An honest call for advice how to break the cycle and go full time

15 years ago

I don't mean to be mean with you mate, but it'd seem to me like you're asking a question that's not intended for an Online Business forum but rather to a Self-Help forum...

Thanks
1 reply

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Jeff Bronson 15 years ago

My apologies it if comes across that way, I figured others may have been in similar spots before and could share some advice.....
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Jeff Bronson

15 years ago

Singe greatest pain is still needing a job after 5 years in business.

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MarkAndrews IMCopywriting

15 years ago

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Jeff Bronson

15 years ago

Originally Posted by MarkAndrews IMCopywriting

Not a lot to go on there to offer you any meaningful advice, which ultimately will help you with your question.

If it's any consolation, I've been self employed running my own business for over 28 years and it's still a struggle, albeit an enjoyable one.

Either you are cut out for the long term or you're not.

Obviously this economic downturn isn't helping any but it is what it is.

You've just got to keep on plugging away and if something isn't working for you, adapt to change quickly or leave self employment altogether if you can't keep up or if it doesn't fulfill everything you expected from it.

Self employment, running your own business is rarely a bed of roses.

Either change your business model or get out of it altogether, if your heart isn't in it.

Best I can do, sorry.

Mark Andrews...

Thanks Mark..wow that puts some things into perspective...28 years and still a struggle. My heart is 110% percent in it... it's the lack of time (or more effective use of time) that seems to be one of the issues.

Thanks

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roger123

15 years ago

My piece of advise is to learn from your experience and improvise

Go for the time proven pareto analysis. Concentrate on those 20% techniques/ products/ services which bring you 80% of the revenue.

Analyze why your traffic is not converting - if it is because of a bad copy, improve your web copywriting skills or get the copy written by professional copywriters. If the quality of traffic is bad (not targeted long keywords), then improve your SEO efforts - outsource things to free your time so you can concentrate on important matters such as which products or services to target, doing demand analysis etc.

Good luck !

Thanks
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Jeff Bronson

15 years ago

Originally Posted by roger123

My piece of advise is to learn from your experience and improvise

Go for the time proven pareto analysis. Concentrate on those 20% techniques/ products/ services which bring you 80% of the revenue.

Analyze why your traffic is not converting - if it is because of a bad copy, improve your web copywriting skills or get the copy written by professional copywriters. If the quality of traffic is bad (not targeted long keywords), then improve your SEO efforts - outsource things to free your time so you can concentrate on important matters such as which products or services to target, doing demand analysis etc.

Good luck !

That is what I've been doing lately... selling off at a loss inventory that doesn't move, and focusing on those 20% of items that are 80% of the revenue.... I've been outsourcing some marketing tasks as well. Thanks for the reply.

Thanks

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Colin Palfrey

15 years ago

How about leaving your cart alone, and instead hire a lot of VA's to boost your business. $5000 to change a shopping cart when it isn't necessary is crazy. Stick it in advertising and you should be able to tell the job where to go.

I understand what you mean about working huge hours though, believe me. If I had a day job I wouldn't be working half the hours I do now. That is the dark side of running your own business. Just keep going and look for cheap ways to advertise to highly targeted viewers, then invest the money you were going to spend on changing shopping carts. If the orders get too high then hire others to fulfill them, as you would then have the money to do so.

My 2.5c

Thanks
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Jeff Bronson

15 years ago

Originally Posted by Colin Palfrey

How about leaving your cart alone, and instead hire a lot of VA's to boost your business. $5000 to change a shopping cart when it isn't necessary is crazy. Stick it in advertising and you should be able to tell the job where to go.

I understand what you mean about working huge hours though, believe me. If I had a day job I wouldn't be working half the hours I do now. That is the dark side of running your own business. Just keep going and look for cheap ways to advertise to highly targeted viewers, then invest the money you were going to spend on changing shopping carts. If the orders get too high then hire others to fulfill them, as you would then have the money to do so.

My 2.5c

Hmm, the change of shopping cart is due to needing the capability to manage multiple shops from one interface. I can sort of do that with my current cart, but in roundabout and messy ways that isn't scalable as it could be which affects everything from order processing (manually) to email management...... but I do see your point.

I agree it's very hard if you have a day job too.

Thanks

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John Henderson

15 years ago

Originally Posted by Lux_Arcana

I have some degree of success, last year the shop grossed $50,000...

Okay, but ask yourself whether you made any profit? The UK version of "The Apprentice" is fronted by a hard-faced guy called Alan Sugar, and one of his quotes is burned onto my brain: "Anybody can stand on a street corner selling 10 pound notes for 9 quid" (US English: "10 dollar bills for 9 bucks"). If you did that, you'd have high gross and many customer numbers. But you'd be bleeding money like there's no tomorrow. So maybe you should be brutally honest: Are your profits good, or just your turnover?

Originally Posted by Lux_Arcana

I get around 15,000-20,000 unique visitors a month...

Yet, for all these visitors and my industry research on conversion, I sit at a measly 0.18% conversion rate of visitor to
buyer, not even 1%. My average order is $65.. so even bringing conversion up to 1% would be life changing.

Do you have a mailing list? If you could just get 5 or 10 percent of those visitors onto a mailing list, you'd be able to contact those visitors to remind them that you're there and you're selling the things that they are interested in.

Originally Posted by Lux_Arcana

Here is the catch... I don't make enough money to live on, as I'm constantly reinvesting in inventory, or other business related things.

Yes, that's one thing that they don't tell you in school: "Sales cost money". Inventory minimization is so important that Toyota came up with a whole new system of manufacturing to do it -- "Just In Time" manufacturing.

Maybe you could do something similar; just keep enough inventory to cope with the orders that you are likely to receive in the next "x" days, where "x" is the amount of time it takes your suppliers to post new stock to you. As soon as your stock dips below that level, you can re-order -- but never before.

Originally Posted by Lux_Arcana

I don't expect over night success, but I've already lost a lot and sacrificed...

*lost a 6 year relationship, as I'm always too busy
*lost a dog I couldn't afford to "provide proper health care after years of trying
*now live alone in a 1 bedroom apartment, with inventory crammed into closets, shelves, etc.
*drive a 21 year old car in FL with no AC.
*shut off the TV, became vegetarian, and try to live cheaply.... track every dollar I spend.
*sold most of my personal stuff to raise funds

You need to make some changes, Lux -- it sounds like the business owns you rather than the other way around...

Originally Posted by Lux_Arcana

I only need $1600 a month to live (my job pays $35-40k)... I have no mortgage, no wife, no kids to worry about.

This is good news. As Warren Buffett says "If you're not in debt, you can't go broke". But you need to stockpile cash rather than inventory.

Originally Posted by Lux_Arcana

1. Should I try for a SBA loan, or line of credit? I have zero assets... as I live cheaply.

NO! You already have money, but it's locked up in inventory. Sell that first, and stop buying new inventory until you've got some breathing space.

Originally Posted by Lux_Arcana

2. Should I just keep the cycle of losing jobs, taking months to find a new one, then taking stupid phone sales B2B and telemarketing that pays zilch, are stressful and shortlived.

Well, it looks like you're going to have to do some of this until you are more solvent.

Originally Posted by Lux_Arcana

3. I have $3,000 available on a business credit card...... and $2,000 cash available, plus another couple $2,000 around the end of this or next month.

Forget the credit card, try to make your cash last.

Originally Posted by Lux_Arcana

Does it sound like I am scared to jump in full time to my business, or just being practical since it doesn't pay me enough?

Jumping in full time wouldn't help because lack of time doesn't seem to be the problem -- you're already giving all of your spare time to it. Lack of customers or lack of profit seems to be the problem. You need more of both. And you need to reduce your inventory by turning it into cash, and keep it low!

Originally Posted by Lux_Arcana

I feel like getting up all the other ecommerce sites will really help cash flow as no physical inventory will be involved so I can pay myself way more, but to get up that many sites will probably take a couple more years.....doing it in spare time and weekends.

Moving from tangible goods to digital goods would be a great move -- you might want to start planning that now.

Originally Posted by Lux_Arcana

The other eventual option is to move my inventory to a fulfillment center to I don't have to pack/ship orders, and outsource some customer support thus freeing up time and increasing the chance for mobility and working from different places more.

Or better yet, just set up your sites with affiliate links so that you refer customers to other people's sites, shift their stuff and pick up a sales commission without ever having to touch the gear yourself.

Anyway, best of luck Lux Arcana. I hope that you figure all of this out...
John.

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Adam Nolan 15 years ago

Hi Lux;

First thing I would do would be check out the book "The 4 Hour Work Week" by Tim Ferriss. It's literally changed the life of every person I've gifted it to.

A friend of mine left his job and moved to L.A. b/c of it and is doing very well.

Another friend of mine is now running a full time tutoring company doing very well for himself.

I started a marketing firm 6 months ago and now have offices all around the world and am working on eliminating myself as the bottleneck.

I can't even begin to describe how valuable this book is. It gives you step by step instructions on how to set up a money making machine on autopilot and gives you the skills to do all the cool & fun things you want.

Some personal examples:

I'm going skydiving in 2 weeks and then applying to start a pilots license.

I'm going to Utah for a week in August, Cuba for a week in August and the Philippines in Sept for 2+ weeks.

I'm learning a new language (German) just for the hell of it

Just signed a contract to do TV commercials b/c it was a fun new venue...

EVERYTHING originated from that book.

Please please check it out.

Cheers
- Adam
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Jeff Bronson

15 years ago

Originally Posted by John Henderson

Okay, but ask yourself whether you made any profit? The UK version of "The Apprentice" is fronted by a hard-faced guy called Alan Sugar, and one of his quotes is burned onto my brain: "Anybody can stand on a street corner selling 10 pound notes for 9 quid" (US English: "10 dollar bills for 9 bucks"). If you did that, you'd have high gross and many customer numbers. But you'd be bleeding money like there's no tomorrow. So maybe you should be brutally honest: Are your profits good, or just your turnover?

Profit is all that matter, you are right,and profit amount is slim. My gross profit percent is average 50%, but after expenses and cash flow used for reorders and overhead...not much is left.

Do you have a mailing list? If you could just get 5 or 10 percent of those visitors onto a mailing list, you'd be able to contact those visitors to remind them that you're there and you're selling the things that they are interested in.

Yes, my mailing list is about to hit 4,000. Part of what I was trying to do with a cart move is list segmentation by birthday, items/amounts ordered, wishlist activity notification, product review request/thanks,abandoned cart notification etc...in addition to standard newsletters, which will have to be segmented by site when I put these other sites up.

Yes, that's one thing that they don't tell you in school: "Sales cost money". Inventory minimization is so important that Toyota came up with a whole new system of manufacturing to do it -- "Just In Time" manufacturing.

Maybe you could do something similar; just keep enough inventory to cope with the orders that you are likely to receive in the next "x" days, where "x" is the amount of time it takes your suppliers to post new stock to you. As soon as your stock dips below that level, you can re-order -- but never before.

For some items I keep small amounts of inventory if the reorder cycle is short...other custom made items can come from one person businesses like myself.. and take months to fulfill...sometimes I'll sell out quick and be out for months resulting in lost sales, and other times I have an overage and these items move slower. Some suppliers give net 30 terms, others I have to prepay and be out the cash for a while.

You need to make some changes, Lux -- it sounds like the business owns you rather than the other way around...

You are very right, that's why I'm asking advice... as something needs to change.

This is good news. As Warren Buffett says "If you're not in debt, you can't go broke". But you need to stockpile cash rather than inventory.

NO! You already have money, but it's locked up in inventory. Sell that first, and stop buying new inventory until you've got some breathing space.

Thanks for your advice about the loan. I've been selling off some stuff at a loss of the slow movers right now.. but some of it, still remains.. and I ordered more of the items that have proven to move faster.

Well, it looks like you're going to have to do some of this until you are more solvent.

Forget the credit card, try to make your cash last.

Jumping in full time wouldn't help because lack of time doesn't seem to be the problem -- you're already giving all of your spare time to it. Lack of customers or lack of profit seems to be the problem. You need more of both. And you need to reduce your inventory by turning it into cash, and keep it low!

Lack of profit is an issue for sure, and I don't compete on price either... as undercutting as a race to the bottom makes everyone lose.
Raising prices is an option.

Moving from tangible goods to digital goods would be a great move -- you might want to start planning that now.

Or better yet, just set up your sites with affiliate links so that you refer customers to other people's sites, shift their stuff and pick up a sales commission without ever having to touch the gear yourself.Anyway, best of luck Lux Arcana. I hope that you figure all of this out...
John

Not sure what to say to these.. as the business and other sites are all built on physical products. Some of the items are so unique that I get a lot of traffic from people linking to them... or even stopping me in the street if I happen to be wearing any of it....sometimes no other site in the world has some of this stuff..... so affiliate programs are next to nil.

Thanks

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John Henderson

15 years ago

Good advice Adam, but I think that Lux mentioned that one....

Originally Posted by Lux_Arcana

I've read a lot over the years, including E-myth, 4-hour work week, Rich Scheffren, etc.....

Thanks
2 replies

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Adam Nolan 15 years ago

Originally Posted by John Henderson

Good advice Adam, but I think that Lux mentioned that one....

Oops... Didn't read that. Well there might be a few things that could be re-visited as a lot of his concerns are covered in that book with solutions.

Either way... everyone here should buy it! I'm thinking of giving away 10 copies with our next product launch. Just to get the word out there...
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Jeff Bronson 15 years ago

Originally Posted by John Henderson

Good advice Adam, but I think that Lux mentioned that one....

Yes, I've read the "4 hour work week" about three times in the last year... it's awesome and I gleaned some tips from it.
- Thanks
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kevinw1

15 years ago

Lux, I have a few thoughts for you, having been in a rather similar position myself some years ago.

Is there any way to monetize the traffic you already have, in a way which doesn't involve you handling physical products? For example, if Adsense works on your site and in your market, you might make as much or more that way as you do from your actual sales after you've subtracted all the expenses.

That does point to the question asked above - you've told us your gross - do you know your net? How much of your time does it take to earn it? How much money are you making per hour?

The other thing that strikes me is your own mention of improving conversion - that seems like the simplest way of increasing your income EXCEPT that it will increase the work of actually stocking, packing and shipping inventory, which it sounds like you're doing yourself. Having done that myself in an eBay business years ago, I know what a time-sucker it is.

Do any digital products already exist that your traffic might be interested in, or could you create a digital product yourself?

Kevin

Thanks
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Jeff Bronson

15 years ago

Originally Posted by kevinw1

Lux, I have a few thoughts for you, having been in a rather similar position myself some years ago.

Is there any way to monetize the traffic you already have, in a way which doesn't involve you handling physical products? For example, if Adsense works on your site and in your market, you might make as much or more that way as you do from your actual sales after you've subtracted all the expenses.

That does point to the question asked above - you've told us your gross - do you know your net? How much of your time does it take to earn it? How much money are you making per hour?

The other thing that strikes me is your own mention of improving conversion - that seems like the simplest way of increasing your income EXCEPT that it will increase the work of actually stocking, packing and shipping inventory, which it sounds like you're doing yourself. Having done that myself in an eBay business years ago, I know what a time-sucker it is.

Do any digital products already exist that your traffic might be interested in, or could you create a digital product yourself?

Kevin

Kevin,
Per Adsense, It's just my opinion that for an ecommerce site I don't want to drive traffic away from a possible sales conversion and it looks unprofessional. On the other hand, I see you point in that is can result in potential a fair amount of additional revenue. I did start working on putting up 100+ micro niche affiliate/adsense (from WSO learned here) sites at a rate of 12 a month and outsourcing most of it except niche/keyword selection, but this is also a time drain.

Per the sales , I'll share them below.. per time invested and amount made per hour, while I know I *should* calculate this.. it's next to nil. I mean many times it turns into working/slash trying to unwind from the day into a big cluster***k.
2009 gross sales = $45,420
gross profit $26,568
Net income $4200
Of course this is from the P & L, some items sold were not replaced so the cash flow looks different.
I did spend about $6,000+ plus on shopping cart purchase +mods and lose about $1500+ year on shipping, as I give free shipping over $100 purchase in the US, whereas International pays full price.
Besides handling products, some of them are drop shipped as well,but of course there are per item % fees, plus wholesale cost + shipping.

If you did eBay, you know packing/labels, etc takes time.
No there aren't any digital products in the market... it's giftware, jewelry, home decor, accessories, etc.... Not sure of any that could be created.

Thanks
2 replies

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bretski

15 years ago

Originally Posted by Lux_Arcana

2009 gross sales = $45,420
gross profit $26,568
Net income $4200

Good Lord Dude! Your overhead is tremendous and your profit margin...sorry dude. I am sure that you are really pulling your hair out. When I first read your post I thought, "How is it that this guy isn't rolling in the dough with the traffic and sales he's getting?" I was thinking "crack? hookers? online gambling?"

Sorry...trying to make you laugh a little bit. The thing is that you know how to do this stuff. It just seems that you're profit margins are way low. You know how to build sites, drive traffic through SEO (I assume) and convert that traffic to sales. You have probably more than 90% of the people on this forum beat as far as knowledge...you have a taste of success...

I just worry that if you try to scale this up it is going to consume you and we'll get a message from you that reads something like "glib...urslup...glob...gibbidy" and we'll find you in your apartment trying to swallow your tongue or something.

My suggestion would be to take your knowledge and apply it to digital products...or somehow automate what you have done so far so you don't have to do all the packing, shipping etc on your own...maybe find some products that have lower overhead? I don't know...physical products aren't my thing so I know that I don't know much about what it typical as far as profit margins...

Good luck though...you DO have a lot going for you...

Thanks
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Jeff Bronson

15 years ago

Originally Posted by bretski

Good Lord Dude! Your overhead is tremendous and your profit margin...sorry dude. I am sure that you are really pulling your hair out. When I first read your post I thought, "How is it that this guy isn't rolling in the dough with the traffic and sales he's getting?" I was thinking "crack? hookers? online gambling?"

Yes, the profit margin is horrible. All the expenses add up, but the three largest (other than COGS) are shipping/freight in, and hosting/software customization... and merchant account... advertising is next to nothing.
Rolling in the dough would be nice. It's extremely demoralizing to have something going that should be making you a living, and sometimes find yourself making $10/hr telemarketing and getting your job threatened ever day or week while seeing new incoming orders on your cell phone. Great $400 in orders today...how much of that will I see in my pocket?... at least $200.....hmmmm, oh wait I have to place that inventory order from last week....poof, gone.

Sorry...trying to make you laugh a little bit. The thing is that you know how to do this stuff. It just seems that you're profit margins are way low. You know how to build sites, drive traffic through SEO (I assume) and convert that traffic to sales. You have probably more than 90% of the people on this forum beat as far as knowledge...you have a taste of success...

Hah it's all good, there is real money I'm sure in pushing rock and pimpin ho's lol. More than 90% wow,that would be something...yes the traffic is from SEO, and quite frankly I really don't spend much of my time doing this part, I set up the site right from the beginning, and lots of people voluntarily link to my site as I have some #1 and #2 lists for some keywords with 1mil results, only a few thousand backlinks... and lots of social media mentions, etc.

I just worry that if you try to scale this up it is going to consume you and we'll get a message from you that reads something like "glib...urslup...glob...gibbidy" and we'll find you in your apartment trying to swallow your tongue or something.

That's what I'm trying to figure out now... how to scale up with what I have -which still costs money, or build a more scalable infrastructure which also cost money. I'ts maddening... I could take that money and get a new car to to avoid having no AC in 95degree Florida heat. Lucily I'm patient, but that is wearing thin. Swalling my tongue sounds like some good entertainment for tonight, that's. I'll tell the ER I heard it here

My suggestion would be to take your knowledge and apply it to digital products...or somehow automate what you have done so far so you don't have to do all the packing, shipping etc on your own...maybe find some products that have lower overhead? I don't know...physical products aren't my thing so I know that I don't know much about what it typical as far as profit margins...

Good luck though...you DO have a lot going for you...

I am working on the automation route of what's already in place... and focusing on more drop ship. That for the kind words, I'll try to remember that every day, and I'll consider how to add a digital product to the mix. I guess when I think of digital products MMO comes to mind which I don't want to get into.. but there is a world of other types of digital products ready to be created I am sure.

Thanks

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gjabiz

15 years ago

Originally Posted by Lux_Arcana

into a big cluster***k.

Net income $4200

If you want real help, here it is. Your life/business is, as you put it, a cluster***K.

With a Net Income of 4200 and the price you've paid to get there, you don't have a business you have a hobby you are in love with it.

Sell everything you have in inventory at cost and move on. Be a part of your industry by being one of the people who go to the trade shows and walk around and show off your stuff. Take the praise, and then get out of the building and the business.

Either your customers don't buy (for any number of reasons) or don't buy enough of _______ to make it viable.

So WHY (other than the love of the subject) would you even want to continue to do this?

OR
Pick out one piece of jewelry. One that has high profit margins. And write (or have written) a killer sales piece. You need a good story and a decent promotion. I'll give you a couple of examples, which I have NO affiliation with, just so you can see.

Cleopatra's Wheel

And while there, check out their jewelry and the STORIES.

Take the one piece that "stops people in their tracks"...and SELL it. Instead of having a catalog and inventory, sell one thing, and include a catalog in the back end.

You won't need to invest in a new shopping cart, heck, you could even do it with PayPal, but, since you already have a "business" make use of what you have.

Send out an email to your list with a link to the ONE PIECE of "limited number" (only order a few of them to test it off)...special JEWELRY with a link to the story about it.

Why would your buyers be interested? What is unique or special about it? Can you get an exclusive from your supplier?

IF you don't want to fold up shop and go a different route OR you don't want to try to sell just ONE item to get to profitable and job cash flow...

You are going to remain a Daily Show John Stewart staple...a "cluster***K.

gjabiz gjabiz@yahoo.com

That being said, if you want, I'll offer some practical advice on picking the ONE item and tell you exactly how to sell it, email me.

Thanks
1 reply

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Jeff Bronson

15 years ago

Originally Posted by gjabiz

If you want real help, here it is. Your life/business is, as you put it, a cluster***K.

With a Net Income of 4200 and the price you've paid to get there, you don't have a business you have a hobby you are in love with it.

Sell everything you have in inventory at cost and move on. Be a part of your industry by being one of the people who go to the trade shows and walk around and show off your stuff. Take the praise, and then get out of the building and the business.

Either your customers don't buy (for any number of reasons) or don't buy enough of _______ to make it viable.

So WHY (other than the love of the subject) would you even want to continue to do this?

OR
Pick out one piece of jewelry. One that has high profit margins. And write (or have written) a killer sales piece. You need a good story and a decent promotion. I'll give you a couple of examples, which I have NO affiliation with, just so you can see.

Cleopatra's Wheel

And while there, check out their jewelry and the STORIES.

Take the one piece that "stops people in their tracks"...and SELL it. Instead of having a catalog and inventory, sell one thing, and include a catalog in the back end.

You won't need to invest in a new shopping cart, heck, you could even do it with PayPal, but, since you already have a "business" make use of what you have.

Send out an email to your list with a link to the ONE PIECE of "limited number" (only order a few of them to test it off)...special JEWELRY with a link to the story about it.

Why would your buyers be interested? What is unique or special about it? Can you get an exclusive from your supplier?

IF you don't want to fold up shop and go a different route OR you don't want to try to sell just ONE item to get to profitable and job cash flow...

You are going to remain a Daily Show John Stewart staple...a "cluster***K.

gjabiz gjabiz@yahoo.com

That being said, if you want, I'll offer some practical advice on picking the ONE item and tell you exactly how to sell it, email me.

That page you showed me is well written and I am sure converts well.
A hobby being in love with is how it feels much of the time....you gave me a bit to think about, putting it that way.
The reason Why, is/was in the hopes of turning things around.

Thanks

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Crew Chief

15 years ago

Originally Posted by Lux_Arcana

4. Should I meet with a local SCORE volunteer to make recommendation?

Any candid advice would be greatly appreciated

Lux, IMHO, you need to set a meet with SCORE... A.S.A.P.!

Let that be your first source of input as far as getting your business flourishing. The SEO stuff, you can address as soon as you get your overall plan in motion.

After that, you need to do a critical self analysis and understand what the results are telling you.

You spoke a lot about the numerous jobs you have had and lost; you sorta reminded me of Perry Marshall and his rear view mirror story.

I won't tell it here but the gist of it is; some people are not cut out to be employees; instead they are cut from the CEO cloth. Others are not cut out to be employers or CEOs, they are made out of the employee cloth.

People who have that true entrepreneurial spirit usually have a hell of a time working as an employee. It's like telling a greyhound not to race or telling an eagle not to fly.

Figure out of you're a CEO trying to force yourself to be an employee. Or, if you're just a lazy slob with an abrasive attitude who is hard to get along with.

That being said, your business seems like its just on the verge of success and to get you over the edge, you need a Brainstorm Team.

Giles, the Crew Chief

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Jeff Bronson

15 years ago

Originally Posted by Crew Chief

Lux, IMHO, you need to set a meet with SCORE... A.S.A.P.!

Let that be your first source of input as far as getting your business flourishing. The SEO stuff, you can address as soon as you get your overall plan in motion.

After that, you need to do a critical self analysis and understand what the results are telling you.

You spoke a lot about the numerous jobs you have had and lost; you sorta reminded me of Perry Marshall and his rear view mirror story.

I won't tell it here but the gist of it is; some people are not cut out to be employees; instead they are cut from the CEO cloth. Others are not cut out to be employers or CEOs, they are made out of the employee cloth.

People who have that true entrepreneurial spirit usually have a hell of a time working as an employee. It's like telling a greyhound not to race or telling an eagle not to fly.

Figure out of you're a CEO trying to force yourself to be an employee. Or, if you're just a lazy slob with an abrasive attitude who is hard to get along with.

That being said, your business seems like its just on the verge of success and to get you over the edge, you need a Brainstorm Team.

Giles, the Crew Chief

Giles, thanks I'll search for a SCORE rep that has retail expereince, and possible ecommerce as well.

I can tell you I'm not cut out to be an employee, you can always show up, ask for constructive criticism, etc... and have it still not work out. My personal interests are very different than most even if I don't openly state them.. and that sort of sets you as the odd man out. Something even as simple as my not eating meat leads to a conversation that makes me feel singled out for my different views... and this happens repeatedly over the years. I think of jobs as trading time for income, that's all.

Yes, it seems like on the verge of success..... it's just getting that push to be able to kill the day job and increase conversion so I can use that conversion experience and rinse/repeat in other niches I've already identified as a green light.

Thanks
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Crew Chief

15 years ago

Originally Posted by Lux_Arcana

Giles, thanks I'll search for a SCORE rep that has retail expereince, and possible ecommerce as well.

Yes, it seems like on the verge of success..... it's just getting that push to be able to kill the day job and increase conversion so I can use that conversion experience and rinse/repeat in other niches I've already identified as a green light.

Based on your response, you mission should be to push to become a CEO without walls. That is a phrase for CEOs who are working J-O-Bs while they pursue their true dreams and desires.

Get to SCORE asap and let them pair you with the best fit. You will be amazed at the distilled wisdom, insights and business savvy you'll gather from SCORE.

The thing is, you are so close... a little tweaking here and a little tweaking there and you're in.

Quick success story about SCORE and I could tell you a slew of them. I Had a friend who spent about five years trying to open a dry cleaners. Twice sometimes three times a year he would apply for a SBA loan or a business loan and get denied... and he had assets and plenty of them. Still, no cookie.

He joined one of my Brainstorm Teams and at one meeting brought the loan doc package for us to peruse them. After glossing over the packet, I advised him to go to SCORE, which at that point he had never heard of.

Two to three months later, hadn't acted on the SCORE tip, and our Brainstorm Team ripped him a new one!

He got the point because he made the appointment and sat down with them. To his amazement, the SCORE executive was as sharp as a razor and set a beautifully orchestrated plan in motion.

Within two months he had the SBA loan approved. From there, the business took off and has been on fire every since.

The moral of the story...

Go see SCORE!

Get a Brainstorm Team together NOW!

If you are not to keen on the Brainstorm Team, read:

Trump: The Art Of The Deal

It's by none other than Donald Trump and one of his Brainstorm Team members, Tony Schwartz.

Giles, the Crew Chief

Thanks
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Jeff Bronson

15 years ago

Originally Posted by Crew Chief

Based on your response, you mission should be to push to become a CEO without walls. That is a phrase for CEOs who are working J-O-Bs while they pursue their true dreams and desires.

Get to SCORE asap and let them pair you with the best fit. You will be amazed at the distilled wisdom, insights and business savvy you'll gather from SCORE.

The thing is, you are so close... a little tweaking here and a little tweaking there and you're in.

Thanks for the vote of confidence...with "your so close...."

I feel as if I'm already a CEO without walls...as I've been pursuing this dream while having a job for a long time. I've got the SCORE website open in another tab right now and will pick out someone to contact.

Quick success story about SCORE and I could tell you a slew of them. I Had a friend who spent about five years trying to open a dry cleaners. Twice sometimes three times a year he would apply for a SBA loan or a business loan and get denied... and he had assets and plenty of them. Still, no cookie.

He joined one of my Brainstorm Teams and at one meeting brought the loan doc package for us to peruse them. After glossing over the packet, I advised him to go to SCORE, which at that point he had never heard of.

Two to three months later, hadn't acted on the SCORE tip, and our Brainstorm Team ripped him a new one!

.
Good, accountability in groups can sometimes help. I expected to get flamed in this post , but figured there would be some pearls of wisdom that struck a chord. That is rough to be denied multiple times a year.

He got the point because he made the appointment and sat down with them. To his amazement, the SCORE executive was as sharp as a razor and set a beautifully orchestrated plan in motion.

Within two months he had the SBA loan approved. From there, the business took off and has been on fire every since.

The moral of the story...

Go see SCORE!

That is a fantastic story, thank you for sharing.. very inspirational. How is that friend doing today?

Thanks
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Sonomacats

15 years ago

There has to be an info product you could create for your customers.

Look at the questions they ask you, what they're talking about on related forums, etc. and use that information to create an inexpensive report that you could offer to them for 50% off about 1-2 weeks after they've received what they purchased.

Also, look at related magazines/publications to get ideas on what could be an info product or another related product.

If there are related products on Amazon (or CJ, ShareASale, etc.), review them and get an affiliate commission. Maybe the people who are abandoning their shopping carts are interested in the product -- just not THAT particular one. At least you'd get a commission if they bought something.

Find more consistent ways of getting supplies, find alternative/additional suppliers so you're not stuck -- or if you run out of something, send them to an affiliate product until you have stock again.

Finally - do some serious article marketing and get more traffic. I calculate $10 per each article written. (It's motivation and once you have over 100 articles, it snowballs to much more than that.)

Thanks
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Jeff Bronson

15 years ago

Originally Posted by Sonomacats

There has to be an info product you could create for your customers.

Look at the questions they ask you, what they're talking about on related forums, etc. and use that information to create an inexpensive report that you could offer to them for 50% off about 1-2 weeks after they've received what they purchased.

Also, look at related magazines/publications to get ideas on what could be an info product or another related product.

There is nothing existing to the best of my knowledge, but something could probably be created..... heck, I have access to a copywriter that enjoys the same niche that could create it.....

If there are related products on Amazon (or CJ, ShareASale, etc.), review them and get an affiliate commission. Maybe the people who are abandoning their shopping carts are interested in the product -- just not THAT particular one. At least you'd get a commission if they bought something.

There are some products there that could be related... I could probably use my blog for this.... or a exit popup.

Find more consistent ways of getting supplies, find alternative/additional suppliers so you're not stuck -- or if you run out of something, send them to an affiliate product until you have stock again.

That is an issue. Some of the product I can get very eaily from well known source in the giftware or related genres. If I am out of stock, I have the "add to cart" button disappear and get replaced with an email capture back in stock email alert.... which often works for the sale when product is back and helps build the list.

However the most popular items are literally only made by a couple companies in the world!!! And those are 1 or 2 person companies, and the items are hand made. These items make up a large portion of my sales due to scarcity. I am working on getting more items in this genre. Sometimes I get an idea for a product and find a company that works in that medium to create it..... originality that is basically better than any other version on the market and cost a premium. This of course sometimes leave me out of stock a while or with a surplus, not to mention purchasing with a weak dollar against exchange rates.

Finally - do some serious article marketing and get more traffic. I calculate $10 per each article written. (It's motivation and once you have over 100 articles, it snowballs to much more than that.)

I don't do enough of that. I had a complex system setup using a project management portal, process maps, two outsources for content and distribution... too tedious to micro manage. Lately I've tried using an outsourcing company to promo certain categories and it's more hands off and works well. To be honest my time is spent with upkeep, it's probably been months since an article was written. I sent one newsletter last week(the first in probably 2+ months) and got about 3 or more sales from it, plus an interview with a well know printed horror magazine you find at any bookstore (on their site) that was subscribed.... not enough promo is a big problem for me.

Thanks

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Jesus Perez

15 years ago

I think you identified one of your own problems.

You have traffic.
You aren't converting very well.

Without knowing your niche, is there any way to improve existing sales?

Maybe create video reviews of the products?
Or ask existing customers to write reviews?

Are they leaving at the cart? Where?
Are descriptions sufficient?

Analytics can help a lot.
Also, try setting up an exit popup with a survey to ask customers what they think. You'd be surprised at the response.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by BlueSquares

I think you identified one of your own problems.

You have traffic.
You aren't converting very well.

Without knowing your niche, is there any way to improve existing sales?

Maybe create video reviews of the products?
Or ask existing customers to write reviews?

Are they leaving at the cart? Where?
Are descriptions sufficient?

Analytics can help a lot.
Also, try setting up an exit popup with a survey to ask customers what they think. You'd be surprised at the response.

Yes, there are ways to increase sales...bring in more of what my target market wants, vs what I want.....

Per reviews, every customer/guest that purchases gets an automated product review request email 2 weeks after the line item is marked as shipped, this email also asks for photos/video. I have a photo gallery from this, and 300+ product reviews.

Most leave at the precart checkout,...meaning after they add the product to the cart and get taken to review the products. One way I was planning to fix is an ajax cart popup that lets you stay on the product page showing your cart contents and estimated shipping cost. To see what I mean, add something to your cart at walmart.com.... OR teaforte.com, see the popup cart? Or it could be shipping cost making people abandon... but I already lose $1500+ year on shipping, so can't lower that much more, since I give free shipping on US orders over $100.
I'd say most of the descriptions are sufficient, however many of them I write are a bit whimsical and backstoryish.. since it's a related niche to the fantasy-horror genre type product. You can only write so much if it's a drop ship product you don't hold in your hands.

Yeah, I'm using Google Analytics (with checkout funnels & goals), Statscounter, and a program to interpret raw visitor logs.

Thanks

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Jesus Perez

15 years ago

One last thing. Is there a digital product you could offer this niche? Digital products offer zero overhead and instant gratification. You could easily live the lifestyle you're after with digital products.

Finally, it sounds like you're an SEO whiz if you're nabbing $1600/mth in sales via serps alone. This knowledge you can easily package up and sell to other ecommerce site owners.

Information products are a great way to reduce the stress of inventory and shipping while increasing revenue.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by BlueSquares

One last thing. Is there a digital product you could offer this niche? Digital products offer zero overhead and instant gratification. You could easily live the lifestyle you're after with digital products.

Finally, it sounds like you're an SEO whiz if you're nabbing $1600/mth in sales via serps alone. This knowledge you can easily package up and sell to other ecommerce site owners.

Information products are a great way to reduce the stress of inventory and shipping while increasing revenue.

Nope, I don't know of any digital products in this market.. it's giftware, jewelry, accessories, home decor in a specialized niche. I'll have to keep in mind if there is a product that can be created... but that is why I 'm trying to put up 6 more ecommerce sites, purely drop ship in niches with good search volume, decent competition... somewhat related to my main site in terms of these genres of items are not usually in everyday stores.

Per the SEO, it's usually about $3000 in sales.. the $1600 is what I need for living expenses. Xmas is higher and some months are lower. I don't really want to be doing SEO for other companies.. I actually have a day job as an "seo engineer" I started recently with a company, but there are some issues.. and managing 30+ sites is draining.

Thanks
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Jesus Perez

15 years ago

Originally Posted by Lux_Arcana

I don't really want to be doing SEO for other companies.. I actually have a day job as an "seo engineer" I started recently with a company, but there are some issues.. and managing 30+ sites is draining.

Forget consulting. That's not what I meant. You have this beautiful thing called 'proof'. You actually took an ecommerce business to $3k monthly. You have knowledge and insight others are absolutely willing to pay for. Write down the steps you take to promote your store and package up your SEO knowledge. Sell it as a video course on Clickbank. Simply teach other business owners how to promote their ecommerce stores. No more inventory. You'll be selling your knowledge. If anyone wants personal coaching after the video ecourse, open a few slots and charge them $1-5k/mth. You still don't have to do any work except 'guide' them.

He'll, I just made a digital sale while posting this with my iPad and watching the World Cup finals. I have nothing to ship. Products were auto delivered digitally and instantly. Life is good.

Also, Earnings on this forum are not overrated. I have friends earning low 5 figures every month. And that's after expenses. You'll always find some scammers, but within this forum are great minds as well.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by BlueSquares

Forget consulting. That's not what I meant. You have this beautiful thing called 'proof'. You actually took an ecommerce business to $3k monthly. You have knowledge and insight others are absolutely willing to pay for. Write down the steps you take to promote your store and package up your SEO knowledge. Sell it as a video course on Clickbank. Simply teach other business owners how to promote their ecommerce stores. No more inventory. You'll be selling your knowledge. If anyone wants personal coaching after the video ecourse, open a few slots and charge them $1-5k/mth. You still don't have to do any work except 'guide' them.

Ah, I see what your saying. To be honest I've thought about this, yet feel unqualified since I still have a day job and my net profit is lame. I feel like I can explain from start to finish what and how to do it.. yet putting it into action myself has proved difficult with time constraints. But sometimes after reading posts here of how people struggle to make even $1 after a year..... I don't feel so bad. Let me ask you a question... of course I'd need to reveal my site(s) and other proof to seem credible.. wouldn't that create a lot more competition in those markets? (Even though they would not be able to purchase certain products due to exclusivity, nor even feel comfortable dealing in them).

I know with the current economy many people are getting sacked and looking for a way to make money online via selling products.. I just don't want to become one of the people pushing MMO to unsuspecting newbies with pipe dreams. I've browsed this forum for years before I joined it and see that cycle happen over and over.

I think ecommerce is THE hardest way to make money online, thus not many attempt it fully, but I could be wrong.

Per the inventory, I know this is going to sound really bad... but part of my ego and personal interests are tied to this particular business.... it opens doors to everything from free concert entry, chicks, and let's me indulge in dealing with sort of "fantasy/horror" related genre items that I find artistically stimulating.... If I stand back and look at what I just said, that makes it sound like hobby. That's why I'm trying to expand to other broader niches in ecommerce which are not as personal... but I really do like the idea of helping others do this.

In fact at almost every day job I've had over the years, I found myself attempting to motivate others to get what they want out of life.... while I would soon be the one out of a job(I hate sales), and they would just keep on there... lol.

He'll, I just made a digital sale while posting this with my iPad and watching the World Cup finals. I have nothing to ship. Products were auto delivered digitally and instantly. Life is good.

Also, Earnings on this forum are not overrated. I have friends earning low 5 figures every month. And that's after expenses. You'll always find some scammers, but within this forum are great minds as well.

That sounds great..... shipping and inventory is a bitch...yet doing conventions can be fun, albeit expensive and time consuming.
Sure I'd woken up to some $1,000 days and probably my best day being $2,000 on a day I was also working a convention. But there are also days with zero sales, or sometimes 10 days out of a month with zero sales.

Thanks
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Jesus Perez

15 years ago

Originally Posted by Lux_Arcana

... but part of my ego and personal interests are tied to this particular business.... it opens doors to everything from free concert entry, chicks, and let's me indulge in dealing with sort of "fantasy/horror" related genre items that I find artistically stimulating....

Here's what you're not seeing...

If you're running a successful info-product business, with 80% more time and 80% more income in your hands, you'll be able to indulge in those interests even more! You're not sacrificing anything.

Finally, your inability to get profitable has nothing to do with your ability to get traffic and SEO ranking. It's 2 different animals. You can sell your ability to get traffic and SEO rankings. You've proven yourself in that market. You're getting 15-20k uniques, dude! How the hell did you do that with SEO? I want to know!

I can tell you right now that anyone will buy your SEO course based on your past jobs, proven traffic and earnings. You're a walking billboard. Don't doubt yourself.

And everything you do can be made into a system and broken down into steps.

Good luck. This is a great thread you started. Very real with great ideas.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by BlueSquares

Here's what you're not seeing...

If you're running a successful info-product business, with 80% more time and 80% more income in your hands, you'll be able to indulge in those interests even more! You're not sacrificing anything.

Finally, your inability to get profitable has nothing to do with your ability to get traffic and SEO ranking. It's 2 different animals. You can sell your ability to get traffic and SEO rankings. You've proven yourself in that market. You're getting 15-20k uniques, dude! How the hell did you do that with SEO? I want to know!

I can tell you right now that anyone will buy your SEO course based on your past jobs, proven traffic and earnings. You're a walking billboard. Don't doubt yourself.

And everything you do can be made into a system and broken down into steps.

Good luck. This is a great thread you started. Very real with great ideas.

BlueSquares - You are right I agree with you - less effort, more time and get paid repeatedly for a one time investment of intellectual capital. I guess my uninformed aversion to the info product business is I don't want to be pushing the same product as every Tom, Dick and Harry. It would have to be something I created.

Per the traffic, I find an ecommerce site easier for traffic than a service type site. For me it was all about having uninformed competition, structuring the site correctly, keyword rich static url's, and of course backlinks/social media from many different sources and people naturally linking to me in everything from forums, yahoo answers, even some well known sites. The thing is, a lot of it is based on the originality of my products..... therein lies the dilemma with my selling SEO services/ecommerce help in an ultra competitive field. I deal in SEO for my new day job, and many regular business sites are extremely difficult to rank, like lawyers, doctors, repair services, even with $1,000 month paid link campaigns. That's *some* of how I did it to answer your question.

Either way, I appreciate your kind words and I like the "walking billboard idea"... lol, now just tell it to my coworker elitist programmers who think I suck. Then again how the hell do you effectively promote 30+ generic clients websites at one time???

Thanks

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Hoopatang

15 years ago

Originally Posted by Lux_Arcana

Per the inventory, I know this is going to sound really bad... but part of my ego and personal interests are tied to this particular business.... it opens doors to everything from free concert entry, chicks, and let's me indulge in dealing with sort of "fantasy/horror" related genre items that I find artistically stimulating.... If I stand back and look at what I just said, that makes it sound like hobby.

It doesn't sound like a hobby to me.
It sounds like something that you are passionate about and know very, very well. You know the genre, you know the lingo, you know what makes this audience tick and what they WANT. Which is all a recipe for success.

Something that stuck in my mind is the $2k in credit you've got that you're willing to spend to help things along. Please don't do that. Pull that card out of your wallet right now and stick it in your sock drawer or something; that just became your emergency food/rent/utilities card. When you're living close to hand-to-mouth, or in an iffy situation (like a SEO job that you're not sure you'll have two months from now), you need a cushion. I really do not recommend making credit your cushion, but it is better than nothing and it's far far better than spending that on the business and ending up being in debt AND looking at no food/rent/utilities if the job goes south.

Blue and the others who have told you to make a digital product yourself are right on the money. Re-read Blue's list of qualifications you have. You ARE qualified. Some people would take what you've done and simply repeat it multiple times until they've got 10 businesses each bringing in 50k/yr and all of the work is outsourced. Just because you're doing it all yourself and finding it a hard load to manage doesn't mean you're not qualified to tell others how to duplicate what you've done. You are.

I would highly recommend finding a way NOT to spend another $5k modifying a shopping cart. Make the one you have work for you. For the mailing list option, you could go to Aweber and use their mailing list program for about $7/mo or so. It would save you a lot of time and effort, and your mails wouldn't end up in the spam box.

Find a way to work smarter, not harder. You've done the "harder" part again and again. Maybe you could look around your local Craigslist and see if there's anyone around who would love to pick your brain and learn SEO tricks in exchange for doing some of your work load (boxing up inventory, building 3 SEO mini-sites a week, writing posts on your blog, etc.)

Also, don't forget what a large, passionate audience can do for YOU. You can ask your visitors to write "guest posts" for you and stockpile those up for those days when you are just too worn out to post yourself. (You can see here that I'm assuming you have a blog about your particular subject.)

The product that isn't moving as well - you could hold a contest; hrmm how about best horror short story, and the top 4 winners (chosen by your visitors) each win some of that slow product. That would generate some buzz, get the visitors interacting with the site; and then you could ask the winners for some good testimonials on how great the product is; have them send you pictures of them wearing it or displaying it in their house or something. Use those testimonials and pics on the pages for those slow-moving products to try to help boost sales of those.

Some ideas on digital products:
- How to find drop shippers for your online business
- How to generate a passionate audience for your niche
- Winning SEO strategies
- How to find artists and crafters to make the products your visitors want to buy
- Is there anything you can use in regards to your contacts within the industry? Recorded telephone interviews with certain people about their past projects and upcoming projects? Do you know any authors in the genre? If so, how about interviewing them about being an author (the amount of wannabe authors out there is staggering) and how to become one, or tips on becoming one - done right you could break up a good interview like that into a multi-part series; offer a small part for free to generate an email list, package up the other parts into a digital product with some good readable text to go with it.

Just some ideas, I hope they help!

Thanks
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Jeff Bronson

15 years ago

Originally Posted by Hoopatang

It doesn't sound like a hobby to me.
It sounds like something that you are passionate about and know very, very well. You know the genre, you know the lingo, you know what makes this audience tick and what they WANT. Which is all a recipe for success.

I know the genre, but still made mistakes with my approach, and my lingo can be a bit too high level, considering the target market is 14-35 for the most part - but thanks... I am passionate about it.

Something that stuck in my mind is the $2k in credit you've got that you're willing to spend to help things along. Please don't do that. Pull that card out of your wallet right now and stick it in your sock drawer or something; that just became your emergency food/rent/utilities card. When you're living close to hand-to-mouth, or in an iffy situation (like a SEO job that you're not sure you'll have two months from now), you need a cushion. I really do not recommend making credit your cushion, but it is better than nothing and it's far far better than spending that on the business and ending up being in debt AND looking at no food/rent/utilities if the job goes south.

Yeah, $3k available in credit... and about the same in savings cash available. I agree, I've been fighting for a cushion of 6 months minimum for a long time, not easy with wild income fluctuations. The conflict is that in most cases "it takes money to make money", so I'm a bit torn.

Blue and the others who have told you to make a digital product yourself are right on the money. Re-read Blue's list of qualifications you have. You ARE qualified. Some people would take what you've done and simply repeat it multiple times until they've got 10 businesses each bringing in 50k/yr and all of the work is outsourced. Just because you're doing it all yourself and finding it a hard load to manage doesn't mean you're not qualified to tell others how to duplicate what you've done. You are.

I re-read BlueSquare's advice... it does sound like an easier way of course to make money with a digital product. What you mention about repeating it multiple times and outsourcing is what I was originally aiming for.. but a digitial product in the mix sounds nice.. and I do outsource some stuff already. Thanks - it feels good to think of myself in that way.

I would highly recommend finding a way NOT to spend another $5k modifying a shopping cart. Make the one you have work for you. For the mailing list option, you could go to Aweber and use their mailing list program for about $7/mo or so. It would save you a lot of time and effort, and your mails wouldn't end up in the spam box.

I could make the one I already have work for me... however it would still cost about $2,000+ if I stay put, fixing some things that will improve conversion.
Per the emailing, some of it has to be programmed with the cart, as it pulls database variables/past order info and sends out emails,like product review requests with embedded product name/photos for example based on the user... to the best of my knowledge Aweber is for straight up newsletter management. I'd be at about $30/mo if I used Aweber, based on my 3,000 list members.

Find a way to work smarter, not harder. You've done the "harder" part again and again. Maybe you could look around your local Craigslist and see if there's anyone around who would love to pick your brain and learn SEO tricks in exchange for doing some of your work load (boxing up inventory, building 3 SEO mini-sites a week, writing posts on your blog, etc.)

I agree 100%, I keep trying to systemize and outsource further. I make this harder than it needs to be. Now I just hand certain tasks off sometimes to a company, and don't bother them again until the task is done. Before I used a project management software with complicated process maps/training videos I did, and would check the pgt. several times a day and stress why tasks weren't checked off or timesheets filled out for two different people...so that was was costing me time, trying to micro manage "milestones" and tasks.

Finding someone locally is a good idea... I could use them to manage some of my social media stuff, as besides Facebook, Myspace, Twitter and a niche site community, I use Hootsuite/Ping.fm to post "item of the day" updates to like 15+ other networks I have no time to "build friends" on.

Also, don't forget what a large, passionate audience can do for YOU. You can ask your visitors to write "guest posts" for you and stockpile those up for those days when you are just too worn out to post yourself. (You can see here that I'm assuming you have a blog about your particular subject.)

I agree with you here too, especially may target market's age group... hah, I don't post that often as it is.... recently I just sent out my first newsletter of two months... horrible I know. And the blog hasn't been updated in many months. I have Google reader setup with all kinds of ideas I can use for blog posts, yet I let other tasks get in the way. Yes, there is a blog setup....

The product that isn't moving as well - you could hold a contest; hrmm how about best horror short story, and the top 4 winners (chosen by your visitors) each win some of that slow product. That would generate some buzz, get the visitors interacting with the site; and then you could ask the winners for some good testimonials on how great the product is; have them send you pictures of them wearing it or displaying it in their house or something. Use those testimonials and pics on the pages for those slow-moving products to try to help boost sales of those.

Lol, I gave some slower moving products to a well known magazine recently for an upcoming contest...and a sale going right now to discontinue some stuff. I have a photogallery with pics of the customers wearing items, which is nice and a folder full of testimonials that I haven't posted on the site... I do have 300+ product reviews posted on the site though. By the questions you are asking me.. it makes me realize all the more how I am mismanaging my time. I never budget time to relax... so much of the time is half working/half web browsing. There are so many things that can be done to bring in more traffic sales as you mention, and I'm familiar with, yet I seem to spend my time all on backend type stuff - AND THE SALES STILL COME... so this points to needing a major marketing push and more focused action. Honestly sometimes when I'm job hunting or just starting a new job and needing to focus on that.. I do next to nothing for the site, except pack orders, accounting and support.

Some ideas on digital products:
- How to find drop shippers for your online business
- How to generate a passionate audience for your niche
- Winning SEO strategies
- How to find artists and crafters to make the products your visitors want to buy
- Is there anything you can use in regards to your contacts within the industry? Recorded telephone interviews with certain people about their past projects and upcoming projects? Do you know any authors in the genre? If so, how about interviewing them about being an author (the amount of wannabe authors out there is staggering) and how to become one, or tips on becoming one - done right you could break up a good interview like that into a multi-part series; offer a small part for free to generate an email list, package up the other parts into a digital product with some good readable text to go with it.

These are all good ideas, my problem is execution, rather than knowledge.. I could write about all of those topics and more. Hmm, yes in the industry I do know everything from artists,movie directors, bands, composers, comic strip creators, authors, DJ's, models, other similar business owners, and artisans. It would need some thinking to find the right spin, since all those people are related to the fantasy/horror type genre.. not "ecommerce".

Thanks again for all of your great suggestions.

Thanks

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Jeff Bronson

15 years ago

Originally Posted by ProductCreator

You're certainly not alone. Many small business owners (even internet marketers) struggle with their businesses.

The success stories on here are certainly far from the norm, in my view.

Yes, I agree with you there!

Thanks

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bgmacaw

15 years ago

Originally Posted by Lux_Arcana

1. Should I try for a SBA loan, or line of credit? I have zero assets... as I live cheaply.

3. I have $3,000 available on a business credit card...... and $2,000 cash available, plus another couple $2,000 around the end of this or next month.

Avoid running up debt in a situation like this. You're very likely to dig a deep debt hole for yourself and not be able to get out of it short of bankruptcy. Now, if you were doing $1-2M a year and wanted to try to expand to $5-10M, some reasonable debt or investment capital might be in order but right now you're on the raggedy edge.

I've seen this scenario play out a number of times with friends working in the small retail industry, such as a sub shop or a music store. They'll be trying to generate a cash flow to service $500K+ in debt along with purchasing inventory, marketing etc, while trying to eat and keep the lights on. Ouch!

Originally Posted by Lux_Arcana

2. Should I just keep the cycle of losing jobs, taking months to find a new one, then taking stupid phone sales B2B and telemarketing that pays zilch, are stressful and shortlived.

Do what you need to do in order to survive. You may want to look at work for hire or contract jobs if being a regular employee rankles your hide too much. Mow lawns, bartend at corporate functions, do a rent-a-zombie service, just find something that will feed and shelter you.

Originally Posted by Lux_Arcana

My eventual goal is to get out of the house all together and get small office with one employee and try to REMOVE MYSELF from
the business

Exactly how well did you read E-Myth?

Basically, figure out where your process is falling down. Try to adopt an outsiders view of your business and think if an expert looked at your business where would they tell you that you were going wrong.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by bgmacaw

Avoid running up debt in a situation like this. You're very likely to dig a deep debt hole for yourself and not be able to get out of it short of bankruptcy. Now, if you were doing $1-2M a year and wanted to try to expand to $5-10M, some reasonable debt or investment capital might be in order but right now you're on the raggedy edge.

I've seen this scenario play out a number of times with friends working in the small retail industry, such as a sub shop or a music store. They'll be trying to generate a cash flow to service $500K+ in debt along with purchasing inventory, marketing etc, while trying to eat and keep the lights on. Ouch!

I agree, as I've gone all this time without credit... only a mere $1500 on business card which I can pay off next month. You get to the point where you get desperate for that push to cross the finish line after so many years. I avoid debt like the plague, but when I look at the overall view of life, I sometimes question if it's worth it to get out of this spot using OPM.
500k+ in debt, wow that's depressing.. so you've seen what a confusing existence it can be from your friends who were going through this.

Do what you need to do in order to survive. You may want to look at work for hire or contract jobs if being a regular employee rankles your hide too much. Mow lawns, bartend at corporate functions, do a rent-a-zombie service, just find something that will feed and shelter you.

Yeah, I need only $1600 for bills.. but then I sometimes use personal funds as investment capital... I wouldn't mind finding a variety of odd jobs to scrape that together.. seems not so easy. Doing SEO day job for nice pay now is stressful to say the least....and keeps me glued to the computer dusk til sleep.[/QUOTE]

Exactly how well did you read E-Myth?

Basically, figure out where your process is falling down. Try to adopt an outsiders view of your business and think if an expert looked at your business where would they tell you that you were going wrong.

Apparently not well enough....I need a better analysis and action plan of where the problem is. I do the analysis, come up with a plan of attack, and somewhere along the line, something happens... I lose focus due to dealing with being out of a job yet again and scrambling for money.....or whatever... I guess that is an excuse, but when home-life is in constant flux it's extremely difficult to stay 100% focused on plan when you need to keep the lights on. In e-myth, they made sure the SYSTEM was brilliant, so the employees didn't have to be....

Thanks

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CDarklock

15 years ago

Originally Posted by Lux_Arcana

*switching shopping carts again (after I already dropped $6,000+ on my last one).. to a free platform (Magento), but still need like $5,000 in custom development related to this move. I can spend this money in the next two month's I'd say, but what if I lose my job again, I'd leave myself with zero cushion......

"I'm going to throw away $6,000 and spend $5,000 more."

I think I see your problem.

You don't do a real budget, do you? Like actual pen-and-paper, sit down and look at it, and figure out what you're spending and what's left?

Start doing that.

Thanks
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"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers

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Jeff Bronson

15 years ago

Originally Posted by CDarklock

"I'm going to throw away $6,000 and spend $5,000 more."

I think I see your problem.

You don't do a real budget, do you? Like actual pen-and-paper, sit down and look at it, and figure out what you're spending and what's left?

Start doing that.

Yes, I use QuickBooks since day 1 and also use pen and paper when necessary and track everything multiple ways... however I should post industry standard retail math ratios/% on my wall, which I don't.

From my viewpoint now, I see it more as an investment of what's necessary to move forward, rather than throwing away, but again maybe it seems wasted based on the info I've shared. I am interested, could you please elaborate how it's being thrown away?

I ask not to be confrontational (since I'm the one asking for advice :rolleyes

, but to see it from your view, so I can grow and maybe understand this situation differently.

Thanks
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CDarklock

15 years ago

Originally Posted by Lux_Arcana

From my viewpoint now, I see it more as an investment of what's necessary to move forward, rather than throwing away, but again maybe it seems wasted based on the info I've shared. I am interested, could you please elaborate how it's being thrown away?

You spent $6,000 on a shopping cart.

You're not going to use it anymore.

What good is that $6,000 now?

You really, seriously need to stop spending money on things you aren't going to use. It's the same thing people do with WSOs, and I'm as guilty of it as anyone: you see a neat exciting thing and say "if I had that, I could move forward!" - and then you get it, and you don't.

Concentrate on moving forward. Don't drop $5,000 modifying a free shopping cart. Use it as-is until you know that $5,000 really needs to be spent. Solve the problems with what you have, not by running out to buy more stuff.

This is precisely why I dumped my business partner in Maryland. He would take all the profits every quarter and buy some new thing we "needed" to move forward. In the end, we always just had a lot of crap we didn't need and no profits.

[ 2 ] Thanks
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"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers

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Crew Chief

15 years ago

Originally Posted by Lux_Arcana

That is a fantastic story, thank you for sharing.. very inspirational. How is that friend doing today?

His plan was to open up a new unit every 16 months. BUT, because the location they picked was on point based upon the feasibility study, they were so swamped at the first location that they had to revise their plans for expansion until they could put a plan in place to handle all of the volume.

Don't you just love success!

And the moral of that story is... be prepared to make in-flight adjustments!

Originally Posted by CDarklock

You spent $6,000 on a shopping cart.

You're not going to use it anymore.

What good is that $6,000 now?

You really, seriously need to stop spending money on things you aren't going to use. It's the same thing people do with WSOs, and I'm as guilty of it as anyone: you see a neat exciting thing and say "if I had that, I could move forward!" - and then you get it, and you don't.

Concentrate on moving forward. Don't drop $5,000 modifying a free shopping cart. Use it as-is until you know that $5,000 really needs to be spent. Solve the problems with what you have, not by running out to buy more stuff.

This is precisely why I dumped my business partner in Maryland. He would take all the profits every quarter and buy some new thing we "needed" to move forward. In the end, we always just had a lot of crap we didn't need and no profits.

Straight talk there buddy!

That's the kind of people you need to have on your Brainstorm Team.

Giles, the Crew Chief

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Jeff Bronson

15 years ago

Originally Posted by Crew Chief

His plan was to open up a new unit every 16 months. BUT, because the location they picked was on point based upon the feasibility study, they were so swamped at the first location that they had to revise their plans for expansion until they could put a plan in place to handle all of the volume.

Don't you just love success!

And the moral of that story is... be prepared to make in-flight adjustments!

Lol, success... it's a bitch. That's a good thing they were so swamped... hopefully they got it sorted and can now handle the growth.

Thanks

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Jeff Bronson

15 years ago

Originally Posted by CDarklock

You spent $6,000 on a shopping cart.

You're not going to use it anymore.

What good is that $6,000 now?

You really, seriously need to stop spending money on things you aren't going to use. It's the same thing people do with WSOs, and I'm as guilty of it as anyone: you see a neat exciting thing and say "if I had that, I could move forward!" - and then you get it, and you don't.

Concentrate on moving forward. Don't drop $5,000 modifying a free shopping cart. Use it as-is until you know that $5,000 really needs to be spent. Solve the problems with what you have, not by running out to buy more stuff.

This is precisely why I dumped my business partner in Maryland. He would take all the profits every quarter and buy some new thing we "needed" to move forward. In the end, we always just had a lot of crap we didn't need and no profits.

If I stay with my current cart (not free) that I paid 6k for plus customization I'd still need to pay a fair bit of cash to handle multi-site management. At the very least to change some things about the "add to cart" to checkout flow that I feel very confident would increase conversions of current traffic...this particular mod is only $500.... but the rest of the mods for multi-site stuff is still around $3,000. I will not get into the other issues, but technically trying to scale up to many sites with what I have will make things very difficult and time consuming - but it is doable.
Let alone having to 301 all the old url's to a new cart and possibly lose ranking really sucks to think about.

But I understand what you are saying..it feels like these are the things needed to move forward, it's a tough call. I will reexamine how I could make things work with what I have without so much stress of a huge move like that.....

That sucks to hear about your business partner situation. I trying to digest what your saying, as I really wish the extra cash could go in my pocket....

Thanks
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CDarklock

15 years ago

Originally Posted by Lux_Arcana

If I stay with my current cart (not free) that I paid 6k for plus customization I'd still need to pay a fair bit of cash to handle multi-site management.

Or you could just manage the cart at each site individually, and it would not cost you a damn thing.

Do you know what I did when I was working with a company that wanted centralised shopping cart management across thirty different sites?

I branded their shopping cart.

I made a little banner that said "Powered by MumbleCo Checkout" and stuck it at the bottom of every page. When people added things to their cart, it went into a cart at mumblecocheckout.com, and when they hit "check out" every site threw them over to the one and only one domain that hosted the cart.

No multisite functionality needed. The cart's on one site. I just hacked a couple templates and put some spin on it. And less than six months later, they got a call out of the blue from someone who wanted to use MumbleCo Checkout on their website. Now it's a profit centre for them.

You need to keep thinking when you see the obvious solution. Yes, the easy answer to any technical problem with your software is "hire a developer to fix it." But there are other solutions. Challenge your assumptions.

(The company's name isn't really MumbleCo. Stop Googling it.)

Thanks
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"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers

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Jeff Bronson

15 years ago

Originally Posted by CDarklock

Or you could just manage the cart at each site individually, and it would not cost you a damn thing.

Do you know what I did when I was working with a company that wanted centralised shopping cart management across thirty different sites?

I branded their shopping cart.

I made a little banner that said "Powered by MumbleCo Checkout" and stuck it at the bottom of every page. When people added things to their cart, it went into a cart at mumblecocheckout.com, and when they hit "check out" every site threw them over to the one and only one domain that hosted the cart.

No multisite functionality needed. The cart's on one site. I just hacked a couple templates and put some spin on it. And less than six months later, they got a call out of the blue from someone who wanted to use MumbleCo Checkout on their website. Now it's a profit centre for them.

You need to keep thinking when you see the obvious solution. Yes, the easy answer to any technical problem with your software is "hire a developer to fix it." But there are other solutions. Challenge your assumptions.

(The company's name isn't really MumbleCo. Stop Googling it.)

Your gonna love my hardheadedness lol.

I think it worked out well in your case. The problem is... my cart is fairly obscure and I'd need to pay around $700 for the multi site mod.. without other custom stuff needed to properly brand it.... just be be "allowed" to tie other domains/templates to the back end.

I can't just run other sites separately with this software,or I'd have to buy a license for each one which is not feasible (would be like $25,000+).
I'll keep thinking of solutions.... If I did what you did with the branding people would leave fast due to the dark nature of my site theme.... and the lighter nature of the other niche sites I just reserved domains for..

This conflict of product mix, design and target market is why I needed to remove them from my main site and divest into different storefronts in the first place...
I do appreciate your advice Darklocks, hopefully I'm not coming across as an Ahole as I am here for advice.. I guess it's just a complicated situation to explain.

Thanks
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genietoast

15 years ago

Have you sold some products on eBay and offered a link back to your website?

Perhaps you've done some video marketing, but how about zazzing it up with Animoto's software and put it on You Tube.

I don't know if it applies to eCommerce, but if there's a forum in your niche or a blog that allows you to leave a guest post reviewing a product brand of something you're selling on someone else's blog, you could probably get more clicks to your site.

Maybe inform your list of a 2 for one special.

Can you think of any upcoming events that you coincide you coincide with informing your list about specials?

Thanks
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Jeff Bronson

15 years ago

Originally Posted by genietoast

Have you sold some products on eBay and offered a link back to your website?

Yes,In the past years ago I wasted a lot of time and money setting up an eBay store, listings and of course backend software with my current cart to manage all eBay listing from my cart database, scheduled to post based on inventory levels.... buyers get directed back to the cart to purchase and feedback was automated. With all the eBay changes and shafts to sellers and crazy fees, I shut that all down.

Perhaps you've done some video marketing, but how about zazzing it up with Animoto's software and put it on You Tube.

Not yet, I've got the software Sony Vegas, a flip cam and light-box,lighting etc. I've got video footage from a big convention I vended, but never edited and put up. I have a band video recently sent of them wearing my stuff, and a clip in a movie of a famous actor wearing the stuff, gotta get it up. I'm waiting on DVD images of two other movies with people wearing the stuff also. I will not give any more info, but I even got contacted by Allure magazine to have one of America's top models wearing something I carry for a post-apocalyptic photo shoot.. I sent the merch,.... they did the photoshoot, but decided last minute not to use it... with this kind of attention sometimes, it really pisses me off still having a day job!

I don't know if it applies to eCommerce, but if there's a forum in your niche or a blog that allows you to leave a guest post reviewing a product brand of something you're selling on someone else's blog, you could probably get more clicks to your site.

Yes, there are plenty, again this points to mismanagement of time always focusing on the technical stuff, instead of being a company evangelist and getting my name out there even more. Another time another well known magazine contacted me to send them an item... they photo'd and put in the merch section... a printed mag you can find at any bookstore.. I got a good amount of sales from that mention.

Maybe inform your list of a 2 for one special.

Can you think of any upcoming events that you coincide you coincide with informing your list about specials?

I run coupons very occasionally. Hmm, there can be concerts, conventions, events... things like that, again I am very bad about coinciding with this. I could have done it when Alice in Wonderland came out, and I could have done it with the Twilight series coming out etc.

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CDarklock

15 years ago

Originally Posted by Lux_Arcana

I can't

Are you SURE?

It's very easy to say "I need X, that costs money" - but give it some thought. There are often other solutions.

Try going the other direction. I have never been put off buying Cradle of Filth and Septic Flesh tickets from a clean, pastel-themed site.

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"The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers

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Jeff Bronson

15 years ago

Originally Posted by CDarklock

Are you SURE?

It's very easy to say "I need X, that costs money" - but give it some thought. There are often other solutions.

Try going the other direction. I have never been put off buying Cradle of Filth and Septic Flesh tickets from a clean, pastel-themed site.

I will give it some thought.. hmm, lol, I'll PM you about this.

Thanks

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dlwhite

15 years ago

It may not be what you are looking for,
and it didn't say anywhere whether or not you had already read it but you may want to check out "The E-Myth Revisited" by Michael Gerber.
Online or off, businesses are defined by their systems and you may find some help in the book. Also--Steven Covey's "7 Habits"--Taking a real good look at your personal mission statement will help you decide what the business is really about--and perhaps save the next girlfriend. One more I recommend is Frank Kern's Core Influence. It is the exercise of designing your perfect day--business and otherwise. You can get it here--http://getcoreinfluence.com/signup.php?ref=j6F5XgOdLSNYQ6sX
good luck

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Jeff Bronson

15 years ago

Originally Posted by dlwhite

It may not be what you are looking for,
and it didn't say anywhere whether or not you had already read it but you may want to check out "The E-Myth Revisited" by Michael Gerber.
Online or off, businesses are defined by their systems and you may find some help in the book. Also--Steven Covey's "7 Habits"--Taking a real good look at your personal mission statement will help you decide what the business is really about--and perhaps save the next girlfriend. One more I recommend is Frank Kern's Core Influence. It is the exercise of designing your perfect day--business and otherwise. You can get it here--http://getcoreinfluence.com/signup.php?ref=j6F5XgOdLSNYQ6sX
good luck

Dlwhite - Yes, I've read E-myth a few times, have it sitting right here(with the 4-hour work week), but apparently have not put the principles into practice well enough. I've pay 7 habits a visit again, thanks.... I'll pass on Frank's stuff, as it will be too easy for his persuasiveness to confuse my direction.

Thanks

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teatree

15 years ago

Originally Posted by Lux_Arcana

One time I actively crafted a nice back linking plan with videos training/process maps.. and handed off to two people to implement ... sure enough I went from nowhere to now #2 on Google for the term. I've already got a lot of #1 Google spots.... so conversion is a big problem.

Obviously have no problem getting traffic at all. If conversion is your problem, it might be down to something as simple as the layout of your site.

Get a non-internet marketing friend to look at your site and feedback how easy it is to buy. If you look at Amazon's site, they make it dead easy to buy - you have those bright yellow "ad to cart" buttons everywhere, the shopping cart is nicely displayed on page so you can see what you've added at a glance, and when you proceed to checkout, there is nothing to distract you, it's straight down to getting your credit card number and address for delivery.

In an earlier part of the thread, you said

Most leave at the precart checkout,...meaning after they add the product to the cart and get taken to review the products.

What did you mean "taken to review the product"? From what you said, it sounds to me like they click buy, but did not realise that's what they'd done that till they got to a page where the shopping cart displayed what they'd added, at which point they abandon - is this right? If that's the case, you need to make the buy buttons explicit, so people know they are buying. If they are not explicit, some people will click on them accidently and then abandon the cart and others will want to buy but not know how to do it and leave emptyhanded.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by teatree

Obviously have no problem getting traffic at all. If conversion is your problem, it might be down to something as simple as the layout of your site.

Get a non-internet marketing friend to look at your site and feedback how easy it is to buy. If you look at Amazon's site, they make it dead easy to buy - you have those bright yellow "ad to cart" buttons everywhere, the shopping cart is nicely displayed on page so you can see what you've added at a glance, and when you proceed to checkout, there is nothing to distract you, it's straight down to getting your credit card number and address for delivery.

Good idea getting someone, unrelated to give it a look. I should do some user testing also with crazyegg, kampyle, usertesting.com or clicktale.
Actually I've taken several ideas from Amazon and implemented. There is a different colored box, with a big red "add to cart" button with the price right under it you can't miss if you tried. I've removed all navigation for checkout, default right to "guest" checkout so user's don't have to even choose about creating an account....that is prompted after a completed sale. Amazon goes a great job.

In an earlier part of the thread, you said

What did you mean "taken to review the product"? From what you said, it sounds to me like they click buy, but did not realise that's what they'd done that till they got to a page where the shopping cart displayed what they'd added, at which point they abandon - is this right? If that's the case, you need to make the buy buttons explicit, so people know they are buying. If they are not explicit, some people will click on them accidently and then abandon the cart and others will want to buy but not know how to do it and leave emptyhanded.

Well I hope nobody mistakes the meaning of the big red "add to cart" button (shown below). I mean like most sites once you add it, you get taken to the "cart summary" page that shows what's in your cart, gives a shipping quote, subtotal, etc.
Instead what I am thinking is when they click "add to cart", STAY right on the product page... but have a slick ajax cart popup and show the items in the cart... with the options to "view cart" , "checkout", or "continue shopping". This way the change is not so abrupt and people get scared...

It gives the user more control and let's them decide when they want to get ready to checkout... I do have navigation removed on that cart summary page... and there is a big "continue shopping" button, maybe people are not seeing the "continue shopping" and just leaving......

See big red button,lol

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sarafina

15 years ago

You need to hire an ecommerce conversion specialist immediately. 0.18% after 6 years is horrible.

There are plenty of agencies that can split test your entire sales process and get conversion up. Just google it.

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Jeff Bronson

15 years ago

Originally Posted by sarafina

You need to hire an ecommerce conversion specialist immediately. 0.18% after 6 years is horrible.

There are plenty of agencies that can split test your entire sales process and get conversion up. Just google it.

I agree 100% sarafina. I emailed one a few minutes ago that I briefly spoke with months ago that has proven success. Thing is I don't have time to join their "program", but I can pay for hourly consulting. I have a folder full of companies that do this from researching over the years......
Geez, if I just took the low end of my traffic... 15,000 x 1% conversion is 150 sales a month. 150 sales x average $65 order amount (most are more) =~$10,000/mo or $120,000 yr., surely I could take 30% ($36,000 yr) out of that... and kill the day job no problem!

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kevinw1

15 years ago

Hi Lux,

One thing I'm seeing here is something that applied to me when I was in a similar situation, and that's that the business you have right now may not scale.

If you improved your conversion rate from 0.18% to 1%, as you mentioned, what would happen? - physically, I mean. You would have more than 5 times as many physical products to order, receive, store, keep track of, process orders for, pack and ship. Do you have space to store that much? Would you be able to process the orders in a timely fashion? Could you afford to buy and keep the inventory? How much time would you spend packing and shipping? Will your current accounting system scale to keep pace?

Would you have to hire help or warehouse space to handle the increased volume? How about hosting, would you need more bandwidth, more dedicated server space, etc? What would that cost?

Do you have the skills to manage a higher volume business?

Do you even want to go this route? I really suggest that you take Caliban's advice, sit down and run numbers for various alternative scenarios. A SCORE advisor may be able to help a lot with this. Increased conversion and gross income sounds great but the actual reality may not do you any good unless you are prepared for the changes it would bring.

So far, I think Bluesquares has the best idea for taking your skills from your existing business and turning them into info products.

My Adsense suggestion was just an example of taking your existing assets in a more "make money while you sleep" direction. If you could make $4200/year - that's only $350/month - in advertising or affiliate income from your existing traffic, that would *completely replace* your current net income with far, far less work on your part, and with the potential for improvement that doesn't involve any of the physical-world problems I listed above. It all depends on whether your traffic will respond to offers or ads apart from your physical products.

I get that you have hard to find products in an unusual niche. So did I. But sometimes you can have a niche like that, and make sales, and it *still* isn't a viable business. Continuing to bang your head against that brick wall isn't going to get you anywhere.

I have been self-employed for 26 years now in a variety of businesses, online and offline, and the #1 issue which I have had trouble with is exactly this problem of scaling: given that I want to have a one-person business, can I scale up the business to make a living from it? My experience with physical product e-commerce where you are stocking the objects yourself, not drop-shipping, is that it's EXTREMELY difficult to do enough volume to make a decent net income while still staying a one-person operation. You have to have products with a high margin, that are easy and cheap to pack and ship, and even then it may not be viable.

Good luck mate. You are getting lots of good advice in this thread.

Kevin

Thanks
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Jeff Bronson

15 years ago

Originally Posted by kevinw1

Hi Lux,

One thing I'm seeing here is something that applied to me when I was in a similar situation, and that's that the business you have right now may not scale.

If you improved your conversion rate from 0.18% to 1%, as you mentioned, what would happen? - physically, I mean. You would have more than 5 times as many physical products to order, receive, store, keep track of, process orders for, pack and ship. Do you have space to store that much? Would you be able to process the orders in a timely fashion? Could you afford to buy and keep the inventory? How much time would you spend packing and shipping? Will your current accounting system scale to keep pace?

Would you have to hire help or warehouse space to handle the increased volume? How about hosting, would you need more bandwidth, more dedicated server space, etc? What would that cost?

Do you have the skills to manage a higher volume business?

I agree, there is some fantastic advice in this thread. To answer your questions...
My product mix of around 585 sku's is about 20% physical inventory and 80% drop ship. The drop ship orders automatically go to each vendor with packing slip attached, I just need to manually enter into Quickbook and then enter tracking number for that line item in an order. Part of the cart change reason is to also automate accounting to reduce manual entry....and having 6 more niche drop ship sites further increasing automation. I figured this extra cash from more drop ship sites of tested products would make up for the cash flow being diverted to inventory purchasing. In that way I could still handle myself and outsource content creation and marketing as the # of sites grew. Yes, hosting would increase quite a bit. Physically I could do it OK, if no day job was involved...even if it took 3 hours out of the day for accounting/packing.

Do you even want to go this route? I really suggest that you take Caliban's advice, sit down and run numbers for various alternative scenarios. A SCORE advisor may be able to help a lot with this. Increased conversion and gross income sounds great but the actual reality may not do you any good unless you are prepared for the changes it would bring.

So far, I think Bluesquares has the best idea for taking your skills from your existing business and turning them into info products.

I will speak with SCORE and open up for feedback, suggestions and actionable steps. I understand what you are saying, more sales doesn't always equal more profit or stability.

My Adsense suggestion was just an example of taking your existing assets in a more "make money while you sleep" direction. If you could make $4200/year - that's only $350/month - in advertising or affiliate income from your existing traffic, that would *completely replace* your current net income with far, far less work on your part, and with the potential for improvement that doesn't involve any of the physical-world problems I listed above. It all depends on whether your traffic will respond to offers or ads apart from your physical products.

This is something to consider.

I get that you have hard to find products in an unusual niche. So did I. But sometimes you can have a niche like that, and make sales, and it *still* isn't a viable business. Continuing to bang your head against that brick wall isn't going to get you anywhere.

Your right, it is difficult and managing the optimal inventory level is not always possible due to fluctuation in the suppliers personal life in getting order out soon enough. Some people have amazing items that have been designed for me that would sell great based on my niche, yet I've been chasing for close to a year now getting the prototypes into production.. frustrating.

I have been self-employed for 26 years now in a variety of businesses, online and offline, and the #1 issue which I have had trouble with is exactly this problem of scaling: given that I want to have a one-person business, can I scale up the business to make a living from it? My experience with physical product e-commerce where you are stocking the objects yourself, not drop-shipping, is that it's EXTREMELY difficult to do enough volume to make a decent net income while still staying a one-person operation. You have to have products with a high margin, that are easy and cheap to pack and ship, and even then it may not be viable.

Good luck mate. You are getting lots of good advice in this thread.

Kevin

It's not the easiest business model that's for sure.....with physical products.... the drop shipping items help with this a lot..... but scaling is difficult unless you use a fulfillment house AND outsource many tasks...then you have to spend a lot on all of the help. But you'd then have more undistracted time to work ON your business, instead of IN IT.

Thanks

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Sonomacats

15 years ago

If you haven't read Jim Cockrum's "Silent Sales Machine", I would recommend you get it. The best thing about it is the way he tells you how to set your mindset so that creating info products is easy and makes sense. There's one sentence in that book that says it all and may help tremendously.

And, like I said, check related forums. Think about anything that could be related to what you sell and see what they're talking about. There has to be some way to create something that would be helpful -- especially if you get creative about the way you look at it.

And one of my favorite questions is "how else could I [fill in the blank]" So, how else could you ____?

Thanks
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Jeff Bronson

15 years ago

Originally Posted by Sonomacats

If you haven't read Jim Cockrum's "Silent Sales Machine", I would recommend you get it. The best thing about it is the way he tells you how to set your mindset so that creating info products is easy and makes sense. There's one sentence in that book that says it all and may help tremendously.

And, like I said, check related forums. Think about anything that could be related to what you sell and see what they're talking about. There has to be some way to create something that would be helpful -- especially if you get creative about the way you look at it.

And one of my favorite questions is "how else could I [fill in the blank]" So, how else could you ____?

Thanks Sonomacats - I believe I read this many years ago back when you get a headache from 18 hour days of reading long page sales letters.

I'll free up some time to consider what digital product could be a go.. I've already got autoresponder tied to product database capabilities setup I could use for promotion.

Thanks

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JennyBizz

15 years ago

Another thing that you might want to consider is offering some advertising on your website, since you do have so much traffic. If you could sell 5 ad squares for $100 per month, you're a good ways towards quitting your day job. I use OIO publisher, but I'm not sure which platforms it works with besides Wordpress. Are there companies that are not in direct competition with you, but are related to your niche, which would be interesting in advertising on your site?

Thanks

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TimG

15 years ago

Read through most of this and lots of good advice already being provided but I'll throw in a few other things:

1 - Have you considered looking for a partner or potential investor for your business? This might provide a cash infusion that could help you stay afloat while you develop a better business plan.

2 - I think you mentioned expanding and have already purchased the necessary domains. Was wondering what the though process behind that was because most companies expand when they are doing well and it sounds like you are struggling.

3 - Have you considered just selling this site and then using the income you obtain to build a new site from the ground up? Very radical I know but this might still be a viable option for you.

Definately sounds like you are a hard worker and have sacrificed a lot....I'd love to see you succeed with this. I also know the feeling of sacrifice having worked on my business for many years during the wee hours of the morning 10PM - 2 AM while I was in the military.

Stay strong brother!!!

Respectfully,
Tim

Thanks
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kevinw1

15 years ago

Originally Posted by TimG

3 - Have you considered just selling this site and then using the income you obtain to build a new site from the ground up? Very radical I know but this might still be a viable option for you.

What Tim said. This occurred to me last night too: with an established site that gets as much traffic as yours does, and with sales (even though your conversion may not be good right now), you could probably get a nice chunk of change for it - and use it to live on while you work on the other sites you mentioned which I assume are meant to give you a "make money while you sleep" income.

Radical, yes. And it doesn't sound like you're ready to let go of the niche. But could you find a way to get even more enjoyment out of this niche as a hobby, if you weren't slaving over the website? The wonderful thing about hands-off earning methods is you can take weeks or even months away from them to follow other interests, and they will just keep chugging along. I did that for the first 5 months of this year while I worked on a non-profit organisation instead. No way could I have done that with my previous business.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by kevinw1

What Tim said. This occurred to me last night too: with an established site that gets as much traffic as yours does, and with sales (even though your conversion may not be good right now), you could probably get a nice chunk of change for it - and use it to live on while you work on the other sites you mentioned which I assume are meant to give you a "make money while you sleep" income.

Radical, yes. And it doesn't sound like you're ready to let go of the niche. But could you find a way to get even more enjoyment out of this niche as a hobby, if you weren't slaving over the website? The wonderful thing about hands-off earning methods is you can take weeks or even months away from them to follow other interests, and they will just keep chugging along. I did that for the first 5 months of this year while I worked on a non-profit organisation instead. No way could I have done that with my previous business.

Yeah, I'm not ready to leave the niche.. I'd rather fix conversion. I did ask in a post above what everyone's thoughts were on asking price... 10x yearly net revenue? That would be $40k asking price... I dunno...
From an non-emotional standpoint, your idea makes perfect sense, it would free up time, kill the job and allow time for more automated income. Honeslty,most of my time invested is not that productive other than filling order. I for a bit was keeping a small notebook in my pocket and would write down what I was doing every 30 minutes, it's amazing at the end of the day how little productivity other than maintenance would happen, and this was getting up 5:30 am ....business....then day job.....then business....then burnout. If I put even 1.5 hours a day into front end productive actions to increase sales and customers... this would trickle in more revenue and profit for sure.. I guess I worry about doing things the right way, or spend too much time "planning" or "tweaking systems", instead of just making blog posts, creating articles, videos, forum posts, new items etc.

It's nice you spent some of your time on a non-profit!

Thanks
1 reply

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mrdomains

15 years ago

I´ve been in very similar waters. Question:
You currently seem to be runing 20 % inventory and 80% dropship, yes?

How much of you net profit is the inventory part generating?

In my ops, when I really sat down and did a complete calculation from A to Z, it was costing me money, more time than I wanted to confess and quite a bit of stress/irritation and a heavier demand for client support than the dropship side. It wasn't profitable. I was in effect taking from the dropship profit and upholding the negative side of the stocked inventory. Somewhere I thought I needed the stocked articles to satisfy my clients, which when I stopped turned out to have no bigger effect on sales, but better profits.

My 2 cents. Carrying your own stock sucks (unless you are the producer) in all ways, except for when you have a distributor license and can protect your market and enjoy adequate gains. Being a select distributor can be risky though since you focus a lot of efforts into one basket.

Do a calculation of what you loose and what you gain by cutting off the inventory side of your business. Include your Time in this calculation and obviously value of yearly unsold/loss inventory, etc.

When I did mine I was quite surprised at how much of availble resources it was gobbling up.

Here's another 2 cents: I would suggest that having a day-job and an operation of this size without a management plan (VA´s or other setup) is probably never going to be satisfactory. You have had this going for a long time. If it isn't satisfying you now (in many different ways) then it probably never will. The setup needs to change.

Last thought: Wealth is one thing, life is another. Working less should be a priority. Life isn't short but the things you can and want to do become less with age. Life and Time are the only real valuables.

Is you day-job secure? Maybe quitting your own business will provide better quality of life. I'm sure you can sell the setup for something.
How much money do you need if you quit your day-job? I think you mentioned this in a earlier post. Have you factored in what you and your business need (long-term commitment, possible reworking of setup, expansion, etc).
Do you have a optimal scenario in your mind? What is your dream? Make your dream a goal and figure out a way to make it happen. Never forget though that modern Life is Economy.

Without knowing the ratio of profits coming from the inventory/dropship/day-job configuration I would still explore a roadmap of chucking the inventory part, expanding the dropship sites, quitting the day-job and minimizing the expenses on the shopping carts etc. Put that dough on outsourcing the daily maintenance of the dropship operation.

Bottom line though - start by getting a grip on what it is that is eating your profit, gobbling time, and creating frustration and get rid of it - regardless of, if it is the dayjob, the inventory, the dog or your friends.

Thanks
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Jeff Bronson

15 years ago

Originally Posted by mrdomains

I´ve been in very similar waters. Question:
You currently seem to be runing 20 % inventory and 80% dropship, yes?

How much of you net profit is the inventory part generating?

Inventory part brings in 70% of sales revenue, drop ship 30%... I haven't figured out for the "net profit" per this. So it's that small 20% of inventory stocked that brings most of the revenue....

In my ops, when I really sat down and did a complete calculation from A to Z, it was costing me money, more time than I wanted to confess and quite a bit of stress/irritation and a heavier demand for client support than the dropship side. It wasn't profitable. I was in effect taking from the dropship profit and upholding the negative side of the stocked inventory. Somewhere I thought I needed the stocked articles to satisfy my clients, which when I stopped turned out to have no bigger effect on sales, but better profits.

My 2 cents. Carrying your own stock sucks (unless you are the producer) in all ways, except for when you have a distributor license and can protect your market and enjoy adequate gains. Being a select distributor can be risky though since you focus a lot of efforts into one basket.

Do a calculation of what you loose and what you gain by cutting off the inventory side of your business. Include your Time in this calculation and obviously value of yearly unsold/loss inventory, etc.

When I did mine I was quite surprised at how much of availble resources it was gobbling up.

I agree to a point...some of the items I stock I CAN dropship, however the biggest sellers (which are the most scarce) I can ONLY stock. Ironically it's these most unique items that have gotten me the most attention/traffic/sales... so cutting those out would not be a good idea. As mentioned for some items, I'm the only one in the US who have them, or some are custom made and I'm the only one.. thus high demand/low supply and some items I have 50%-70% margin on. However there are some more common items that I can cut out which I'm in the process of doing.

Here is another iffy example... one of the lines I stock is specialized jewelry,pendants etc (from an established 30 year old leader in the niche company). If I dropship these, it takes 2 weeks to ship out as the one item would come from overseas.. then ship out to customer. As a competitive advantage I bought up several sku's so I could offer next day shipping(and have on hand for trade shows), vs competitors who take 2+ weeks to get item to customer. But again, some sku's move and turnover...others don't.

Another speciality item I carry is a "modified" type item available on the market.....that I assemble(or soon will pay others to do), it takes 6 different suppliers to assemble parts, everything from auto-cad drawings given to water jet companies to make designs to metal cutting... all for a wearable item. So yes, this stuff is a pain... but it's good markup, costs me $25/item, I sell for $80 and they go fast. But due to cash flow.. I've been out of stock for this best seller for close to a year... as the cash has gone to other things or for living conditions....(or sitting in other bad inventory).

Here's another 2 cents: I would suggest that having a day-job and an operation of this size without a management plan (VA´s or other setup) is probably never going to be satisfactory. You have had this going for a long time. If it isn't satisfying you now (in many different ways) then it probably never will. The setup needs to change.

I agree, I do have two companies I outsource to...but I'm not consistent with doing it. I have the manuals/instructions written, but I seem to get off track , doing everything else BUT marketing. I need to outsource marketing more, no question!

Last thought: Wealth is one thing, life is another. Working less should be a priority. Life isn't short but the things you can and want to do become less with age. Life and Time are the only real valuables.

That was the whole idea from the beginning, to work less - I value that over wealth anytime.. in fact, this would make you "time wealthy". I agree.

Is you day-job secure? Maybe quitting your own business will provide better quality of life. I'm sure you can sell the setup for something.
How much money do you need if you quit your day-job? I think you mentioned this in a earlier post. Have you factored in what you and your business need (long-term commitment, possible reworking of setup, expansion, etc).
Do you have a optimal scenario in your mind? What is your dream? Make your dream a goal and figure out a way to make it happen. Never forget though that modern Life is Economy.

I never consider a day job secure... I just started this one two months ago, time will tell.... personally I will do anything to not need a day job, I'll fight with my last breath so giving up business isn't an option.

How much? Well, only $1600/mo for covering all bills and expenses. Yes, to rework business I need about $5k if I do the shopping cart move, which covers everything from design, data import, 3rd party stuff,customization etc. Realistically, I 'll have this 5k within about three months cash in hand.
This covers what is needed for expansion as well, since then I'd just need time to load database for other niche sites......and design.
Optimal scenario... is making $5-10k/mo and being able to take a few mini vacations throughout the year, work m-f and actually have a set time of day that work stops. I can deal with doing my business 9-5 m-f, I'm not lazy, but two jobs bites. Even 5k to me is like winning the lottery, as I live cheap.

Without knowing the ratio of profits coming from the inventory/dropship/day-job configuration I would still explore a roadmap of chucking the inventory part, expanding the dropship sites, quitting the day-job and minimizing the expenses on the shopping carts etc. Put that dough on outsourcing the daily maintenance of the dropship operation.

I mentioned above, 70% revenue from inventory, 30% drop ship items. I will expand the drop ship sites....some of the inventory would need to be kept as I'm the premier source for particular items in my niche..AND if I want to continue occasionally doing tradeshows/conventions, I'd need some inventory around... although doing those events is not THAT profitable, is expensive and a huge amount of work..but it's FUN.

Yes, more money needs to be put into outsourcing AND quitting the job at some point. Per the cart... I know it's a sore point.. if I do switch, this will actually LOWER my monthly expenses, increase automation, free up more of my time, increase conversion and managing these sites better. But of course I should focus on conversion with my current site first and use that extra money to do it. My FEAR is that I have the money NOW to make this move.... 6 months from now I may not, and then another year could pass easy while I scramble to cover bills and build back up cash again.. it's a viscous cycle. That is how I live, I take big chances when I have the cash to get things done... then huddle up to save for the storm. I've already been through worst case several times.. and am still surviving... even in this economy.

Bottom line though - start by getting a grip on what it is that is eating your profit, gobbling time, and creating frustration and get rid of it - regardless of, if it is the dayjob, the inventory, the dog or your friends.

I agree 100%, I'm going back and printing out records for the last year and figuring out where money could have better gone in my pocket.. but I know most of it has been inventory/trade show display and software, other than standard operating expenses like shipping/merchant account.

Thanks

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Jeff Bronson

15 years ago

Originally Posted by TimG

Read through most of this and lots of good advice already being provided but I'll throw in a few other things:

1 - Have you considered looking for a partner or potential investor for your business? This might provide a cash infusion that could help you stay afloat while you develop a better business plan.

I haven't as I'm a control junkie lol. You know, my accountant recently recommended changing from LLC to C corp and issuing shares of stock to raise funds.. I didn't really like the idea. An investor isn't a bad idea, but I'd be embarrassed about my low conversion, since all they would care about is how quickly they would get back their investment....

2 - I think you mentioned expanding and have already purchased the necessary domains. Was wondering what the though process behind that was because most companies expand when they are doing well and it sounds like you are struggling.

Yes. The thought process was to take some drop ship items that are currently "hidden" on my site, and present them in a way better suited to that target market. I figured having more sites that bring in revenue is better than one and would help move forward faster. I do understand your point, and how my logic may be flawed...since I have other issues to fix first. The revenue from the drop ship items could actually go in my pocket, vs having to drop big chunks to replace the inventory. Or I could use part of this money to invest in the 20% of items that turnover fast.

3 - Have you considered just selling this site and then using the income you obtain to build a new site from the ground up? Very radical I know but this might still be a viable option for you.

NO, I haven't considered this at all, I'm not ready to move past this.. as unfortunately I chose a business that I personally liked... so it's harder to make cold, hard, calculated decisions which is a weakness.
I just looked this morning, although my P&L showed net profit of only $4k last year on $45k+ sales... I paid myself about $9,000 also... which mostly went to covering bills when I'm out of work, and the expense of moving to a smaller apartment. On average productive time I spend 20 hours a week on this......that's $750 net a month /20 hours = $9.40/hr. I spent about $5-6k on one time purchases like software/trade show display last year.. that could have brought the money taken out to $15,000k yr net, or $15/hr.(based on 20 hours week productive work.. ex filling orders, etc).

So if I was to sell this.. would I base the selling price on yearly net x 10? That would mean a sale price of around $40,000k (if based on 4k net)....sounds like too much, no?

Definately sounds like you are a hard worker and have sacrificed a lot....I'd love to see you succeed with this. I also know the feeling of sacrifice having worked on my business for many years during the wee hours of the morning 10PM - 2 AM while I was in the military.

Stay strong brother!!!

Respectfully,
Tim

Thanks Tim... me too,I'll keep pushing as after this long, failure isn't an option, although I hope I'm not one of those people who are too hard headed to see that something should be walked away from.....personally I think it's close to turning around. Sheesh, that sounds tough.. plus the military - wow. When I was 21 I moved oversears and worked as a chef in Amsterdam.... 18 hours a day /6 days a week for about $800/mo in the 90's in a top place.... didn't walk for close to a year after almost getting crippled from standing so much - hard work is overrated.. I'd rather work smarter.

Thanks
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TimG

15 years ago

Originally Posted by Lux_Arcana

NO, I haven't considered this at all, I'm not ready to move past this.. as unfortunately I chose a business that I personally liked... so it's harder to make cold, hard, calculated decisions which is a weakness.
I just looked this morning, although my P&L showed net profit of only $4k last year on $45k+ sales... I paid myself about $9,000 also... which mostly went to covering bills when I'm out of work, and the expense of moving to a smaller apartment. On average productive time I spend 20 hours a week on this......that's $750 net a month /20 hours = $9.40/hr. I spent about $5-6k on one time purchases like software/trade show display last year.. that could have brought the money taken out to $15,000k yr net, or $15/hr.(based on 20 hours week productive work.. ex filling orders, etc).

So if I was to sell this.. would I base the selling price on yearly net x 10? That would mean a sale price of around $40,000k (if based on 4k net)....sounds like too much, no?

Don't want to steer you in any direction but best advice I can give you is never fall in love with a site.

I had a website making between $600 to $900 a month and I was thinking about selling it but month after month I kept hanging on to it because the auto-pilot income was nice.

After about 10 or 11 months the site took a hit and never recovered now it makes about $50 a month.

Had I sold when the site was doing well I would have received a very nice payout but instead I fell in love with the site.

Always have an exit strategy and remember like the great Gordon Gekko once said in the movie Wall Street, "it's a dog with different fleas".

Respectfully,
Tim

Thanks
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Jeff Bronson

15 years ago

Originally Posted by TimG

Don't want to steer you in any direction but best advice I can give you is never fall in love with a site.

I had a website making between $600 to $900 a month and I was thinking about selling it but month after month I kept hanging on to it because the auto-pilot income was nice.

After about 10 or 11 months the site took a hit and never recovered now it makes about $50 a month.

Had I sold when the site was doing well I would have received a very nice payout but instead I fell in love with the site.

Always have an exit strategy and remember like the great Gordon Gekko once said in the movie Wall Street, "it's a dog with different fleas".

Respectfully,
Tim

Good point Tim, an exit strategy is something that I never thought about.. as it seems like something I'd just want to keep doing for a long time. This mentality as you mention with your past site, makes objectivity challenging when it feels too personal. Ah wall street, "lunch is for ******" lol

Thanks

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entrepreneurjay

15 years ago

If you can generate 15k to 2ok uniques start a self hosted wordpress blog, build up an email list this should be very easy for you considering your SEO background. Try affiliate marketing added onto what your already doing you will make a killing!

If your a traffic expert like you you can even make your own E-Book get affiliates to promote it on Clickbank, or sell it yourself, people would love to have this skill as traffic equals money on the Internet.

Build on what you have by learning to increase your conversions hire someone to help you with that aspect, then diversify, you will be making buuuku money!

Thanks
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Jeff Bronson

15 years ago

Originally Posted by entrepreneurjay

If you can generate 15k to 2ok uniques start a self hosted wordpress blog, build up an email list this should be very easy for you considering your SEO background. Try affiliate marketing added onto what your already doing you will make a killing!

Yeah, I have a self hosted wordpress blog already , but I neglect it as I feel as though I haven't yet found my voice and talking about the right subjects.. my target market is 14-35.. and my tone can be too higher level and complicated with some of my posts.. maybe I should (as someone suggested), have some customers do guest posts...

Per affiliate marketing... I actually started on 100+ adsense/niche sites, based on a WSO here, I pick the niche/keywords and outsource to two different companies for the rest.. I got the first 12 sites up.. but am questioning if I should just focus on my ecomm.. as it would take I'd guess about 20 hours per month,per 12 sites completed. These are the type of $1 /day avg. sites I put up.

If your a traffic expert like you you can even make your own E-Book get affiliates to promote it on Clickbank, or sell it yourself, people would love to have this skill as traffic equals money on the Internet.

I do like the ebook idea.. it's finding the right topics or time to create it.

Build on what you have by learning to increase your conversions hire someone to help you with that aspect, then diversify, you will be making buuuku money!

I hired someone as of.....yesterday , to help with conversions before I go any further... then I'll look more towards the rinse and repeat.... believe me.. buuuku money would be nice, as I hate being close to poor.

Thanks

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Jeff Bronson

15 years ago

I just wanted to quickly say many thanks to all of the generous replies... they really are helping to gain different perspectives. I've began engagements today with an ecommerce conversion rate expert to help work through some bottlenecks.

I will get up a bit earlier tomorrow to reply to each of your new comments.....thanks!

Thanks

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Lilach

15 years ago

I personally think you need to invest a couple of hours of your time and money with a mentor/coach. By posting on here you are going to get different feedback/comments and are going to be even more overwhelmed.

You need to make some life changing decisions. You have personal as well as business decisions to make.

I'm not trying to sell my services but I really do see the value you in taking the time to speak with a professional person who can assess where you are and where you want to be and help you get there. Don't get me wrong, the Warrior Forum is great, lots of people help and share ideas. But I really genuinely believe you will get more support from a 1-1.

I wish you the very best of luck.

Lilach

Thanks
1 reply

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Jeff Bronson

15 years ago

Originally Posted by Lilach

I personally think you need to invest a couple of hours of your time and money with a mentor/coach. By posting on here you are going to get different feedback/comments and are going to be even more overwhelmed.

You need to make some life changing decisions. You have personal as well as business decisions to make.

Lilach, yes all the different viewpoints can further complicate clear thinking, but it also give a lot of good perspectives that I wouldn't have come up with myself, it's hard to see the forest when your stuck in the trees. I've wanted to take a short vacation to the mountains to think stuff out, but it hasn't happened yet.

I'm not trying to sell my services but I really do see the value you in taking the time to speak with a professional person who can assess where you are and where you want to be and help you get there. Don't get me wrong, the Warrior Forum is great, lots of people help and share ideas. But I really genuinely believe you will get more support from a 1-1.

I wish you the very best of luck.

Lilach

I agree with you 100%, in fact I hired someone as of last night, that is an ecommerce conversion expert, that does personal consulting, as well as runs a membership site and is an author of a couple physical books on ecommerce/conversion. I'm just going for the personal consulting part... as I need to focus on output vs input. Thank you again Lilach for your input.

Thanks

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GoGetta

15 years ago

Hey Lux,

How about putting away a little money to supplement you for 2 months. Go full time for 2 months. Hit the marketing hard, and see what happens. If you dedicated 2 whole months to your business without a job, you would then know whether it is worth going full time.

What's the worst that can happen?

It doesn't work out and you just get a new job!

But, taking time out to actually be dedicated you your business should work wonders!

Just a thought, don't know if this is a possibility!

GoGetta

Thanks
1 reply

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Jeff Bronson

15 years ago

Originally Posted by GoGetta

Hey Lux,

How about putting away a little money to supplement you for 2 months. Go full time for 2 months. Hit the marketing hard, and see what happens. If you dedicated 2 whole months to your business without a job, you would then know whether it is worth going full time.

What's the worst that can happen?

It doesn't work out and you just get a new job!

But, taking time out to actually be dedicated you your business should work wonders!

Just a thought, don't know if this is a possibility!

GoGetta

GoGetta, thanks for the reply. I've been able thorough the years to have many months to myself to work on this, but right now isn't one of them. I've blown through a lot of miserable phone sales jobs while building this.. and finally scored a SEO job with a web dev company which pays me well (and lets me work from home)... so I'm not so quick to throw it away.

You know, I really wanted and tried to get some time before I started this job to go away for a week and catch my breath, but of course they needed me to start right away, so I had like two days to myself.... taking a break does work wonders and helps you regain focus. Every time I've done that before... it's moved things in a positive direction. I really spend next to no time on marketing.. just some "item of the day" posts to social media several time a week. One time I actively crafted a nice back linking plan with videos training/process maps.. and handed off to two people to implement ... sure enough I went from nowhere to now #2 on Google for the term. I've already got a lot of #1 Google spots.... so conversion is a big problem.

So yes, I do feel as you mention going full force on just this does work wonders when I do it!

Thanks

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GuerrillaIM

15 years ago

It sounds like you have a lifestyle business that doesn't support your lifestyle. I can tell your in love with this business and that makes it hard to be objective.

Your margins sound very tight. You need to come up with a backend service with a meaty margin or even if you do increase your conversion rate, you could lead yourself into a situation where you run at high turnover with a small margin and just a few bad months could burn your reserves.

If the business reuires a high investment in time, yet yields a low return then I think you have to look at the business model as a whole. Can you make it easier to run?

Before you go spending big money on shopping cart mods, use out of the box solutions and see if it works. Magento has a lot of mods available and on oDesk you can get fixed priced mods made very cheap.

It sounds to me like taking on a big debt right now, with your current state of mind could be too much stress.

Take a step back, simplify the process. Don't scale until you have the data that supports the decision (account for a large margin of error and lots of delays and unforseen problems). Plan everything in detail. Write a business plan and make a timeline.

Thanks
1 reply

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Jeff Bronson

15 years ago

Originally Posted by GuerrillaIM

It sounds like you have a lifestyle business that doesn't support your lifestyle. I can tell your in love with this business and that makes it hard to be objective.

Regardless of my only going out a couple times a month, it is a lifestyle business and I'm now learning that being objective is a smarter way to go... however hard it was to realize this so far.

Your margins sound very tight. You need to come up with a backend service with a meaty margin or even if you do increase your conversion rate, you could lead yourself into a situation where you run at high turnover with a small margin and just a few bad months could burn your reserves.

Margins are pretty good on some items 200-300% markup on some items, the issue is many of the products are specialized and the ordering cycle can cause either too many of an item, or two few while waiting months for items to arrive and lost sales. Changing suppliers isn't an option as many of these are custom pieces from several different suppliers. On the items that are from much larger established manufacturers.. the margins are around 40-50%.

If the business reuires a high investment in time, yet yields a low return then I think you have to look at the business model as a whole. Can you make it easier to run?

You are right... my time should be spent on the important stuff and outsource the rest which I'm slowly learning to do.

Before you go spending big money on shopping cart mods, use out of the box solutions and see if it works. Magento has a lot of mods available and on oDesk you can get fixed priced mods made very cheap.

Yeah, almost all of them are out of the box solutions I already had picked out for Magento.... they add up and a good chunk of the funds is for data import of things that no mods exist for , ex. wishlist, reviews, etc. I've identified some people on Odesk, as well as half a dozen support companies.

It sounds to me like taking on a big debt right now, with your current state of mind could be too much stress.

Take a step back, simplify the process. Don't scale until you have the data that supports the decision (account for a large margin of error and lots of delays and unforseen problems). Plan everything in detail. Write a business plan and make a timeline.

Good point, I need to step away and think it through well. Reading these posts is helping to clarify a bit, as well as tracking how I really spend my time. A plan is a must if it does go this route.. was planning to do it slow over half a year gradually.

Thanks

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Sonomacats

15 years ago

Yeah, but

A Yeahbut is a little creature with long furry ears and a cute little tail

It might be cute, but it doesn't change anything

You're getting a lot of good suggestions here, but it's all "yeah, but". Nothing will ever change if that's always your response.

Thanks
1 reply

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Jeff Bronson

15 years ago

Originally Posted by Sonomacats

Yeah, but

A Yeahbut is a little creature with long furry ears and a cute little tail

It might be cute, but it doesn't change anything

You're getting a lot of good suggestions here, but it's all "yeah, but". Nothing will ever change if that's always your response.

Lol, how did you know about the pets I have?:p

Hey, your right... it's a lot to digest there is some fantastic info and relevant advice I need to dig deeper and let it sink, I can see how "yeah, but" makes things seem like an excuse. Just like doing the same actions I've always done will not change anything.....if they are not working.

Thanks

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