Making Money Online Successfully

So a while back we wrote about how it is better to earn offline than it is to earn online. Part of the reason why we wrote that article is that many people are trying to build revenue around models that will either:

  1. Not be around in 5 years because the powers that be (ie: Google) have changed their operations to make the strategy unprofitable
  2. Replaced by another method or competitor with a new perspective or method to attract customers.

How can we define online success?

How Much Money are You Making Tomorrow?
I think there has to be a certain measurable criteria as to what makes someone successful online and that can be as simple as the ability to make Kshs 5,000 per day, Kshs 10,000 per day, working full-time independently, etc. that a lot of people like to use.

However, I think there are less measurable means to determine online sucess as well. If I were buying a business, I’m not buying the business on how much money it made today, I’m buying it based on how much I think it will make in the future. Because of that, there are some criteria that I would like to add to what I consider online success:

  1. Is the business defensible? Is your business model based on arbitrage of PPC ads or is it based on a steady amount of traffic from a variety of sources (PPC, SEO, direct referrals, repeat visitors, etc).
  2. Are you too reliant on 1 supplier, customer, or web site? Supply chain issues are a reality of any business. Now it’s much more of an issue in a manufacturing or product based business but it’s a reality in the online world. If you have just one web site or one source of income, then your success is at risk. If you have just one product or one major client, an innovative competitor could very quickly and easily sink your business.
  3. Is the Product commoditized? This is one of the biggest mistakes that many people make who are trying to make money online. The web sites that they are offering are, in essence, a commodity. There are thousands of other people or web sites out there who offer the same product (or could easily offer the same product). And the problem with a commodity business is that lowest-price wins. And those hyper-efficient markets are very difficult to win in.

My Definition of Online Success
A. If you are looking for some extra disposable income, Kshs 5,000 per day is a great goal to have and I would consider that a huge success.

B. If instead of just disposable income you want to work for yourself, things are a little bit different – instead of considering 5,000 a day a success, we should look at a number that permits you to live comfortably. If that is 30,000 a month, and you are earning that regularly, that’s awesome. Now if you make 50,000 one month and nothing for 3 more months, that’s not really successul.

C. If you are building a business, that’s much tougher to define. To have a successful business, you must have systems and processes, and if you have systems and processes, then you can have employees. So I think that when you get to a point where can support yourself with company profit and you have an employee on board, then I think you are moving in the right direction.

Successful Online Entrepreneurs
There are a lot of people making money online who make more per month that I do and most people would consider them to be successful. These are often people that are in the top 1% of their market. The diffference between them and the rest of the online entrepreneurs is that they have differentiated themselves.

If they run a successful blog, their differentiation is the personality behind it. If the content was written by a bunch of no-names without the personality, I doubt they would be as successful. And some of the other successful entrepreneurs have built up a portfolio of well-performing sites. They have created processes and eliminated the dependence on any one web site/asset.

Ideas from the Masters
I am a big fan of the ideas of Warren Buffett because I think they can be applied universally. Warren Buffett doesn’t follow the stock market on a daily basis and he doesn’t follow quarterly earnings reports. He’s not even a big fan of annual reports – he doesn’t think businesses should be judged based on the amount of time it takes the Earth to circle the Sun. He believes in looking at businesses over a much longer term.

I think that people looking to make money online need to look more at where they’ll be in 5 years, and not just based on the projects they would like to be working on at that point. If they have a collection of a variety of web sites with increasing traffic from a variety of sources, which have a differentiated advantage, I think they may be much more successful than someone who is making more money right now but with no prospects of growth.

So if you have a software product that you are selling online that only a few people that have discovered so far but they love it…Or you have a community web site that is very small right now but has a strong, but growing base….Or you have a collection of websites with unique content or a unique, driving idea behind them

Then I think you are well on your way to being succesul. Just make sure you have implemented the processes to really grow it successfully.

Hustling Online Just Became A Little Easier

DukaPressSo tuseme you want “in” on this Internet thing. You’ve heard people make money online, and you want your share. Of course the first thing you should do is get yourself onto a computer and head over to this blog and read up on all the things you can do to make money online.

There are hundreds of things you can do to make money online. One of the easiest, most fulfilling and most intuitive ways of doing so it to sell something online. This is something that most people already understand – you’ve probably sold dozens of things in the offline world. Selling those same things (or others) online may be a new experience but it certainly is something you already understand.

What do you need to do to start making money online in Kenya by selling stuff online? I’d argue that you FIRST need to think hard about your business. Selling online is no different from selling anywhere else. Your business plan must make sense if you are to succeed. You must think realistically and sensibly about what you want to sell, where you will find it, how much you will sell for, how you will deliver it to customers and how you will market and advertise your new shop. This is the hard part.

Next, you should think about technical issues – i.e. find a way to set up an online shop. E-commerce technology has existed for years and there are lots and lots of options here. A sad note is that in Kenya, even very simple online shops will usually cost you at least Kshs 50,000/-. This is a bit high, of course, but it is justifiable given the complexities involved.

Of course this was true only up to last week. Last week DukaPress was launched. What is DukaPress? It is a tool that lets you start your own simple online shop in less than 15 minutes. Have you ever tried to get a blog over at WordPress.com? That’s how easy it is to get a DukaPress shop up and running.

Why DukaPress?
There are many other options to DukaPress (akina Magento, osCommerce, CubeCart, etc etc), so what makes DukaPress worth it? In my opinion, DukaPress is probably the simplest way to get a fully functional online duka. Take Magento, for example, it has a fantastic feature-list but actually setting up and running a Magento shop is a nightmare that is too much to bear for the average person.

How Easy Is DukaPress?
Have a look at this online shop. That shop is powered by DukaPress. It was built in ten minutes! It is a fully featured shop and can accept payments via: AlertPay, Paypal, MPESA, yuCash, and ZAP among others. If you want to build the same exact shop in even less time, you can do so!

All you need to do is:

How easy is that? Should take you a few minutes in total if everything is ready! If you’re stuck, we’re here to help.

DukaPress is and always will be free to use, and it is from Kenya.

How to use Paypal in Kenya – Part 1

Update: PayPal now works in Kenya! You can also now withdraw from PayPal through Babawatoto or LibertyReserve.


I’ve always been sceptical about online trading. I’m slightly spooked by the idea of giving my bank account and details to some random guy behind some computer somewhere. I blame it on The Net, a  movie from the early 90s. It starred Sandra Bullock [LOVE her] and it was awesome, but very, very scary. Of course it was based on those old DOS computers with the green text and the black screens, but it’s still pretty scary.

Plus, of course, I don’t own a credit card.

But as I build my business, I find that I do more work online. Most of my clients prefer Paypal, because it’s safe and reliable, even though they charge a small commission on transactions. I got myself a Paypal account some years ago using my mother’s credit card [thanks mum!] and I’ve been using it to buy stuff related to my business.

Recently, I got a client who insisted I open a Paypal account in my own name, because it was easier for him to pay me that way. And no, I didn’t tell him to ask my mother. I opened the account, but I couldn’t receive money through it, because the service isn’t offered in Kenya. Paypal.ke lets me buy, not sell.

I tried to attach my debit card onto the account, and as part of the verification process, the Paypal people charged $2 to my bank. It’s a safety measure to prove that it’s my card. The transaction would appear on my card statement with a secret four-digit code. I would take the code and enter it into my Paypal account to prove the card was mine. The $2 would then be refunded.

Oddly, when my statement came, what I got was a six-digit code, and when I tried to enter it into my Paypal, the card was blocked. I first tried to type in all six figures, but of course, it only took the first four, and pulled an ‘access denied’. I then tried the last four digits with the same result, and by the time I tried a random combination, I could almost hear the buzzers ringing and the metal gate clanging shut. After that incident, any time I try to use the card to pay for anything, even if it’s on a totally separate site, Paypal politely refuses.

Kelvin suggested I try Moneybookers, and it looked promising. I went through the same process, opened an account, attached my debit card, allowed them to charge my account for verification purposes. This time, the process was slightly different. Moneybookers was to charge my account with between $1 and $3. I would check my card statement, find out the exact amount, and fill in that information to prove myself. Unfortunately, Moneybookers can’t refund.

The trouble is … the amount on my statement was in Kenya Shillings. And with the exchange rate moving constantly, I couldn’t verify the amount to specific cents. Le sigh.

An associate told me about a system KCB has with Paypal, so I checked it out. Apparently, KCB has a debit card specifically for use online! How cool is that?

What happens is you open a prepaid card account with KCB. You don’t have to be a member – I personally bank with Barclays and NBK, and I was worried about joining a third bank. So I was relieved to hear I didn’t need a regular KCB account.

The card account takes Ksh 1000 to open, and all you need is a copy of your ID and a passport photo. The guys have a digital camera on the ready, just in case.

As far as I know, the account has no minimum balance and no service levies. You can receive money online once you attach the KCB card to your Paypal account, and you can withdraw the funds from any ATM at a charge of Ksh 20. You can top up the card at any KCB branch; you simply deposit the money at the counter using the 16 digit number on your card. It’s kind of like M-Pesa, with shorter banking hours.

Of course, you still need to have a Paypal account in the first place. You can get one at www.paypal.com, which redirects you to www.paypal.com/ke. It’s a pretty straightforward process, and I’ll be writing more on how succecsful the KCB card actually is. Specifically, I’m curious to see about verification.

I opened my card account a few days ago and haven’t received or used it yet, but it seems like a good deal. I don’t know if you can use it with agents other than Paypal, but you probably won’t need to; Paypal is already the Safaricom of the online world. Hopefully, its service is better.

The second step in working online [where Step 1 is deciding to work online] is probably getting a KCB-Paypal debit card. How else will you get paid?

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

Websites Are Overated

When setting up a website, it will be more profitable for you on the whole if you prioritize getting good content down before you go into the nitty-gritty of what the site should look like. Most people spend too much time worrying about how the site looks and fail to give the same attention to the content of the website.

Advertisement experts recognize the value of quality content. It is best to get your message out to people in a clear way so that they can understand. In the ad world, ads are constructed around a central concept. This concept must be translatabled into language your customers can understand before you even begin to elaborate on it. Unfortunately, many people spend too much time on fancy designs and features when they move into online marketing tactics. This is reflected when customers visit websites seeking more information about a good or service of interest and find the sites useless.

Since this is such a basic principle of advertising, it is difficult to know why companies have not integrated the formula of great content/good design onto their websites immediately after creating them. The best designed website in the world will fall flat if its content is nonexistent or poorly written. Especially when pitted against an ad with simply “good” copywriting.

So, why invest more time and effort into your content before you have constructed your entire website? People are sophisticated. By throwing up a smokescreen of flashy design and empty content you are ultimately discrediting yourself and your product, as your customers will be able to see through the show to the lack of content within. When people are making decisions about items important to their lives, they like to feel as though websites have informed rather than entertained them.

Also, writing is a solid foundation for anything online. Your main mode of interaction with your website-browsing customer is the content he or she is reading online. Think about it: would you rather buy from a website with beautiful graphics that offers no real information? Or would you rather buy from a website with rather plain design but clear and thorough information about its wares? In this situation, it almost seems as though the ill-designed website practices modesty while the well-designed website compensates for something (Kizuri cha jiuza, kibaya chajitembeza). Whether this is true or not, a customer’s perception that he or she is on firm footing when making a decision is paramount.

If you are not comfortable writing your own content, it can be easily accomplished anyway. Writers are there for hiring, whether you want to add one permanently to your staff or hire freelancers from project to project. It is usually best to hire a writer to work with your art people, or to use the same freelancers on a consistent basis. You must find a writer who understands the voice you want to have in your copy and who is able to put ideas in a way that explains them exactly how you would like. This is not always quick or easy to find. It is worth the expense and search, however, to have someone who is aware of your organization’s current and future goals and who is familiar with your staff.

Content is King.

Long Live The Queen of Blades!

Well, we are sponsoring a grassroots-level Starcraft tournament.

Read more about it here.

Why Starcraft? Well, obviously, the people who run Like Chapaa are very much into computers, even games. And Starcraft is one of the best. It is the most consistently played game in gaming tournaments all over the world and it is actually a spectator ‘sport’ in South Korea. Therefore, with sponsoring this Starcraft tournament, we hope to build up the gaming community in Kenya.

Who is the Queen of blades? She is.

Please show up and be a part of the first event of its kind in our beloved Kenya.

How To Turn Your Skills Into A Real Online Business

Open for businessA lot of the people reading Like Chapaa have a skill set. They are strong in web design, writing, marketing, Web development, or some other different skills.

People with such skills who want to be entrepreneurs often end up selling their skills as services. That usually entails trading money for their time, expertise and experience. It’s the path of least resistance (and risk) and a way to form a source of income. The problem is that while the business might be moderately successful, there is a limit to how successful the business can be. There are only so many hours in a day and only so much that you can charge for these services (no matter how good you are). Since freelancing is not a real business model and does not scale, you should focus these skills on building a system-based business.

Here are some ideas to create a new business based on the skills that you already have.

Scale Your Skills
Instead of doing the work yourself, have 1, 2, 5, 10, or even 50 people do the work for you. Once you have other people doing the work, there is no limit to how big you can grow the business. Start by creating a manual detailing everything that you do and make it a repeatable process that someone else can follow. You will still have to find some people with some ability as you don’t want someone with zero creativity to design high-end websites for your clients. But if you create an efficient process in getting new clients and delivering their service at a reasonable, known cost, you can start scaling the business.

In order to reduce your risk, I would start out with contractors. Pay them on a “per project” basis so you are only obligated to pay when you get paid. Your profits won’t be as high and it can be tough to find reliable contractors with good prices and quality products but once you do, it becomes very easy to scale up your business. Start out with determining your profit margin and you can estimate projects based off of the quote you receive.

Create a “Product”
If your skills are in web design, pick a market and create your best web design that you can sell over and over again. If you create a really great web site with a lot of cool features for restaurants (newsletters, birthday club, email-a-friend), sell it to restaurants operating in different markets. You might charge a lower price for each site but it will require less effort to set up. It’s even something that you could hire a contractor to set up on a per-site basis.

If you are a writer, you can also create a ‘product’ around your writing skills. You just have, for example, to look for something that would benefit by having a well written guide/manual. For instance, many writers make money by writing How-To ebooks for platforms such as Joomla and Drupal. I know others who have created a complete and re-usable business plan which they sell to anyone looking to write a business plan quickly.

If you are an Adsense expert, you could sell a program to similar businesses of keywords and ads that are pre-built and tested to be very effective. Just make sure you don’t sell it to competing clients.

Become a ‘Digital Landlord’
This is very similar to creating a product, the difference being that you do not sell it outright but rent it out and collect a subscription fee. Please have a look at this: Landlord 2.0

The basic idea is to utilise your expertise to create a service. If you are an accountant, you could create an accounting system which you charge a monthly fee for people to use it either online or offline. When most people think of this, they think that it has to be a large undertaking. That is not the case, you do not have to recreate Quickbooks, the secret is to niche – create a simple accounting system specifically for freelance web designers (incidentally, such a system is badly needed).

If you are a marketing guru, you could create a marketing system for very small businesses and freelancers (guys earning 10,000 to 500,000 a month) – a system whereby the businesses completely outsource marketing to you. Again, such a system is badly needed in today’s Kenya (most of these business owners are too busy to market properly and would appreciate some help, as long as it actually generates more business).

Web Site Flipping
basically, this is the selling of websites. It might require a little more investment but you could also bootstrap and start with a small portfolio that you constantly turn over and make more money off of them. But the idea is that you should buy websites, improve them, and then sell them. Maybe it’s a website that just needs a few tweaks to convert better, or a site that needs some basic search engine optimization, one that hasn’t utilized Pay-Per-Click yet, or one that could use all of these changes.

Create systems to effectively find, value, purchase, and improve sites. Most people who flip websites might do it on a “one off” basis. They don’t create systems to repeat the process over and over again. I liken it to real estate flipping companies who have scaled their business so they buy multiple properties, have a select group of vendors they use to improve the properties, and then sell it. They have great systems in place. From the very beginning, they have a set budget and they know what changes they can make and how much value it should add to the price.

Create Software
Ok, nothing too original here but I think this is a case which people think too big. They think the only software worth creating and selling is something that nobody else has created. There are a lot of niche markets for which you can build useful software. You don’t have to create Microsoft Windows, just something that is useful to your targeted niche market.

For example – you could create an online scheduling service for businesses that take appointments like doctors, salons or beauty parlors. There is a lot of scheduling software out there but if you create a product specific for an industry, you have created a successful product.

And the best part about software is that once it’s created, there is very little effort to maintain it. Unlike trading hours for dollars, you can create a mostly passive form of income.

What Do All the Ideas Have in Common?
It probably wasn’t apparently obvious with each of these ideas but they all involve targeting a niche market. You’re not going to be able to create something that works for everyone but if you create something that has utility for a niche market, your system based business can grow quite successfully.

Image courtesy of Pheezy.

Voices of Africa

Voices of Africa is an interesting organisation. I got to learn about them at the iHub during the Nairobi Barcamp, 2010. Basically, they aim to bring ICT to the rural areas of Kenya, mainly by building rural internet Kiosks and supporting other organisations that have similar goals. Through this, they hope to give people in the rural areas the same opportunity as we urban folk have to indulge in ICT.

This video is a presentation done by Voices of Africa during Barcamp Nairobi 2010:

I like how she said that when people ask her what people in rural Kenya would do with the internet, she answers: “What do they do without it?