New Approach to Making Money Online/Offline?

by MisterMunch

Posted: 15 years ago 13 replies

INTERNET MARKETING

I just come up with a new idea of making money online! I wanted to hear what you guys thought of it.

It is about mixing stock investing with internet marketing/backlinking

Say you have a local company. It does not have to be where you live, allthough that might help. They have a good website, that is fairly seo'ed (maybe without their knowledge) but they only rank on second or third page for seach terms like "product town" or "service state".

The idea is to go out and buy a good share of this company. It depends on what budget you have.

The second step is to start linkbuilding. Build backlinks from pages like angelas 30 backlinks package and mass submitting articles or wathever method you use.

This will again cause higher rankings in Google, more traffic to their website, more visitors to their store, more money and a higher stock value.

Is this a good idea or not?

#approach #making #money #online or offline

dvduval 15 years ago

Well, it sounds to me like the amount of investment needed would be high. In essence you are trying to become an owner in the company, and then helping to market the company. If you have enough money to do that, it probably be better to think in terms of forming a partnership with a company that you know is going to work hard to grow.
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- MisterMunch 15 years ago
  
  Both your points are good.
  
  First it depends on the competition. I live in Oslo, Norway and most companies here has never heard of SEO. If they have, they have probably been sold a service that only seoed their page, not their backlinks. It is fairly easy to make a site selling a product locally to rank high.
  
  The good thing is that you will get return of investmends every year. You will also gain more value on your stock portfolio when the site starts to rank and the salesnumber starts to increase.
  
  I think of this as more of a hobby for people that are already making a little extra money from their webadventures, and have gained the knowledge needed to get pages to rank higher.
  
  You also need to investigate more in terms of the company. You should only start a project like this if you already have some belief in the company and would have invested in it anyways.
  
  The partnership thing meens talking to people. Most of the people on this forum tries to avoid just that ;-)
  
  Thanks
  
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  MisterMunch 15 years ago
  
  In a way this will be like offering an SEO service to companies, without having to sell it.
  You do not have to market yourself, you do not have to explain what benefits your service can offer, you do not have to visit a lot of companies.
  
  You pick a website that you think you will be able to rank, and then you just do it.
  
  Thanks
  
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  petevamp 15 years ago
  
  I agree for a local company it would be easy to target the local market for there company. Since for all of the keywords you would just have to add say the town name to the keywords or even just the state in most cases. So personally I do not see it going very far. jmho
  
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  Deek 15 years ago
  
  the idea is good.
  
  however this is a very capital intensive process. most business owners are very weary of allowing someone else to share their pie, and the cost of entry into this would be substantial if they did actually allow you to do such a thing.
  
  one business valuation method i've heard / used, is 2 years revenue plus asset values... so say you owned an online retailer, you had a computer worth $2000, and inventory worth $10,000. As well your business raked in $100,000 a year revenue. that would value the business at $212,000...
  
  now you wanted a 10% interest in order to complete your methods, that would cost you $21,200...
  
  we havent discussed profits yet..... but lets say you did buy that 10% share and profits were $40,000 per year.... adn after you implemented your strategy they went to $50,000 per year, so your take is $5000...
  
  it would take 4+ years in order for you to realize a return on your initial investment of money... now factor in what your time is worth.... more...
  
  point is, you're better off to offer this business your services as a consultant and make the $5000 a year as monthly service subscriptions, your initial cost will be alot lower..... it would purely be your cost of obtaining the client... plus your profit margin is greater... your return on investment is instantaneous (spelling?)....
  
  i do see some advantages though in your method, but your sweat equity is high and your returns low for quite a while... if you consulted and invested the cash properly you could create personal wealth much faster.
  
  -just my 2 pennies
  
  Thanks
  
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  p2y 15 years ago
  
  I know one very good seo consultant who does this but he's very selective about the companies he works with (high volume, high profit margin only) and I'd say it's working out pretty well for him. The money comes in slower, but since it's a long term agreement he could probably retire today and still be set for the next decade or so.
  
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MisterMunch 15 years ago

Yes, this is sure a long term business plan. you need to make the money work for you. Even though it takes you 4 years to get your money back, you still also has the growth of your stock.

You also have to consider how many hours this will take you, and how long it is neccessary to do this do get the website to stay on top for a long time.
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Star Riley 15 years ago

Why not go to the offline business and offer your marketing services for a fee or some shares?
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- JohnMcCabe 15 years ago
  
  I'm not sure how it works in Norway, but here in the USA you might have a problem with that plan unless you have Warren Buffet money.
  
  Most small companies here are either private or closely held, meaning you can't just go out and buy shares. The companies you can buy shares for tend to be very large or extremely risky.
  
  Then there's the issue of getting your money out again. Even if you could do the voodoo and increase their sales, there's no guarantee the company would pay that increase out in dividends. As a shareholder, you make your money either through dividends or selling your shares for more than you paid. Unless you own a big enough chunk of the company, you can't force them to pay you for your increase.
  
  On top of that, you're sharing any increase in sales/profits with every other shareholder. So even if the company decided to pass along the whole gain, your share would be diluted by the distribution.
  
  You might be better served by offering to do the SEO work for smaller companies in return for shares and a percentage of the increase.
  
  Scratch that - it would mean talking to another human being...
  
  Thanks
  
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MisterMunch 15 years ago

I think that a good position in Google will increase the sales of a company that already offer good services or products, yes.
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Deek

15 years ago

Yes, this is sure a long term business plan. you need to make the money work for you. Even though it takes you 4 years to get your money back, you still also has the growth of your stock.

Absolutely correct, your equity in the business may grow and your money will be working for you (which is the number one principle to follow for creating wealth)...

It's a matter of personal decision...

Me personally I'd rather consult and make the 5k a year profit that I could reinvest into other projects / opportunities.....

I could see extreme value in doing this with early staged start ups that have alot of growth potential.... Venture Capital thats my goal.

Thanks

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MisterMunch 15 years ago

Thanks for the feedback John. You have a very good point there. I am no stock broker, and have no idea how you buy stocks in smaller companies. I understand that you have a lot of smaller companies that is personal or that is shared among the members of the family, or amoung two or three guys that has started the firm togeter, or helped him get started.

And by the way, I am not that scared of talking to other humans. Just don't like to be selling stuff to them.
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- JohnMcCabe 15 years ago
  
  Originally Posted by MisterMunch
  
  And by the way, I am not that scared of talking to other humans. Just don't like to be selling stuff to them.
  
  Fair enough.
  
  However, creating the relationship where you can propose an equity swap for services rendered IS a sales project.
  
  I do commend you on creative thinking. Like Butch said to Sundance, "I got vision and the world wears bifocals." Keep at it...
  
  Thanks
  
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