When ‘Best Practices’ Don’t Work

This is the story of how Dropbox, a cloud storage company, went from having 100,000 users to 4million users in fewer than two years. Amazing, eh? Watch the slideshow:

I find the presentation to be quite inspiring. Incase you didn’t/can’t watch it, it tells the story of a young company struggling to bring their product to market. At first, they experiment with traditional ‘best practice’ marketing methods. They realise that these methods fail horribly and decide to switch tact – this proves to be a smart move as their customer acquisition rate increased rapidly.

It just goes to show that when you are staring your own business, you have to be “hands on” and you have to think inside, outside and around the box. The important thing is to be bold enough to actually try something – when it doesn’t work, change it and try something else. As long as your are not basing your decisions on ignorance then your smart management will probably improve your business position.

Hubspot has a nice article on 5 lessons learnt from the dropbox slideshow.

What did you learn?

I loved the statement: search engines are a way to harvest demand, not create it.

Drop-shipping (and other) secrets

Are you making any money online?

I’d say one of the most satisfying ways to make money online is to actually sell a physical “good”; to open up your own little (or big) shop and just sell something. Would you like to do that?

Well, you’re in luck. I’ve just got word of a wonderful opportunity to learn about several product sourcing methods that you can use for your online shop. What is product sourcing? Think of it this way: you need “things” to sell in an online (or any) shop. Product sourcing is the process of getting these ‘things’.

Worldwide Brands have a nice set of videos that teach you a lot about product sourcing for online shops. I’d say that the videos can also easily be applied to normal brick and mortar shops.

Here’s the link: Learn about product sourcing. Click and go watch. The people over at Worldwide Brands will teach you how to really profit from selling physical products online.

Good luck. 🙂

21 Ways To Make Money Online

This post is a quick answer to all those among you, dear readers, who write in asking, “how do I make money online?”

We provide an ebook below that gives a brief description of 21 legitimate ways to make money online. I know that most of you have probably heard about all these methods but I hope that this article inspires you to do something with your knowledge.

What is the purpose of acquiring knowledge? Knowledge is only useful if one can use it to his/her advantage. It is important to read widely to get as much knowledge as possible. It is more important to do something with the knowledge that you gain. Set your goals high, make a plan and just do it. Don’t think or otherwise procrastinate, just do it. You’ll be surprised at what you can achieve.

What if you fail? So what? Everyone fails. Do you know of any smart or successful people that you admire? What you do not know is how many times they have failed in the past. If you have never failed at something before, it probably means that you have never really tried to do anything before. Besides, once you get successful no one will even remember your past mistakes and failures.

So, grab the ebook and get started. Do something, don’t just sit there!

Download: [download id=”31″]

The ebook is somewhat dated (old) and does not go into much detail. Please leave a comment below if you require any more information – I’ll be happy to help with any explanations or advice.

If You Can’t Sell Something, Double the Price?

Here’s an interesting idea: if you are having problems selling a good product, don’t slash your prices, double them. People are more likely to respond to the perceived high value than a decrease value of the product.

I was just reading a great book, Influence – the Power of Persuasion. It is a great book with some good insights into the psychology of persuasions. I love books that explain human behavior, especially when it’s counter to what most people would expect.

Double The Price To Clear the Inventory

There was a story in the book that the author recounted about a friend who owned a jewellery store. The author had some turquoise pieces that she could not get rid of no matter what she did. She eventually got so frustrated with having the jewelery taking up space that she left a note for one of her employees before she left for vacation, asking her to sell everything for 1/2 price. Unfortunately, the employee misread the note and thought that the owner wanted to double the prices of the jewelery. But a strange thing happened – when the owner returned, all the inventory was gone.

The jewelery stored catered to tourists on vacation who didn’t know much about turquoise. They saw a high price on the jewelery and jumped to the conclusion that it must be high quality. They based their decision on the quality of the product by the price of it.

This is not an uncommon occurrence – it’s a shortcut that we humans take. Instead of learning all about turquoise jewelery – what is a normal price, what determines good quality, etc., people trust that an expensive price equals high value.

This Does Not Always Work

This doesn’t mean that you can go out and double the price of anything that you sell. For example, if you sell website hosting service and you tried to double your prices, you would lose a lot more revenue than you would gain. There are a few conditions that have to be in place for this to work:

  1. Your product is not a well-known commodity. If you sell bread or milk or TVs, you won’t be able to increase your prices. Your product is almost identical to your competitors and your customers will know enough about the prices to realize that your prices are too expensive.
  2. Your product is of good quality. Remember, the key is that consumers expect high quality for high prices. If you sell an obviously shoddy product (e.g. – obviously fake or bad turquoise), you will end up with an angry customer base. You might be able to make a few sales but this is not a business model that will last.

There are other benefits to doubling your price: You have less customers to deal with, which means less headaches and less overhead to deal with.

The real benefit, though, is that you can differentiate your product. The very fact that people will pay high prices, means that they stop seeing it as an everyday commodity – bingo! If you can differentiate it, you set the price level.

Nice-guy Politics

One of the services I provide at 3CB is project management, which mainly involves logistics. For one client in particular, I handle correspondence, i.e. making phone calls and emails to get delegates to the venue in one piece, preferably with their wardrobe intact. It’s a tedious, essential, but unglamorous task.

This particular client has a very firm corporate image. It’s a no-nonsense environment where everyone takes themselves quite seriously. Protocol is followed in debilitating detail. As a result, any communication with customers is stoic, almost cold.

Enter me, with my warm, uber-friendly approach to strangers. Results were mixed at best, and disastrous at worst. My client’s associates began to ask for me by name, and my personality interfered with my client’s detached approach.

Because I was seen as more malleable, I ended up being sought on my own time for this client’s business, which was ineffective for all involved. On the plus side, people I had interacted with on behalf of my client remembered my name and persona. It’s quite possible that the relationships formed could lead to business tangents unrelated to this client. However, the primary client remains dissatisfied with my system, because that’s not who they are.

As a consultant and a businessperson, I’ve had to weigh the pros and cons of cases like this. Being myself may work well with some clients, and it certainly makes my job more enjoyable. But, clichĂ© or not, the customer is still king, and it may mean compromising my attitude, dress code, or ethos to keep them happy. After all, they’re paying for my services, so they should get what they want.

There is a line to be drawn of course. If the client requires you to bend over so far that you end up on your back, you may need to pass up the money and work for someone else. But when you want to be paid, it’s not you that matters, it’s your client. Running your own business has very many perks, but it doesn’t necessarily make you the boss.

One way to overcome this is to pick your specialty carefully. You can’t always choose your clients, but you can choose your field. If you’re into computers and you want to start your own business, you should pick a niche that suits your nature. If you enjoy nitpicking details, you are better suited to programming, where every extra comma changes a swathe of site specs. If you’re a creative, graphic design is better, since it lets you use your imagination. The tinker-types would probably work well in hardware, so they can take things apart and stick them back together. Extroverts may prefer networking, so they can deal with flesh-type people as they explain how the systems work, and so they can be invited to the product launch.

As a writer and editor, I play with words, and I mostly work alone. My nature lets me deal individually with clients, so I sometimes do administration. Other writers prefer to outsource a marketter, publicist, or resident sanguine to deal with the more social aspects of their business. You could hire a personable assistant to act as your ‘social interphase’ so that you can hide in the basement and write. This assistant can be the ‘face’ of your business while you stay rich, anonymous, and less susceptible to kidnapping. Plus, you’re creating employment, which is always a good thing.

You may think you’re too shy, too quiet, or too nice to be in business, but with a little out-of-box thinking and some smart recruiting, you could surprise yourself. Try it, you just might like it.

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

The Big Secret To Success

Undoubtedly, lots of people have grown their businesses in huge ways over the last year or so. If you think about it, these people have one thing in common.

It’s not brains. Plenty of smart people struggle everyday in business. It’s not connections – some people start with nothing and end up with empires. And it’s certainly not luck. I don’t believe in luck.

But it’s not just hard work, either.

What sets these people apart from the rest is not only their hard work but their willingness to take bold steps even in the face of uncertainty. Maybe the thing that’s holding you back – no matter who you are – is that you think things need to be “more perfect” before you get it going. Maybe you have conversations in your head like this:

  • “I need to have big money before I make a product.”
  • “I need to have my website beautiful before I launch it.”
  • “I need to have all the pieces of this software in place – with no bugs – before I sell it.”
  • “I need to learn more before I get started.”

You know what? All these statements sound reasonable on the surface, but they’re really limiting beliefs. they presuppose that you will fail if everything isn’t perfect. Nothing is ever perfect, and imperfect businesses succeed wildly every day.

Success isn’t about having the best plans – it’s about execution.

  • It’s about getting out there and actually doing something, getting a result of whatever kind and then deciding on what to do next.
  • It’s about delivering products and services – in all their imperfect glory – to whoever is ready for them, and then letting the rest of the world watch you grow.
  • It’s about letting go of the fear of looking stupid in front of people and taking your chances – and knowing that whether you fall on your face or cross the finish line, all the people you worried about failing in front of are wishing they had your guts.
  • It’s about saying “This is what I have to offer right now – and if you don’t want it, that’s fine.” People who aren’t ready for you (or who you aren’t ready to serve) will still be there after you get done serving all the people who need you now.

An “okay” plan executed today beats a perfect plan that you’ll get around to a year from now.

Take action. As soon as possible.

A Better, Easier Way To Succeed In Business

This is a little book with big ideas. Written by the founders of 37Signals, it is meant for new business owners and people aspiring to start their own businesses. The book teaches simple lessons (that you may have heard of before) in a clear and simple way, giving real world examples.

It is a must-read for entrepreneurs. Download it here:

[download id=”30″]

About the authors: Jason Fried and David Heinemeier Hansson are the founders of 37signals—a trailblazing software company that produces products used by millions of people around the world. They have been profiled in publications like Time, Newsweek, and Wired. They’re also contributors to Signal vs. Noise, one of the Web’s most popular blogs. To learn more about Rework and 37signals, go to 37signals.com.