$3000 to invest. Offline VS Online Business?

40 replies
Hey Guys,

Hope you're all doing well.

A friend of mine is seriously thinking of investing $3000 into a part time offline business selling physical products.

I'm trying to convince him to look into starting an online business. If I can give him a good enough reason to it's most likely he will go online but here's where I need your advice.

If you had $3000 to invest in an online business and didn't want to spend anymore until you recovered the initial capital how would you spend it?
#business #invest #offline #online
  • Profile picture of the author jamesrich1
    I would spend it investing into a company that gave you 100% commissions, has cutting edge marketing training and had a per person earning potential of $875 per person about to go up to $1675 earning potential after april 1st. I would then do paid advertising to a lead capture page and personally contact the leads to connect and build rapport, identify their problem and solve their problem. That's just me though...
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    • Profile picture of the author The Marketeer
      Originally Posted by jamesrich1 View Post

      I would spend it investing into a company that gave you 100% commissions, has cutting edge marketing training and had a per person earning potential of $875 per person about to go up to $1675 earning potential after april 1st. I would then do paid advertising to a lead capture page and personally contact the leads to connect and build rapport, identify their problem and solve their problem. That's just me though...
      Thanks for replying. That's some good advice.

      You can't go wrong with 100% commissions or as near to 100% as possible. Also quality training will be very helpful. I guess getting training from an internet marketing mentor with a proven track record would probably worth looking into as well.
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  • Profile picture of the author davejug1
    I'm probably going to be in a group of one saying this, but I woud use internet marketing to build his offline business.

    If the TFC keep doing what they are doing they might ban affiliate marketing, meaning internet marketing would have to evolve massively. It's unlikely but the whole aff marketing industry is full of deceit and untruths so I wouldn't dismiss it so quickly.

    I'd be aiming to get as much in control of his business as possible. As IM is at the moment, so much depends on outside factors that can't be controlled.
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    • Profile picture of the author The Marketeer
      Originally Posted by davejug1 View Post

      I'm probably going to be in a group of one saying this, but I woud use internet marketing to build his offline business.

      If the TFC keep doing what they are doing they might ban affiliate marketing, meaning internet marketing would have to evolve massively. It's unlikely but the whole aff marketing industry is full of deceit and untruths so I wouldn't dismiss it so quickly.

      I'd be aiming to get as much in control of his business as possible. As IM is at the moment, so much depends on outside factors that can't be controlled.
      Good point. I was going to suggest Ebay as a possible online option as people are still making good money trading physical products on Ebay.

      But yeh, using IM to build his offline business is something I'll advise him to look into.

      Thanks
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  • Profile picture of the author ryanmilligan
    Banned
    If you/him/they have money to spend, be very careful with it.


    Money can run out very, very fast when you are simply just wasting it - let me tell you from experience.
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  • Profile picture of the author Jonathan Joseph
    Hi there,

    Well here's the thing. It's his money.

    I'm sure you're a caring friend, but after all that's said and done it's his choice. To which you shouldn't need to try to convince. You can only suggest.

    There are some killer points to starting an online business over an offline one.

    1) Lower overhead.
    2) Larger market potential.
    3) Social media and viral marketing.
    4) Having email marketing in the mix.
    5) And much more.

    Although, he may be able to use these elements even with his offline business, depending on what kind it is, and how he plans to go about it.

    All the best either way! As long as he acts and believes.
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    • Profile picture of the author The Marketeer
      Originally Posted by Jonathan Joseph View Post

      Hi there,

      Well here's the thing. It's his money.

      I'm sure you're a caring friend, but after all that's said and done it's his choice. To which you shouldn't need to try to convince. You can only suggest.

      There are some killer points to starting an online business over an offline one.

      1) Lower overhead.
      2) Larger market potential.
      3) Social media and viral marketing.
      4) Having email marketing in the mix.
      5) And much more.

      Although, he may be able to use these elements even with his offline business, depending on what kind it is, and how he plans to go about it.

      All the best either way! As long as he acts and believes.
      Thanks for your advice. Of course it is going to be his decision in the end.

      The reason I said convince is because I'm a bit biased towards an online business because of what I've seen to date in the IM arena. Also for some of the reasons you mentioned.

      My friend has no idea of the potential or advantages of an online business over an offline one but will trust me if I present an convincing argument.

      Combining an offline with an online business is a VERY good idea.

      Thanks
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  • Profile picture of the author Devin X
    Banned
    If he doesn't know what to do with his money, then he should just hold on to it. I'm not sure what kind of offline business he could start, even part time, with only 3 grand.

    To me, online is his only option unless he plans on buying two investment properties (1500 down each)

    3000 could set up a nice online business....there's too much he could go for.

    He can buy some youtube accounts with high views/subs and change links to money sources.

    He can buy a hella domains and either flip them or make a bunch of squeeze pages and sales pages.

    He could start a hosting company using hostgator's reseller account.

    He can do a lot with that money online...can't do much offline with it...
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    • Profile picture of the author The Marketeer
      Originally Posted by TheRealDudeman View Post

      If he doesn't know what to do with his money, then he should just hold on to it. I'm not sure what kind of offline business he could start, even part time, with only 3 grand.

      To me, online is his only option unless he plans on buying two investment properties (1500 down each)

      3000 could set up a nice online business....there's too much he could go for.

      .
      Exactly my point. $3000 would go a alot further online than offline.

      I guess I could add that to my list of arguments for an online biz.

      The ideas you suggested are good.

      Thanks
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      • Profile picture of the author Devin X
        Banned
        Originally Posted by The Marketeer View Post

        Exactly my point. $3000 would go a alot further online than offline.

        I guess I could add that to my list of arguments for an online biz.

        The ideas you suggested are good.

        Thanks
        No problem my friend! =) Glad to help. Hope your friend doesn't waste that seed money.
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  • I would invest it in an online business before an offline one. For $3,000 you could get all the software and advertising you need to kick some arse!
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    • Profile picture of the author The Marketeer
      Originally Posted by Resale Rights Ninja View Post

      I would invest it in an online business before an offline one. For $3,000 you could get all the software and advertising you need to kick some arse!
      Yeh that's sounds good. Thanks.

      $3000 could also buy a lot of good WSO's, couldn't it.
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      • Profile picture of the author RyanLB
        Originally Posted by The Marketeer View Post

        Yeh that's sounds good. Thanks.

        $3000 could buy a lot of good WSO's, couldn't it.
        $3,000 won't get you very far offline, and $3,000 won't get you very far online if you blow it on low-end WSO's. Not all WSO's are bad, in fact a lot of them are really, really good. However, you have to be experienced in IM to know the good from the bad. The majority of WSO's I bought here when I was first starting out were informational, and could have been discovered on my own had I just gone straight into Internet Marketing and begun to truly learn the field. All the SEO "guides" I bought we're basically the same, and had I just bought a few tools and got started on my own I would have learned it all anyway. If you're going to recommend he start buying WSO's with his 3 grand, it better be some truly valuable stuff. Newbies blow money on these forums like crazy buying e-books and guides. That's not going to get you anywhere unless you start applying it. If your friend has no experience with IM, he won't know which WSO's are really going to do him some good.
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        • Profile picture of the author The Marketeer
          Originally Posted by RyanLB View Post

          $3,000 won't get you very far offline, and $3,000 won't get you very far online if you blow it on low-end WSO's. That's not going to get you anywhere unless you start applying it. If your friend has no experience with IM, he won't know which WSO's are really going to do him some good.
          I was just joking about buying $3000 worth of WSO's. I'd never advise him to do that.

          He'll have to keep some of that aside for traffic/advertising if he's going online.

          Some WSO's are really good. I've bought some high value coaching WSO's and was happy to have spent that as I got a lot out of it.
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  • Profile picture of the author thinktwice
    Basic question: Does that guy know anything about marketing online?

    Does he know his stuff offline?

    Never, ever waste your money on something you don't know. It's his money, so either he "invest" into YOUR stuff... otherwise if he has no clue I would tell him to invest it where he is able to make a ROI quickly from it.

    Knowledge first, invest after.
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    • Profile picture of the author The Marketeer
      Originally Posted by thinktwice View Post

      Basic question: Does that guy know anything about marketing online?

      Does he know his stuff offline?

      Never, ever waste your money on something you don't know. It's his money, so either he "invest" into YOUR stuff... otherwise if he has no clue I would tell him to invest it where he is able to make a ROI quickly from it.

      Knowledge first, invest after.
      Thanks for your advice.

      He knows his stuff offline. He's not very clued up online but I'll be helping him with some aspects if he does decide to go online.
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  • Profile picture of the author ueon
    if you're interested in selling physical goods, a good friend of mine is starting a new ecommerce venture in jewelry. known him for over 5 years, and is a vetern ecommerce specialist and worked as a vp/director of marketing in various firms in toronto

    E-Commerce Investment Opportunity (~800% Return))

    Originally Posted by The Marketeer View Post

    Hey Guys,

    Hope you're all doing well.

    A friend of mine is seriously thinking of investing $3000 into a part time offline business selling physical products.

    I'm trying to convince him to look into starting an online business. If I can give him a good enough reason to it's most likely he will go online but here's where I need your advice.

    If you had $3000 to invest in an online business and didn't want to spend anymore until you recovered the initial capital how would you spend it?
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  • Profile picture of the author Mary Wilhite
    It is okay to start an offline business and then make it have a big online presence. Not all businesses must be 100% online. And not all people love or are passionate about IM as we do. That's what I teach all the time.
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  • Profile picture of the author nik0
    Banned
    He would be better off starting an offline business to turn profits instantly. Online marketing depends on to many factors. One of them is traffic.

    Offline is easy, buy from the wholesale, offer it on eBay or Craigslist or your local online marketplace and sell to the end consumer, simple as that when you know what kind of things sell. Then use these profits to experiment with full online things like affiliate marketing / adsense, all the usual.
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  • Profile picture of the author JerrickYeoh
    You can just compare that how much you able to earn back with 3k in offline and how much can earn with 3k in online.
    Basically offline spend more money on capital and reach smaller market. But with online, you can reach larger market with lot of free marketing method and some paid marketing methods.
    But conversion rate is all depend on how you market it in the right time and right place.

    If i get the 3k , for sure i will spend it to get a gd domain and hosting. Then spend other for marketing campaign. i believe 3 k in offline, you only spend it all in the shop rental.
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    • Profile picture of the author Fred_Acker
      Mr. Marketeer,

      I have just a couple of questions to ask....

      1) What are your friends strengths/weaknesses?

      2) What is your friends end goal?


      Ok, here's why I ask these questions....

      First, if your friend doesn't have any marketing/selling experience, be it online or off, he/she may be doomed from the start. A little education can go a long way but can also lead into some really deep stinky stuff if you're no prepared well.

      Second, $3000 isn't a lot of money. Sure, it can be a good starting point. But If your friend doesn't know what they want from that investment then I would suggest they do nothing (in trading it's called sitting on the sidelines) until they have a well thought out plan with a Definite Purpose in mind.

      Yes, I know, the world is full of opportunities - especially with the internet being what it is - but, I'd suggest that you help your friend develop a plan vs. committing to something they may regret later on. You'll be their Hero if all goes well.

      That plan should include exactly what your friend expects from their investment as well as an entry/exit strategy and short/long term goals.

      Either way you may succeed or fail but at least with a plan you can cut your losses quickly if things don't go as planned with a proper exit strategy in place.

      But hey, that's just my opinion.
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      • Profile picture of the author Jit Lim
        Fred has some good advice there. You could lose your $3K either way if you don't have a plan and experience.

        You could give $100 to an experienced marketer and he/she can turn that into $3K in 1 day!

        Do your research and create a business plan first.

        Good luck!
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        • Profile picture of the author The Marketeer
          Originally Posted by Jit Lim View Post


          You could give $100 to an experienced marketer and he/she can turn that into $3K in 1 day!

          Good luck!
          Thanks. Anyone in particular?
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      • Profile picture of the author The Marketeer
        Originally Posted by Fred_Acker View Post

        Mr. Marketeer,

        I have just a couple of questions to ask....

        1) What are your friends strengths/weaknesses?

        2) What is your friends end goal?
        1) He's got the gift of the gab. He's a people person.

        2) To build a business which he can turn into a full time income.

        The $3000 is just for testing. If the test works out, he'd be willing to invest more to scale it up.
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  • Profile picture of the author klogfyr
    1. Learn.
    2. Network.
    3. Consult.
    4. Guidance.
    5. Experiment.
    6. Start small.
    7. Implement.
    8. Track.
    9. Reinvest.
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    • Profile picture of the author The Marketeer
      Originally Posted by klogfyr View Post

      1. Learn.
      2. Network.
      3. Consult.
      4. Guidance.
      5. Experiment.
      6. Start small.
      7. Implement.
      8. Track.
      9. Reinvest.
      That's great advice. Funny you say that because these were the steps I was going to advise my friend to follow.

      Thanks.
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  • Profile picture of the author Rukshan
    Flippa is a great place to buy a business model web site which offers a service. Most of these services are included in fiverr. You can promote this web site can be promoted via PPC.
    Money > PPC > Fiverr service reselling in service web site

    This is a great business in these days.
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  • Profile picture of the author gasman
    Many businesses can be marketed both online and offline. A lot of which you choose should be determined by what type of product you have. For example, if you have a product that teaches you how to make money online, then you would more than likely want to market it online. Whether you want to market online or off, test your marketing strategy and make sure your return on investment makes that particular marketing method worth the time and money and scale it up.
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  • Profile picture of the author Randall Magwood
    To run a full fledged offline business, i think you will need to spend more than $3000. An average direct mail test campaign of only 1000 names will probably cost you around $500. That's 1/6 of his investment gone. Now imagine if he did a standard test of 5,000 names... his $3000 could be wiped out immediately.
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  • Profile picture of the author Peter Lessard
    There is a HUGE point being missed here. It is completely impossible to answer this question properly without intimate knowledge of the individual that will own the business.

    Let me explain. In my ten years doing this I have been involved in ventures from 3k and into 6 figures, I have written custom software to manage huge organizations and consulted on every kind of business plan you can imagine.

    The money is almost always irrelevant. It is the knowledge and skills the person possesses that makes up 99% of the chance of success. If this person does not understand online business you could give him 100k and he would figure out a way to screw it up. Alternately some experience Warriors (mabye 1-2% on here) could take 3k and turn it into a 10-20k a month business largely due to their unique and varied talents in the field.

    To prove my point how many times have you heard of very successful businesses being handed down to be destroyed in 12 months. How many times have you heard of companies that everyone thought was doomed but as soon as they brought in the right CEO it all got turned around.

    The big problem here on Warrior Forum as that there are all these systems for sale and yet 99% of people that buy them never make a a nickel because they do not have the skills or experience to run the type of business they system actually builds.

    Last week as a playful test I tweaked a WSO I bought for under $10 and made 6k in 7 days. My actual profit after service delivery was about $5,500.

    Now I could write it all up and sell it as a WSO trying to convince everyone on here they could do the same BUT I have been doing this for 10 years and I know that it would NOT be true that their results would be the same! If I ever create a WSO it is probably destined to fail lol because I will have big disclaimers like "your chance of success is almost zero".

    Why?

    I have significant experience in copy, email advertising, video advertising, cold calling, split testing etc.. plus a huge stable of CEO's that would endorse me if they got a call so it would not be fair to say anyone could do if I put even a tiny bit of these skills into what I did.

    The big thing is that you can take a completely successful system online or offline and let another person work it and they would NOT have the same results. Hec I have a friend who owns successful mom and pop pizzeria's and if he changes the person behind the counters from his main guys profits drop like a stone. Not because the other guy can't cook, it might just be his phone skills, lack of knowing customer names, how he speaks to staff that causes a drop in teamwork etc..

    There are so many slight nuances in the difference between success and failure that the business choice is a very small part of the equation. I would focus on areas that your friend has had some success on or has some passion about.

    3k is nothing and success from 3k will be about loving what they person does and being willing to spend 15 hours a day 7 days a week getting better at it until it becomes second nature.
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    • Profile picture of the author The Marketeer
      Originally Posted by plessard View Post

      The money is almost always irrelevant. It is the knowledge and skills the person possesses that makes up 99% of the chance of success. If this person does not understand online business you could give him 100k and he would figure out a way to screw it up. Alternately some experience Warriors (mabye 1-2% on here) could take 3k and turn it into a 10-20k a month business largely due to their unique and varied talents in the field.

      There are so many slight nuances in the difference between success and failure that the business choice is a very small part of the equation. I would focus on areas that your friend has had some success on or has some passion about.

      3k is nothing and success from 3k will be about loving what they person does and being willing to spend 15 hours a day 7 days a week getting better at it until it becomes second nature.
      Thanks for taking the time to leave such a detailed reply.

      I agree with everything you've said. Some people see opportunities where others see brick walls and the mindset,knowledge and skills of a person are as important to their success as the amount of capital they invest into a project.

      I might just get in touch with you at some stage for some advice if that's ok with you.

      Thanks again
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  • Profile picture of the author Brendan Carl
    With $3000, your friend could outsource a lot of the work necessary to bring in some money. This way he would not have to be too experienced in IM, he would just have to have some know-how, be able to learn, and be dedicated.
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  • Profile picture of the author Apollo-Articles
    Tell him to go into offline business - he can always promote it online.

    If he knows what he's doing offline and can make money - why switch to online and deal with a large learning curve and an unpredictable marketplace?

    Sam
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  • Profile picture of the author savyeman
    I would create 20 ebooks and take the $1000 of that to market the ebook

    Then I would hold on to the $2000 dollars, put in the bank.

    $1000 dollars is more than enough, to start creating quality ebooks and getting traffic them and begin information empire
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  • Profile picture of the author sqnwk
    $3,000 will tend to go more in the internet then offline
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  • Profile picture of the author celente
    I would use your time to create products and the $3000 to market them with PPC.

    You can outsource everything like SEO, articles, press releases but the way the big boys do it and the way I do it even now is to step out of your comfort zone and learn that you are first a marketing company and second selling products.

    While many people will read this and think sure sure... PPC is not for everyone. I agree with that, but paid advertising can be very powerful if you test small scale and find something that works.
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    • Profile picture of the author Fred_Acker
      "$3,000 will tend to go more in the internet then offline"

      sqnwk, I'm not bashing you here, or anyone else who thinks like this but I've got a great little story about a $450 investment and a kid with BIG DREAMS...

      Great life lessons here to so listen up....

      A fiend of mine in high school wanted to make money but at the time he was underage to get a "job". He asked his dad if he could help and they sat down and put together a small business plan to get him through the summer.

      We were only 12 or so at the time and we lived in the sticks basically so getting a "JOB" was not an opportunity many of us had at that time.

      Anyway, the plan was to borrow $500 from dad, purchase 2 mowers, rakes and other yard tools. The total was a little less then $450 and my friend used the extra $50 to pay his folks and anyone else he could get to drag him and his equipment around to find and do yard work.

      His sales pitch was SUPER simple....

      Hi, my name is Craig and I'm going to mow your lawn and clean up your yard for $25 a week.

      I don't think he was turned down by anyone simply because he looked so dammed determined to make the sale.

      Well, he not only paid his dad back but had 5 employees by the end of the first summer. He continued this business until college at which time he sold the the business and contracts for a killing. (I dont know the actual price but the last time I spoke with him before he went off he was pretty much set for some time).

      The moral here is you really can do it if you want it bad enough.

      I think the most important thing anyone can do first is know exactly what they want. My offline business is trucking and I see it a lot out on the road - most people just dont know what they want and continuously search for the "magic" button to make it all better.
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      • Profile picture of the author The Marketeer
        Originally Posted by Fred_Acker View Post

        "

        The moral here is you really can do it if you want it bad enough.

        I think the most important thing anyone can do first is know exactly what they want. My offline business is trucking and I see it a lot out on the road - most people just dont know what they want and continuously search for the "magic" button to make it all better.
        Thanks for sharing the story.

        I've also got another friend who started with nothing. He got a break with some specialist training. Worked hard, long shifts. Got promoted. Now he's got a little trucking business of his own.
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