Archives for May 2010

Why It’s Better to Make Money “Offline” than “Online”

May 31, 2010 by 1 Comment

There’s a lot of friends and fellow Kenyans who are looking to make money online. Is it possible? YES! But you need to get into it knowing full well what you’re going in for. Hence this article.

There are ton of great websites, blogs, and programs out in the Internet about how to “Make Money Online“. Many of them have great ideas, and I read some of the better ones on a regular basis. While there are many different variations on this, there are basically 3 different ways to make money online:

  1. Content Sites – Having good content and a lot of visitors and then selling advertising on the site. This is the reason for 90% of the blogs out there (my own guess)
  2. Affiliate Sites – Sites set up specifically to refer visitors to purchase products sold by other people/companies, in which the referrer gets a percentage of the sale.
  3. eCommerce Sites – Sells niche products and often through drop-shipping. This way, the operators don’t have to handle any inventory.

If it Looks Too Easy, It Probably Is
The problem with these methods isn’t that they are bad ideas. The early adopters for most of these methods made (and continue to make) a decent amount of money because they were there first. The problem is that they are TOO easy to implement and get started. In economic terms, the barriers to entry are extremely low, and there becomes a flood of “entrepreneurs” who are looking for a quick buck.

When looking at new ideas or tools, one of the first things I take notice of is how easy it is to implement. If anyone can do it in almost no time, then it’s not worth doing. For example, there are tools that allow you to create niche websites based on a list of keywords that you have. It can literally create thousands of sites/landing pages for you. The problem with a tool like this is that if you can easily use it and implement it, then so can thousands of other people – thereby eroding any possible value in the tool. (Not to mention the fact that this “spamming” will quickly be a “no-no” in the eyes of Google and if it’s not already detected and blacklisted, it soon will be).

Defensible Position
The problem with tools like I just described is that you have almost no “defensible position”. What I mean by defensible position is something that others cannot easily copy. If someone else can easily (and cheaply) buy the tool I described above, you have virtually no defensible position. Google or Amazon are examples of companies with extremely strong defensible positions. While they compete against the likes of Yahoo and Buy.com respectively, it would be next to impossible for all but a few people in the world to create something to compete against them. And to do that would require an incredible amount of resources of time.

The Advantages of the “Offline” World
When I refer to the “Offline” world, I use the term pretty loosely. I’m really referring to any type of company that isn’t making money via the “Online” methods I listed above. Often times, these are more traditional companies with more traditional structures. For example, Salesforce.com is totally web-based but I consider that an “offline” company and the same goes for small software companies that sell some sort of product or service on the web. Or you could just sell something old economy – like paper.

1. You Have a Defensible Position – Usually this is some sort of product or service that someone cannot create by spending 3 hours on a Saturday to set-up. This doesn’t mean that there are no competitors but it also means that hundreds of people can’t start up a web-site just to test the waters.
2. You Have Real Clients – With online marketing, you do have “clients” but they are very fluid. You can use methods to get them to your site quickly and easily but there is no strong relationship formed there. Real Clients are those who chose your product or service for a reason and you have established your “brand” with them. They may recommend you to other customers or hopefully are repeat customers.
3. You Aren’t at the Mercy of Others – Every business should have an exit plan. That exit plan might be to use the business as a cash generator for years or to sell it once it reaches a certain income level. If the business is at the mercy of suppliers, which is really the case of all the ways to Make Money “Online”, whether it’s supplier of the products you sell or the supplier of the traffic and ads for your content site, then any future is very uncertain. But if you have a regular business that cannot be easily disrupted, it is much more valuable and more likely to be viable in the future. It is a much more valuable business.
4. You Can Make More Money – This one can vary a bit based on what you’re trying to sell. I know a lot of Internet Marketers who make a ton of money selling products and services offline and probably more than if they sold it as an offline product. The reason I say this one is that an online world, the easy of entry invites more participants, and with more participants, it in essence becomes a commodity product, and with a commodity product, it just becomes a race to the bottom (look at web hosting since that is so easy to become a reseller).

Will I Still Continue to Make Money Online…. Of Course!
Our main business and main ‘strategy’ of making money online in Kenya is to use the internet to drive up sales…in the offline world. This article describes it somewhat. It is sort of an online-offline hybrid of a business and we are always continuing to make it more “online” because we believe that if you can build an online business with a real defensible position, you’ve hit the jackpot!

But will I base my livelihood around a single content site or some affiliate Adwords arbitrage site? Of course not. Not because I don’t think there is any potential value in there. But because I know there are thousands of people out there who can easily come up with a better mouse-trap with very little time and effort and erode any possible value there for me.

I would rather spend most of my time focusing on the things that will create the most value for me in the long run. Those are the things in which I can gain a strong “defensible position” and more often than not, they are “offline” and not “online”.

How about you? I love feedback!

Filed Under: Make Money, Small Business Tagged With: ,

Lessons learnt while dyeing my hair

May 31, 2010 by Leave a Comment

For a while now, I’ve been trying to get my hair purple. I’ve dyed it three times, and it ended up blacker than when I started. Aside from being terribly frustrated, I’ve learnt a few lessons for life and business.

1. Always do your research

I went to five or six shops looking for the perfect shade of purple. Turns out shops in Nairobi don’t stock much beyond brown, black, blonde, and grey.  Apart from realising that someone should stock strange hair colours – even if it’s only on demand – I discovered that Nakumatt and Uchumi sell half a litre of Ooh yoghurt at 73 bob while Ukwala sells it at 95 shillings. Interesting.

2. Get dizzy-proof

The thing with servicing clients, no pun intended, is that sometimes, you’ll go round in circles and end up right where you started.

The first colour I bought was aubergine, and after several sessions using varying degrees of it, and going through black, red, blue, and several purples, I’ve ended up with plain old aubergine. Come Saturday, I’ll put it on my hair undiluted, and drive my hairdressers off the edge of sanity.

In business, be prepared to spin on the spot with a client, and when you walk past the same signpost for the millionth time and client says ‘that’s exactly what I want!’ do some yoga, smile, and remember that it’s worth it in the end.

3. Failure isn’t always a bad thing

On the assumption that the Saturday dyeing will work, it will have taken me two weeks, four sessions, three thousand shillings, 6 to 7 hours, and six pairs of gloves to get my hair the right colour. But, I now know 3 ways not to dye my hair, and next time, I can do it using 200 bob and one go.

4. Improvise

At one of the shops I went to, they didn’t have purple dye, but they suggested I try powder food colour. I laughed at the idea, but apparently it’s a popular one, and it gives you a much wider colour range. Plus, it’s temporary, so if it doesn’t work out, it’ll be gone in a few weeks.

As a business person, you should always give the client what he wants. But if you don’t have it, sell them a Plan B. Just be sure it’s one that works.

5. Know when to stop tweaking

The thing with artists is we never know when to stop. We always want to put in one more word, take a comma out, change the shade of blue, twist a bit of code, make everything just perfect.

During my multiple sessions, I started out ultra-violet black, which was too dark, so I added some aubergine, which was too light. I put in a bit of food-colour purple … which took me back to black. Very frustrating. If I’d just left it at bright purple, it would have darkened with time.

Good business is like dyeing hair; you get your hands messy, you don’t know what to expect, you use a lot of resources [and water] and your hands get really, really hot.

So remember to have a tank, a long fuse, a borehole, a source of emergency capital and a brilliant assistant, even if that assistant is you.

And always, always, always wear gloves.


Crystal Ading’ is a professional author, editor, rock lover and mother. Her work is available through www.threeceebee.com.

Filed Under: Miscellaneous, Small Business, Tips Hacking and Reviews Tagged With: ,

7 Ways Of Claiming Your Success

May 28, 2010 by 5 Comments

Claim your successYou will agree with me that this is one of the hardest blocks to pass – just lifting your leg off the ground and getting it done. Most People spend much time mark-timing in the quagmire of excuses. “I will do it tomorrow” or “today I don’t feel like doing it,” becomes the order of the day and before you realize it, a day is gone…a week…month and then years!

One of my friends has been idle for months now after the completion of her Journalism course at the Kenya polytechnic and when I asked her why she’s sleeping on her talent, she was quick to reply, “But I don’t have a camera!” “Then why don’t you start off by giving these media houses news tip-offs or perhaps pitch news ideas to them?” I asked and all she could give was a blank stare though her lips twitched as though she was about to say something. Below are few tips that can help you take off the ground.

1.Discover yourself
Discover the love of your heart. What you enjoy doing. It doesn’t matter whether it’s writing, acting or whatever that could be. You will only go far by doing what you enjoy the most.

2. Become an Expert
Someone once said that to become an expert, You only have to know slightly above the average person. You don’t need to spend years of your life searching for all those degrees, they are not the ones that will make you an expert – after all you won’t face life with all those crowns on your head when your head is empty. There are so many ways of getting enough information about your interest. Say for example you’re interested in fashion, subscribe to all those newsletters, blogs and magazine that talk about fashion. Watch or listen to informative interviews on the same. Talk to people already in the industry, get to know how they come up with different designs and the like.

3. Find Your own way of doing it
Creating “blind competition” won’t land you any where far from disappointments. Rob once said, “there is enough wealth for each and every one in this world all you need to do is to find your own unique way of tapping into your share.” Forcing yourself in another person’s shoe and blaming him if it all fails won’t give you success. Simply because the Mama Sukuma in your hood commands a huge base of customers does not mean you too will do the same automatically if you plant your own kiosk. If sukumawiki is not your thing then don’t even dream of doing it. Similarly if your interest is dancing and every one is doing it, then don’t create that “blind competition” by doing it exactly the same way. Find your own way of doing it that will make you stand out.

4. Make a plan
Words such as “I will one day do this or that” only kill your subconscious. Sit down and get it done. Make your feature plans, where you want to be in five or so years then break it down to what you will be doing daily that will contribute to achievement of your long term goals and make sure you do exactly that. For instance, say you are a writer; using words like I will one day write a novel before I die is not the right track to go. Saying “I want to complete a 60,000-word novel in two months” is a good long term goal but it’s not enough. You have to break it down further in bits that will help you reach your main goal and that could be writing 1000-words a day that will give you 60,000-words in sixty days. Still this is not enough. Make sure you discipline yourself to be writing the 1000-words daily – Hope you’re getting the point.

5. Go against the current
If you are really convinced that your idea is good, don’t listen to people. Most of them are afraid of change. They want to maintain the statusquo and will shoot down anything they think might make you better than them. This is not to say that you should not seek for advice but learn to sample good ideas with the ill-intended ideas.

6. Drop all the Pretenders
I’m sure if you look around you will find yourself surrounded by a bunch of friends – and let me assure you not all are really your friends. Most of them are out to frustrate you from achieving your success and they are determined. They will try all means possible to show you how what you want to try is impossible and if you go a head and prove them wrong, they will still find excuses to prove you faked your way to success; If you did not buy your way to success, then you rolled your pants for the boss! you know such kind of things? These are not the right people to move around with, ditch them and move on. The won’t help you. Find the right people to work with. People who will give you honest opinion.

7. Be ahead of the game
As the time goes, technology grows and so are your clients. Sticking to your old ways of doing things will only leave you behind the game. You clients, however loyal they could be, will not stick to you with your old ways, they will move on; so learn to move along with them. If you are for example in the fashion industry, study the new designs and how you can use the ever growing technology to improve your business. It’s only by this that you will keep your customers hooked to you.

I hope the above tips will help you claim you success. They are not exhausted and would add some if I come across, So good luck.

Photo courtesy of laverrue.

Filed Under: Miscellaneous, Tips Hacking and Reviews Tagged With: ,

Overnight Success

May 27, 2010 by 2 Comments

The idea of overnight success is very very seductive. At any one time, it seems there’s always a story of overnight success somewhere. But was it really an overnight success? We want to believe the myth that success is easy to come by. But success in business (and anything else) takes time, energy and hard work—lots of all three.

“Personally, I’ve never met an overnight success. I’ve met people who’ve done something well for a long time and were suddenly discovered. Then everyone assumed they came out of nowhere, that their fame happened overnight.” – Barrie Bergman

But the real truth is that it takes a long time to be an overnight success.

Filed Under: Miscellaneous Tagged With:

Simple Plan For Everyone

May 26, 2010 by Leave a Comment

I just read an amazing article by Seth Godin. It is a simple pan that anyone and anything can follow on the road to success. Here it is:

The number of people you need to ask for permission keeps going down:
1. Go, make something happen.

2. Do work you’re proud of.

3. Treat people with respect.

4. Make big promises and keep them.

5. Ship it out the door.
When in doubt, see #1.

Well, you heard it…

Filed Under: Miscellaneous

9 Steps to Start Your Own Business

May 24, 2010 by 6 Comments

A lot of people have dreams of making it big with their own business and they think they have some great ideas that they want to act on but they don’t know what to do, so they don’t do anything. And that’s their biggest mistake – they don’t do anything. The first step to starting a small business is to take the first step. Take some action.

So whether you’re thinking of selling a product or providing a service, these are the 9 Steps to Starting a Small Business

  1. Take Action – Don’t just talk and think about your idea. Do something. I guarantee that if you’re successful, it will not look anything like you originally imagined. It is IMPOSSIBLE to think of all the different possibilities so just do something to start and worry about making changes as you go.
  2. Get Money – Most people are going to hate this one but I think it’s necessary. I think the question I get asked the most is what to do if the person has no money. It’s hard enough building a business with plenty of money and it’s nearly impossible with no money.
    Even if it’s just money that you have saved, set an amount aside so you have something to start with. Trust me, trading time for money is a VERY hard way to go and I don’t recommend it at all.
  3. Register the Business – This one scares everyone because they think it’s a ton of work filling out complicated government and tax forms. The reality is that it is almost too easy. Just register your business and get it done with. It makes everything else so much easier down the road when you have a registered business. Here’s how to do it.
  4. Set up a Bank Account – I was going to include this with the previous step because it’s so small but I realized that it’s too important to skip. If you’re working from a bank account, it’s much easier to manage your money, receivables, and taxes. Again, it’s a one time thing that makes everything else easier down the road.
  5. Create a Two Page Business Plan – I’m not a big fan of business plans. I once created a 40 page document and realized that I went into so much detail that I was better off just doing what I was talking about. I also think that their main purpose is in the formation of capital (i.e: getting money from other people) and most small businesses aren’t trying to get that type of money. However, I do think it’s good to get your ideas on paper and if you just go off and write 2 pages of your ideas, it’ll help make your thoughts much clearer. Don’t worry about getting it perfect – just get your ideas on paper.
  6. Create a Scorecard – I know it sounds minor, but along with getting money before I started, the lack of a scorecard was the biggest hindrance to our early success. A scorecard is a spreadsheet to track how your business is doing in different areas of your business. It allows you to focus on specific areas of your business and measure how well your business is doing. For example, I know how much it costs me to generate a new customer, so I use that information when I determine whether a new campaign is effective or not.
  7. Create a Manual – In my mind, this replaces the long business plan. Until you start creating a manual for your business, you will not be successful. By putting on paper the exact steps to run each part of your business, you are creating a recipe for success. Without it, you cannot create a consistent experience for your customers and you waste your time reinventing the wheel each time you need to complete a task.
  8. Create the First Draft of Your Product – If your plan is to create a new product or service, build it for the first time. Determine what needs to be done to manufacture the product or complete the service. If you’re just distributing a product or service for a supplier, go through that process to determine what needs to be done to go from sale to successful delivery of your product. Oh yeah, and make sure every detail is recorded in the manual.
  9. Test the Market for the Product – Go out and try to sell your product or service. This is where some of that money that you set aside comes in. You don’t want a full-blown campaign but you want to see what type of response you will get on your service. You’re almost definitely going to lose some money here but you’ll start getting some data points (which will show up in your Scorecard) that you can start making decisions off of.

The most important step in starting a small business it the first one – take action. You can come up with a ton of different scenarios in your mind but until you take some action to begin testing out your idea, you will never know. Some ideas you think will be great will be horrible and ones that you think will be a waste, are your best ideas. Don’t just go at it halfway. Create some sort of structure with the steps above and you have something to start testing and growing.

Filed Under: Small Business Tagged With: ,

The Forex Market

May 21, 2010 by Leave a Comment

In case you had been wondering; the foreign exchange (forex) market is all about trading between countries, the currencies of those countries usually through a broker. Many people are involved in forex trading, which is similar to stock market trading, but FX trading is completed on a much larger overall scale.

Much of the trading does take place between banks, governments, brokers and a small amount of trades will take place in retail settings where the average person involved in trading is known as a spectator. Inside the past, the forex trading inter-bank marketplace was not offered to modest speculators because of the big minimum transaction sizes and strict monetary requirements.

These days, foreign exchange marketplace brokers are able to break down the larger sized inter-bank units, and offer modest traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller firms, the choice to trade at the same rates and price tag movements as the big players who once dominated the marketplace.

Financial markets and financial conditions make the forex market trading go up and down daily. Value movements within the foreign exchange marketplace are extremely smooth and without having the gaps that you just face practically each morning within the stock marketplace. The regular turnover within the foreign exchange marketplace is somewhere around $3.2 trillion, so a new investor can enter and exit positions without having any issues.

The currencies on the entire world are on a floating exchange rate, and they’re constantly traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all regular transactions involve exchanging on the four key currency pairs which are; EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

Transactions within the foreign exchange marketplace are performed by dealers at key banks or Currency trading brokerage firms. Currency trading is often a needed part on the entire world wide marketplace, so when you’re sleeping in the comfort of your bed, the dealers in Europe are exchanging currencies with their Japanese counterparts. Consequently, it is reasonable for you to believe that the foreign exchange marketplace is active 24 hours a day and dealers at key institutions are working 24/7 in three distinct shifts. The fact is that the foreign exchange marketplace never stops; even on September 11, 2001 you could still get your hands on two-side quotes on currencies.

The foreign exchange marketplace, FX marketplace for short, is the largest, least regulated and oldest monetary marketplace in the entire world. It is the most liquid marketplace in the entire world, and it is traded mostly via the 24 hour-a-day inter-bank foreign exchange marketplace.

Unlike the futures and stock markets, exchanging currencies isn’t centered on an exchange. Investing moves from key banking centers on the U.S. to Australia and New Zealand, towards the Far East, to Europe and finally back towards the U.S. it is really a full circle exchanging game.

In summary, the foreign exchange market is a very unique and the most interesting business opportunity with great rewards. Anyone can learn about the FX market and become a pro. All you need is a computer, internet, the skills and the starting capital.

For more information or anyone who may be interested in training could contact Ruth via cell; 0724642468 or write her an email at g3ruth[at]yahoo.com.

Filed Under: Make Money Tagged With: