$0 vs $30 - Building Your Online Business Advice - FREE Isn't Always The Best Way To Go!

6 replies
Running a business online involves having to spend money on more professional tools than simply using free autoresponders and free hosting.

I see this kind of questions being asked all the time in here and I also see many newbies offering their advices to other newbies about how they should just stick to using free tools.

In my opinion this is wrong. First of all my post isn't intended as a review, what I'm doing is giving some marketing tips based on a 7 year experience in the IM arena.

And even though there are tens of marketing tools that every marketer should have in his arsenal, I'll be referring to just 3 of them: an autoresponder, a domain name and some professional hosting.

Let's take the first one. Having an autoresponder is a must. The truth is this: the more people you have on your list the more money you'll make.

I'm not going into the details of treating your customers like human beings, offering them valuable content and stuff like that simply because this should be an axiom.

Just as a quick note, the money isn't in the list itself, but in the number of people who will OPEN your messages and then click on the links inside (which leads us right back to treating our subscribers/customers like gold).

So the question for a newbie marketer should not be: do I sign up with a free autoresponder or with a paid one?

The question should be: am I going to offer valuable content to my subscribers and treat them exactly the way I personally expect to be treated... or not?

Guys look, there's no point in having a free autoresponder or a paid one if you don't grasp this simple fact: subscribers ARE NOT and SHOULD NOT be treated like some random numbers that just float around inside your AR account.

Instead be their trusted source of advices, talk to them like you talk to your best friend, do honest product reviews for them and I assure you they'll buy thru you whatever it is that you're reviewing... making YOU money.

The point I'm trying to make is that as long as you're willing to do the work, your list will be your best online friend, it will feed you for years and you'll feel a tremendous joy and personal accomplishment for helping others.

So, let me ask you now (after this long rant ): do you think it's worth investing like 20 bucks per month in order to have a professional "look and feel"?

On the other hand, let's do some math: let's say you're only adding 4 subscribers per day to your list. Notice I didn't say 40 or 400 subscribers, there's no point in talking big numbers when you're just starting out.

That's 120 subscribers in your first month minus let's say 15% who unsubscribe, so you're left with 100 subscribers. If you treat them as advised above, do you think you'll make a sale or two, which in turn will more than cover your AR monthly fee?

You be the judge of that.

And those 4 subs per day is just an example, by no means am I suggesting to limit yourself to that number. In fact building a list should be every marketer's goal on the long run, so you should put at least 50% of your efforts into building your list.

When you have a list of your own you're the one in control, so be smart and build a list instead of blindly promoting stuff as an affiliate for example by sending the traffic YOU've worked for directly to some other marketer's list.

If that's what you're doing than STOP doing it. Get an autoresponder account (Aweber it's like literally 1 buck for the first month), look around inside this forum in regards to how a nice looking squeeze page should look like (there are even nice templates being offered for free) and get to work.

And as a side note, most free autoresponder services will embed different links (to their terms, self promotion etc) at the end of your messages, which is a big no no in terms of conversions and professionalism.

Now let's talk about having your own domain and hosting, which is another must have when building an online business.

$10, that's all one needs... 10 bucks to have a nice, professional domain name and hosting package. Keep in mind that when signing up for the first time, lots of hosting companies will offer you a free domain name. So it's like killing two birds with one stone.

Also, when having your own hosting package/domain you can track everything: visitors, conversions from clicks to sales, different landing pages, you can install different plugins (which you can't do for example when using the free WP platform)... and most importantly, you're overall conversion rate will be higher. That's a fact.

Think about it and do the math again. Lets say that at the end of the month you received 500 clicks all across the board. I can say with a 100% accuracy that by having your own domain and by using nice looking affiliate links (like: www.yourdomain.com/productname/recommends) you will generate at least one additional sale versus using a free platform.

That additional sale will more than cover the cost of your hosting/domain name fees and as you know most ClickBank products have at least 2,3 upsells in place (some have 6,7 and even 8 upsells, especially in the IM niche), which means that a single additional sale can put $200 to even $500 more money in your pocket just because of the higher conversion rate.

So the moral of my rant is:

1. You're in the business of making money online, so treat it like a business.... not like a hobby.

2. The 30-40 bucks needed on a monthly basis - think of them as an investment in your own future, not as an expense.

3. If you don't plan on making at least these $30-$40 per month, then what is it that you're trying to accomplish online?

Your first goal should be generating that first sale, then generating 10 sales per month, then 1 sale per day and so on and so on.

And for that to start happening you need a plan, a daily plan. You've got thousands of posts, threads, great advices inside this forum in regards to this matter.... so not having a battle plan IS NOT a reason to not succeed, it's simply an excuse.

So stop making excuses, you have all the reasons in the world to make your online business work and it will, if you're willing to put in the necessary dedication .
#$30 #advice #building #business #free #online
  • Profile picture of the author MichaelParsons
    Dan,

    Excellent thoughts on "The Costs of Doing Business". I agree that you should consider IM as a business and act professionally, using professional tools.

    Personally, I was using MailChimp, but have recently switched to Aweber. Comparing and contrasting the two, I see the massive power and flexibility Aweber has over MailChimp.

    3. If you don't plan on making at least these $30-$40 per month, then what is it that you're trying to accomplish online?
    Priceless!

    I am, of course in the middle of the $1 trail for Aweber, and got a 67 day free trial of Nanacast.

    Amazon S3 is also a must, and it's really cheap (IMHO).

    Moral: Get the professional tools, but get them for free for as long as possible.
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  • Profile picture of the author True Solution
    Your first goal should be generating that first sale, then generating 10 sales per month, then 1 sale per day and so on and so on.
    Excellent Advice right here - this is spot on.

    And the rest of your post serves as excellent advice for new entrapaneurs.


    I do agree with you, but I have realised a slightly different angle which me and my partner have been enjoying for the past couple of months.

    To make money, you need to SPEND.

    Not just money - you need to SPEND your TIME, your ENERGY, your FOCUS and CONCENTRATION, you need to SPEND you - this is the true cost of your business.

    However I can not agree with you when you say spending MONEY.

    But this is PURELY down to the current business me and my partner are running, and the results we have been seeing lately - we currently have only 5 free blogs running on organic traffic and we are profiting over a K between them each day - we have tweaked our system down to where we dreamed we'd have it - and we haven't had to spend a penny for the business.

    Well I lie -

    We have had to spend on Broadband Internet.

    We have had to spend a lot of time, focus, effort, imagination, and critical thinking.


    Ultimately, I agree with 100% brother and it is a lesson that every businessman or woman, no matter how old or young, needs to learn and understand as a fundamental.


    You need to know what is needed from you for your targets to be achieved.

    and,

    You need to be prepared to give all of that and more to smash your targets.



    Excellent Post OP,

    Hakim
    TS
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    • Profile picture of the author Rashell
      From my newbie perspective I see it slightly differently.

      The learning curve to starting a business isn't always accomplished in one month. And it shouldn't be avoided just because someone can't afford the top of the line resources. Until an entrepreneur feels confident in their marketing I say "use the freebies". But if it can be avoided, avoid it.

      Also, I believe, more important than buying/or freebie(ing) a domain name, hosting & autoresponder every entrepreneur needs a well thought out and strategically organized Traffic Marketing Plan for their product/service.

      One that would include:
      • the optimal "target prospect" (not just the market but the individual characteristics of people most likely to buy from within that market)
      • a list of social sites, forums, groups, etc. they "hang out" at
      • a list of headlines, issues etc. they respond to
      • etc.

      If you get the targeting wrong how much you paid or didn't pay for your autoresponder, domain name & hosting won't make any difference. Even if you're the most helpful person in the world.

      Now I could be completely wrong, so feel free to correct any stupidity in my logic.

      Rashell
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      • Profile picture of the author JohnMcCabe
        @Dan: One caveat about using those "free domain name with hosting" offers - make sure you control the domain, not the host. That way, should you decide to change hosts, the hosting company can't hold your domain (and any traffic coming to it) hostage.

        @Rashell: There's no stupidity in your logic, but there is a potential hazard.

        Knowing your target customer is essential, but the actual traffic plan is something that should evolve. Start with an abbreviated plan, get the ball rolling, and then fill in the blanks as you discover them.

        If you wait until the plan is 'complete' (which many people will read as 'perfect'), you may never get started.
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        • Profile picture of the author DanTheSeoGuy
          Originally Posted by JohnMcCabe View Post

          Knowing your target customer is essential, but the actual traffic plan is something that should evolve. Start with an abbreviated plan, get the ball rolling, and then fill in the blanks as you discover them.

          If you wait until the plan is 'complete' (which many people will read as 'perfect'), you may never get started.
          Spot on John .

          Originally Posted by Rashell View Post

          If you get the targeting wrong how much you paid or didn't pay for your autoresponder, domain name & hosting won't make any difference. Even if you're the most helpful person in the world.

          Now I could be completely wrong, so feel free to correct any stupidity in my logic.

          Rashell
          Rashell, prior to registering a domain name I think it's a no brainer that one should first do market/keyword research in order to target a niche that has buyers in in.

          My post simply states the fact that when using paid, professional tools (which happens to cost 30 bucks per month in my example), AFTER of course you've made your research, your overall increased conversion rate will more than cover those fees.

          Dan.
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  • Profile picture of the author NateRivers
    Originally Posted by DanTheSeoGuy View Post

    Running a business online involves having to spend money on more professional tools than simply using free autoresponders and free hosting.

    I see this kind of questions being asked all the time in here and I also see many newbies offering their advices to other newbies about how they should just stick to using free tools.

    In my opinion this is wrong. First of all my post isn't intended as a review, what I'm doing is giving some marketing tips based on a 7 year experience in the IM arena.

    And even though there are tens of marketing tools that every marketer should have in his arsenal, I'll be referring to just 3 of them: an autoresponder, a domain name and some professional hosting.

    Let's take the first one. Having an autoresponder is a must. The truth is this: the more people you have on your list the more money you'll make.

    I'm not going into the details of treating your customers like human beings, offering them valuable content and stuff like that simply because this should be an axiom.

    Just as a quick note, the money isn't in the list itself, but in the number of people who will OPEN your messages and then click on the links inside (which leads us right back to treating our subscribers/customers like gold).

    So the question for a newbie marketer should not be: do I sign up with a free autoresponder or with a paid one?

    The question should be: am I going to offer valuable content to my subscribers and treat them exactly the way I personally expect to be treated... or not?

    Guys look, there's no point in having a free autoresponder or a paid one if you don't grasp this simple fact: subscribers ARE NOT and SHOULD NOT be treated like some random numbers that just float around inside your AR account.

    Instead be their trusted source of advices, talk to them like you talk to your best friend, do honest product reviews for them and I assure you they'll buy thru you whatever it is that you're reviewing... making YOU money.

    The point I'm trying to make is that as long as you're willing to do the work, your list will be your best online friend, it will feed you for years and you'll feel a tremendous joy and personal accomplishment for helping others.

    So, let me ask you now (after this long rant ): do you think it's worth investing like 20 bucks per month in order to have a professional "look and feel"?

    On the other hand, let's do some math: let's say you're only adding 4 subscribers per day to your list. Notice I didn't say 40 or 400 subscribers, there's no point in talking big numbers when you're just starting out.

    That's 120 subscribers in your first month minus let's say 15% who unsubscribe, so you're left with 100 subscribers. If you treat them as advised above, do you think you'll make a sale or two, which in turn will more than cover your AR monthly fee?

    You be the judge of that.

    And those 4 subs per day is just an example, by no means am I suggesting to limit yourself to that number. In fact building a list should be every marketer's goal on the long run, so you should put at least 50% of your efforts into building your list.

    When you have a list of your own you're the one in control, so be smart and build a list instead of blindly promoting stuff as an affiliate for example by sending the traffic YOU've worked for directly to some other marketer's list.

    If that's what you're doing than STOP doing it. Get an autoresponder account (Aweber it's like literally 1 buck for the first month), look around inside this forum in regards to how a nice looking squeeze page should look like (there are even nice templates being offered for free) and get to work.

    And as a side note, most free autoresponder services will embed different links (to their terms, self promotion etc) at the end of your messages, which is a big no no in terms of conversions and professionalism.

    Now let's talk about having your own domain and hosting, which is another must have when building an online business.

    $10, that's all one needs... 10 bucks to have a nice, professional domain name and hosting package. Keep in mind that when signing up for the first time, lots of hosting companies will offer you a free domain name. So it's like killing two birds with one stone.

    Also, when having your own hosting package/domain you can track everything: visitors, conversions from clicks to sales, different landing pages, you can install different plugins (which you can't do for example when using the free WP platform)... and most importantly, you're overall conversion rate will be higher. That's a fact.

    Think about it and do the math again. Lets say that at the end of the month you received 500 clicks all across the board. I can say with a 100% accuracy that by having your own domain and by using nice looking affiliate links (like: www.yourdomain.com/productname/recommends) you will generate at least one additional sale versus using a free platform.

    That additional sale will more than cover the cost of your hosting/domain name fees and as you know most ClickBank products have at least 2,3 upsells in place (some have 6,7 and even 8 upsells, especially in the IM niche), which means that a single additional sale can put $200 to even $500 more money in your pocket just because of the higher conversion rate.

    So the moral of my rant is:

    1. You're in the business of making money online, so treat it like a business.... not like a hobby.

    2. The 30-40 bucks needed on a monthly basis - think of them as an investment in your own future, not as an expense.

    3. If you don't plan on making at least these $30-$40 per month, then what is it that you're trying to accomplish online?

    Your first goal should be generating that first sale, then generating 10 sales per month, then 1 sale per day and so on and so on.

    And for that to start happening you need a plan, a daily plan. You've got thousands of posts, threads, great advices inside this forum in regards to this matter.... so not having a battle plan IS NOT a reason to not succeed, it's simply an excuse.

    So stop making excuses, you have all the reasons in the world to make your online business work and it will, if you're willing to put in the necessary dedication .
    I agree completely. People come online wanting to start a "business", but they want everything free. Even if you do it right, with hosting, autoresponder, maybe a premium theme, a solid membership like Bring the Fresh.... you're monthly operating costs are under $100. That's ridiculously low especially considering what the upside can be.
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