Starting Your Internet Business Right by Chris Malta - HTML preview

1. The Dreamer's Business World
2. The REAL Business World

If you really want to make money on the Internet, you're going to have to put down the Teddy Bear and pack away the Jammies, Peter and Wendy. You must leave Never-Never Land, and enter the Real Business World.

 

Let's compare:

 

In the Dreamer's Business World:

 

_qAll you have to do is make a few "Easily Affordable Payments", and your Internet Store will magically appear with virtually no effort on your part.

 

_qYour Personal Business Mentor will leap out of bed in the middle of the night and come racing to your side every time you have the slightest question.

 

_qTinkerbell the Fairy will dance out across the globe and gently waft millions of customers to your web site on fluffy clouds of cash.

 

_qEverybody on Earth only wants to buy one kind of product: cheap, imported, off-brand Junk.

 

_q You will always be able to offer the best prices on Earth for anything you sell online, and nobody will be able to beat you in competition.

 

That's the Dreamer's Business World.

 

There are tens of thousands of people trapped there in Never-Never Land RIGHT NOW.

If you'd like to join them , find yourself an "Instant Internet Business" infomercial on TV, fall asleep in front of the tube, and dream. Captain Hook and his Pirates will be more than happy to show you the way to "Never-Never Land". Just be warned that when you awaken from that fantasy world, your hard-earned money will be gone, and you will have nothing to show for it.

Now let's talk about the Real Business World.
In the Real Business World:

 

_q Get-Rich-Quick Schemes do not work. PERIOD.

 

_q If something seems too good to be true, it IS too good to be true.

 

_qDon't expect anyone to hold your hand or wipe your brow for you. That's the favorite method of the Scam Artist. While he's holding your hand and wiping your brow, he's lifting your wallet. Be prepared to WORK and LEARN.

 

_q If you're in a really big hurry to make a lot of money, you should not be starting a business. You should be searching your family tree for a really old, really rich relative to be VERY nice to.

 

The Real Business World is not for wimps. It involves work, persistence, patience, and an ability to listen & learn. It's not a place where you can stamp your feet and yell "Hey, no fair!", or "If you don't stop that, I'm not going to play anymore!" There will be bumps in the road. If you're not willing to ride them out, you shouldn't bother getting started in the first place.

 

However, the rewards you reap in the Real Business World are more than equal to the work you put in. This is how REALLY successful people actually BECOME really successful!

I started out in the Dreamer's Business World myself. Reality was a rude awakening, but one that I needed. I would not be supporting my family in a very comfortable manner right now, with only my income from my Internet businesses, if I hadn't joined the real business world.

Everybody who starts out in business wants to succeed. There are some who already know what needs to be done. However, there are a large number of people who either have the wrong ideas from the start, or they've been fed the wrong ideas over time (from watching too many infomercials). Then of course, there are those few who are just plain lazy, and want something for nothing.

I hear from people who fall into all those categories on almost a daily basis. Let's take a look at some of them.

Below are some examples of types of Emails I've gotten over the years, from people who want to start a Home-based Internet Business. After all this time, I can pretty much tell you, from the very first Email I get from someone, who I think is likely to succeed in the Real Business World, and who is likely to fail. I've done a little analysis of each email, to show you what I mean.

Email #1

 

Dear Chris;

 

I have been reading over your site for the past week with great interest. Thanks so much for the free info; it helped me clear up many of the questions I had!

I want to start a business selling on the Internet, but I don't want to jump in too fast and make mistakes that will cost me. I know the basics of my computer, but I have never done any retail sales. Right now I'm trying to decide whether to sell on Auctions, or to build a web site. Maybe both!

My main area of interest is outdoor-type products, but I know you talk about not getting locked into just one kind of product. It's better to be flexible and sell what sells, not just what we like. So I've been going through EBay, and doing some checking in (an Internet Mall), doing research on the level of competition for different outdoor products to see which ones I could sell effectively, or if I might need to find something else to sell.

My question is this, which way do you think is the better way to go? Auctions, or a site?

 

Thank you!

 

Angela T.

 

This person's chances of success: 98% Analysis:

 

Why do I give her 98% chance of success? Is it because she thanked me for some free info? No, of course not. Whether she got her info from me or anybody else, it's what she's doing with it that matters.

 

My answer to her Email is not important here. What's important is the what she says in the Email.

 

Let's look at that Email part by part.

 

"I've been reading over your site for the past week..."

That tells me that this is someone who takes the time to READ the material she finds. That is VERY important. No matter where she finds information, she READS it. I've seen far too many people who Email me and ask questions when the answers were right there in front of them, on the HOME PAGE of my site. They don't bother to read beyond the first paragraph. BIG mistake. Those people are going to keep leaping without bothering to look, and that's a major downfall.

This person is reading the material; ALL of it. BIG plus in her favor.

 

"I don't want to jump in too fast and make mistakes that will cost me."

This is the statement of someone who realizes that she should walk before she runs. Another big plus. Too many people write me and tell me about their grand plans for building an Internet Mega-Store that will carry every product in the known universe, or how they plan on starting out by building four stores first, then ten more.

This person seems to understand that there's a learning process involved here, just like in any other business venture. Start out slowly, get your feet wet, learn along the way, and be patient, but persistent. That's how successful businesspeople get to be successful businesspeople!

"...but I have never done any retail sales."

Saying something like that shows that she is aware of the limitations of her previous experience. I personally know people who will never admit that they don't know something. They simply bull their way around, making up what they don't know. Another BIG mistake. Never be afraid to admit your lack of knowledge about something. The ONLY "stupid question" is the one you have, but never ask.

Being aware of and admitting a lack of knowledge in any subject is simply the first step toward learning about it!

 

"...not getting locked into just one kind of product. It's better to be flexible and sell what sells, not just what we like."

 

Applause! The crowd goes wild!! She read my info, and she took the time to make sure she understood it! That leads into the next bit:

 

"I've been...doing research on the level of competition...to see which ones I could sell effectively, or if I might need to find something else to sell."

 

And there it is, folks! The Triple Play! She READ the info, she took the time to think about it and UNDERSTAND it, then she ACTED on it!

That's where the 98% comes from. Please understand that I'm not giving her all these positive comments because she listened to ME. It doesn't matter that it happened to be my info; the fact is that she read, she took time to understand, and then she put it into action. That's how a successful person operates.

Email #2 Hi Chris

 

I'm looking over your web site and getting angrier and angrier with every page. I'm not angry at you. I'm angry at myself.

A few weeks ago I went to a seminar on starting an internet business put on by ( name removed). They had a good presentation, and convinced me to sign up with them. They offered all kinds of things. A site, a personal business coach, credit card acceptance, and lots more. The first payment wasn't so bad, but now every time I talk to them they tell me I have to invest more money in order to get this thing going. I hate to admit that I have now spent several thousand dollars with them, and still am not any closer to making money. My site looks terrible, the products they have on it are the same as so many other sites, and my business coach seems to get more irritated with me every time I call and ask for help.

After reading your site, I realize I have made a mistake. I wish I found you weeks ago! They never told me anything about having to 'get legal', and now I know why. They are one of the middlemen you talk about.

 

Can I still use your Directories and use the site I paid them so much money for to make money, or do I have to start all over again?

 

Sincerely

 

Larry S.

 

This person's chances of success: 90%

Analysis:
Ok, this poor guy has been trapped in Never-Never Land. It happens to a LOT of people. It happened to ME, years ago! Captain Hook and his Pirates are VERY good at what they do; it's not a crime to fall victim to them. They are EVERYWHERE, and they make the whole thing sound just wonderful at first.

Why do I personally give him a 90% (VERY good!) chance of success?

 

Because he didn't give up!

The very fact that he continued looking and eventually found my site (and probably other helpful sites) tells me that he realized he was in trouble, and needed to DO something about it. That's a good thing. Many people will just sit there and let the Pirates bleed them dry completely, then just go home with nothing left and quit.

He says:

 

"I'm angry at myself."

That's the statement of someone who is willing to take responsibility for his mistakes. He could just as easily have said "I'm angry at these Scam Artists", but he didn't. He knows that the burden was on him to investigate the business he was starting. He realizes that he let himself get swept away by a slick presentation, but he's not stamping his feet and yelling "No fair!". He's taking responsibility, picking up the pieces and moving on.

"They never told me anything about having to 'get legal', and now I know why."
Just like Angela, in Email #1, he's read the information on my site, taken the time to understand it, and is now taking action. Excellent. :o)

 

Let's look at this the other way around for a minute. Why am I removing ten percent of my estimate for his chances of success, and only giving him a 90%?

One simple reason. He's had a taste of the people who tell you how easy everything is, and he may, in the back of his mind, still wish that were true. He may get more easily frustrated with the realities of business after listening to all those false promises about how simple life was going to be.

Once we've been convinced for the first time that there really is a Santa Claus, we still have a place in the back of our minds that longs for it to be true, even though intellectually we know it's not.

 

Larry needs to stay focused on the fact that real success is not handed to you; you work for it.

Finally, although the answer to his question is not important here, I'll tell you what it is. Yes, he CAN still use the site that he's paid so much for, as long as they will allow him to place his own products (from REAL Wholesale Suppliers he finds in OneSource or on his own) on the site.

Email #3
I need one product at a time, not a lot I have to keep at my house. Do the companies you have send one at a time to my customers? Send me more info, and I might get your Product if I like what I see.

(no signature)

 

This person's chances of success: 20%

 

Analysis:

 

This is a good example of someone who is not ready for the Real Business World.

 

Why?

 

_qHe doesn't pay attention. The answer to his question is on the HOME PAGE of my site, in BOLD, very near the top. He obviously did not take the time to read even a couple of paragraphs.

_qHe's lazy. I take great care to explain OneSource in detail on my web site. The fact that he'd rather try to force me to re-explain everything to him in an email tells me that he just doesn't have the ambition to read something for himself, and that's a bad habit.

_qLousy communication skills. Note that there's no "Salutation" at the beginning of the Email. He (or she; I can't tell from the email!) doesn't even bother to say "Hi!".

Now, I'm not an English Professor, and it doesn't bother me personally to get emails like that. I even send them that way sometimes, to friends, and people I already know. However, it looks unprofessional in business. If you're going to speak to someone, do you just walk up to them and start spouting your first sentence? No! You get their attention, usually by saying "Excuse me", or just "Hello".

Here's a trick to remember. When you work in the Real Business World, always imagine that the next person you correspond with could make or break your business! If you do that, your business correspondence will always impress, and never damage your business. You don't have to demean yourself in any way. Just be polite.

_qHe's rude. "I might get your Product if I like what I see." In other words, I had better bend over backwards to please him, and maybe he'll bestow this favor on me. To me, it honestly doesn't matter. I don't care if he's rude; I've seen a lot of rude people. But, this is important: When you're starting out in the Real Business World, you don't go around making rude demands of other people. You're the "new kid on the block", and if you act badly, eventually you're going to be rude to the wrong person.

In business, you NEED the goodwill of people who are in a position to help you. Say, for example, this guy uses OneSource to contact a supplier of the products he wants to sell online. GENUINE Wholesale Suppliers who will work with Home-based Internet Businesses do NOT grow on trees. They are VERY hard to find. This guy may only have one shot at a REAL Wholesale Supplier of the particular products he wants to sell. If he's demanding and rude to the only Supplier that is right for him, he's got nowhere else to go. They have plenty of other customers, and they will not hesitate to tell him to get lost.

Here's a PERFECT example of what I mean:

 

We had an excellent Drop Ship Supplier listed with us for over a year. Recently, they decided to stop drop shipping.

 

When I wrote to the company's general manager and asked why they had stopped drop shipping, this is the reply she sent:

 

"Hi, Chris,

We have experienced two problems with people who contact us and are starting a new business. It's caused in part by their eagerness to 'grab the dream'. 1) People fail to do proper research, and 2) People believe that the dream is automatic and requires no work. On the first, we get enquiries from sites that target, for example, sporting or computer equipment, not even the kind of products WE sell. They don't even bother to go to our Policies page or check out the product lines we handle. On the second, too many people expect things to happen with little work on their end; i.e., that we should do their work for them.

We have been overwhelmed by the number of people who are totally nasty. That might be something that you may want to put in your site. Also, I have had people call and tell me that they have already added our products to their site and I have no idea who they are..."

See what I mean? Here was a perfectly good Drop Ship Supplier who no longer drop ships because of people with unprofessional attitudes, like the guy who wrote Email #3.

 

The Real Business World does not tolerate people who don't want to do the work!
So, I suppose I've blustered and bellowed long enough on this subject, and I should wrap this Chapter up. :o)

 

Here's a quick recap:

 

_q For those who don't want to do the work to really succeed, a Get-Rich-Quick Infomercial is only as far away as your TV Remote Control. Sweet Dreams.

 

_q If someone tells you they'll hold your hand throughout your whole business start-up, make sure your OTHER hand has a tight grip on your wallet.

 

_q Don't expect to make a lot of money overnight, ANYWHERE! Real success takes time, and a solid foundation to build on. Walk before you run!

 

_q Be willing to listen and learn! There IS good information out here. You'll be able to tell what's good, and what's TOO good to be true.

 

_qTreat people with respect! You never know when you might be emailing someone who could give you your next big break!

The Real Business World is the most exciting place you'll ever go. Watching your business begin to grow and become successful is an absolute thrill ride, equal to none other that I've ever experienced. It's worth the work, every minute of it. Don't let the Scam Artists cheat you out of that.

Alright , we've talked about the best ways to start retailing online from home, on a shoestring budget. We've talked about how to avoid all those who pretend to be drop ship and bulk wholesale suppliers, and are not. You've listened to me bellowing about the Real Business World, and you're still here. That's a good sign!

Now let's talk about the question I get the most often from people considering their own Home-based Internet Business:

 

"How do I sell online from my home, and beat Wal-Mart's prices?"

 

Well, let's see. Here's the basic step-by-step procedure:

 

_q Go to a bank and borrow about a gazillion dollars.

 

_q Build warehouse and shipping facilities all over the world.

 

_q Buy your own trucking line.

 

_q Spend decades establishing relationships with manufacturers and suppliers.

 

_q Buy and warehouse millions of products at once, to qualify for rock-bottom discounts and millions of dollars in manufacturer rebates.

 

_q Hire a top-flight Information Systems staff to build and maintain a really expensive web site.

 

There you go! You're ready to take on Wal-Mart from home!

 

Hmmm...not practical on a shoestring budget?

Of course it isn't . You're not going to set up a home business from your personal computer and BEAT prices from Wal-Mart, KMart, Best Buy, and all the other bricks-and-mortar superstores out there. It's not possible. Never gonna happen. The sooner you get that idea completely out of your mind, the better.

I don't care who promises you what . As I've said, Internet Business Opportunities, Get-Rich-Overnight schemes, sites and companies who tell you how amazingly low their wholesale pricing is on the products that YOU can sell with THEIR foolproof systems are not telling you the truth. Anyone who tells you that you can beat the superstores' prices is lying to you. They'll take your setup fees, leave you with their "amazing" business system, and the only thing you'll be amazed at is that you fell for it in the first place. Don't believe them.

Now...let's have a moment of silence for the mental demise of that particular idea...it's fading...fading...please just sit quietly and watch this idea fade until it's completely gone.
Done? GOOD! NOW, let's move on to the REAL world, and discuss what successful Internet businesses already know: how you ARE going to make money with your Internet Store.

Let's say you're walking across a level, wide-open field of short, green grass. The field is so wide that you can't see where it ends on either side. Nothing but flat, green grass to the left and to the right of you, as far as you can see. However, it's NOT that long a walk to the other side, directly in front of you.

Spaced across that field, from the left to the right, are big boulders. Some are bigger than others. They are spaced far apart, leaving plenty of room to stroll in between them to get to the other side.

 

Should you walk straight to the biggest one, a boulder the size of a house, and try to push it out of your way to reach the other side of the field? Well, you can try, but I wouldn't. So how do you get past the boulders, to the other side of the field?

 

You simply go around them. There's PLENTY of room to do so, as I said.

 

Now, let's relate that to the Internet.

 

The field is the Internet Marketplace.

 

The other side is where your customers are.

 

The boulders in your way are the cut-price superstores.

 

JUST GO AROUND THEM. It's basic common sense.

 

The thing that most people don't stop to consider is that Wal-Mart, K-Mart, etc., etc., do not carry every product ever manufactured in the Known Universe.

Here's an example, from a recent conversation I had with someone about this subject. He wanted to sell Power Tools online. He told me that he had found a great source of power tools that could be drop shipped to his customers directly from the wholesaler, with no minimum order. One at a time. Then he told me that he had actually gone to a Wal-Mart store, and compared prices on the power drills that they had with the wholesale prices he was getting on the same drills. He said there just was not enough room to make a profit. In some cases, the Wal-Mart price was lower than he could get them one at a time from the wholesaler. What could he do? He was ready to give up entirely.

I had one simple question for him:

 

WHY are you walking directly to that big boulder in the center of the field, and purposely butting your head against it?

At the time of this writing, Wal-Mart only sells ELEVEN different power drills, from FIVE different brand names. THERE ARE HUNDREDS of different power drills out there, from DOZENS of brands. What could possibly possess this man to try to sell only the exact same products as one of the biggest cut-price superstores on the planet?

All he needed to do was pick a few power drills that Wal-Mart DOESN'T sell. He could even sell the same brands; just different models. There are a LOT of them. This is what sales is all about, folks. You don't need to have the lowest possible prices on the planet. If that were true, there would only be ONE