18:25:09

    Yes, of course you can.

    Comment by Amy
    2008-10-19 15:56:51

    hi Kenneth,

    This is a great tool,simple and easy for beginners and those without html knowledge like myself. With reference to the comment by John and your reply, does it means that let say I have 2 online affiliate items to promote , one is physical item and the other is a digital item. Do I need to register 2 domains for this 2 product and use the free script you provided to promote both this products ?

    Comment by Kenneth Koh
    2008-10-20 12:18:47

    Yes if these two products are in different niche. But if both are in the same niche, it’s better to just build one list.
    I don’t advice you to build many minisites with this script. You will do better by focusing on a niche, such as the internet marketing niche, and establish yourself in that niche.

     
    Comment by Amy
    2008-10-20 17:51:22

    thanks Kenneth for your reply and advice.

     
     
     
     
    Comment by Lynne
    2008-10-18 13:29:09

    I love you and I want to have your babies. All of them. But give me the website first. lol Thanks, thanks, thanks…what a great guy!!!

     
    Comment by Niranjan Ranade
    2008-10-18 13:56:35

    Thanks Kenneth for everything. You are great! Membership model does work well & I am sure your membership script will help many newbies to become expert internet marketers. I look forward to downloading the copy soon :)

    Comment by Kenneth Koh
    2008-10-18 18:31:41

    One thing you need to note is that the script is not a membership website. A strict membership website requires login ID and password for its subscribers but for this script, there is no login for subscribers. The advantages are it encourages more people to opt-in and there are less admin support to be done. The disadvantage is it’s not a membership site.

     
     
    Comment by Brigett Subscribed to comments via email
    2008-10-19 01:44:23

    I think this is a great idea. You mentioned it will go well with any niche. I can see how it will go well with offering a free product. What do you think about offering a free service? How would it go with an affiliate membership already in place?

    Comment by Kenneth Koh
    2008-10-19 09:38:37

    The script is so flexible that you can offer anything. For free service, instead of giving them a download link, you can give them access to a separate webpage that has the details of how they can subscribe to your free service. As an OTO offer, you can offer a cheaper deal for your existing membership program. Again, in the OTO download page, instead of giving them a download link, you give them a link to a page where they can subscribe to your membership at a discounted price.

    Comment by Ti Tom Subscribed to comments via email
    2008-12-24 14:06:15

    Wow I love this Kenneth.

     
     
     
    Comment by Sophia
    2008-10-19 03:46:42

    Brilliant!

     
    Comment by Norm Subscribed to comments via email
    2008-10-19 19:15:45

    Promote the hell out of it!?

     
    Comment by Kosta
    2008-10-20 20:09:43

    Hi Kenneth,

    I think this is a great IDEA. 2 Questions only.

    If PayPal is not willing to pay money to South African citizen, will I be able to add say AlertPay or ClickBank to the script, else if will be of no use to me.

    Were will the autoresponder be hosted?

    Regards

    Comment by Kenneth Koh
    2008-10-21 10:22:25

    Good question.
    1. It supports Paypal only. For other payment modes, you’ll have to modify the script a bit or we may come out with a version for Alertpay (Very likely. If I forget, just send in a support ticket to remind me.)
    2. Everything will be hosted in your server, including autoresponder. There is no need for you to get other autoresponder service.

     
     
    Comment by tmobil8
    2008-10-21 01:29:08

    Greetings Kenneth, Thomas Richmond here, are you sure theres only 3 steps? LOL Thanks for keeping in touch my friend. Till next time!!

     
    Comment by Gerald Lum Subscribed to comments via email
    2008-10-21 22:37:20

    Kenneth, I cannot believe you are giving away for free! This is way too good to be true! How I wish I have this kind of system long time ago! It make our work easier and save ton of money! You deserve my respect more than other “Gurus” squeezing our money out there. 2 thumbs up!

     
    Comment by Jimmy Williams
    2008-10-22 07:20:40

    Kenneth, just imagine this script along with a highly optimized seo blog, along with a simple-yet-powerful marketing plan. Almost any nich would be easy to onquer. I am enjoying gathering great info from you and applying it to my marketing place.

    Thanks,
    Jimmy
    http://thenetworkmarketingplace.com

    Comment by Kenneth Koh
    2008-10-22 09:34:36

    Jimmy, you can’t be more right than that! Install this script as the main page, then start a subdirectory named domain.com/blog. Pretty much like what we’re doing at LeadsLeap. This is the ultimate way to build a strong business in any niche.

     
     
    Comment by giveawayclub.com
    2008-10-22 07:46:03

    All the components of making a list is already in place. This is a great tool for newbies and those struggling to build a list. So watch out for it….

    Jeanny
    http://www.giveawayclub.com

     
    2008-10-22 10:12:49

    Wow, now this really is exciting. Build a List and Build a Business at the same time. I am on it.

    Thanks Again Kenneth

     
    Comment by Frank Salinas Subscribed to comments via email
    2008-10-23 01:52:09

    Great post and good script Kenneth. I have been doing exactly what you mention using a well-known script and getting great results. Example Here

    I have been giving away one of my $27 products on a special page and when the visitor opts in to get the product, they see an oto of related IM products. Once they download my product after they buy or pass on the oto, they are told how they can make money giving away the same product. Since they just went through the process themselves, they know it works.. I have added over 600 members to my list in about 3 weeks. Pretty powerful stuff. If you can help your subscribers make money, they will stay with you longer and look forward to your emails to see what else you have going on.

     
    2008-10-23 05:46:03

    Wow! What more can be said? This is absolutely amazing! I have already downloaded the script, but I think I need my husband to help me figure out how to install it and to “green light” with me on what to give away, domain name, niche to use, etc. Kenneth, you have gifted us with more than I have ever seen yet in my several years of searching on the internet! I’m so glad I found leadsleap! From what I am understanding, you are encouraging us NOT to go with a micro niche, but rather with a broader audience. Am I right? And if so, what is the reasoning behind that approach? Thank you, thank you, thank you!

    Comment by Kenneth Koh
    2008-10-23 11:53:42

    I’ll address this issue in my next blog post. But generally, you want to be in a niche that is worth your effort. If I were to spend time building and nurturing a list, I’d want to make sure that this list of people will keep buying things and their interests are not likely to fade away after a while.

     
     
    Comment by Norm Subscribed to comments via email
    2008-10-23 07:12:30

    Thank you very much, that will come in handy with my niches as I create them, great work! It will work well with my current niche, bravo!

     
    Comment by David
    2008-10-25 23:44:47

    hey this is so cool…all dream come true!

     
    Comment by Kosta
    2008-10-25 23:53:33

    Can I install the script on a GDI site?

    Comment by Kenneth Koh
    2008-10-31 23:08:37

    Yes you can.

     
     
    Comment by Norman Subscribed to comments via email
    2008-10-25 23:58:29

    Truly a great way to get traffic. If I could honestly show you a way to generate residual income simply by taking a look at my website, wouldn’t it be worth taking a look for yourself to see how it’s possible? http://www.2dollarprofitsystem.com/r/wealth4all/sendinfo.html

     
    Comment by David
    2008-10-26 00:19:08

    kenneth, i hv an existing autoresponder wit getrespnse, where i m currently building my list. Question, does yr script allow me to forward the new subsribers from yr script to my existing getresponse autoresponder? pls advise

    Comment by Kenneth Koh
    2008-10-31 23:14:21

    No. I don’t think getresponse allows you to do that too. I suggest you build two lists. One with getresponse and one with the script. If you find that your list is growing faster with the script, transfer your getresponse subscribers into your script list. This can easily be done by getting a freelancer to do it for you or if you are a technical person, you can do it yourself.

     
     
    Comment by Gremar Subscribed to comments via email
    2008-10-26 00:37:11

    Hi Kenneth,

    this is wonderful, as i was about to suscribe to one of the autoresponder service but when i got your article and read about the new script that can do completely to start my online business and build my list…i was relief totally…its been very very helpful to me as a newbie…goodluck and looking forward to your continous support to all the members of leapslead..

     
    Comment by Joseph Dabon Subscribed to comments via email
    2008-10-28 20:56:49

    Kenneth,

    I like your steps in making a successful on-line business. it is direct to the point, no-frills approach to things.

    The “promoting like hell” is the rub. I still don’t know how to do it after almost a year bumming the Internet hi-way.

    Can anyone please help me?

    Joseph

     
    2008-10-30 18:48:17

    As always some great info for everyone.

     
    2008-10-30 19:04:22

    Thanks for the info, you really have made making money online alot easier.

     
    2008-10-31 23:14:46

    Yes, I agree, many ways to make money online, its just a learning process

     
    Comment by Jerry Ash Subscribed to comments via email
    2008-11-01 20:00:02

    Thanks for the online download of a very useful script.

    I am leaving Inside Knowledge magazine to develop the start up of a new magazine called Smart People which will help people understand the empowerment the Internet and social networking has brought to them and how they can use it to their advantage at home, work and play. It’s the other end of ‘Knowledge Management’.

    Anyway, I was wondering if you had a line on a standard script for managing an online periodical. I guess I could steal one from another magazine?

     
    Comment by njee Subscribed to comments via email
    2008-11-07 02:34:48

    Hi, I have been dreaming about something like this and looking for something like this for long , sooo good for newbies , as i noted above about payment only through pay pal. Please add a mobile phone payment option as this would increase the number of customers willing to pay for the service/products i will offer.

    “The number of mobile phone users worldwide soared to over 3.3 billion last year” source from Google search.

    Thanks for everything.

     
    Comment by Brian Lawrence
    2008-11-08 03:06:04

    Thanks Kenneth,

    It seems as though there would be more
    to this than just these three steps. Many
    are not aware of the fact that it is just
    this simple to start earning here on the
    Internet. It is very much appreciated
    all that you do offer someone trying to
    get start make some money here on
    the Net.

    Thanks again,

    Brian Lawrence
    bmlawr

     
    Comment by EarthFriendlyBiz Subscribed to comments via email
    2008-11-08 03:18:21

    Some ideas are long and drawn out, others are quite simple, depending on what it is your are promoting or trying to sell, that has been my experience to date.

    Lots of ideas are forming here, and thanks for the comments posted here

     
    Comment by Laurie Neumann
    2008-11-08 06:04:53

    You have given us good information.

    Another business model I like is affiliate marketing. This is where you would sell someone else’s products and earn a commission every time you make a sale.

    Affiliate marketing does not require that you have your own product and is inexpensive to start.

    YOu can choose a niche and build a website around it. Then find affiliate products to offer that are related to that niche.

     
    2008-11-22 08:46:20

    don’t forget to promote while making it very SEO friendly for all the readers, visitors and possible clients/customers.

     
    Comment by Claudia Subscribed to comments via email
    2008-11-27 17:20:37

    I’m ready to get my feet set to run. I’ve been reading and learning how to set up a blog. I would also like to link this site to my blog and Skype account. I’m ready for the challenge. Thanks a lot.

     
    Comment by Majella
    2008-12-21 09:30:52

    This is a great site with very valuable information. I will definitely be coming back to learn more.

     
    Comment by Ti Tom Subscribed to comments via email
    2008-12-24 14:08:31

    Wow I love this Kenneth. You are the King of guru.

     
    Comment by Hyla Weimann Subscribed to comments via email
    2009-01-20 20:15:29

    Hi,
    This all sounds very good but I have a problem. I live in South Africa, and we cannot use PayPal to receive money, although we can pay through them. This has been a very frustrating battle for me as most places only use PayPal.

    Is there a way to a different payment processor at all.

    Thanks for everything,
    Hyla

     
    Comment by Rashmi Subscribed to comments via email
    2009-01-20 23:23:06

    Great Post. As always, I do learn a new thing, when I come to your site.
    regards
    Rashmi

     
    2009-01-30 14:29:51

    Hi,

    Excellent post!

    I just downloaded the script and plan
    to use it in relation to a new product
    I’m developing.

    Thanks! You’ve delivered!

    All the best,
    Laurie

     
    Comment by Damji Dharamshi
    2009-02-08 01:08:32

    This is great script, I like it & looking forward to use the same.

     
    Comment by Caroline Schukraft Subscribed to comments via email
    2009-02-25 07:01:33

    I am trilled to have read the script. I just cannot wait to find out more. The help and information that you give is revolutionary. I must say. I am looking forward to learning more.
    Thanks So Much,

    Caroline Schukraft

     
    Comment by Arian van Osch
    2009-03-01 05:45:31

    I totally agree about building your own list. It`s the important thing to do. When you have your own list you can make money. I was told that you can make $1 per subscriber each month, I don`t know if that`s true but that`s what I`ve heard.
    what are the steps in creating an online business

     
    Comment by Make Money Malaysia
    2009-05-27 19:14:23

    the 1st step is a stumbling block.

     
    Comment by Jesse Avalos Subscribed to comments via email
    2009-05-28 12:16:29

    An investment in knowledge always pays the best interest.
    Definitely gain info. here…

     
    Comment by Owais
    2009-06-20 12:22:27

    Yes..i agree..
    The whole process of SEO is a great mess…
    You got to be a master in this field to earn a good reputation.
    By the way..
    Nice Post : )
    I also got a lot of information on my blog that will help people getting the most money out in the least possible time.. Have a look on Earn more money NOW!

     
    Comment by joe w.
    2009-07-07 19:23:38

    Great post Kenneth. Thank you :-)

     
    2009-08-11 18:14:45

    This 3-guide steps is useful for every newbie who have the interest on succeeding online.

    Now, I’m putting too much effort on step 3, which is to promote my blog in order to get a massive traffic.

     
    Comment by Debs Williams
    2009-09-13 18:25:46

    This is an incredible system you’re offering Leadsleap members Kenneth. Newbies and even more seasoned marketers can make great use of this to increase their list and build their business.
    You are truly an over-deliverer :).
    Debs

     
    Comment by WebpageLottery
    2009-09-15 02:05:35

    I think promoting website is the hardest part!

     
    2009-10-27 21:27:35

    I am just on the verge on starting an online business and I hope your three simple steps will help me reach my goal.

     
    2009-10-28 15:30:52

    Thanks to you, online business looks so easy…very helpful post.

     
    2009-11-13 16:09:29

    Hello,

    Most of people make it easy when it comes to teach how to start an internet business!!! But, in reality it’s NOT. If it’s that easy why do most (95% or more) people fail to make any money online?

    Starting an Internet business is not three steps a way from getting reach or even making few bucks. Starting and managing an internet business is not as easy as driving a car to the grocery store, or doing your grocery for that matter.

    I know we can’t teach people how to start an internet business in one blog post, but we can make them underestand that starting a business is one of the biggest obstacles entrepreneurs face to be prepared from day one.

     
    Comment by Marketing Meerkat
    2009-11-16 19:27:32

    Great post Kenneth. Thanks for the info!

     
    2009-12-26 16:01:10

    I am thankful for your kind attitude in sharing this information

     
    2009-12-28 18:34:46

    Great post, lots of good information

    Thanks for sharing!

     
    Comment by wangking
    2010-01-07 22:30:56

    Awesome product,thanks for creating so many great product, information and give it free for us!
    You are super great!

     
    Comment by search job
    2010-01-31 15:43:00

    Thanks for your sharing info about What Are The Steps In Creating An Online Business.
    These 3 steps are very important things we have to know before getting start in online business but it ’s not enough. We must know how to attract and make relationship with our prospects automatic because It ’s the key to success.

     
    Comment by aimstar4u
    2010-02-05 20:45:58

    Your 3 steps in creating an online business is a great tips but it ‘ll be better if we know how how to market our business. Could you suggest me about how to market my online business with SEO?

     
    Comment by Search Job at home
    2010-02-17 13:38:53

    I think that all Internet marketing newbies should know these 3 step of creating an onlne business before and then the most 3 important things they should know are
    - Keyword Marketing
    - Article Marketing
    - E-mail Marketing

    Thanks for sharing.

     
    Comment by passive income
    2010-02-18 18:36:52

    Thanks for sharing. This is a good suggestion for any internet marketing newbies. I agree with Search Job at home that there are another 3 important things that we should know such as Keyword Marketing , Article Marketing and E-mail Marketing.
    Keyword Marketing help us to found our prospects.
    Article Marketing help us attract our prospects.
    E-mail Marketing help us making relationship with our prospects.

     
    2010-02-19 13:50:04

    Thanks for your sharing info about What Are The Steps In Creating An Online Business.
    These 3 steps are very important things we have to know before getting start in online business but it ’s not enough. We must know how to attract and make relationship with our prospects automatic because It ’s the key to success.

     
    Comment by income4study
    2010-03-03 15:12:56

    Thanks for sharing post. Your guide of 3 steps in creating online business is very useful for any newbies but if you want to succeed in online business you should give yourselve the time for learning and practice more and more until you become an expert.

     
    Comment by findincome
    2010-03-03 15:34:21

    This is the best guideline for everyone who decide to start an online business including me. Could you suggest me about how to market my online business and what is the best way to do?

     
    Comment by searchdownline
    2010-03-03 16:24:05

    Thanks for your basic guideline for any newbies about how to getting start in online business. Nowadays there are many people around the world interested in working from home and I think online business is the best chioce for them.

     
    Comment by The Tech Labs
    2010-03-11 21:49:27

    Thanks a lot for sharing your knowledge with us! I must agree with most of what you say. You give some really good advices there… Then it’s all about action. Thanks again, keep it up!

     
    Comment by carlos
    2010-03-19 01:41:21

    How To Choose A Business!

    Step 1-Can you verify the company’s profitability?
    Step 2-What is the age of the company?
    Step 3-Does the product have exclusivity?
    Step 4-Does the core desires of the product have something to do with love, health, or wealth?
    Step 5-Can you be passionate about the product?

     
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