Most of we Internet business folks like losing money on the Internet. If we didn't lose money all the time, we would be out of business. Yes, over ninety percent of we Internet business folk--lose money. It's just part of our business and we can't expect others-- like our wives--to understand that.
Oh, some take the fun out of Internet business by actually making money. These effete snobs are called gurus. I know all of the gurus (well, not personally) and they all know me. They have MY money.
I'm what they call a sucker. P.T. Barnum said that there is a sucker born every minute. I'm sure he was and still is right on that point.
Being an educator, I must make sure all of my readers know what I mean by "effete snob" rather than just "snob." Effete means that the guru works in pajamas, if he works at all, and could care less about you or me as long as we stay on his mailing list. The guru's mailing list is his gold mine.
I'm not an Internet guru so if you do what I do you will keep losing money for sure. I do whatever the gurus tell me.
Yes, the Internet gurus teach the rest of us how to get rich by having an Internet business. In fact, other than porn, teaching folks how to make money on the Internet is the way to make money on the Internet. Here is what I have learned from the gurus:
Don't Quit Your Day Job
Yes, after the guru tells you that you will be living on your own island with your yacht as long as a football field in the harbor and an Lamborghini and a BMW in the garage, they say: DON'T QUIT YOUR DAY JOB!
The gurus give good advice and this is particularly good advice. However, I didn't have a day job to quit so I ignored it and that is probably exactly why I'm not making much money to speak of on the internet to this day.
Get Rich Selling My Product
That's right. The guru will tell you that you can get in business in a few minutes selling his product. This is called the guru's affiliate program. He may call you a partner or associate but its all the same. It cost you nothing to join an affiliate program because, in my experience, that is about what it is worth. Let's say the guru signs up 10,000 affiliates. He now has a mailing list of 10,000 folks he can sell to.
Also, let's say that the guru is selling a product worth $97.00. He pays a commission of $48.50. If his 10,000 affiliates sell 1500 folks his program, they will receive $72,750.00 to split between them. Using the 90% loser rule, $65,475.00 will be split between 1000 affiliates for an average of $654.75. The other 9000 affiliates will average about 81¢.
The above analysis sounds exactly right to me. I think that is about what I average--81¢.
Now, it is not over. The guru receives the same amount of money as his affiliates. If he is selling an ebook that is downloaded, it is all gravy. Yes, he gets $72,750.00! But that is not all. He has added another 1500 names on his mailing list and some of those will become affiliates AND CUSTOMERS.
Now what else does he sell these folks? Well, it goes like this for some gurus. You will remember that he is selling the "How To Get Rich on the Internet" message. If you do as you are told and do as he does, that is, you copy the guru, you will need the stuff to do that. Here's a partial list:
● Web site design program
● Web hosting account
● Mail handling program
● Affiliate program software
● Personal consulting
● BMW
● Lamborghini
● Yacht
There is no end to the products that he will try to sell to his mailing list, not only his own products but also the products of other gurus. He gets first choice on new products and immediately emails his list.
When a guru reports on his web site, "I earned $36,785.42 in only 36 hours," he means it. He just sent a new product sales pitch to his mailing list.
In the mean time, you are trying to sell his product too. You put up an ad using Google AdWords and lo and be hold you learn that your main competitor is guess who? Your guru! He can afford more advertising cost than you can because he makes twice as much as you do on each sale.
The Guru always wins!
You can win too but it will cost you money. You must put up the investment to become a guru.
Develop Products for a Niche Market
This is good advice and the gurus know what they are talking about. That is how some of them got started. Cory Rudl was a guru of gurus. Corey Died in May of 2005 while racing his Porsche (as passenger, not driver). That was a sad day for those of us in "the business." It was especially traumatic for his new bride, God bless her.
Cory started his Internet business in Canada and he sold an ebook on buying cars and parts for certain desirable automobiles.
Cars were his passion. But he soon leaned that he could make more money selling his knowledge of Internet Marketing.
He sold some of the products I mentioned above.
(His company is the Internet Marketing Center which is now operated by another guru named Derek Gehl. It is fortunate that a qualified person like Derek was able to continue the operations. I'm an affiliate signed up by Corey Rudl. I know Derek loves me because he writes to me almost every day. I'm on the list!
Look at the sales letter at http://tinyurl.com/yudz6g to see how this gurus operates.)
I have been involved in two niche market Internet businesses. The first, my son's, is successful: http://www.irishflutestore.com The second is too early to tell but I think it may be a flop if I don't design and produce an additional product. I'm giving away a free .pdf file but it may be the only thing that people need to solve their problem. They are not buying the product. I've hit the market by telling all of my industry work associates and associations worldwide about it and by using AdWords--but no sales. The site is http://www.ceramicdefects.com
The gurus say to expect failures. You have to keep trying new things and evaluating the performance by testing, testing, testing. Traffic is a problem. I have successfully sold money-making-books by advertising my web site (http://www.money-making-books.com) in national magazines. However, the profit margin was too low to warrant my continued efforts. You need to write your own books or ebooks to make it big!
Well, I've got to get out of here. I've got some more testing to do.
The End
John T. Jones, Ph.D. (tjbooks@hotmail.com), a retired college professor and business executive, Former editor of an international engineering magazine. To learn more about Wealthy Affiliate University go to his info site. If you desire a flagpole to Fly Old Glory, go to the business site.
More info: http://www.InternetBusinessToolCenter.com
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