Note: This is the follow-up to How a Very Profitable Business Works – Or, Why You’re Still an Employee and if you haven’t read it already, this won’t make much sense. Read that first, then come back.
Have you ever tried to make money online?
Tons of people have, but only a few people actually put any money in the bank.
I have made a decent amount of money online, and it continues to grow every single day.
What do I do different that most people don’t do?
Looking back at our 3 legs of a Very Profitable Business:
1) Value Creation
2) Value Delivery
3) Value Capture
Keep those in mind when we talk about the most common ways people try to make money online:
“I want to make money online! I’ve heard that affiliate marketing is a great way to make money!”
What’s the next step?
There’s tons of people (selling you how-to-make-money-online products) who say that you should put ads on google, and if you can pay $1.10 for those ads, then make $1.14, and then you just spend a ton of money on that, you’ll make money!
I’ve read countless amounts of people who quit their jobs to do exactly that. They spend a year and don’t make dick, and then they claim they hit it big! Here’s my tips! (for $89.99/month)
Here’s why they don’t make any money:
They aren’t really fulfilling the 3 legs of a Very Profitable Business.
Are you really creating value when you twist the words of a google ad around?
There’s already google ads that are selling what you’re selling. You’re just trying to capture the value that other people create and deliver. You’re trying to optimize the ‘word formula’ that completes the process.
That’s why those affiliate marketing people have to play the carnival business model and leave town after every product they sell: they’re terrible products (and bad people).
That’s why I don’t leave town.
When you buy anything I sell, you have 90 days, no questions asked and I’ll give you your money back.
Because I believe in what I sell.
Because there’s tons of different shitty ways to make no money online, I’m not going to go through all of them, but instead give you the principles to sort the good from the bad.
First off, with internet businesses, value delivery is very easy. Whatever you’re selling, you can upload it to eJunkie and send it instantly or ship whatever you’re selling through UPS. So one leg of the Very Profitable Business Stool™ is pretty much guaranteed.
Value Capture: the second leg of the Very Profitable Business Stool™ isn’t usually too hard on the internet either.
Usually, when you’re making an internet business, you’re going to be selling information or products through eCommerce. Information is a no-brainer for capturing value, but eCommerce can be tougher.
When you’re running a store online, you have to be able to explain why your site is better than Amazon, because they’re going to be your biggest competitor. This is typically done through the next step, and the final leg of the Stool™
That brings us to the final, and most difficult component of the Stool:
Remember, you’re competing with everyone else on the internet. What do you offer that no one else can offer? That’s what creating value means. I have read dozens of people who want to start an Amazon business importing some terrible quality chinese widgets.
What will stop you from the next 15 year old who wants to just bite your business? The only value you’re creating is getting the shipping container over here and repackaging them into smaller boxes.
How big of a moat does that business have?
None at all.
That’s why you’re going to be constantly having to find the new BS to import:
Selfie-sticks! That’s a timeless business!
Until someone more desperate than you decides:
“I don’t need to make $0.04 per selfie-stick! I would be fine with $0.03!”
“The problem with a race to the bottom is that you just might win.” – Seth Godin
So do that if you want a business that’s on a treadmill.
What’s the alternative?
Make a new product. Listen to the Angry Interrogatives™.
People already have so many problems that could be solved.
Stop trying to make the next Facebook or Myspace.
Want to know how easy it is to make a new product?
The Wheel: invented approximately 5000 years ago
The Suitcase: invented approximately 2000 years ago (albeit not as high quality as now)
The suitcase with wheels? Barely 40 years old!
For most of the last century, people have been carrying suitcases and, exhausted, take a break to rest their arms and looked at the car nearby thinking “Man this suitcase is heavy, and that car sure can roll pretty smoothly. Too bad we can’t roll this suitcase.” Then they picked up their suitcase, kept walking, and one day they died.
We had put man on the moon before we put wheels on suitcases.
“Why is this suitcase so damn heavy!”
Angry Interrogatives™, a lighthouse for potential money, just waiting to be found.
Now go out there and get it.
Until next time,