30 August 2010 ~ 15 Comments

FA008 – Making Money Online, Enough Said

Audio

All about the Benjamins!

Pockets full of Franklins!

In case it’s been awhile since you’ve seen one, Ben Franklin is on the $100 bill. And if it has been awhile, then this show should get you on track to putting them back in your pocket.

Was that enough hype for you? I do try.

Izzy and I discuss, well, making money. Making offers and getting paid. Oh, and Izzy gets a bit more consulting out of me.

Enjoy the show,

t

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  • Jeff Long

    Another great episode.

    I like the conversation about asking people what problems they want solved instead of only “polling yourself” to see what you think they want. Better to hear from others actual needs than try to hit the target blindly yourself. I struggle with thinking that people will take my idea. Thankfully I have too many ideas and not enough time to create them all, but usually I start with a survey and send it to either trusted people or to my Twitter following. Both have worked with different ideas.

    Jeff Long

  • http://twitter.com/GetItScrapped Debbie Hodge

    Thanks for another episode! Love listening.

    I’ll be interested to hear what happens when Izzy gets a payment processor. Tim mentioned getting a “shopping cart” in.

    Last summer I installed a shopping cart for my website . . . and then this spring I ended up tearing it all out and moving to e-junkie and paypal buttons.

    One reason was I found the shopping cart storefront gave my customers so many choices they were looking thru the store rather than buying the initial product I’m brought them in for.

    SO now I’m focusing on making better sales/landing pages for each of my classes and funneling traffic to those landing pages more often than the “storefront.”

    Additionally, the shopping cart was overkill from an admin perspective and after buying it I realized i needed to purchase more software to get accounting numbers out (so i had Xcart plus Store Manager at $400+).

    I have also found with regard to payments that over the last two years, resistance to paypal has become less and less. In fact, many of my customers have their “fun money” at Paypal — it’s where their ebay, etsy, and other internet sales monies end up.

  • http://www.MathDad.com Adrian

    Hi guys,
    My bits were created to solve a problem but I didn’t consider “monetizing” them until I heard Izzy share his talk about making an online business about a year ago. And now that you two are giving more details and encouragement, I’ve changed my website name to something short that rhymes, changed my website host so I can add plugins and started collecting email addresses by having people subscribe and receive free products. I’ve got to say, if this works out I’m going to owe you two a big thanks. You guys are making a difference! Thanks.

  • http://FoolishAdventure.com Tim Conley

    I am very sure when Izzy uses a payment processor for his sites, especially Izzy Video, he’ll see a significant increase in sales. He’ll need a shopping cart since payment processors don’t do much other than verify the credit card is good and then charge it. Oh, and put the money in your bank account.

    You used a “storefront” shopping cart, which is something I don’t recommend unless you want people browsing like a catalog. Unfortunately, offline catalog buying behavior didn’t really transfer to the Internet.

    Izzy could use 1shoppingcart (I don’t know which system he’ll eventually choose) to be the interface between his sales page and his payment processor. Much like what you are doing with individual buttons.

    As for paypal resistance, in many niches it still exists. I don’t comprehend it, but it does exist. I like paypal buttons for getting started, but eventually a site needs to mature to sell more. Paypal has a shopping cart and does payment processing for business accounts, which I recommend, but there are many options available.

  • mande

    The question of what it is that people will find valuable is really interesting. I struggle with this myself. I doubt I can offer much more to the scrapbooking world since I get the feeling it is already saturated. What you guys are saying about pricing is right on too! I would pay more for many of the digi products and am so shocked that people charge so little! But, it would be hard to come along with as a new designer trying to break into the industry and start charging much more. People would think you are insane! On the other hand, I do think that “you know who you are” can work out a system where she can make more money and her clients will still feel they are getting a great value for the price. I am so with her on that one! $5.00 is way too little to be charging. I feel the same way about certain e-books that are totally awesome and worth more than they are charging for them. (If she is reading this, she will know who she is.) It’s a simple, but mysterious case of demand versus supply, and you need to figure out how much people are willing to shell out.
    My own idea of a business web site is geared towards a market that is in desperate need of my idea…I truly believe that, but I realize now that I need to work more on gaining trust in that “industry” before I launch a web site where I expect people to pay for subscriptions or products. I’ve got to think this thing through and meanwhile start creating a reputation for myself.

  • StudioWendy

    Can I suggest you change the “OUR NEWSLETTER” text above to something else. I probably spent 10 minutes looking for the links to all the episodes and never once clicked there because I wasn’t looking for the newseltter since I was already subscribed. :) Love the show and all the great tips!

  • http://FoolishAdventure.com Tim Conley

    If someone comes into a saturated market where most are selling inexpensive products and that new person tries to sell essentially the same thing for more money it won’t work. The market already knows what that product is worth because everyone else is selling it cheap.

    To break into a saturated market, a person, product or both need to be substantially different from the crowd. That person can earn a premium over others in the industry.

    Make sure people WANT your idea and don’t NEED it. In almost all instances if someone has a need, they have already found a solution even if it isn’t a good one. But wants have no end. The best way to find out if people want something is to ask them to buy it.

  • Stephanie Hackney

    Step One: Find a pain that needs a solution
    Step Two: Find out how many people have the pain (market size) – if there are enough people with pain…
    Step Three: Come up with a solution IDEA
    Step Four: Find out what the people in pain are willing to pay for the solution
    (Can you build a real and sustainable business with a solution being sold at that price?)
    Step Five: Create a solution and test it
    Then, and only then, do you have a viable business idea (note I said idea, not business…this is only the beginning!)

    Just my two cents…

    Stephanie Hackney
    Branding Masters

  • Stephanie Hackney

    I’m going to respectfully disagree with this statement. A need means I WILL pay for a solution. A want means I MIGHT pay for a solution. A want is a nice-to-have and when money is tight, this is the first place I cut. This applies to businesses as well. Whether or not it’s a NEED or a WANT, it must solve pain. The key is to know who your idea customer is, what their pain is, what their needs are and what they are willing to pay for a solution. Then, find out if they have a solution already. If they do, it’s not likely they’ll choose you over an already-proven solution they know. An exception would be if your solution is far superior and your price point is in line with the pain relief in the mind of your customer. Even then, your customer has to feel the switch and all it entails is worth the effort. If what they currently use works just fine, it’s unlikely they’ll switch to your solution.

    Stephanie Hackney
    Branding Masters

  • http://FoolishAdventure.com Tim Conley

    I respectfully disagree with your respectful disagreement. Just kidding.

    You make a really good point and I doubt we truly disagree since I would say, “You’re wrong” because I’m tactless like that. But you are not wrong. I think we are using different definitions for need and want. I think this is a good debate to have here for others to learn from.

    My philosophy is that no one ever buys on need. Mainly because one cannot go long without fulfilling a need such as eating or drinking or in the case of a business generating revenue.

    To illustrate my point, no one needs a BMW. A guy could have a self-esteem need for prestige or acceptance and want a BMW to fulfill that need. However, a Mercedes could fulfill it too, but he chooses the BMW.

    To take the idea further, no one needs a car. People need to get from point A to point B, but how they fulfill this need is completely based on want. Our BMW owner doesn’t need a BMW for transportation. He could walk, ride a bike, take the bus or buy a 13 year old Camry. Yet his transportation choice is an expensive luxury car.

    This can be used with any need as expressed in Maslow’s Heirarchy of Needs. Some people’s desires may express themselves as an irrational concept of need, but it is still a want.

    That’s how I define needs and wants. Hope that clarifies my position and thanks for the great critique.

    PS. I’m going to comment on the solving pain idea in your other comment.

  • http://FoolishAdventure.com Tim Conley

    I think you should define pain since many people don’t buy because of a psychological pain or a negative emotion. When I choose a Fuji apple over a Red Delicious, no pain was involved. I just wanted the Fuji because it pleases me more than the other.

    So my biggest contention with the use of “pain” is that many (and I would guess nearly all) buying decisions do not have a negative emotion playing the predominant role in the process.

    I like using the word desire since it has a stronger connotation than want without the negative emotion of pain.

    I hope all that makes sense.

    But your 5 steps are accurate even though I would put desire in place of pain. Everyone reading this should follow Stephanie’s 5-Step Business Development System (TM, Copyright, Patent Pending).

  • http://twitter.com/16x9cinema Carl Olson

    Izzy, just wanted to thank you for this new website and podcast. When you and I spoke a couple months ago on my podcast, this is exactly the thing I was thinking of. Content producers (fancy phrase for photographers and videographers) are always looking for the next gig and that’s a business model I no longer care for. Trey Ratcliff – the phenom HDR photography and blogger – mentioned on another episode that he does not accept any paid gigs. All revenues come in from the blog, e-books, DVDs, and licensing of his photos.

    So, I believe this Foolish Adventure of yours is likely to be much bigger than IzzyVideo.

  • http://www.izzyvideo.com IzzyVideo

    Carl,

    It’s funny when you say “bigger than IzzyVideo” because I’ve been thinking a
    similar thing. There are plenty of people looking to get better with video,
    but I think there are more people interested in creating freedom for
    themselves. I’m convinced that building a business online is a great way to
    do it. I’m confident, because I’ve done it a few times with different
    websites.

    Incidentally, you’re off to an AMAZING start. Your website and show are
    excellent content. With your big audience, you have lots of different ways
    you could generate revenue. Can’t wait to see what you do with it!

    Thanks for the feedback!

    All the best,

    Izzy

    –
    Host of IzzyVideo.com
    Producer of Paperclipping.com
    Producer of RollingRs.com

    Email : : izzy@izzyvideo.com
    Facebook : : http://www.facebook.com/izzyvideo
    Twitter : : http://www.twitter.com/izzyvideo
    Skype : : israelhyman
    Mobile Phone : : 480-980-1533

  • Stephanie Hackney

    Tim,
    I agree about pain being seen as a negative. And, I would agree with your contention when it relates to consumers. However, I don’t agree with this when it comes to businesses.

    Businesses buy to solve a business pain/need (or at least they should). This is especially true when it comes to high-dollar items. Getting budget approval, and long-term corporate buy-in usually revolves around a business having a pain point (or many) and needing to find a solution. Ex: we can’t keep track of our customers so we buy a CRM solution. If there was no pain involved (meaning we can make due with how we currently track customers), we are not likely to invest the dollars and other resources (time, staff, etc.) in buying a new solution, even if it’s better.

    Thoughts?

    Now, regarding this: Stephanie’s 5-Step Business Development System (TM, Copyright, Patent Pending)

    My agent, your’re hired!

    I posted this because I see/hear about so many solutions looking for problems. This is especially true in the world of coders. Most are so amazingly gifted and they can create virtually anything. But, they create first and ask questions later rather than finding gaps or pain/desire and building solutions for that pain, those desires. Ideas are easy. Eexcution is hard. Execution is even harder if you are building something no one wants, or is at least willing to pay for.

    Thoughts?

  • http://twitter.com/mollymccarthy mollymccarthy

    I enjoyed listenting to this episode, especially the pricing issue. I work in the scrapbook industry with a foot in the photography industry (tiny foot). It is shocking the difference between a female dominated business (scrapbooking) and a male dominated business (photography) when it comes to pricing products.

    People say that scrapbooking is fading but I often wonder if they’re just pricing themselves out of business. How do you convince scrapbook stores (offline and online) that there product, service, class or ebook is worth WAYYY more than they are charging?