First 4 Steps To An Online Business

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image by Bud Caddell

Recently, a woman expressed a concern to me that she had “nothing going” and needed to rely on another person. She felt insecure to the extent she was dependent and asked me what I thought she could do.

The resources for a brick and mortar business just were not available and she knew enough about the online world to think she could get “something going” online. Undecided about specific niches in her broad general areas of interest, she “got going” by creating an online persona.

Her first 4 Steps were:

  1. Purchase a domain name and blog hosting and set up an email address for the persona
  2. Use the persona email address to obtain a Google user-name and password for the persona
  3. Use the Google account to create a YouTube account for the persona
  4. Create a Twitter account for the persona

This seems like the essential groundwork required to begin vblogging or video blogging. The technical requirements appear minimal, especially regarding media production with the technology getting simpler every year.

Producing a stream of content remains one absolute requirement. This one requirement shows up everywhere online.

Do not blog if you are not a writer.

Do not vblog if you are not a videographer.

If you can get past the 2 month hump, then you have the 6 month hump and the 2 year hump. You get past the humps by being productive.

The possibility of Jumping The Shark looms as a constant threat.

Being productive may include any activity that produces more value than went into it. Some people, for example, make money online by selling artisan food products.

The next step involves understanding and working with Key Words. Since I feel the topic of Key Words deserves its own article, I’ll leave that for later.

Significantly,  we currently see 4 dominant methods to enjoy Internet Traffic.

  1. Pay for advertising using AdWords, Pay-Per-Click advertising, banners or any other method that involves you paying for traffic before you sell anything.
  2. Affiliates and Joint Venture Partners send you their traffic and their payment comes from a percentage of the purchasing customers they send.
  3. Organic Search Engine Traffic, notably from Google these days.
  4. Leveraging Social Media and Social Bookmarking sites.

In my mind, their relative desirability ranks in reverse order to my listing. One could start with Method 4 and never need to try anything else.

If you do your part with being productive, Method 3 should take off before Method 4 peaks. These two methods will give you the proof needed to interest useful Affiliates and Joint Venture Partners.

Until you can prove your production sells, useful Affiliates and Joint Venture Partners will not be interested. Once you prove you have a winner, Method 2 can increase your income dramatically.

If your product successfully sells online, then Affiliates and Joint Venture Partners will be interested. Paying for advertising may never become necessary.

With the above 4 Steps in place, you will be in the position to publish content online. Your content will create a following.

Once you have a following you will be ready for the next steps and that will take another post.

In the mean time
check out my article about:

  • Mike Masnick
  • Seth Godwin
  • Trevor Reznik

and the articles by Yaro Starak

Leave your questions in the comments and I will answer them there or in a new post.

CwF plus RtB equals Serious Money

http://www.vimeo.com/5229486

CwF + RtB = $$$$

This video spells out the somewhat cryptic title as meaning Connect with Fans and give them a Reason to Buy to Make Serious Money through an explanation with examples by Mike Masnick. A suitable subtitle might be The Essence Of Marketing Reduced To A Simple Formula.

It really doesn’t get any more straightforward than this. While the formula tells you what to do, it does not tell you how to do it.

The examples Mike Masnick gives here, and in an earlier video where he used Trevor Reznik of Nine Inch Nails fame as an example, indicates that giving away valuable free stuff is one way how to do it. This is the same advice widely offered for Internet marketing in general.

http://www.vimeo.com/5246541

NARM (the National Association of Recording Merchandisers) 2009 Keynote Interview presents Eliot Van Buskirk (WIRED) interviewing Ian Rogers (Topspin Media). A long time innovator in the online media scene, he feels that real progress is most likely on the creative side rather than on the consumer side and hence his move from Yahoo to Topspin.

Seth Godwin coined the phrase Permission Marketing over 10 years ago. It is just one more attempt to explain something that should never require explaining.

Intentional system controls implemented by monopolies preserve artificial scarcity. Monopolies maintain their control in part by paying politicians to legislate barriers to entry into monopolized industries.

Globalization and the Internet make it much more difficult, if not impossible, to maintain some monopolies. With this freedom from monopoly controlled markets, consumers can choose who to give their money to.

Without monopolies everything in the market eventually becomes a commodity distinguished only by private label branding. The private label brands survive only by becoming recognized and trusted by consumers.

Only when private label brands cannot be trusted do consumers default to making buying decisions based on the lowest price. Any place you go you will find many people who would prefer to give their business to someone they know and trust even if that means paying more.

People only know and trust their friends. If you want loyal customers who will buy your offerings time after time, even if they are more expensive, then you need to make them your friends.

Of course, because they are your friends, you will want to offer value added products. You will see more limited and signed editions, lots of additional posters, patches and such, as well as the unique opportunities to spend more time with the artists.

In industries with low barriers to entry, such as music and marketing, financial survival depends upon becoming friends with potential customers before you ask them for money. No one views an attempt to sell them something first as an invitation to friendship.

Since making friends seems to have become a lost art, especially in the United States, here is the number one way to make someone your friend. The number one way to make someone your friend is to give them something they value for free.

Do someone a favor, that is, help them out or solve a problem without setting a price and demanding payment. This is how people socialized for thousands of years but recently more and more of these social norms have been monetized.

The monetization of social norms, pricing and demanding payment for what was once freely shared, represents theft from the common wealth of all people. This theft from the common wealth of all people started over 10,000 years ago and has grown by fits and starts ever since.

Recently this practice of theft from the common wealth of all people through privatization has accelerated, especially in the United States. I can identify this dysfunctional practice as sociopathic at best but that serves little purpose now that it has permeated nearly every facet of modern life including all areas of public service.

Thoughtful feeling people feel repelled by this nearly ubiquitous trend, as well they should. Thoughtful feeling people instinctually avoid giving money to artificial monopolies by seeking out friends who can meet their needs, often even if their needs are more poorly met.

Celebrity status merely indicates that someone has more friends than they can personally directly respond to. It has become customary to call these friends, fans.

Make no mistake, every fan feels a personal connection to the celebrity. This feeling is the same as what someone feels for a friend, for someone who has helped them out far beyond any compensation that may have been offered.

The perceived need to obtain financial compensation for every act of aid and human kindness has become the single greatest impediment to business growth. Monopolies may be in the position to demand such payment anyway but they are not making friends and no one feels any trust or loyalty towards them.

So unless you run a monopoly, start making friends if you want your business to survive and prosper.

Marketing Beats Selling

curmudgeon

My dad, 84 years old and counting, lifelong salesman, sales manager, sales trainer and independent representative speaks with open disdain about marketers. Yet, when you listen to him talk about his sales process it becomes clear that he takes a straight up marketing approach.

The first thing he does as a “salesman” is to identify companies ready to purchase in commercial volumes. Among marketers this is known as locating a market.

Next he connects with a decision maker and during the interview clarifies what problems they have. Marketers often use polls and questionnaires to discover a market’s needs, wants and desires.

Then, my dad works with one of the companies he represents, or even locates a company he has never represented before, to come up with a solution. Marketers follow the same process and if the solution is an information product either hires an expert, obtains the rights or creates the product themselves.

Finally, he goes back to the prospect company with the solution in hand complete with pricing and delivery information. It also works exactly this way for marketers.

When someone believes they have come up with what they perceive someone else needs, without their input or guidance, they then must attempt to sell it to them in order to regain their investment, personal  power and self esteem. Whenever you start with a product before you have a market you are faced with a sales proposition.

This is why marketing may be approached as a science but all sales initiatives originate in ideologies. I’ve lost count of how many people have approached me with their absolute need to sell something they just dreamed up or discovered in a bargain bin somewhere.

Science observes the natural world and creates mind maps to make sense of it. These scientific ideas never achieve closure and remain open to modification and obsolescence.

We create ideologies as mind maps to which the natural world is abused into conforming. These ideologies arrive as a package deal usually complete with a supportive all-encompassing world view.

The map is not the terrain.

Science knows the history of their mind maps and constantly compares them to the natural world so to modify the mind maps and increase their accuracy. Ideology acts as if their mind maps are the terrain while becoming proactive in manipulating the natural world to conform to the mind maps.

It speaks to the power of ideologies that this distinction between marketing and sales often seems to be the biggest conceptual challenge limiting my students. Indeed, they often insist upon just being delivered an ideology while ironically demanding that it accurately correspond to the natural world.

Offered the appearance of free choice, people seem to prefer ideologies which inevitably conflict with the natural world over science that never arrives at closure and always seems as work in progress. Ironically, successful ideologies often masquerade as science while science then comes under attack as ideology.

The weakness of science is the willingness to consider alternative solutions to real problems. In other words, the reluctance to become an ideology also becomes the weakness of science.

The strength of ideology is the high acceptance it finds for the quick and simple answers it provides to real world problems. Unfortunately, the answers are always wrong, regardless of first impressions or our desires for closure.

This problem manifests when a vendor becomes a consumer. Their consumer training to only accept the quick and easy, cheap and simple, silver bullet one-shot solution betrays them when they wish to provide products and services to consumers.

While consumers feel justified in thinking it is all about them this feeding of the ego sets up business people for failure if they cannot make the adjustment to the other side of the coin. This failure to adjust results in a selling ideology.

While a person’s ideas may be interesting and welcome as long as they are a consumer, once they become a vendor of products and services their ideas become irrelevant. The world is full of great ideas that few care about.

This ego driven need to see personal ideas accepted by other people, through deception, fraud and the threat of harm if need be, meets the definition of ideology. This also describes the underlying methodologies of many mainstream selling techniques.

Ideology and selling lack resilience.

The narrow point of view generated by a consumer perspective holds no more attractiveness to others than any other inflexible ideological opinion. This leads to the failures of businesses and the collapse of empires.

Resilience relies upon both the willingness to competently observe reality regardless of what we wish to see and the ability to modify activities accordingly regardless of how habitualized we may have become to them. A fixed belief in our own correctness, self-righteousness in other words, inevitably leads to both our unhappiness and the unhappiness of others.

That is why I do not accept students as clients who insist they have invented the next best thing, whether it be a business service, a physical device or social idea. They are always wrong and doomed to failure.

If you wish to make money, online or face-to-face, it is enough to start with that desire. When you bring your own preconceptions along you limit your resilience according to the strength of your beliefs.

Accordingly, my first question to you then is not concerning your product but concerning the market you wish to join. Identify a market first and the market will identify a successful product for you.

Resilience Economics

luckyfly

Useful Resilience Economics needs more than theoretical responses to scenario sketches. Thought experiments will not be enough to get you moving towards a more secure economic status today.

The current economic collapse appears unique within the history of economic collapses because we have lost our inherent safety net that traditionally cushioned downturns. The very same so-called “Masters of The Universe” who drove the current economy into the wall have already cannibalized our ability to weather failure gracefully especially in the United States and Europe.

The decades of economic attacks upon family farms leave us vulnerable to a very hard landing in which millions will suffer death through the deprivation of essential food and shelter. During the Great Depression of the 1930s many of the urban homeless and unemployed factory workers found sanctuary on the family farm.

We may now only look back with fond nostalgia at how we lived a couple of generations ago. In hindsight the wisdom of Raw Material Economics proves itself.

As long as we have adequate food and shelter the micro-production of goods and intellectual content can provide for the rest of us. Gone are the days of relying upon those “too big to fail” for our well-being.

The current crop of academically educated economists only argue about how to best preserve the current financial system with all of its structural inequities and invitations for fraud. They are not prepared to consider an egalitarian diverse decentralized distributed economics that possesses intrinsic resilience.

Unfortunately, current administration policies continue the practice of punishing family farmers for the benefit of the financial services industry. Unless you have income from off the farm, you will have to wait until the current economic collapse deepens before re-establishing family farms becomes feasible.

Until then, it promises to be a very bumpy ride and expect to see a great deal of volatility in all markets. Still you have options over the short term and while they exist now would be a good time to explore them.

First, if you now depend upon those “too big to fail” for your income, including all branches of government, the dominant banks and the multinational corporations, now is the time to act on an exit plan. While some employers may be able to restructure their businesses to offer a measure of economic security to employees, these smaller companies will be targeted by government taxmen eager to take away profits and hostile takeovers by predatory corporations.

Second, traditional passive income from investments will become increasingly unreliable and ultimately insufficient as the current economic collapse deepens. You must find a way to become productive while maintaining control over your pricing to be able to respond to deflation, inflation, stagflation and whatever other curve balls the banksters throw.

Of course, a total collapse or even near total collapse will have us all scrambling for food and shelter while those who have stockpiled and continue to hoard will be faced with increasing physical security demands. Police and the armed forces will be the last elements of the status quo to collapse and they will be looking for stockpiled food themselves.

The issue remains of determining what to do between now and a very possible then. Without a doubt having an independent income based upon your own productive capacity will likely become necessary.

While climate change, resource depletion and unsupportable population levels will certainly complicate the issue, realistically there seems very little you or I can do about that. At least if you maintain the capability to produce at parity, that is the sale of your production not only supports your existence but also allows you enough profit to begin another round of production without debt while saving enough to survive unexpected events, then you may have a future.

Maintaining mobility ability is a bonus that could literally become lifesaving. For example, areas of the Oregon coast that once appeared desirable because of the local abundance of seafood are now adjacent to growing oceanic dead zones devoid of any sea life at all.

Expect volatility in all aspects of life. With all of this in mind, an online business seems to be a good bet to me.

If running an online business seems to be beyond your capacity then you owe it to yourself to honestly investigate it because all sorts of people have learned how to run an online business. Now would be a good time to start.