The Next Step, doing well but need to diversify

12 replies
Hi all,

I am doing quite well for myself at the moment and working towards my goal of being "free". By that I mean free to work where I want and when I want with a good lifestyle.

I have been a futures trader for years and with the increase in technology I can now do that from home and is going well.

I then setup a website teaching people to trade and it totally flopped. People don't want to be told you need at least $5,000-$10,000 to open and account and you need to work full time at it and even then will take 6 months before you are probably breaking even.

What sells is just $20 courses on how you can work 2 hours a day and get rich. That isn't reality. And to be honest I hated the whole experience. I had Facebook ban my ads account for no reason at all. I spent hours and hours trying to figure out tracking etc. I sold a few all with great feedback but didnt enjoy it and the money wasn't meaningful and I dropped it.

BUT, i learned valuable skills in dealing with freelancers so I then setup a side business doing design and marketing for a large engineering company and thats going well. Probably brings in £1000-2000 a month. So that plus my trading income i'm doing well and happy.

But i am a natural worrier. I am looking to diversify as the freelance thing isn't that scale-able in my opinion. It isn't like the gurus make out where you just get a request, farm it out and ring the cash register. I am very much the middle man. I deal with understanding the clients wants and needs, processing it, explaining to freelancer teams. Monitor it. Re-edits, get back to clients with deadline worries etc etc, its actually more stressful than making and losing thousands trading in a day. I can't do anymore than what I am as trading takes up probably 9 hours of my day at least.

So im in a good place on the whole, probably bringing in £5000-10,000 a month and saving up for a house. My dream is to get mortgage free. I think once that happens you are free. No matter what happens in life you have a roof over your head (like i said im a worrier and always looking to bank the important things first).

But, freelancing has limited scalability and the trading world changes so fast it isnt something you can say "this will last for years and years". Its a... make hay now and anything beyond that is a bonus... situation.

So i have money but I don't have much diversification or time. I enjoy trade. I enjoy buying at one price, flipping it and selling for another. I don't really enjoy marketing and working on websites/digital products that much. So am thinking things like drop shipping. Ebay stores etc etc but don't know how saturated they are or possible to do?

I know this is an internet marketing forum and I have pretty much said that isn't my main area of focus, largely because of the time element. I can afford to pay people to build sites etc for me. But I also value this forum as a hotbed for entrepreneurs and ideas so was hoping we could kick around a few ideas.

So far I am thinking high ticket items are the best area. Watches, jewelry, even cars. Id rather sell 1 product a month for 2-3k margin than sell hundreds for $10 profit. High ticket items are usually beyond the scope of people starting out in business because of the capital requirements which thankfully I have.

Does anyone have any business models they have found working along these lines?

Thanks
#diversify #step
  • Profile picture of the author Regional Warrior
    sorry Tommy but this is a signature spamming thread !! because you mentioned

    "I then setup a website teaching people to trade and it totally flopped."

    Yet you have a link in your signature saying the oppsite??
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  • Profile picture of the author Tommyg123
    Oh really? Sorry that must have been from when i was on the forum setting the site up. I'll delete it
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  • Profile picture of the author Tommyg123
    Ok have removed link in sig
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  • Profile picture of the author Lucian Lada
    Originally Posted by Tommyg123 View Post

    So far I am thinking high ticket items are the best area. Watches, jewelry, even cars. Id rather sell 1 product a month for 2-3k margin than sell hundreds for $10 profit.
    Well, it depends on what works for you. McDonald's makes more money by selling $5 meals than Ferrari which we already know aren't the cheapest car in the world.

    Same thing can be said of Wal-Mart, for example.

    I think you believe that you need to work personally to close each sale - which is perhaps true for really high-ticket items, but for lower-priced products you can automate pretty much anything on the web. Your time would be spent perfecting the sales funnel rather than trying to close deals.

    Oh, by the way, congrats for reaching your level of income - most people would only dream of it.
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  • Profile picture of the author Tommyg123
    Thanks Lucian

    Valid points but the problem with low cost items is the barriers to entry are so low so you are competing with everyone else.

    Take Wal-Mart for example. The odds of you being able to sell any of the hundreds of thousands of items they sell at a more competitive price are so slim. And if you can you are going to be shaving pennies off and to be honest i'd pay a few extra pennies to buy from a big brand store like Wal-Mart for their guarantees and warranties.

    I'm not looking for the the most money. I'm looking for the simplest money.

    My view on business i would rather have 10 low risk businesses making me 1-2k a month than one big business making 20k a month.

    The low ticket item HAS to be high volume an automated to make decent money. Whereas the high ticket business can be part time, sole focus, huge franchise and there will be good margin in it.

    Anyway, thats just my opinion and my general experience in life.
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    • Profile picture of the author Anton543
      Originally Posted by Tommyg123 View Post

      Thanks Lucian

      Valid points but the problem with low cost items is the barriers to entry are so low so you are competing with everyone else.

      Take Wal-Mart for example. The odds of you being able to sell any of the hundreds of thousands of items they sell at a more competitive price are so slim. And if you can you are going to be shaving pennies off and to be honest i'd pay a few extra pennies to buy from a big brand store like Wal-Mart for their guarantees and warranties.

      I'm not looking for the the most money. I'm looking for the simplest money.

      My view on business i would rather have 10 low risk businesses making me 1-2k a month than one big business making 20k a month.

      The low ticket item HAS to be high volume an automated to make decent money. Whereas the high ticket business can be part time, sole focus, huge franchise and there will be good margin in it.

      Anyway, thats just my opinion and my general experience in life.
      Are you from the UK or US? I notice you have the pound symbol for currency in the opening post. I am in the same boat as you. I too sort of make my living from trading and running websites.
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  • Profile picture of the author Tommyg123
    Hi Anton.

    I am in the UK. Have sent you a PM
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  • Profile picture of the author reachintan
    Do check out this article Make Money Blogging: 20 Lessons Going to $100K per Month to help you make maximum money with minimum investment through all time favorite blogging.


    Chintan
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    Chintan Mehta

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  • Profile picture of the author Lucian Lada
    Tommy, you have a few valid points, yourself, but I have a few things to add:

    1. You can have 10 small websites generating each 1-2k a month. Actually, that's how a lot of people do it. It's quite difficult to bring just one website to 20k a month.

    2. There are, for example, ClickBank products that pay you $30+ per sale and plenty of affiliates that promote them with a very simple sales funnel that doesn't require much/any maintenance. Most of the time is spent generating traffic and that, too, can be done in one's spare time. It's true, this only happens once the website "matures" and not in its early phases.

    3. Automation is not that difficult. It's mostly done by email (please don't take this as a self-serving post - it's just my view), and that requires just adding emails in the autoresponder sequence, which, you've guessed, can be done pretty much whenever one has time.

    Bottom line is that both methods - low-volume/high-priced products and high-volume/low-priced products - can work well and both can be simple and easy to maintain.

    And there's competition and need for knowledge no matter if you're selling $10 books or $50,000 cars.

    Anyway, my only recommendation would be to sell Clickbank products as an affiliate. I know people who do it and make plenty of money with just a handful of websites. Other than that, I can't be of much help - sorry.
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  • Profile picture of the author drmfitz
    yes. selling education that works and has a higher value than the purchase price. simple. "agent" gets $1,000 fee when qualified. when i sold in late 90's 39% of my Level I customers followed to Level II (seminar) and this fee paid agent $5,000. yes, there is a Level III that pays multiple 5 figures. Example-if we help someone turn their CPA's payment into a refund, what is that worth? depends on the amount of course. you get the idea.
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  • Profile picture of the author Steve B
    Originally Posted by Tommyg123 View Post

    I don't really enjoy marketing and working on websites/digital products

    Tommy,

    To be perfectly honest, this may not be the right career for you.

    Marketing is what making money online is all about, it's what puts cash in your pocket. It's what small independent business must do in order to build a niche regardless if you sell futures trading systems, watches, $7 reports, or luxury autos.

    It will be hard for you to get good at doing something you don't enjoy.

    There are some alternatives like taking on a partner to do the marketing for your business, or outsourcing specific marketing tasks. But in a very real sense, marketing must be done in order to make a sale.

    Steve
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    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

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  • Profile picture of the author Profit Traveler
    Hi Tommy,

    First of all congrats on your success so far that is fantastic.

    That is funny to hear someone compare trading and possibly losing thousands online as more bearable compared to internet marketing.

    I think what you need to study is Funnels.

    If you did introduce people to some of that awesome knowledge you have in your head with an introductory $20 info product then they would be more receptive to your in depth premium training at that point.

    You could create over the shoulder videos to even increase the value perception.

    You also mentioned that you can now make money as a consultant for companies who deal with freelancers. That is definitely something you can expand on very profitably.

    Business to business is much easier process in my opinion. Yes you deal with red tape but they know that spending money is a natural part of the equation.

    Art
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    MAKE MONEY DOING WHAT YOU ARE ALREADY DOING...

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