Mining for Gold or Selling the Shovels

[Greg Jacobs]

Note to warriors. This is from a newsletter I sent out to my opt-in list the other day. I got quite a few very positive responses and have been encouraged to share it here as perhaps it will benefit some folks </disclaimer>

There was a blog discussion somewhere to the effect of "consciously" choosing your business path for IM.

That is, there are two distinct paths.

1 - "Mine for Gold" Meaning that we are actively putting up profitable websites aimed at end consumers
2 - "Sell em the Shovels" - Meaning that we are actively selling tools and information to help others 'Mine for Gold'

So an example of Mining for Gold would be putting up a bunch of sites that have unique content and ebay listings and we grab organix search results from google and funnel those searchers to eBay and then eBay pays us a commission

An example of "Selling the Shovels" would be a blog or system in which we teach others how to "Mine for Gold" ie... sharing methods from our (apparent) success.

So consciously choosing one of these paths is very important to our IM career as actually many people make a very critical mistake and get caught in a holding pattern that they can never advance.

What we are talking about here is something called "truthfulness"
Meaning that while truth can be spun, embellished and slightly bended, at the end of the day, what we are telling needs to be "The Truth"

meaning if we decide to go ahead and 'Sell the Shovels' and come up with some sales letter that says "I made $123,345,323 in one hour" well then that isn't the truth. Plain and simple.

If we sell a system and claim that it helped us retire from our day job and we are still punching into the office at 8am, then well that is not "The Truth"

What I am talking about is adding value to peoples experience.

I know it sounds very lucrative to skip the actual "doing" of Internet Marketing and immediately start trying to "Sell the Shovels" - however without personal knowledge and expertise, one cannot with any authority try to help people along their way.

So this is the recommendation.

Unless we are already an expert in our field, for now forget about trying to create and release products aimed at the IM crowd. Ninety Percent of the time these products will not meet our expectations.

Instead take that energy and really focus our efforts on being an expert in on particular niche and method. Not just in theory, but in practice. Do not just study and rehash the methods. But actually put them into practice and make them work.

Find real success. It is out there.

Then once we have uncovered a proven system and have real personal experiences of its success, then we can start to make the transition and spread our system to others. Even if our system only makes us $50 a day. Well that is better than alot of people are doing and there will be value. And just as important "truthfulness"

The end of the story is that until we have some value to share, continue digging in the earth. There is gold in there, but each individual needs to find it in their own way.

That is all for now
-Greg

[Frank Donovan]

Hi Greg

I'm assuming your message is aimed at the "Make Money Online" crowd.

Because as far as IM in general is concerned, there are countless individuals and companies providing valuable services which could be described as "Selling Shovels".

A less than exhaustive list would include:

Ghostwriters
CopyWriters
PLR Providers
Hosting Companies
Domain Registrars
Autoresponder Providers
Graphic Artists
Web Designers
Article Directory Owners
General Freelancers
etc

The great advantage of IM is that it can allow you to leverage your own particular skill or strength for the benefit of others. Product creation is only part of the story.


Frank

[Greg Jacobs]

Originally Posted by Frank Donovan

Hi Greg

I'm assuming your message is aimed at the "Make Money Online" crowd.

Because as far as IM in general is concerned, there are countless individuals and companies providing valuable services which could be described as "Selling Shovels".

A less than exhaustive list would include:

Ghostwriters
CopyWriters
PLR Providers
Hosting Companies
Domain Registrars
Autoresponder Providers
Graphic Artists
Web Designers
Article Directory Owners
General Freelancers
etc

The great advantage of IM is that it can allow you to leverage your own particular skill or strength for the benefit of others. Product creation is only part of the story.


Frank

Frank - yes, this is generally aimed a the "make money online" crowd, but can cross over. For instance if someone was selling some weight loss system and they had never actually put it into practice.

I suppose what we are discussing is "being an expert in your field" which can really have a broad definition. But the bottom line is people should be masters of what they do before they think to offer goods/services/information to others.

And this is not just for some philosophical ra-ra reason, but really for finding actual success. True authority breeds success and taking the time to find that real authority will increase the bottom line in the long run.

[Frank Donovan]

Hi Greg

Originally Posted by Greg Jacobs

Frank - yes, this is generally aimed a the "make money online" crowd, but can cross over. For instance if someone was selling some weight loss system and they had never actually put it into practice.

Yeah, I guess this applies to any "How-To" product where the author is setting him or herself up as an authority on the subject. Of course, many inexperienced product creators have succeeded in developing useful products by interviewing, or leveraging the expertise of, true experts; which is a perfectly valid alternative.

The key is not to misrepresent yourself or make false and unsubstantiated claims.


Frank

[Greg Jacobs]

Originally Posted by Frank Donovan

The key is not to misrepresent yourself or make false and unsubstantiated claims.

Frank

I agree, this is the key and again not for 'intellectual' reasons, but the fact is that honesty breeds lasting success.

[Kevin AKA Hubcap]

Hi Greg

For the most part I agree with you but I do need to take exception to the quote below and I'll use my background to explain why.

I'm not in the MMO/IM niche (yet).

I have a background in military and commercial aviation.

My products help people who want to pursue these types of careers.

Eventhough I have experience in some aviation careers I don't have experience in all. For example, I've never flown a helicopter professionally yet some of my products guide people to do this. Just because I haven't done it doesn't mean that I can't consult with professional helicopter pilots and the people responsible for hiring them (which I do).

I'm also into video but have had no formal training in shooting or editing. I've never worked as a news cameraman. I've never worked on a television program or motion picture. I've never been hired to shoot someone's wedding. What I have done is produced and sold my own niche videos by teaching myself to shoot and to edit. Does this mean that I can't create a product that teaches people how to find work on a movie set...of course not. I can find people who have done that, interview them, and create a product.

For me, the fact I have no experience in a particular area has no bearing on product creation and IMO it shouldn't for you either.

There are a number of sources to go to for general information (internet, library, industry journals) and you can "borrow" more specific information by interviewing people in the field.

Kevin

Originally Posted by Greg Jacobs

I know it sounds very lucrative to skip the actual "doing" of Internet Marketing and immediately start trying to "Sell the Shovels" - however without personal knowledge and expertise, one cannot with any authority try to help people along their way.

So this is the recommendation.

Unless we are already an expert in our field, for now forget about trying to create and release products aimed at the IM crowd. Ninety Percent of the time these products will not meet our expectations.


-Greg

[Greg Jacobs]

Originally Posted by Kevin AKA Hubcap

Hi Greg

For the most part I agree with you but I do need to take exception to the quote below and I'll use my background to explain why.

I'm not in the MMO/IM niche (yet).

I have a background in military and commercial aviation.

My products help people who want to pursue these types of careers.

Eventhough I have experience in some aviation careers I don't have experience in all. For example, I've never flown a helicopter professionally yet some of my products guide people to do this. Just because I haven't done it doesn't mean that I can't consult with professional helicopter pilots and the people responsible for hiring them (which I do).

I'm also into video but have had no formal training in shooting or editing. I've never worked as a news cameraman. I've never worked on a television program or motion picture. I've never been hired to shoot someone's wedding. What I have done is produced and sold my own niche videos by teaching myself to shoot and to edit. Does this mean that I can't create a product that teaches people how to find work on a movie set...of course not. I can find people who have done that, interview them, and create a product.

For me, the fact I have no experience in a particular area has no bearing on product creation and IMO it shouldn't for you either.

There are a number of sources to go to for general information (internet, library, industry journals) and you can "borrow" more specific information by interviewing people in the field.

Kevin

Its kinda of a loaded question with no proper response from me.

I can say that sure you can create products like this by gathering all the information and processing and disseminating. Sure you can do this..... and you can find success and make teh monies.. . .

however I can also say that since you have never actually flown a helicopter, why are you writing a book on how to fly helicopters - as there are things, nuances and insights you will never know just by interviewing and compiling. (and you know this to be true) Sure you can do an acceptable job, but it will never be the masterwork.

A great practical example i can think of is the Clickbank Weight loss arena. There is probably a new eBook a day by someone trying to make their millions by teaching people how to lose weight or firm up their stomach. I bet you %90 of these eBooks come from people who really have no idea what is going on and are just compiling information and following a formula. However %90 of these do not find success. I can think of one particular example by Mike Geary (truth about abs) . Here is an eBook by a real EXPERT in his field. He lives and breathes abs. He is an expert and it shows and he earns.

In this discussion, I am not talking about how to do "average things" because we all know how to do that already.

I am talking about how to take our lives and careers to the next level.

[Lou Diamond]

Hello,
the smartest and richest people during the gold rush just sold the shovels,not both.
I would go by history's example.

[JackPowers]

Selling a shovel is fine by me as long as it's a good shovel and not some piece of crap that breaks first time it hits the ground.

[AmyBrown]

I don't think the selling shovels analogy works in this context. The shovel is a tool that helps someone accomplish their goal, it's not the map. As Frank pointed out the shovel sellers in the IM space are graphic artists, programmers, plr providers, video producers etc. The dream sellers that haven't actually lived the dream, that's another matter entirely.

[Greg Jacobs]

Originally Posted by AmyBrown

I don't think the selling shovels analogy works in this context. The shovel is a tool that helps someone accomplish their goal, it's not the map. As Frank pointed out the shovel sellers in the IM space are graphic artists, programmers, plr providers, video producers etc. The dream sellers that haven't actually lived the dream, that's another matter entirely.

well put. You understand more what I was trying to say (and said it better than me!)

[Kevin AKA Hubcap]

Hi Greg

I didn't communicate my position clearly. I don't teach the physical skills required to fly a helicopter. I teach people how to position themselves to further their careers.

I understand the spirit of what you're saying and agree with most of it but its a mistake to think that you need to have first hand experience doing something to make a product.

Borrowing the experience of others is a legitimate and powerful way to create a product and should not be discounted.

Kevin

Originally Posted by Greg Jacobs

Its kinda of a loaded question with no proper response from me.

I can say that sure you can create products like this by gathering all the information and processing and disseminating. Sure you can do this..... and you can find success and make teh monies.. . .

however I can also say that since you have never actually flown a helicopter, why are you writing a book on how to fly helicopters - as there are things, nuances and insights you will never know just by interviewing and compiling. (and you know this to be true) Sure you can do an acceptable job, but it will never be the masterwork.

A great practical example i can think of is the Clickbank Weight loss arena. There is probably a new eBook a day by someone trying to make their millions by teaching people how to lose weight or firm up their stomach. I bet you %90 of these eBooks come from people who really have no idea what is going on and are just compiling information and following a formula. However %90 of these do not find success. I can think of one particular example by Mike Geary (truth about abs) . Here is an eBook by a real EXPERT in his field. He lives and breathes abs. He is an expert and it shows and he earns.

In this discussion, I am not talking about how to do "average things" because we all know how to do that already.

I am talking about how to take our lives and careers to the next level.

[SurviveUnemployment]

Selling the shovels is steady, reliable income, but it's not going to make you rich unless you have some sort of automated shovel that can be sold to a huge market, in which case I'd put you in the "digging for gold" crowd anyway.

Digging for gold is where the big money is. It's also harder work on the front end.

[john2k]

During the gold rush the merchants were the ones who ended up making the most money on a consistent basis. So, selling those shovels might be a good idea. However, I'm not sure the informational guides would be a good comparison. The "shovels" in our sense might be more like web hosting services or even scripts such as vBulletin (which has annual support fee / revenues).

[MikeHumphreys]

Originally Posted by john2k

During the gold rush the merchants were the ones who ended up making the most money on a consistent basis. So, selling those shovels might be a good idea. However, I'm not sure the informational guides would be a good comparison. The "shovels" in our sense might be more like web hosting services or even scripts such as vBulletin (which has annual support fee / revenues).

I agree with John. Another great example of selling the shovels would be selling software and tools that online marketers need to run or grow their business. like software that automated article submission or a script that acted as an online shopping cart.

Sometimes, it's as simple as looking at what tools you need for your own business. I had a testing script built that I needed for my online business and eventually turned that into a for sale product.

There's an endless list of possiblities there without even needing to write a "make money guide"

[TimCastleman]

I don't buy products from people who can't show me proof. Guys like my friend Jason Fladlien who show screen shots, bank statements, etc to show proof. Hell I include actual checks because I want people to know this is real world knowledge and income they are getting, not people jumping on the bandwagon.

Plus I think when you do or actually use products you can speak from a position of authority and experience.

Tim

[freudianslip27]

I help local businesses make more $$$ for their business by using their websites better (email responders, seo, etc), so I am providing them the shovels as per say. As many of you know, if you do this properly, you can make some real nice money with little work.

[LegitBlogger]

I agree that "been there, done that" is best before
trying to "sell" the HOW, but hey - lots of others don't
think so. Even John Reese now refutes that in a video
he did a couple of months back that he called
IMA - Internet Marketing Adviser,

[JMSD]

Originally Posted by Greg Jacobs

Its kinda of a loaded question with no proper response from me.

I can say that sure you can create products like this by gathering all the information and processing and disseminating. Sure you can do this..... and you can find success and make teh monies.. . .

however I can also say that since you have never actually flown a helicopter, why are you writing a book on how to fly helicopters - as there are things, nuances and insights you will never know just by interviewing and compiling. (and you know this to be true) Sure you can do an acceptable job, but it will never be the masterwork.

A great practical example i can think of is the Clickbank Weight loss arena. There is probably a new eBook a day by someone trying to make their millions by teaching people how to lose weight or firm up their stomach. I bet you %90 of these eBooks come from people who really have no idea what is going on and are just compiling information and following a formula. However %90 of these do not find success. I can think of one particular example by Mike Geary (truth about abs) . Here is an eBook by a real EXPERT in his field. He lives and breathes abs. He is an expert and it shows and he earns.

In this discussion, I am not talking about how to do "average things" because we all know how to do that already.

I am talking about how to take our lives and careers to the next level.

On the whole, you're right. It is far more credible to the customer that the person selling the goods has personal experience of using/doing/making or whatever that may be claiming.

I agree with you that if, for example, someone is claiming to have lost X number of pounds using a particular weight loss product but has never used the product or has never achieved what they are claiming to have achieved by using the product, then that is a lie and it does the seller and the customer a great disservice which breeds skepticism and distrust.

But one can be a "shovel seller" by being a PUBLISHER of products produced by others who are experts in their respective field. So long as one makes that clear in the sales copy, then no one needs to be fooled and credibility is still maintained.

JMSD

[Jill Carpenter]

Most people IMO have no business selling shovels until they've used the shovel themselves and were able to use it successfully to obtain some gold.

There are very few exceptions to this.

If you are going to sell my shovels, or help me sell shovels, I want to know that you are not selling them by telling people they can be used to whack others over the head with.

[glide21]

"Frank - yes, this is generally aimed a the "make money online" crowd, but can cross over. For instance if someone was selling some weight loss system and they had never actually put it into practice." Whereas I agree with you, most Tennis coaches have never won the US open, and most Personal Coaches are salaried men. In the same way that someone who owns a grocery store hasn't tasted all the food he sells. Bottom line here is honesty, and this is in great shortage in IM alas. So many desperados are sold a load of porky pies (lies, my yankie friends , and then they go and sell them on. There is a whiff to it for sure.

[Greg guitar]

Originally Posted by TimCastleman

I don't buy products from people who can't show me proof. Guys like my friend Jason Fladlien who show screen shots, bank statements, etc to show proof. Hell I include actual checks because I want people to know this is real world knowledge and income they are getting, not people jumping on the bandwagon.

Plus I think when you do or actually use products you can speak from a position of authority and experience.

Tim

I have bought and enjoyed products from both you and Jason, and I think you guys are the real deal. Having said that, I personally find that the kind of "proof" you're talking about is really losing it's luster. So many people have faked those things, and I don't think 99.999...% of us know how to tell real from fake (if there is a way). I usually don't even bother to look at the screen shots of bank statements, etc, anymore-though photos of checks are at least more unusual.

For me it is more powerful and convincing when I see the social proof of someone I totally respect saying good things about the marketer/product in question. But on the other hand, it isn't that hard to get good reviews, and I've had emails from marketers I respect, selling affiliate products that suck, so in the end, you roll the dice and take your chance.

This is why I find guarantees to be quite powerful, especially if they are given by people who do a lot of marketing here. I know it's unlikely a fellow warrior is going to dishonor his/her guarantee at the risk of tarnishing his/her reputation, so I feel pretty comfortable buying the product, knowing it needs to be good to keep the refund rate down. (I have only ever asked for a refund once, out of more purchases than I care to count).

[Greg guitar]

Originally Posted by avenuegirl

I want to know that you are not selling them by telling people they can be used to whack others over the head with.

I don't recommend it, but I understand shovels actually perform quite effectively in their "whacking" capacity.
;-)

I would however, find it a bit disturbing to be sold a shovel by someone who's experienced with this type of usage.