The 7 Unchanging Steps For Making Money Online

by Kunle Olomofe 8 replies
This is for any struggling warriors out there...

Making money online really isn't hard when you follow 7 very basic rules.

I first discovered these rules in '99. I used them. I made money. Others used them. They made money. The rules have not changed since, and won't. Use them. Make money.

Rule 1/Step 1: Hard To Sell Products Are A No No

You may think it's obvious and people don't need to be told not to try to market hard to move products. You'd be wrong. At least 50% of the products being marketed online are hard to sell products. Why? Simple. The product owners usually have to work round the clock trying to get their site visitors to pay them for those products or services.

It's like I told an associate of mine recently... "If you could just come up with one service or product idea that didn't require you to market it past the initial awareness creation stage -- which is usually between 1 month to 10 months after a product is released -- you'd have hit on your own little rainbow road to hidden pots of gold".

You see, what most people (and you may be one of them, I know I once was), try to do is figure out what their passion is and then try to look for a market interested in the same thing. That's fine -- as far as hobbies go.

But, if you want to really be making money hand over fist, or on auto-pilot, or if you want to enjoy the finer things in life (just to mention a few cliches), then you can not afford to look for markets that are created around your desires, whims or caprices.

What you want to do is look for a market that will chase after something you create for them to chase after... whether it is your passion or not.

Listen, it helps to be "tres" passionate about what you're selling, but if you're "tres" passionate about something few people or nobody wants to pay for, you will remain "tres" poor for a long long long time. It's a simple fact of life.

Examples of Hard To Sell Products

I had thought to list a ton of products and services that are hard to move but then I might offend someone's sensitive feelings So, rather than do that, I thought I would give you a general but holistic picture of what not to sell online or offline for that matter.

Here goes... You know you most likely have a dud in the making if you have to...

1. Dig for hours and/or days through search engines looking for sites that already have a congregation of potential buyers.

2. Search for more than 30 seconds (at least) for people selling similar products you're planning to sell. There is an exception to this rule as with most rules. The exception is, if you happen to be the first to come out with a truly valuable and/or revolutionary concept, then you still can have a winner even when no one else is selling something like what you want to get started selling... truth though is, revolutionary concepts are NOT that common. So, rather than spend all your life looking for one, get started with something people already want to pay for but have no one interested in or capable of providing for them. You can spend your spare time thinking up that one great revolutionary idea once you have money in the bank, food in the stomach and bills all paid up -- it's smarter that way anyways, though the choice is yours in the end.

OK. Moving on... You know you most likely have a dud in the making if you have to...

3. Convince YOURSELF that people are going to want what you got to give. Again there may be some exceptions here... for instance, if you are a risk taker by nature, you will probably ignore my advice here... and that's fine... just be sure you're not taking miscalculated risks based on selfish desires simply to see a pet project come to life. It is usually not worth the risk to blindly create things people won't want in the end just because you've got that super stubborn, "I'm really a genius" streak in you...

Ah, what the heck... many more lessons left to share, here we go...

You know you most likely have a dud in the making if you have to...

4. Spend far more time and money creating something than you can make from selling it within at least 3 months of releasing it. In short, if you have to wait too long to see profits online, you will get discouraged and chances are you will pack up long before the results do come in. And even if that doesn't happen, you know you have to explain to your spouse and/or family what the heck you think you're doing spending money and not making a dime.. most people don't last under that kind of pressure. So, avoid it if you can.

You know you most likely have a dud in the making if you have to...

5. Ask a ton of expert solutions for finding ways to market that product online or offline. Seriously, marketing is the easiest thing to do when you have the RIGHT product and have already located the RIGHT market. Most people create a product and start asking for magic pills to drive "traffic" to their site. If you do it right from the beginning, you won't have that problem in the first place. First find a market. Second find a product the market wants to, is willing to, and is able to pay for. Third make it brain dead easy for them to know you're the guy or gal who's made it ready for them. And finally, tell them how, when and where they can get their hands on it. All of this stuff is really simple if you would just do them in the right order. Bottom line: Marketing should be a no-brainer. And is when done the right way.

OK. Moving on... You know you most likely have a dud in the making if you...

6. Can't easily write a convincing business plan and marketing strategy for that product/service out on paper in under 2 hours give or take a few minutes. Seriously, if you can't explain what you want to do to even yourself (talk much less of a 3rd party) on paper, you have a serious problem lurking in the shadows waiting to kill your business.

You know you most likely have a dud in the making if you...

7. Can't make your calculations (sales, profit forecasts etc) work on paper in the first place.

You know you most likely have a dud in the making if you...

8. Need more than a couple thousand dollars to get started and be seeing a profit within months. Most web business ideas can be launched on far less to almost nothing. So, if you get hung up on an idea that will cost you over $2K to launch, you'd better have the back up funds to make it worth your while in case things back fire. In the end though, my advice is unless you're setting up a fancy big shot web 2.0 site, don't go spending too much on new ideas at least until you have some test results to go on. Just be careful here.

You know you most likely have a dud in the making if you...

9. Find it hard building an affiliate force or a willing "followership" (i.e. people who don't care about getting paid to promote you) that will market your product WHILE you sleep. This one is self explanatory --

And finally...

10. The most obvious point would have to be this one --- If there are already a ton of people selling EXACTLY what you want to sell or a very similar product or service, you're only setting yourself up to spend a ton more of your time and/or money to get the attention of your prospects. Which is fine if you have that time and money to spare.

That's all for now... I will continue with Rule 2/Step 2 - "Start Making Friends & Influencing People" same spot tomorrow -- Look out for it.


Kunle Olomofe
#main internet marketing discussion forum #make money #making #marketing #money #online #part #product #steps #unchanging
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  • Profile picture of the author lakshaybehl

    These are the real things!

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  • Profile picture of the author Kunle Olomofe
    Thanks lakshaybehl, glad you like it.

    Here's Step 2...

    Rule 2/Step 2: Start Making Friends & Influencing People

    The greatest power a business owner can wield is the power of influence.

    Too many small and home based business owners do not understand this simple fact.

    Every Fortune 500 company knows this and operates based primarily on this.

    If they can not positively influence those who can help their businesses grow (whether it's their prospects, customers, associates, employees, shareholders, bankers, publicity contacts, suppliers, consultants and so on), into going ahead and doing always and only that which is in THEIR companies' best interests, they know they can easily kiss their profits "see ya"! And that's why they take all the pains and spend all the big bucks to hire full time PR consultants who can get them into the public's good books and get them out of a jam whenever that is required.

    Politicians the world over thrive on the above as well. The Power Of Influence -- It Is Probably THE GREATEST POWER A HUMAN CAN HAVE.

    The latter in part explains why Dale Carnegie's classic "How To Win Friends & Influence People" has so far sold over 500 million copies and is still going strong after several decades in book stores all over the globe.

    The problem is this however... millions of people (probably yourself included) think that possessing the power to positively influence people who can help their businesses grow is an art form that can not be easily learned. And the truth is, they (and you) are just downright mistaken. Fatally so in fact.

    To prove it, take a look at some of the most successful people the world has ever known... so many of them had nothing more than their skills, talents, or wits to offer for recognition. They became household names not because they splashed thousands of dollars around advertising themselves (that would definitely help anyone, even them), but what many of the well known "Greatest contributors to humanity" all have in common isn't their advertising budget, but the fact that they developed the ability to influence those closest to them in such ways that those people were able to influence those closest to them (and so on), into taking the steps required to help our heroes grow into household names.

    It may sound complex, but it really isn't. Human beings were built to naturally pass on information to one another. It's the main reason we can speak while other creatures have only sounds and gestures etc, to guide them in understanding each other. The power of speech however allows you or anyone to pass on valuable information about anything on the face of the planet within seconds and with the advent of powerful technologies like the telephone and the Internet and TV and radio, other people all the way across the world can get their hands on the exact same information within a matter of minutes or even seconds.


    Now, imagine that you can wield that same power within your own market. All you have to do really is say something to someone or a group of people that they would instinctively want to pass on to someone else... If you can convince them to do so, they will. If you can convince them to get others they can influence to influence those they know to do what is in your business' best interest, and they do, you would have easily hit the mother lode and it may never cost you more than your normal working hours and/or a few thousand dollars to achieve this status.

    What you really need is to provide people with something they WANT to talk about with someone else and that someone else will want to talk about with someone else and so on... It's not that hard when you sit down and think about it...

    For instance, when was the last time you were able to convince someone to say something nice about you?

    All you have to do to achieve that status is be nice to the people around you... become the one person they can't do but say nice things about... Influence them with your good nature and people will rush to share the good news with their own friends.

    A very important point you should NOT forget to attach to this step is to try to stay in contact with as many of your new found friends, prospects and customers as possible...

    Remember, in order to be able to positively influence people, you have to be able to CONTACT them. If you don't have my cell phone number or email address for example, you can't possibly expect to say anything directly to me half way across the world and have me hear you. Same goes for your marketing...

    Collect the names, email addresses, phone numbers etc of your new friends, acquaintances and customers every time you have a chance to (just don't force people into being on your contacts' list, that will always backfire, trust me, no one likes being forced to do things they don't want to do).

    Once you have their permission to contact them, use that opportunity to be nice to them, and do it from the bottom of your heart, because the human psyche can smell B.S. ten miles away. So just be real about it all.

    People will appreciate your good deeds, kind heart, fairness, great content, great information, great products and great service so much that even if they don't tell anyone else about you, they will stick with you just to keep enjoying the good stuff... And those who will talk will only have glowing things to say... Build your business from the start in this way. Build the audience for a product from the start in this way.

    I promise you, you can never go wrong when you plan to positively influence those who can help grow your business and if you're smart, you'll always ask them for a way to stay in touch so that you can continue to build on that relationship. It's a no brainer, but then again, how many times have no brainers ever been the most obvious line of action?

    Don't let this one pass you by... You won't only regret not having this circle of influence, you'll PAY FOR IT UP FRONT. Guaranteed.

    Look out for Step 3 - "Prepare To Deliver 1st Rate Products/Services" -- Coming soon
    Celebrity Marketing Formula - How To Quickly Become A Celebrated Authority In ANY Industry/Niche... Coming Soon.
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    • Profile picture of the author Kym Robinson
      Excellent posts - I will be looking forward to number 3!
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  • Profile picture of the author Norma Holt
    Kunie, you sound like the voice of experience
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    • Profile picture of the author Kunle Olomofe
      Hi Kym and Norma,

      Thanks for the kind comments. Much appreciated

      Here's Step 3...

      Rule 3/Step 3: Prepare To Deliver 1st Rate Products/Services

      In Step 1, we discussed the fact that you shouldn't just go round the web trying to sell things people aren't stepping over each other to pay for. In order to make it possible for the latter to happen (i.e. to get people rushing to buy your products and services), all you need to do is follow Steps 1 and 2 diligently, and then add Step 3 to the mix... Which is to: Deliver products and services that you are certain people will talk POSITIVELY about to their friends, colleagues, and even their own audience of prospects and customers as well.

      It IS hard to attain this level of quality. So, you will have to roll up your sleeves and get busy going the extra mile so that each and every customer or prospect leaves with a big fat smile on their face. The good news though is that once you're determined to deliver top draw in terms of content, packaging, service etc... it only gets easier from then on in because after a while, you start to naturally follow the steps of creating quality packages.

      In short, delivering quality then becomes your stock in trade, routine, a "that's just the way it is" feeling when people approach you to do business with you.

      It may take time and a lot of effort to get to that stage where virtually everything you do wows your audience, but as with everything else in life... with practice comes perfection.

      All you need to do is DECIDE on the "LEVEL of standards" that YOU want to and are capable of delivering, and then take EVERY step you MUST in order to achieve your GOALS.

      I thought it might help to give you a few pointers on delivering top draw content, packaging, service etc... So here goes:-

      How To Deliver Top Quality - 100% Guaranteed

      I'll tell you the secret to creating great quality in just a few words and simultaneously lay out some steps you can follow easily, too. The secret to creating great quality lies in some key words in the definition of quality itself...

      Words like..."distinctive characteristic", "distinguishing factor", "grade of excellence", "high grade", "superiority", "excellence", "an accomplishment or attainment", and my all time favorite: "marked by a CONCENTRATED expenditure of involvement, concern, or commitment".

      That pretty much sums up the difference between mediocre and high standards, poor, and good, and best and so on... it's the CONCENTRATED expenditure of time, money, skills/expertise, knowledge, intelligence, concern AND commitment.

      To deliver TOP quality is to FOCUS on delivering your products and/or services by taking one or more of the latter into full consideration and taking your actions based also on one or more of the latter that WILL help you create HIGH quality that people can not help but love and appreciate and tell others about -- 100% guaranteed.

      It is the attainment of that level of quality in the information you provide, and/or the packaging of your products, or the fine taste and the smoothness of the services you provide to your customers and prospects that will allow you to:

      1. Set your own prices (which we will be discussing shortly)

      2. Market or promote yourself EASILY (which is key to your success--the easier it is to market yourself and products, the better business will be, difficulty in marketing (online) usually stems from leaving out one or more of the 7 Unchanging Steps!).... and finally...

      3. Getting your products or services to practically SELL THEMSELVES with very little major or continuous input from you or members of your team. Instead, your customers SELL your products for you (by convincing themselves and their contacts that you and your product are "IT"!) Trust me, the QUALITY of your product packaging and the QUALITY of your content (if you sell information etc) or a service or set of services you provide will EASILY (and on their own, with very little effort on your part) attract hundreds perhaps thousands of people from far and near to come to you practically of their own accord.

      Look closely at those who have succeeded in consistently selling their stuff like hot cakes... (I'm not talking about the "one hit wonders", I mean those who have stood the test of several new "launches", and who continue to wow their audiences with virtually every new release, time after time)... You will notice that these (online and offline) companies and/or individuals have put into place a full proof selling system...

      They have made their product of GREAT QUALITY and then have told JUST ENOUGH people about that product (whether it's free or premium) to start those people off telling more people and they more people and so on... -- that's the trick to getting tons of Word Of Mouth Advertising --- Read the above over and over, print it out and meditate on it

      If you can put in the time, money, skills, knowledge, intelligence, concern and commitment into creating and delivering your products and services... you WILL have a winner on your hands even if you have competition coming out of the wood works.

      Once you attain this level of excellence, your only Achilles' heel will be a weak link in YOUR team. No one else will be able to touch you. No bad press can harm a truly great quality product or service. No competitors can ruin your image. No sane customer can ignore you forever.

      In short, once you have this step down to a science, all you need now is a hard earned, well deserved break... but don't be gone too long ... QUALITY must be carefully monitored and renewed to keep it fresh and sizzling.

      If you drop the ball at this stage, you will have no one else to blame but numero uno.

      Getting to the top as they say is often not as hard as staying there. ;-)

      Look out for Step 4 - Price To Profit Right From The Start... Coming down the tube


      Kunle Olomofe
      Celebrity Marketing Formula - How To Quickly Become A Celebrated Authority In ANY Industry/Niche... Coming Soon.
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  • Hi Kunle,

    These are some excellent posts. Thank you for all the thought you have put into them.

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  • Profile picture of the author Kunle Olomofe
    Hi Angela,

    Thanks! It's really great to know you appreciate it ;-)

    Here's step 4.... It's right up there with the top 10
    most dreaded and misunderstood tasks in IM!

    And, good news is, I may have the solution to turn your
    feeling of dread into that of ecstasy. Read on for more...

    Step 4/Rule 4 - Price To Profit Right From The Start...

    It's like I said, perhaps THE most difficult task for many online
    marketers (especially those selling intangible goods like digital
    products, design services, content creation services of any kind
    e.g. copywriting and so on and so forth, even consultation services),
    is the art of determining the price at which their customers will rush
    to buy and also one that generates the maximum (or at the very
    least generous) profits for the work they've put in.

    Hands up if this isn't one of those things that bugs the heck out
    of you. I consider myself pretty comfortable with pricing for the web
    and yet, I still come up against some head scratching moments myself,
    so I'd be surprised if others were not having a nightmare of a time
    with product/service pricing especially for an Internet
    Marketing/Home Based business.

    But fear not, help is here, albeit not in totality, but it should
    get you feeling much more in control (at the very least).

    Before we get to that, you need to know a little about my
    pedigree with regard to pricing for the web. I have been online
    since 1998, I've taken short and lengthy breaks from IM every
    now and again, either to work offline or for college studies etc,
    but every time I come back online after one of those breaks, I
    find the age old problem of pricing for the web still bothers even
    the best of us. The arguments range from pricing extremely low
    to pricing extremely high to sticking to something in between
    (and the latter varies for every business and product out there).

    But arguments are a very dangerous concept in and of themselves.

    They tend to be one-sided and biased and usually based on
    personal experience or no experience at all (e.g. on the 3rd party
    experience of others). I have been caught up in such arguments
    myself in the past though I have always tried to remain impartial,
    I have to admit I have favored pricing higher to pricing lower for
    personal among other business-related reasons. It got so bad,
    I decided it was time to set the record straight from my point of
    view, that I sat down and in 2 weeks finished a 90+ page report
    on Pricing For Profits online that was released in 2001.

    I am proud to say that report or book achieved critical acclaim,
    however even though it was probably downloaded over a half
    a million times all over the globe--no, I don't have the actual stats
    to prove that, but have made some deductions based on some
    research I did at various times over the past several years--the
    contents of the book itself have not appeared to help too many

    It's sad really, because if people would just try to get out of their
    own way sometimes, they might find the road blocks (that they
    thought were stopping them from achieving success) are actually
    non-existent or at best not as bad as they'd initially thought they
    were. The reason I say all this is simple...

    I wrote that report titled Proven Pricing Secrets and put a price
    tag of $125 on it when it was first released. It sold well considering
    it was 2001 and a PDF report and I was not even a high priced "guru"
    coach at the time (at least not that I knew of, then I probably
    bungled it all in my haste to get the book in the hands of thousands,
    by selling MRR to it for $249.

    I thought I was helping people by letting go of the rights like that,
    it wasn't about me making a name or making money. I thought
    since I can't reach these millions of folks on my own, I'd give the
    rights to those who could. They would sell the book for $125 each
    and could pass on the rights for "just" $249 and the chain would
    keep growing and helping people. How wrong was I? Within months,
    the product found its way to sites like ebay and was being sold for
    the less than the price of a song, and people were adding it to
    ebook packages selling for $29 with some pretty crappy ebooks...

    I even saw some selling it on their personal sites for $0.06 cents!!!

    I mean, really.

    The entire premise of the book was to teach people to price well
    and price higher if it could be justified. And here was the very
    audience I set out to teach this stuff to, selling a book I had
    estimated at $125 (a price which many had happily paid), for less
    than a cup of coffee! You can imagine this outraged me no end.

    But, I could blame noone but myself for letting go of my
    rights to such a gem of pricing wisdom and allowing so many
    clueless, selfish people the right to make a mockery of me and
    others trying hard to make a living and/or make a difference.

    All this led me to further take the time to study the web as
    a market especially in the IM circles I moved in.

    What I have seen has both saddened and disappointed me.

    It's either people are encouraging each other to sell very valuable
    content for less than 10 bucks just so thousands don't have to
    THINK before they buy, and "the sellers" can make a good income
    that way (which I bet is usually if not always short-lived, nothing
    like McDonald's who are still going strong (by MY standards) even
    with their low pricing--but more on this another time).

    Or, I would see marketers pricing way out of reach of their very audience.

    Both sides as far as I am concerned (and this is just my personal opinion), are wrong.

    And you're about to find out exactly WHY (based wholly on scientific provable facts)...


    My gripe above isn't just a gripe. It's the MAIN reason why pricing is giving YOU
    so much of a headache and someone has got to address this if any progress is
    to be made. So, now that I'm off my pricing madness soap box, I can tell you
    how to avoid the pitfalls mentioned above...

    The simple fact of the matter is that people don't even understand
    the basic dictionary meaning of PRICE in the first place. That's why
    they can't figure out how to solve the problem of "PRICING" especially
    in a market like ours where very little expenditure is made and very
    huge profits can potentially be generated.

    How do you marry the 2 outrageous sides of the same coin (i.e. Low costs
    and High profits)? In the real world where you have to pay for virtually
    every aspect of running a business it is easy to price, you simply add
    up all your expenses for producing an item and you determine based
    on market research how much you need to sell at various price points
    to make back your expenditure and add a nice profit on top.

    That's pretty basic and very easy to do really... Just tell your accountant
    every single expense you make in order to produce one unit of the product
    you're going to be selling.

    Let's put the figure at $10,000 a month. Now, research tells you that
    your target market (lets say you sell ice cream for a living), can pay
    up to $5 for a JUMBO cone of well made, frosty, delicious ice cream
    (which is what you're going to be selling). Research then tells you
    where best to position your ice cream store and how best to get
    people to know about the product.

    If your costs after all of the latter are still $10,000 as initially stated,
    then your accountant can easily predict that if you sold only 50 Jumbo
    cones in a month, you would be making a huge loss of $9,750 each month!

    So, you would obviously be crazy to continue doing so without trying
    to fix the problem or just plain getting out of that line of work.

    So then, your accountant tells you, if you could at least sell 2,000
    Jumbo cones of ice cream, you would just break even, which means
    you make back exactly what you spent, which means you don't make
    a cent of profit but at least you won't have to pack up anytime soon,
    unless you just keep on not making a dime over break even point.

    Your accountant then makes it clear that if you could just strategize
    well enough to make 2001 sales of your $5 Jumbo cones each month,
    you would at last be in profit!

    Yeah, your profit is minuscule at just 5 bucks but hey profit is profit
    friend, and far better than loss or breaking even. But then, you didn't
    get into the business to break even or just to make a $5 profit, maybe
    you plan to expand your business or add more recipes, employ more
    people or want to have the doe to enjoy some nice things and your profit is
    what determines just how far you can go with those "extra-curricular" plans

    So, you talk to your bean counter and he tells you, if you can at least
    double your minimum number of sales of 2,000 to as high as 4,000 sales all
    still on the same budget of $10,000 you would be one of the happiest business
    owning ice cream merchants in the whole world...

    He would tell you that would mean you earn $20,000, and after
    deducting your previous month's expenses of $10,000 (so that
    you are no longer IN DEBT), you will still be left with $10,000 you
    can then re-invest or spend any other way that is smart to.

    Wow... wouldn't that be an enormous achievement for a lowly ice
    cream man or woman? Imagine if somehow, you could earn that
    extra $10,000 each month, that would mean within a year your
    business would be generating REVENUES of $2.4 Million and turning
    a PROFIT of $1.2 Million! Wowee! That'd be nice!

    But all that can ONLY occur if you have a great product people
    want and are able and ready to buy. And you have to work it all
    out so that you make as many as 4,000 sales per month to
    achieve your dream position in business. And, you have to do
    it all within a budget of $10,000 and not a cent more each month.

    Again, wow.

    Any mere man would be daunted by the above task. That is only
    natural. And it would only be natural to make some bad calls
    or omit something or other or overspend or underspend or hire
    the wrong staff or make one of a plethora of other mistakes.

    But you see, this mere man's problems are child's play in direct
    comparison to what YOU might be facing right now... What?
    How? Well... HE has been able with the help of a set of
    professionals to determine without an iota of doubt that $5 is
    a perfect price for the market he's trying to reach.

    And, the professional help of his bean counter also made it
    obvious that all he has is $10,000 a month which he must never
    overshoot if he intends to stay alive and happy for very long.

    So, this mere man KNOWS perhaps the 2 most important facts that
    will either sink or elevate any business in the world.

    He KNOWS them. Now, all he has to do is find a way to make both
    facts work in sync, smoothly, perhaps even perfectly so that he
    becomes a true success in business.

    Do you see where I'm going with this?

    This guy KNOWS how much he has to spend each month.

    And he KNOWS how much he must not overshoot. He also KNOWS
    how much customers will be happy to pay.

    Finally he KNOWS how much is the minimum he must generate each
    month to at least stay in business WITHOUT a profit. He is VERY

    And KNOWLEDGE my friend, is POWER. With Power you can do
    and undo practically anything. My question to you therefore
    is... how POWERFUL a business owner are YOU right now?

    How much about your business do you REALLY know?

    FACT 1. Do you KNOW how much you need to spend each month to
    get your products/services ready and out there? Write this down if you do.

    FACT 2. Do you KNOW how much you must NEVER overshoot to stay safe?

    Write this down if you do.

    FACT 3. Do you KNOW how much your customers would be willing to spend (ouch!)?

    Write this down too if you do.

    FACT 4. Finally, do you KNOW how much is the MINIMUM no of sales you MUST
    make to at least stay in business WITHOUT a profit (again, ouch!)?

    Write THIS down, too.

    Now, if you KNOW all this, you don't need much else except the
    knowledge of how to get enough customers to achieve FACT no. 4
    above. And then, how to get enough customers to achieve any level
    (that you desire and can reach), that is above what FACT no. 4 tells
    you -- we will be discussing how to do this in much later steps.

    For now, I want you to be completely honest with yourself, how
    many of those above mentioned facts do you actually have right
    this minute as you read this?

    If you're honest and your answer is anything less than "ALL FOUR!",
    you have a problem. In fact, you have a series of very big bad problems
    that WILL eat you alive and not even bother to spit you out -- and I'm
    NOT trying to be funny here, I'm dead serious.

    See, you NEED to KNOW all of those FACTS in order to determine just
    how profitable your business will be.

    You have NO choice in the matter because it is the LAW OF PROFITS.

    So, look at it this way...

    Why not take some time right now (this very hour) to...

    1. Grab a pen and paper and write out EVERY single expense
    you have each month that is directly or indirectly connected
    with your success as a web business owner.

    You would HAVE TO include EVERYTHING from utilities, to equipment,
    to rent, to feeding, to clothing (unless you work naked, and you really
    shouldn't, it's gross and unhygenic), and you probably should include every
    other expense, family stuff, etc that is taken out of YOUR monthly money
    pot and which affects your web business.

    That list should be somewhat or very long depending on your
    circumstance. If you're living at home with your mum & dad or
    have a trust fund for your expenses, your list might be
    considerably shorter, which is good for you, you should not
    find it so hard to stick to the following step...

    2. Once you know how much the stuff in no. 1 above
    total at, you already know how much you should not overshoot,
    and you should be responsible and disciplined and NOT overshoot
    it or you will die a horrible business death and you know it.

    Write this figure down and plan to have yourself beaten and
    dragged down your street wearing absolutely nothing if you even
    dare to overshoot by just 1 cent--make sure you tell someone who
    is capable of degrading you like this about your decision or you'll
    just be wasting your time 'cos nothing else will keep an irresponsible
    CEO responsible except the thought of knowing he can get caught
    and punished if he screws up (The story of Enron springs to mind here;-)

    Once you've tied yourself down mentally and physically to
    that budget, your next step is to...

    3. Find out exactly how much your prospects/customers are
    willing to spend on a product like yours.

    Hello there. No wait, don't go. I'm talking to you, yes
    you. This is the point where most people pack it in. Lazy bums.

    What you need to do is simple. Research your market.

    It takes time. It takes a strong work ethic. It takes expertise.

    But it MUST be done if you are to answer this question as
    factually as possible. If you don't have any or just one the
    latter 3 'must-haves' to get this done, get help.

    Find the money and hire someone who can do it for you. Or
    beg them or barter with them. But get it done--Scientifically.

    Here are some pointers for you, in case you need them...

    A. Find your market on or off-line - Where do they hang out? Who is selling to them?

    B. Ask a cross section of your market the simple question
    -- "Is PRODUCT XYZ over, or under, or priced just right for you?"

    An average of 100 - 1,000 answers from various cross sections of
    your market will give you a very basic idea. If you want some more
    depth, get some more people to answer.

    C. Do some sleuthing. Find out how well the others in your industry
    are doing with the very same customers at the prices you see advertised.

    Sleuthing will involve any number of tactics, a good number will be
    underhanded, just don't do anything illegal or overly immoral to
    get answers. You can apply to join their staff and see if this
    gets you in the know at least a little, if not, you can simply
    ASK them... ouch... how 'unsleuthy' is that?

    D. Unless you have a product ready to go, you can't do the following,
    which is to TEST your own cross section of prospects by offering
    different prices to the same audience either under cover of
    split testing, or upfront, by TELLING them what you're doing.

    E. What you DO NOT want to do is GUESS. That might work. Doing so
    might fail you. But if you do it and it works, what are the chances you
    can guess right, the next time? If you do it, and it fails, what are
    chances your business will survive such a daring step?

    The choice in the end is yours.

    I'm afraid, at this stage, there is no magic pill I know of as yet,
    to fixing the problem of getting the right price. No one solution fits
    all, except the solution that involves what I have laid out for you
    already and even then you would have to apply common sense,
    some level of skill or get someone to do it all for you.

    The most important factor you must keep in mind however is this...

    If you can not tell your bean counter:-

    A. How much you are likely to spend each month to run your business
    or produce and/or deliver your product or service,

    B. How much you must never go over in the course of your monthly
    business endeavors if you plan to stay alive online,

    C. How much your customers are happy to pay based on
    confirmed results you are able to gather through research,

    D. How many prospects you must convince each month to buy your
    product/service in order to at least break even,

    Then you have a lot of work to do.

    And you really ought to get started right away...

    Failure to launch usually has to do with the mindset of the individual and nothing else.

    What is your current mindset after reading this?

    While you decide what's next on your plate, I'll be preparing Step 5
    - Build/Design Your Site To Sell, the TRUTHS of this just might shock you.
    Celebrity Marketing Formula - How To Quickly Become A Celebrated Authority In ANY Industry/Niche... Coming Soon.
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    • Profile picture of the author MaskedMarketer

      Excellent posts. Rule #2 is very important in any business. Networking and influence. Its no accident frank kern and eban pagan are some of the most successful in internet marketing. Theres plenty of other people in there niches, but aren't successful because they lack the power of networking and influence. You don't sell a 10k a head seminar and not have influence.

      "One Man's Ceiling is Another Man's Floor

      "I Pay Less Attention to What Men Say. I Just Watch What They Do."
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