Hey there my friend… It’s new post time!
Last week we were talking about how to achieve the “know, like and trust factor” almost instantly with the power of video.
On today’s post we are going to talk about investing wisely in your online business.
I’ll get straight to the point here since I have talked about this topic a number of times already.
There’s a lot of controversy on how much money you need to start an online business and the only answer I have for that is…
Getting Started Online
Your second month would be cheaper since you wouldn’t have to pay for the domain name (until next year) and you would only pay about $8 USD for your monthly hosting account.
Then you would need an autoresponder service for building your list and that would cost you about $19 a month for an approximate total of $27 a month.
You will later find out you even need more services to get started and as you can see, this can scale up quickly and that’s why it is so important to invest wisely right from the start.
Note: When I said above “it depends” it’s because I have worked in offline projects that costed up to $350,000 USD to create.
You can see one of these sites here and it’s not even an online business.
Do You Really Have An Online Business?
Having said that, we have to be very careful defining what an online business is and what you’re currently doing online.
You make money when you sell stuff.
The “stuff” you sell can be products, services, consulting, whatever it is, you need to trade something in order to earn money.
A wordpress blog is not a business on its own but it has the potential of becoming one.
It’s a business if you manage to make money through it (affiliate marketing, information products, services) or with the help of it (branding, online presence, contact details, etc).
Since the readers of Marketing With Sergio are either hardcore bloggers, internet marketers (or a combination of both) I’ll talk specifically about what we normally use and need as bloggers and internet marketers.
So let’s dive right in!
General Services And Tools For Online Entrepeneurs
I think we all pretty much agree that we need a domain name and a hosting account.
Not eveyone needs an autoresponder service because it depends on how you’re conducting your business but it’s something that I believe everyone should have anyway.
Then there are the premium wordpress themes and while you don’t absolutely have to have a premium theme right from the start, I think it’s really worth to make that investment as well.
If you’re into getting recurring payments and building communities, then you’re definitely going to need membership scripts such as WishList Member.
The rest of the services can be a combination of premium wordpress plugins, squeeze page creation software, web forms creation, video players, video editing, video hosting, graphic design software and anything else you can think of.
Then you also have hardware!
So having briefly mentioned all these services and tools, some people find out something they want and they just go and get it (purchase it).
Some others, will identify something they want but they would spin their wheels for as long as possible and not always end up buying in the end.
And finally, some people will not even bother looking at ways to improve their business because they simply don’t believe or “can’t” investing in anything.
So what kind of investor are you?
Understanding Types Of Business Investors
Even if you don’t think of yourself as a business investor, you are one.
You can identify the need for something that your business requires and then you have the power of choice in deciding if you’re getting it or not.
So here’s a quick run down on these different business investors I have identified:
The “I can’t afford anything” Type
This is the type of person that is going to do everything in his hands to not invest even one cent in his/her business.
If they find out they need a blog, they would search the whole internet until they find a free solution and then smile so big that they would think the rest of us are suckers because we’re paying for domains and hosting and they have a free blog! (good luck with that by the way)
The “I just have ten dollars, that’s it” Type
This personality is equally disastrous just as the first one because they are already set to failure before they even get started online.
You can explain it is more than possible to get started with that amount for at least the first month but then there are going to be recurring payments because after all, you’re using a service.
This situation is equally bad to MLM schemes (or mlm-ish blogging networks) because these people can manage to afford their product or service for the first month but then they can’t afford the 2nd month and decide to move away and call it a scam instead.
It’s easier to do nothing instead of something anyway, right? (this is the under achiever mindset btw)
The “I can afford it but I may regret buying it” Type
I have wore this hat a few times myself, particularly when I have invested big amounts of money in something.
You are just thinking and thinking if you should buy it or not and then when you finally decide you’re going to do it, as soon as you hit the confirm button and receive the “Thanks for investing in… etc” you feel an adrenaline rush through your veins and the first thing you think about is “damn… I just bought this!”
And then they may start either working to see if that is for them or maybe they’ll just refund and hop on to something else.
Note: Not being 100% sure of something doesn’t neccessarily makes it a bad thing. In business sometimes you have to take risks.
I’ve won a few, I’ve lost a few too.
The “Happy Credit Card Trigger” Type
This is the type that buys everything that lands on his/her email inbox.
“Shiny object syndrome” is not even on this person’s vocabulary.
Everything is an opportunity and he/she will never let anything that looks like a good deal go without being taken “advantage of”.
This specific type of investor is the one that most marketers would love to have under their wings because these are the ones that becomes actual fans of your work and guess what?
They will literally buy everything you create.
If they don’t have a steady income source, they can go bankrupt in a snap too, particularly if they start getting addicted to consulting services (the most expensive type of investment).
Note: I’ve been here a few times before and learnt a few lessons the hard way but it’s all experience in the end.
And last but not least important…
The “Wise Guy” Type
This is where we all should be aiming to be at the whole time.
There’s not a single investment made that doesn’t have a strong solid justification for it.
It doesn’t really matter if it’s $1 or $10,000… if it’s needed, it will get done.
Maybe not right there on the spot but it will become a goal to reach and sooner or later it will be obtained.
This type of investor is completely inmune to “shiny object syndrome”.
In fact, you could practically wave offers, specials and last minute deals in front of his/her face and their heart rate wouldn’t skip a single beat.
That’s how badass and focused they are.
They understand cash flow too. If money is just going in one direction, then something is not right (if you’re just receiving and not putting in at the same time, you’re not growing anymore).
Need vs. Want: Learn The Difference
This right here is the nitty gritty of today’s post.
- You now know how the basics of how to get started online
- You can tell if you have a real online business or not
- You have identified products and services we normally use as internet marketers
- And you even got a glimpse of different types of online business investors
This is the million dollar question right here…
Whenever you are presented with an offer, first ask this yourself:
Is it something you need or something you want?
Learning how to identify these two can save you a lot of money and can potentially grow your business even faster because:
1. You would take advantage of a service or tool that would help you do something better and faster.
2. You would save time by not trying to learn something you don’t even need in the first place and won’t use in the end (in case you don’t buy).
Ninja Tip: From a marketer’s point of view, package your products in a way that people want them first (even if you’re actually building something they do need).
If you focus entirely on what they need and package it accordingly, chances are they are not going to convert.
The video got a bit long, actually pretty long so I really apologize for that.
I still think there is great advice inside because I’m showing you a real case scenario about needing something and wanting something.
I was going to record myself buying these services but my bank account blocked my card LOL
The card works fine now (“security reasons” they told me) so if watching someone buying marketing services would be something that’ll interest you, please let me know.
Professional Web Form Creation: Gravity Forms
Real Drag & Drop WordPress Theme Designer: Headway Themes
Note: If you need multibrand management like I do, then you need the enterprise option for Zendesk.
We are wired in a way that we normally buy the things we want and not the things we actually need.
When you learn to master your impulses whenever you are presented with an offer, chances are most of your choices will be good ones.
The only recommendation I have for this is to never over analyze something either because money loves speed!
Thanks for reading and watching and I’ll talk to you soon.
PS. Our video experiment starts today!