How NOT To Make Money Online

One of our nice readers sent this email:

“I spend too much time on the internet doing nothing. Sometimes it is fun but it does not pay the bills. I’ve been sort of freelancing for awhile and paid a web designer to do a fancy website that I couldn’t maintain myself, and that thing didn’t generate any leads. Now I don’t have a website, but I have a blog that I don’t even use. Nini mbaya na mimi?

Hakuna kitu mbaya na wewe!

What we all need to do is to stop building all these fancy websites and complex marketing strategies. Are you making money online? Would a blog and Twitter and Facebook help you get your first three paying customers? The plain simple answer is NO. At the beginning your focus should be to get three paying clients (because one or two may just be a fluke).

After you do this, you will have established that your business idea is actually viable; you will have proven that people will actually pay for whatever you are selling. Afterwards, you can start thinking of the blogs and Facebook and other fancy stuff. Not before. I’ll say it again: skip all the fancy stuff that you hear (SEO, social media, etc) and just get your first three paying clients!

The funny thing is that almost everyone who hears this advice does not like it one bit! Instead, you like hearing things like:

  • You need a Twitter page with lots of followers
  • Everyone spends his time on Facebook, you need to get a facebook page
  • You can’t do business without registering a company…and don’t forget business cards

You know why most people prefer the above to actually getting down to work and getting paying clients? Because it is so much easier to start a blog and Twitter and pray that somehow money will just flow in. It is much harder to sit down and make a plan on how to get three people to pay for whatever you are selling.

I have been blogging for more than six years and I’ve pretty much seen it all. If you ask me, 99.9999999% of all bloggers make a shameful amount of money, something like $2 per month. Does that really tie in with your high horse dreams of making it big? We have to be realistic about things, my friend. If your goal is to make money, do not waste time on social media.

Focus on setting up your business, not on the technology; focus on understanding your customer; focus on testing whether your idea is profitable; focus on how to build the best product or service that you can.

How Not To Get Lost In Business (or Anything Else)

Have you ever sat behind the steering wheel of a car without knowing where you are going? Sounds bizarre, right? What is more bizarre is that we do this every day in our professional lives without finding it disturbing! If you are smart (which I am sure you are and that is why you are reading Like Chapaa!), then you would have figured out that we are talking about GOALS which are important when we leave the house as well as when we want to go ahead in our personal and professional lives.

In fact, my take on this is that having a goal makes life easier by giving us a direction and sense of purpose. If you want to be successful, then one of the things which you need to do is to set goals in EVERYTHING YOU DO. This may seem like a lot of work, but goal setting a habit forming activity and when you see the results, you will not regret it.

So how do you SET goals?
Goals are usually things which we want to achieve in life. Personally, you might have a goal to lose weight (ouch!), professionally it can be to increase turnover, employee productivity, customer satisfaction etc. Once you have a broad goal…you pretty much have a direction which then needs to be broken down into activities that lead towards that direction.

How do you DOCUMENT a goal?
You can have long term or short term goals and their categorization is dependent on the time frame it will take to achieve them. For example, you can give yourself two months to lose four pounds or twelve months to increase customer satisfaction. Once you categorize this, you need to backtrack a bit and break it down into activities which will lead you to the goal.

Remember my analogy about the car? Activities to reach a place, usually involve, starting the car, checking the route, driving, parking, etc. Similarly, you need to document steps which will help you get to this goal.

After documentation comes EXECUTION
This is actually the most difficult part of achieving your goal….you can only get it right if you execute the various steps correctly. This is the place where the difference between KNOWING and DOING can be understood well. Good planning makes it easy to reach a goal. Each step should be understood properly as that will influence the overall quality of the results of achieving your goal. For example, a well planned campaign for higher customer satisfaction is likely to get you close to 80% of your goal while a poorly planned one may get you only 10%.

A goal is only as good as its metrics!
Metrics are nothing but numbers which can help you measure your goals and are as important as setting a goal in the first place. I have to lose weight is a meaningless goal if you don’t tie it with a number. Similarly, a goal to increase sales numbers is unlikely to be of any point if you don’t attach a number to it…let’s say a 30% increase from current levels. In fact, it is only with metrics that it makes sense to have goals in the first place.

There…I have put up my strong feelings towards goals and their measurements and hope to cover metrics in a business in another blog very soon!

Can You Do It?

It does not even matter what “it” is, I’m confident that you can do it.

Van Gogh famously said, “What would life be if we had no courage to attempt anything?” What if you never attempt to write that novel? What if you never attempt to start that business? What if you never attempt to steer toward your true north? In the end, you might regret some of the failed leaps, but you’ll surely regret all of the times you failed to even try.

Goethe encourages us: “Whatever you can do, or dream you can do, begin it. Boldness has genius, power, and magic in it. Begin it now.”

The Place For Love

Weird topic to be talking about here, eh?

Love is a strong positive emotion of regard and affection. It is mostly used in regard to loving someone else. When you love someone greatly, much of your energy goes into making that person feel your love. You put hundreds of hours into these efforts. If you do not invest in your love, chances are that she/he will find someone else, who can do that.

A friend of mine started a new business the other day. It is an online business and so my friend does not spend the whole day working on it, he does not need to. He came to me for advice when he noticed that one of his sites was failing despite “frequent updates”. After some thought, I diagnosed his situation as being a case of a lack of sufficient love.

Managing a website is hard work. It goes beyond just regular updates. Managing a website is a popularity contest carried out among millions, yes millions, of websites. Why should I come to your tiny little site when I have akina Facebook to spend my time on? Your website may be the best in the world but I do not have time for it until I see that it would be valuable to me in some way.

Think of it this way: there may be an amazing and super interesting and motivating book available in a library. But if the library has thousands of other books, and this particular book happens to be in a top corner of some shelf, what are the chances that a great number of people will read it? Websites can be thought of in a similar way.

For the most part, in order to distinguish your website you have to love it. You have to spend hours thinking and working on it, trying and re-trying, testing and re-testing until you get something that people actually want to use.

I find that the best way to grow a site is not to try and target anyone – just target a small niche group of people who you think will relate to the sites content. Instead of making a site about farm animals, for example, maybe you could start with a site just about “white little piggies”. Niche-ing down this way has two benefits:

  1. It is probable that the smaller niche is closer to your heart than a more general one. You can therefore be more passionate.
  2. It is very easy for people to relate to your site. If your site was about farm animals in general and I was looking for one about “white little piggies” then I may overlook your generalized site.

If you aim to make money online through a website, be warned that it needs the kind of passion that can only come from Love.

PS
I do not know why I chose to use “white little piggies” as my example.

What Successful Companies Do Differently

This article was submitted to Like Chapaa anonymously.

To be frank – your best clients and your easiest jobs – I don’t want. We don’t look for typical clients looking to build a website or implement some online marketing. We turn down all requests that come our way.

Here Is The Goldmine I’ve Discovered…
Create “products” for niche markets and sell them to the masses of small businesses who are eager to buy them.

We’ve perfected the formula. It goes like this. Pick a niche. Develop something that works and passes the following test:

  1. It is simple and inexpensive to produce
  2. It can be priced to produce a killer profit
  3. It can be marketed like crazy

Successful Businesses Create Niches Where They Don’t Exist
Most businesses are the same company with different owners and a different name and logo. They’re all chasing after the same prospects and leads with the same marketing and sales methods and the same products.

Successful businesses, on the other hand, sell a different type of product or service. They are not carbon copies of their competitors. They have found a different type of product or service to sell to their clients.

  • Maybe they add something to their product to make it different from what everything else sells
  • They sell their service as a premium version of the commodity that everyone else sells, since it is unique
  • They are able to control the price as their product/service is unique

Do SOMETHING different than everyone else. Usually that involves the product or service that you sell. When you dig real deep, it might be the same type of thing that your competitor is selling. However, successful businesses have done something different – made it more special somehow. Once you do that, it’s easier to sell, you can make more money, and you don’t have to struggle to reach a hotly contested market. Why stay in the shark-infested waters when you can seek out the deep blue ocean?

For example, if you run a web design company, or if you do web design on a freelance basis, do you really think you can compete in today’s market? Everybody and their mother is a web designer nowadays! If you run your business just like every other web designer out there you will be dead in a few months. You have to be smart. So be smart. Be different.

Competition

Here’s an absolute gem of an article from Seth Godin:

“The number one reason people give me for giving up on something great is, “someone else is already doing that.”

Or, parsed another way, “my idea is not brand new.” Or even, “Oh no, now we’ll have competition.”

Two big pieces of news for you:

1. Competition validates you. It creates a category. It permits the sale to be this or that, not yes or no. And this or that is a much easier sale to make. It also makes decisions about pricing easier, because you have someone to compare against and lean on.

2. There are six billion people in the world. Even if your market is hand-made spoke shaves for left-handed woodworkers, there are more people in your market than you can ever hope to track down.

There are lots of good reasons to abandon a project. Having a little competition is not one of them. Even if it’s Google you’re up against.” – Seth Godin

Ship Early, Ship Often

You know what you do so that your projects are always on time and within your budget? When you run out of time, or out of money, you ship it. What does this mean? It means you present it as it is instead of wasting time making it ‘perfect’.

What does this mean (again)? Action speaks louder. Don’t just think about it, or even just talk about it. Do it!

A video worth watching, yes?