The 7 Hardest Lessons You’ll Learn Before Succeeding With An Online Business

After being a part of helping and observing thousands of people succeed (or fail) online I have detected some strong trends. Call me crazy, but you can’t prove me wrong on any of these.

1. Affiliate marketing IS NOT a business
Perhaps my most controversial point of the 7, but I’m not the one who said it first. One of the richest affiliate marketers of our time said it. Find the proof here.
2. Those of us who stuck it out with eBay are still making a lot of money. Amazon.com is full of opportunity too. It’s the “boring” stuff that really works.
I’m banking more than ever on eBay, and teaching others to do the same. Sure, it’s only a portion of my online income, but it’s steady!   When in doubt head to where all the buying traffic is. I still love eBay and love Amazon more all the time as an income geneartor.
3. Yes, you have been making others rich buying all those courses, membership sites and ebooks.
The good news is, you know more than you realize.  The solution? Go after some low hanging fruit. This blog post spells out where I think the low fruit is.
4. You don’t start with a website or even a “great” product. You need an audience first.
This blog post will get you thinking correctly about how to find and grow an audience as your FIRST focus.
5. Every new “marketing opportunity” that has come along since email marketing took hold has fallen in one of these three categories: 1. a fad that has (or likely will soon) pass,  2. is best used to grow your email mailing list (i.e. social media), or 3. has been a barely more than a waste of time entirely from day one. (The only possible exception to these three rules is mobile marketing)
6. Your skills don’t matter as much as you think they do.
Stop chasing skills and start building systems. Learn to outsource work to the highest performing/lowest price option. People with skills work for rich people with ideas. Possible exception:  The only possible “skill” you are likely to ever need to succeed online.
7. Relationships rule (not content).
Use your real name, show your face, and help people make hard decisions with the content you create.  Sure, I’m a fan of great content (what other kind is worth your effort?), but relationships earn you the right to even present your message.  Here’s a video of what happens when a bunch of people trust your advice because you’ve built a relationship (watch me earn $7K in a day in that short video).
8. Over-delivering REALLY pays off. Under-delivering is death online.
I call it irrational generosity. Notice I promised 7 harsh lessons. This eighth one is important.  Every customer who thinks your are amazing will tell potentially HUNDREDS of people. Amaze your customers even if it’s expensive.

Please leave me a comment using the link at the top of this article. I want to know your favorite, or if you think I’m wrong or left something off the list.

While writing this article I asked my Facebook followers to chime in their ideas. Here’s what some of them said were the hard lessons they are learning. You are NOT alone if you are thinking any of these things!

Please JOIN THE CONVERSATION! Leave a comment.

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  Tom J Curtis Sometimes the gold is at the very bottom of where you are looking, but most people give up either way before the gold or a quarter inch from it. They’re quick to abandon what seems to not be working when all it takes is one more punch through that last quarter inch of conflict and…JACKPOT!!! I speak of my own experience of course.

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  Jose Lukes Trying to roll out your online biz until it is just “perfect”. If I had waited until every online biz venture I took was perfect, I would have never had any success.

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  Tom J CurtisBy the way Jim, I love this post. No sugar coating from you. People deserve to know that it takes good old fashion rolling up the sleeves and going to work to make anything online or off work in this world. There’s definite glory and joy to be had on the other side of it but not after paying the price, which price is unique to each person, there’s a price to pay nonetheless. I do believe there’s an enchants life once that price is paid…until the next set of challenges of course. But that’s where real accomplishment is found.

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  Roy Pickens Do not accept a set back as failure. Quitters never win and winners never quit.

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  Tom J Curtis That’s why you’re the real deal and I’ve always enjoyed that about you. I think that’s the only way people can build genuine relationships life. Especially with list building…the more authentic the person building it, the more quality the list.

  I’ve learned so much over the last year. I’ve learned it’s not the size of the list, but the quality. It’s a matter of creating raving fans from genuine, personalized content. You are the front runner Jim.

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  Jenni Rosing HuntYou simply can’t be everything to everyone… That’s a tough one I learned early on. Not only did it help me get into a tight niche, it also helps let some criticism roll off the back.

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  Roy Pickens That it takes more than a big pretty website. One of my first misconceptions.

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  Amitav BorahThe biggest point & one of the most common… Stop jumping from one project to another…and just concentrating on One and only One….and finish it up!! & Also..Never Quit!!..even if you fail the first second or third time….. Keep moving until you get it ! Be Stubborn…Be Persistent!

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  Marlo J McCarthy It’s easy to spend every dime you have learning from brilliant “gurus” but if you never take the jump and apply what you’ve learned it is all time and money wasted.

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  Marlo J McCarthy‎….incidentally – an excellent program can set you on the right path – I’ve just known too many wantrepreneurs that keep buying different programs but when it’s time to apply and work, they buy the next shiny program.

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  Martin Hurley ability to focus on one set goal until achieved

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  Andrew J Titcombe Even if you believe the claims that the “gurus” make it is absolutely no good to you financially unless you are prepared to work. 10% inspiration 90% perspiration comes to mind. THEIR money is safe in THEIR bank Their claims don’t make YOU rich!

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  Win Thomas A lot of it has already been mentioned. I would agree that keeping focused on one project and not being ‘seduced’ by the next life changing programme to come along, until you’ve completed it. Stay focused. Listen to people like yourself Jim who have integrity and practice what they preach.

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  Nikki Stephens FOCUS: Follow One Course Until Successful.

  Follows on from what some above have said – perseverance is key, & you won’t find success simply by buying into lots of different courses.

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  Dave Stevens When you wake up asking how can you help people rather than asking how I can make some money .

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  Michael Markuson Focus and Perseverance! Never Give up!

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  Jamie Smith Don’t believe the hype or the squeeze pages with “who else wants to put $25,987 in their bank account tonight with my black ops super secret CIA affiliate mega bomb success course that literally shoots thousands of dollars into your account effortlessly”. “click below to buy it for the limited time price of $1497″ and p.s. blah blah blah and p.p.s. blah blah blah

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  Todd Fetters You absolutely have to have a mentor who has succeeded online with a business that doesn’t sell how to be successful in an online biz. Find someone who is proven to succeed on their own before they became a teacher. I have taken the last 6 months away from this business just to clear my thoughts and regroup. It would be great to have a pool of resources to utilize so an idea can become a reality. Jim-you are definitely one of the few who has an amazing reputation in a business full of not so honest people. Then again, every business where money can be made is no different. Thanks for holding to your core values!

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  Doug Kramer You will be distracted before you are successful.

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  Joseph Carducci I think the biggest lessons are: 1) Be very very selective in who you follow and listen to (and keep this to a short list, at least in the beginning to avoid distractions) 2) Concentrate on something that you have passion for so that you will actually enjoy doing it (although be careful to do solid research ensuring it is a viable market) 3) While following a few selected “mentors” or trainers, still learn to think and decide for yourself (just because Frank Kern is doing something does not mean it is the right thing, tip or tactic for YOUR business)….this last one took me the longest to really get (and I still need to constantly remind myself)!

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  Leszek Cyfer Things won’t get done by themselves – you have to put yourself to them because no one will do them for you.
  The only way to automation is to make a system, but it needs to be constructed by you.

Creating and Launching an info product. My advice for your next “good idea”

A kind reader that I met at a recent book signing sent me a note requesting my advice about an idea her niece had. Below is her request for help, along with my response. Let me know what you’d add to this my advice. (Note: I’ve kept her idea anonymous without removing the lessons from the story)

The email I got:

I recently received an idea on how to build a ******* on my farm for my cattle. The idea came from an article in a farming related publication (a subscription based paper). We actually contacted the gentleman that came up with the idea and he sent us one page of instructions on how to build it. I am really excited about the *******, it is going to save us a ton of resources, headaches, and time! I would like to share this idea with other cattle farmers across the world via a website and potentially sell a complete instruction manual with pictures outlining each step in the process and an exact list of material. We actually modified the original version as we built ours and really didn’t use the instructions that he sent because they were very difficult to follow.

Questions:

1. How would you recommend approaching the gentleman that gave us the overall concept/idea through the Farm Show? What does that conversation sound like?

2. The website: www.*********.com is currently available. Does this sound like a good web address to you? Who do you recommend using to build a basic web page?

3. How would I begin to determine a price to ask for this instruction manual (ebook)? And is there a certain tool to use to develop an ebook?

The above questions are just a few stepping stones I need to cross to get going, I would greatly appreciate any insight you have to offer.

Thanks in Advance! Alicia B.

My answers to the three questions:

1. Be open about your intentions and ask if he’s ok with it. He may only want his name tied to it. You’ll need to talk to him about it. First, ask where he got the idea. It may not be his to begin with. Do a bit more research as well to try to determine if there is another source for the concept. I wouldn’t get lawyers involved (that’s not legal advice), but I would ask him to put in writing his agreement to the idea of you sharing and possibly selling the idea to others. Consider getting a patent if you are concerned about others stealing the idea, but that’s certainly not anything I would advise until you feel like you have a real working idea that’s taking off in a big way. If your farmer friend wants a percentage of all sales, and you determine he is the guy that made the design, then give him a cut of your sales. The great thing about info-products is that they are very profitable when they are kept digital. I hope that gives you some ideas to consider.

2.The domain name you choose will not be a big factor in this venture. There is far too much emphasis put on the choosing of a domain name in most cases (you can always change it). My advice – don’t get “cute” with the name, and choose somewhat popular and recognizable words to make up the domain name. In the end, your marketing and other factors matter far more than the name. The only mistake you DON’T want to make is to choose a name that is difficult to spell and recall. Do keep in mind – shorter is always better and you want a “.com”. Building a website may not even be necessary though. You can deliver an info product via email initially as orders come in. Don’t build a website until you NEED one.

3. The pricing isn’t an important factor right now. Far more important factors are 1) FINDING and BUILDING an audience, and 2) finding out if this is something they want. Check out this article, “You don’t need a website, you need an audience“. Also review the “information marketing” section of my blog (categories shown on the right hand side of this page).

Some general advice:

• It’s not enough to have a good idea that people want (if this turns out to be such an idea). To succeed you need to find a proven way to get your idea in front of the targeted prospects that will be the most eager consumers of your info WITHOUT spending a bunch of money on advertising. The BEST way to do this is to give great info away to a “gatekeeper” that already has a waiting audience. All you ask in return is a link back to your email opt-in form. For example, write an article and show a picture of your invention. Show others how to do what you did and give them a lot of great info (for free). If they want to join your mailing list for more great ideas tell them how (see my “email marketing” tips blog section for help, or check out this simple video on growing a mailing list without a website). Once your prospects are on your mailing list you can easily survey to see what else they want from you. To process orders check out Clickbank.com, ejunkie.com, or paypal.com (paypal is overly simple perhaps). To have a simple site built and get a nice graphic cover etc. I suggest odesk.com and/or 99designs.com. Plan on making the product a “print on demand” book as well using createspace.com (this gets you on amazon.com as a “physical book” as well). To help approach the launch of your info product correctly check out my book ($5) sold out SilentSalesMachine.com.
• I know for a fact that “farming ideas and plans” like the one you are talking about can potentially do well on eBay as well. There’s one guy that has been selling chicken coop blueprints on eBay for nearly a decade now.
• I tracked down and updated an old blog post that features an eBay seller that’s been selling “info” products for years now. Here’s a link to that blog post: http://www.jimcockrum.com/blog/?p=174
• Become a collector of “good ideas” and feed your prospects and followers a steady stream of free great ideas. There will be plenty of way to “monetize” once you have a list. The true potential of this idea is the opportunity to grow an audience in a strong niche.

My $3/hour worker does nearly all my eBay listings. Here’s how I found him.

This is the only pic we have of Mr. S. I blurred it a bit to protect his identity. He's done a great job for over 2 months now - and he's THRILLED with the pay rate.

You’ve heard me rave about hiring workers from other countries to help work in different aspects of my online businesses. Below is a step by step story of one recent worker I found on odesk.com. I take a unique approach to finding and hiring the RIGHT PERSON the FIRST TIME.  This list will help you do the same thing.

I recently found and hired a fantastic worker in India (I’ll call him Mr S.) for just over $3 per hour. He’s THRILLED to have the work and he keeps us profitable on inventory that might otherwise be unsellable (thin profit margins).  He handles many of our listings on eBay. It took me less than an hour of total work, and under a 24 hours start to finish to find and hire him. A day later he was working.

Here’s how it worked:

1. I signed up with odesk.com. They allow you to post jobs for free.
2. To determine what sort of “talent” was available to meet our needs, I performed a “search contracts” search for the keywords “ebay listing” to see what sort of workers were out there. I found hundreds.
3. I read over the “bio’s” of a handful of the “contractors” that came up. (“Contractors” is what Odesk calls their outsource workers) I could have easily hired one of these worker on the spot, but I didn’t (you’ll cause yourself a big headache if you do that). I suggest you go a couple steps further to find the RIGHT worker the first time. The purpose of reviewing this list was to give me an idea of what keywords and descriptions to use when putting together a job description for my own worker.
4. I set up a brief job description using the “post a job” feature. I pulled some keywords from the “bio’s” of the contractors that I’d just seen.
5. IMPORTANT: As part of the job description I included a link to a simple “Jing“* video for each candidate to watch.  I made the video in under one minute and it instructed the candidates to provide me a link to a recent eBay auction that they had built and launched (since that would be their job). I also asked them to briefly explain in their own words how they felt about this project, and what their eBay experience was. This does several things for me. It confirms that the candidate has a good internet connection (they can see vide0), it confirms that they understand my spoken English instructions, it gets them to send a unique response back to me instead of just a copy/paste response that could have been written by anyone etc.  If I had so desired I could have also requested that they send me back a jing* video response to make communication that much easier (but I didn’t in this case).
6. I received over 60 responses within 12 hours. 80% of them did not follow my instructions to include a link to a recent eBay auction that they had launched. That same 80% was instantly eliminated from my list of potential candidates (Odesk makes it easy to keep track of which candidates are still in the running.)
7. Of the handful of applicants that did make the cut, only about 6-8 of them had good English writing skills. Of those, three were asking for a very competitive pay rate and also had fantastic feedback from other employers (Odesk uses a feedback system much like eBay to rate workers). The decision was easy from there.
8. Bottom line: Hire the most experienced, most qualified and least expensive worker you can find. Narrow down your list by requesting a simple task be performed in their application response.

*Jing is a free and VERY simple “screen capture” video recording tool. I require all my workers to learn to use it because it’s a fantastic way to “show and tell” instructions without a lot of typing. Get it here: techsmith.com/jing.html Watch the demo video here.

For more advanced training on hiring workers from other countries, as well as access to pre-screened and highly qualified workers, please check out the resources offered by John Jonas. He’s my “go to” expert on all things related to outsourcing. Here’s a link to his site: LocalBusinessOutsourcingHelp.com