Battle Of The Internet Business Models

April 19, 2009

I've noticed that you read my blog a lot, THANKS! Lemme know if there's ever anything I can do for you email me, twitter me, or facebook me

The way I see it there are four main types of people that make it big on the Internet… You’ve got the DotCom’ers like Mark Zuckerberg of Facebook.com and the bloggers like Michael Arrington of TechCrunch.com.

Then you’ve got the “gurus” or information marketers like John Reese of TrafficSecrets.com and the super affiliates like Gauher Chaudry of PayPerClickFormula.com

I was brought into the world of Internet business through the world of the information and affiliate marketers. However, lately I find myself questioning what road I want to be on.

So in my mind I play out this battle of the business models over and over. I mean if it’s about getting traffic and exposure then hands down the dotcom’ers win. According to Compete.com TechCrunch gets over 1.8 MILLION visits per month while Frank Kern’s Mass Control only gets around 92,000 visits per month.

As for exposure, Twitter was on Oprah this week!

What About The Money?

Then I think to myself well traffic is great but we still gotta put food on the table at the end of the day. The good news is that all four of the business models I’m talking about can make you a fortune. Does it come down to  question of who makes more?

Myspace was sold for $580 million and Youtube for 1.6 BILLION! Which makes Frank Kern & Stompernet’s 18.4 million on launch day look pretty small, if you can even call 18.4 million “small.”

Is The Money, Fulfilling You Enough?

For me it’s never really been about the money though, it’s more about being able to design my own lifestyle. Which makes me look at which model is easiest to maintain.

Bloggers simply need to write one blog post per day really, while some like WebProNews.com pumps out 20 or more articles per day. You could easily write one article per day from anywhere in the world with an Internet connection and a laptop… Heck, I can do it on my iphone!

If you take a look at affiliate marketing you don’t even need to write an article. You just do some research, setup a few Adwords campaigns, tweak them to get them profitable and pretty much let it run. Obviously there would be some weekly analytics work though.

Then How Do You Pick?

I don’t really know which model is the best. I can pretty much find situations that make them all winners in their own right.I think what’s really important for someone to take away from this article is “what it takes.” Knowing what it takes to build any one of these business models for yourself is what’s important.

If you don’t know what it takes then you can’t even begin. If you can’t even begin then you don’t get any of the rewards. No traffic, no money, no exposure… Nothing!

What Does It Take?

I really can’t answer that question for you… Sure I do well online and I’m living at the foot of my dreams. I’m not quite there yet though, and I’m asking the same questions you are.

I do know so far that it takes action, persistence, and determination. I know it takes having a mentor to show you the right ways. I know it takes building a team, preferrably of smarter people then yourself. I know it takes tracking your numbers. But I don’t think that’s the end of “what it takes.”

I want to know what it takes to be REALLY big. To party on yachts, travel to exotic islands, drive fancy cars, and to give my son the life I dreamed about when I was his age. I want to know what it takes to be able to really do whatever I want whenever I want.

I’m curious to know what you think… What business model do you think is the best of the best? Why? What do you think it takes to make it big with that business model?

Hit me up in the comments below I really want to hear the worlds opinions on these topics. I think we all want to hear the worlds opinions on these topics. Maybe the right answer will come as a comment from some mystery prophet?

Go Bigger,
Justin Brooke

Would we even know the right answer when we see it if no one points it out?

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  • Hi Justin, I'm new to your blog as I stumbled it in your guest post in shoemoney.

    For me, I think that determination and will power will drive us to succeed in every endeavor that we get into. This is the same for blogging.

    We've been hearing a lot of success stories of very young entrepreneurs who made it big online like SEO gurus and Mark Zuckerberg himself whose facebook.com landed him to be the youngest billionaire according to Forbes. If they can do it, why won't we?

    This only proves that a single idea can make millions and even billion of money if coupled with drive and determination.

    While it is true that you may encounter a lot of struggles and challenges along the way, it is just a test of your will and determination to succeed.

    <abbr>Millionaire Acts’s last blog post..Wise Ways to Get Home Loan</abbr>
  • Justin Brooke
    Absolutely man... I think determination and drive are a huge part of it also. It's getting through those days when you don't wanna do anything but quit. When you'd rather peel your face then keep going but you do anyway.

    Some days I tell my wife "I QUIT... Till tomorrow" and then I get right back after it the next day.

    Thanks for stopping by with a comment, hope to see you around more often!
  • Although I think one great business model can make you a great income, but I wouldn't limit myself to it.

    I definitely spread myself put more to have multiple streams in case my main one fails or all of a sudden starts to dry up. I think a combination of both work great, just as you are doing Justin

    <abbr>Bruno Auger’s last blog post..Why is Forum Marketing Effective?</abbr>
  • I really think that it becomes a question that each individual needs to answer. I bet if you ask Frank Kern he would be pretty happy with his model. I don't think that it is ever one size fits all.
    I do think that you hit it on the head when you said it takes persistence and determination. They say that most people stop within reach of their goal because it gets too hard opr maybe subconsciously they don't believe they are worthy of achieving their goal.
    I like the multiple streams of income theory. I have been caught before with all my eggs in one basket and it is not pretty when it all goes belly up. By the same token I think you need to focus on one project, work with that until it sustains itself or you have people to sustain it for you.
    Personally I like the one post per day from anywhere in the world scenario.
  • Justin Brooke
    Seems to be a common theme with the multiple streams thing. I've been asking this question to several of my mastermind partners who are millionaires and above and they all say that it's not about grand slams its about little bunts.

    I always have to learn the hard way though... Dunno why, but it's just how I learn! haha Luckily, I've learned to become pretty fast at it!
  • How about all the low-profile but super-rich guys.

    <abbr>Needmoney.com’s last blog post..Traffic: Search Engine Optimization - SEO</abbr>
  • If you ask me, I would say I want to focus on building niche websites and earn several thousands from each sites per month without doing anything! :-)

    I agree with what Bruno said though. We should have multiple streams of income online because anything can happen on the Internet.

    <abbr>SEO article writing’s last blog post..Three Things To Consider When Hiring SEO Company</abbr>
  • Great Blog post!

    I have actually thought about this a lot.

    Do I want to be an info/affiliate marketer or a dotcom Mogul?
    I decided that I really want to be both...

    Here's why...

    By being an info marketer and affiliate marketer you can work from home and grow big financially but at the same time you can stay small in what you have to manage and do each day. There is leverage in info-marketing and affiliate marketing.

    I think it's cool that you can make an income from home without any employees or daily management tasks. But I also think that it's cool that when your a dotcom mogul like mark zuckerberg you get viral growth and national exposure on tv and in the news for free.

    It's funny because I have heard that twitter and youtube both have trouble monetizing... Apparently youtube is losing money? not enough people are clicking on the ads or something?

    I want to be both! I think the best place to start is blogging, info and affiliate marketing then when you get a "BIG IDEA" then you can take that website to the internet b/c you have what it takes and the connections.

    I also think that network marketing is cool.
    MLM is looked at by a lot of internet marketers as a cheap sales gig... But I see it a lot differently!

    When you think about it mlm is someone paying you to work for you. They pay to join into your business (you make money) and then they go out and work for you as an employee (pretty much) and make you even more money! When a downline grows it's awesome b/c it's one of those things that just keeps growing and growing b/c of all the people working for you... It's a business that grows itself even when your not working. So I also plan on making money in network marketing or Internetwork marketing (using the internet to grow MLM! :)

    there are a lot of ways to make money online from home but the biggest key is Cani... If you constantly and neverendingly improve... your results will just keep growing and growing!

    Love the post!

    Keep up the great work...

    Dbk

    <abbr>David King’s last blog post..Social media is like the lunchroom in high school</abbr>
  • Justin Brooke
    Network Marketing is definitely one of the most powerful business models, no doubt. Now if only it didn't have such a bad stigma attached to it!

    But that's whats great about the Internet is you don't have to try and talk your mom and sister into it anymore. Now you've got the world literally at your fingertips. Just like you said!
  • Dee Dee
    The stigma is actually going away. We are tired of selling ourselves to China. That, plus, it only exists in a certain age group (think Mom). I have found that most of the 20 something crowd are all over it. Our enrollments increased over 1000% (from 2008) for the month of Feb, and has continued to exponentially increase since then. Speaking of quality of life... I am headed to Costa Rica - all expenses paid - thanks to my biz. And someone else mentioned passion. This is something I'd be sharing even if I *didn't* get paid so it is truly a passion. I am looking forward to being at the top of my dreams. 2009 is my year. I just know it! :)
    Which leads me to another hugely important criteria that I don't remember seeing anyone address. You have to have more than a desire for xxx, more than a passion for xxx, you have to assume the posture that it is yours, and never doubt. It has made a huge difference in my business! You get what you focus on. A short simple sentence, but it is all you need to succeed. Are you focused, or scattered? Are you worried about obstacles? That is what you'll get!
    Focus on what you want- assume the posture that it is yours, remind yourself daily... and you will find that your dream is indeed your reality.
  • Clint
    Bad stigma and the fact that you have to keep your troops rallied.. There is nothing to be made from a 10,000 person downline that does not produce anything. Not to mention the fact that so many people feel used from the whole business. For example, when Flashnet sold off to Prodigy all the distributors got the carpet yanked out from under them, and not even a sorry we have sold the business and all the money you were making is now gone.. Sure the owner was happy cuz he just banked some tall cash but they always forget about the little guy don't they? Rant Off! Talk to you soon!
  • The problem with MLM is usually only the people at the top of the pyramid generally make the money from all of the folks that have signed up below them. When you're not at the top it is difficult to get others to work as hard as you do. Often you will alienate your friends and family, as so many MLMers tell you to target these people first.

    Personally, I would rather have friends and family asking what I do online, than have them avoiding me because they are afraid I will try to recruit them or try to sell them something.

    Then, if the program is one that has physical products that you have to buy to maintain your sales level to get paid commissions, you can become over loaded with product that you can't sell. It is not only getting other people to recruit for you, it is also getting other people to sell for you. And you have to sell your product too.

    I have seen many people with garages full of vitamin products, cleaning products, panty hose, make-up, you name it and there is an MLM company selling it. I met one guy that sold silk ties! When his business didn't work out for him, he was selling the hundreds of ties he had to buy at a garage sale for a buck a piece.

    More people will join and buy the start up kit, then will actually work the program. As soon as they figure out how many cold calls, hotel seminars, and house parties they have to be involved with to make a sale they give up.

    I don't know about you, but for myself, I would much rather sell info products online than have a house full of prospects every night of the week in my home. And I'm certainly not into having to buy a garage full of product.

    Sorry, but when I hear MLM, I lace my tennies for high speed and run in the opposite direction!

    <abbr>June’s last blog post..Become an Infopreneur While Working at Home</abbr>
  • Justin Brooke
    Haha and there are a lot of people just like you which makes me hesitate on the network marketing model. There are ways of going about it though that are more effective then the traditional pitching friends and having weekly meetings.

    Also there is huge power in the get it all started once and then the downline just cranks it out for you for years and years. According to Russell, David Frye calls him once a week just to tell him he made $xx,xxx and only has 2-3 employees.

    There is a lot of power in it but you are right it's not for everyone.
  • Dee Dee
    Corporate America is where the guy at the top makes all the money.

    You ARE the top when you get into Network Marketing.
    It is true, you can come into the business without the skill set, never discover how to aquire it, and end up in a similar boat as described above. It is also true, you can work the business, and find the right people, and retire. They quality of the company you chose to represent has a much to do with your success as your skill set. You just have to shop around. Just like with a car, there are specific criteria to look for in the company you go with. For me I wanted one that met all ten of the criteria for a perfect Network Business, and I even added a few extras
    The problem most people have is they expect to enter into Marketing (affliate or MLM) and have millions fall at their feet as if Ed McMann called them up. It just ain't so. Some of us have educated ourselves and learned the skills as we move forward. Others educate themselves on the front end. Those who fail, are those who never take the time to educate themselves and learn the skills necessary to be successful so they quit. Only quitters fail. Only a small percentage of people will be wildly successful. Those are the ones who invest in their business, invest in themselves, and take the time to develop leaders. Crossing over into the affliate world with a stellar MLM will put you in the category of the wildly successful. It is definitely on my map.
  • What does it take?

    Willpower, determination and perseverance coupled with knowledge plus guidance is what it takes to get where we want to be.

    I'm glad you raised the questions Justin, this gives us opportunity to take a step back for a moment and evaluate where we were, where we are now and where are we going. With the above in place one should a clear sense of direction and all that is left is to ad hard work with patience and soon or later we will achieve success.

    The one thing to remember is never give up, if at first you don't succeed try and try again :)

    <abbr>Zulfikar’s last blog post..Outsourcing Content Writting For Your Blog</abbr>
  • Justin Brooke
    Yeah I feel like if we're not asking questions, then we're not growing. Wouldn't you say so?
  • Clint
    Having a life long student mindset helps, always willing to listen, ask questions and learn. Great words to live by.
  • Do we have to stick to one business model ? We should work effectively to integrate different models into one .

    I am sure a few will advice - not to be a jack of all trades but be a master of one, but for me, it is finding the effective channel, right partnership and and new innovative ways of mixing different models will lead to success. One great example is Barack Obama - No one knew who he was a couple of months ago, and now the whole world is banking on him to make decisions that'll set their life right.

    Obama may certainly not be the master mind behind his marketing campaigns, but he was the one who chose that 'Master Mind' who did it all for him. He used the 'Right tools' at the 'Right Time'. He was innovative, and that took him way ahead of his conventional competitors.

    We should never behave as the 'know it all' rather we should be 'will learn or observe all and implement'. Be honest to yourself and dedicated. Thoroughly plan and execute without procrastinating. Learn from those who are successful, most of them are really humble to lend you a learning hand. Work hard and we'll soon figure out that all business models are right if executed as they are meant!

    - My 2 cents

    <abbr>Gautam’s last blog post..How Can I Watch Indian IPL Free Online</abbr>
  • Justin Brooke
    Yeah, I guess I'm kinda using one business model to fund another to fund another till I find the one that really takes off for me. Dunno if thats the right way but thats what I'm doin' and it's not doin' too bad for me!

    Sure would like to hit the big 7 figure mark this year though!
  • Business activities can really build on each other to create momentum, social proof, and above all branding recognition if used correctly.
  • Justin,

    This post gives lots of food for thought, as your posts often do. The two primary questions it raises I would say are: 1. What do you really want? and 2. What does it really take to get that?

    Since I seem to recall you saying you enjoy reading, I'd like to recommend a book - "Outliers," by Malcolm Gladwell. I would suggest that the people and business you mention above fall into the theme of the book.

    The book actually shows some well known business outliers, including Bill Gates and Andrew Carnegie, and how things seemingly conspired to make them as successful as they were. It also talks about the commonalities among all of these outliers, and how you could work to put yourself in this category.

    To achieve more, if you already have success (which you certainly seem to have) and your success is scalable, you have to look for the bottleneck(s). For most entrepreneurs, they are the bottleneck in their business. Letting go of things in your business can be harder for an entrepreneur than it is for a daddy letting his little girl go on her first date.

    I wish you the best with this quest, and I look forward to the day when I can tell people "I remember reading his blog when..."

    Chris
  • Justin Brooke
    I picked up that book but was scared to buy it because I was afraid it would tell me something I don't want to hear. Same reason I never took my S.A.T.'s - I ain't letting no stinkin' piece of paper tell me what my "score" is... Probably bad thinkin...
  • There is nothing to be afraid of - no way to score yourself in this book and the author doesn't tell you why you can't achieve and be the best.

    What he actually shows is how certain systems (Canadian junior hockey is one he uses as an example) and being in the right time and place can be a huge advantage (Bill Gates).

    One of the big points he makes is that it typically takes 10,000 hours practice to be world class at anything, whether it is hockey or marketing. The reality of that is that 10,000 hours is only 5 years working 40 hours/week for 50 weeks/year.

    I don't recall if he says it in the book, but I would suggest it takes intention as well, which I think your post indicates you are at least considering your intention. If you skate by without the intention of improving then your time is wasted.

    I don't agree with everything Gladwell says in that book, but I found it thought provoking, just as I found you post to be. And for the record, I don't always agree with everything you say either. ;)

    Chris
  • Justin Brooke
    I'm definitely going to run out and get that book now. thanks!
  • Clint
    Do you think that is why they say the 2 to 5 year plan then? Takes that long to master something enough to get really really good at it...
  • Hello all...

    I agree with all the posts that have appeared before mine. Many great points have been made.

    There is money to be made everywhere. There are opportunities in any economy, including an economy that is experiencing a recession.

    Is it better to be an affiliate marketer or a dot com mogul?

    There are pros and cons to both.

    As an affiliate marketer, perhaps you can not reach the type of income of money that the founders of MySpace or YouTube have.

    As far as I know, there are no Affiliate marketers on the Forbes billionaires list.

    Maybe it’s possible if you set up 1000+ streams of income. I don’t know but anything is possible.

    There is only so much you can grow.

    By being a dot com mogul (e.g. founder of YouTube or facebook) you have a wider reach in terms of users.

    Plus there is a level of fame and media pressure that comes with it that not everyone can handle.

    Not to mention you are accountable to the venture capitalist firms that invested in you or to a board of directors.

    Sure, YouTube got bought for $1.6 billion, but only $400 million went to its founders.

    Another big difference is that affiliate marketers charge money for their products while providing free content from time to time.

    But sites like YouTube or facebook provide users with a platform to interact with other users. All Free. No charge.

    Instead they rely on advertising revenue…kind of like bloggers.

    Let us not forget about TIME.

    If you are designing your own lifestyle, you have to see what business model gives you the amount of free time that you desire

    But here is one key ingredient that everyone has missed.

    Passion.

    You have to love and what you do.

    Frank Kern loves being an Internet Marketer because he loves it and it gives him the free time to go surfing!

    Donald Trump loves deal making, specifically in the real estate and construction field.
    I can’t imagine Richard Branson sitting behind a computer desk setting up Adword campaigns, even if there was billions of dollars to be made.

    These people are in it not solely for the money. They love what they do.

    I remember reading somewhere that one of the founders of PayPal was paid a lot of money after PayPal got bought out by EBay.

    So he thought that he would retire and spend his time on the beach.

    After awhile doing this, he realised he was bored and went back to creating start-up companies….which is what he loved.

    If you want to see the master of lifestyle design, then Tim Ferris is the man:

    Follow his blog to read about his adventures.

    www.fourhourworkweek.com/blog

    So….whatever model you choose, make sure it is something you are passionate about.

    You have to love and enjoy what you do. At the same time, you have to provide value to others.

    For example, I love playing a certain soccer game on PS3, but it doesn’t provide others with any value and thus can’t be monetise. Unless I am really good and become a professional gamer or a game tester.

    Personally I find that information marketing or affiliate marketing gives us the free time to pursue our real interests.

    Let’s face it, as a marketer you have to make your own fun; otherwise it can be kind of boring and lonely.

    So….whatever model you choose, make sure it is something you are passionate about....

    Peace

    Koorosh
  • Justin Brooke
    Killer comment and lots of good insights shared... Thanks, got me thinking bout a lot of things.
  • I think the Internet Marketing Industry is as diverse as the Music Industry...

    To be successful you have to determine a distinct genre.. If you walk into Sony and say "I want to do everything" then they are going to be like... We can't sell that... but once you build an image, have a list of cd BUYERS, then you can branch out an expierment...

    Think of Kid Rock... if he tried to make it singing country at first he would have been boo'd off stage, but he's able to do it now because he's already sold 10's of millions of albums and created a loyal following...

    So my advise for a newbie would be...

    Step 1... Define your "genre" or niche... how? Well do you enjoy math and analyzing numbers? Go affiliate marketing w/ppc... Was english your best subject in school? Start a blog...

    Not saying you can't do both, but start with this as the base and "experiment" or expand after you brand yourself as an expert, and create a following...

    Step 2... Brand yourself as an expert in whatever you decide, and then GROW YOUR COMMUNITY!!! Get faithful followers and that will take you to the next level... Like Kid Rock you will sell regardless of how bad you suck because they love YOU and not your "product"...

    Step 3... Just get something STARTED!!! It's a growing process, but you can't grow anything if you never sow seed!!!

    Step 4... Subscribe to @justinbrooke on twitter and follow his every move... that's what I'm doing!

    <abbr>Jason Benfield’s last blog post..JasonBenfield: RT @RayEdwards is giving away his popular MP3 on copywriting, launches, more. Get it FREE: http://tinyurl.com/c8w7l9 (no opt-in, no pitch)</abbr>
  • Justin Brooke
    I'm loving Step #4! hahahaha
  • Yours is a very thoughtful question and finding the right answer for you could save you a lot of agony and create a lot of genuine abundance, over a lifetime.

    First of all, when it comes to who has the most joyful lifestyle, do not believe everything you read in the paper. Just look at all the squillionnaires who are going belly-up right now. Read the papers from two years ago and you will start to believe that they were from another Universe, in terms of their magical financial acumen. It now seems that they were simply cooking the books.

    Secondly, remember in business, what really counts is what you have left after expenses, taxes, the scrutiny of the legal and moral authorities, and the cost of maintaining your image with everything from designer clothes to personal jets and so on. Many business people go broke when they are turning over more money than ever before. It's just that they are spending more than they are getting in. And that is the only difference between profit and loss; spending less than you have coming in. However most bankrupts gave up bookkeeping long before they hit the financial wall. They came to believe that the rules of natural economics did not apply to them. That the well would never run dry.

    Thirdly, there is one natural resource with which we are all born equal; time. My mother gave me this really helpful image about time. She used to say that Life was like one of those eat-all-you-can deals you find in some restaurants. They give you a plate (read your time on earth) and you can have whatever you want from the sideboard which has everything on it (read every possible, or even impossible, dream and purpose in life).

    The catch is the size of the plate that they give you. You can only load it up so high. Some people can hardly carry their plate back to their table but the way the food is all scrambled together, it ends up looking more like the scraps in the bin out the back. Others take a more balanced conservative approach. They do not load up their plate but they keep going back for more serves. However, unfortunately they can end up the size of a house in two years time. So still others have this natural intuition about food. They stop eating when they have had enough calories. Some people just seem to create the space and time to enjoy what is is important to them.

    And who can judge from afar who is the happier out of say, that real estate guy with the big hairstyle and mouth to match ("you're fired!), Bill and Melinda Gates (how can we now do some good with our money?), the average-income guy in the park playing with his kids or the penniless Mother Teresa? However, be careful of the conclusions you draw. A political aide used to say, "You would be amazed at how much money it takes to keep Gahndi in poverty!" You really cannot tell from the outside about anybody else's life.

    So that is my bit of wisdom, from a sixty year old, living on his farm in Australia, and very much enjoying the good life on a moderate income.

    I guess that for me, wisdom is about finding the natural balance points in your life and knowing, emotionally as well as intellectually, how to respond to them.

    <abbr>BrianCanutedotcom’s last blog post..How Search Engines Think</abbr>
  • Justin Brooke
    Love the metaphor story, still trying to wrap my head around what size plate I should be carrying and what size plate I AM carrying already.
  • Dee Dee
    I agree with most of the other comments, except with the MLM one. Don't get me wrong. I love MLM - but I look at it differently. I get paid to help other people be successful.
    I love the statement "I am living at the foot of my dreams..." - can I quote you? :)
    Personally, I am interested in combining business models by finding the perfect JV partners. I have been very successful building my Network Marketing biz locally, but not online. So I am joint venturing to with a webdesigner who specializes in SEO and traffic generation. My goal is to one day cross over into the affliate world with some joint ventures.
    I really like the idea of adding affliate marketing to my website when I know the value exceeds the price. I want to be able to JV with some folks who would like to diversify with THE BEST MLM business model out there - as in a risk free way to get a 600+% ROI just by bringing in two people - not to mention the improved quality of life outside of the financial realm.
    Justin, I really appreciate your blog posts, and all your insight! If you know of anyone in the affliate arena who might be interested in a risk free MLM opportunity (iron clad just like affliates have) that is so simple it is easy for me to guarantee success, shoot me an email!
  • Justin Brooke
    Sure feel free to quote me... It's true like I've had these dreams my whole life and I'm just now well since about last year starting to taste them. To use a metaphor I feel like all my dreams put together are like swimming in the ocean, and right now I'm standing in front of the waves and the tide keeps rubbing my ankles.

    I'm looking for that road that lets me "jump in."
  • Dee Dee
    see my note above. Love the metaphor. I know how you feel! Knowing it is going to happen is the catalyst that makes it so.
  • I think Kern should step in here and have a say... :)

    After all, he started out as an info-marketer (selling how to make money tricks until the FTC nailed him), then more info-marketing (Teach Your Parrot to Talk), and then partnered with Nitro for a while (teaching niche marketing). Then changed again, and again...

    Why he morphed so many times, and how he feels about his 'work' today, would be an interview worthy of everyone's time.

    Laura

    <abbr>Laura Childs’s last blog post..Twitter Automation Tools</abbr>
  • Justin Brooke
    LoL you get that guy to answer a phone or an email and I'll interview him. Good luck though! His assistants have assistants and even they have email filters. hahaha
  • Hmmm...I'll get on it.

    If I get him and he agrees would you perform the interview and share it with us?

    I emailed him last year and he replied personally. Maybe I'll have the same luck again. :)

    <abbr>Laura Childs’s last blog post..New Laura Childs’ Book</abbr>
  • Holy Mackerel Justin your post hit me right between the eyes. Your thoughts are almost identical to mine.

    Business model...I would chose the one that is closest to what is in your heart. Money should not be the number one factor determining which to chose.

    Just my 2 cents worth.
    Paul
  • Justin Brooke
    Truthfully, I think website flipping is the best one for me personally. I love the building part of webpreneuring, but I hate the follow up or longterm part. I like taking ideas, making them come alive, and then selling them for big paychecks!
  • Most people are lured by the dream of freedom fast money fast cars overnite success.........

    <abbr>Brad’s last blog post..How to Maximize Your PPC Advertising Budget</abbr>
  • On my 7 hour drive today I listened to Frank and John Reese talk about business models. It was basically the build a business as opposed to build a site here and there or a sales letter here and there. Got me thinking too. I will be the first to say that these sites like Myspace who sell for HUGE cash is really distorting our thoughts. What they sold is a dream for others. I am guilty myself thinking... gee if I create the next big one... I can sell to Google for Bazillions....I'm just not sure if it's realistic. I also think the types of sites those people sell are not on the IM radar. IM people trying to sell IM ideas for the big cash payoff is another reason we are getting distorted. I have a few ideas that I believe could go big... but for me to do them... I would need VC money and to bounce away from the IM industry... otherwise it wont float. That's my take.

    <abbr>Jay Leishman’s last blog post..Conversion tactics… Multivariate Test sites</abbr>
  • Well, to me it's pretty simple...Be myself and live the truth.

    To have the freedom to spend my time doing as much of what I love with the people I love as possible. To contribute and leave a legacy so I can rest knowing I did my best to leave more than I took...

    and love every minute of the process :-)

    come to think of it, it's all good so far...

    On the money front I think of something a young 'self made millionaire' friend of mine once told me, "I just wanted money to be like oxygen...when was the last time you thought about oxygen."

    Live Laugh Love

    the rest is details...

    Phil

    <abbr>Phil hughes’s last blog post..Do You Know Who You Are?</abbr>
  • Hey Justin and Chaunna,

    I have thought this big time, which model and I think multiple income streams. With those streams, you will have a mixture of different models, some, set and forget, other using the funnel etc.

    I think what we all have to remember is this, WE CANNOT do it all ourselves and need some good outsourcing people, that way all models will work and "Bring home the bacon".

    What-ever model or combination one uses, it is vitally important to Focus. What I think happens to a lot of people is that they are coaxed from following models they have set down for the next big "Widget" and promise from affiliates whom some I am sure do not have a business model and are as good as the next product they sell.

    Now that is not to say affiliate marketing could not be one of your arms in your business model.

    A good strong solid business I feel has to have continutity programmes, how many? well I guess you can say "How long is a piece of string" . It just depends on what you envisage your Ideal income and lifestyle to be.

    One also needs Passion, Focus, and the preparedness to do the repetition needed daily. As early as one can, some of those tasks need to be outsourced.

    Lumped in with that cake a good Dollop of Faith topped off with "I am therefore I can achieve success" as so many feel they do not deserve or cannot achieve like other big names being heard about or gone before.

    Take Care,

    Love and Light

    <abbr>Maggie’s last blog post..Bye, Bye Charlotte, Charlotte, Bye bye!</abbr>
  • Hey Justin,

    I was gone for the weekend and I came back and saw that I missed out a few posts. I am not taking part in the contest because I am doing well and my business is growing, so I decided I will let someone who needs it more win.

    For the tools, I actually have all of them, or a tool similar that I have learned to use already. Great suggestions for tools, and I agree that they are necessities. (Aweber & Wordpress are the lifeblood of my business, still trying to get used to using video)

    Now onto this post, I have been having the same issue. I have actually researched, thought of & mapped out 15 different business plans, and I am not sure which one fits my style best. What my current plan is to do one business plan and outsource it, then use the money I make to try out the next business plan (kind of like what you are doing). I can keep the outsourcers performing that business plan as long as it keeps making me money.

    I have not yet worked in flipping websites, which is something I would like to learn during the summer, after I have implemented a few business plans I am more familiar with. Once I have gone through most of the business plans, I will see which one was the most fulfilling for me, and I will focus on that one.

    I will also keep outsourcers performing the other business models for me, so I can have multiple streams of income, but focus on the part I enjoy the most.

    Shawn Horwood

    PS. I am working on getting a hold of Frank Kern to see if he will do an interview with you. (I have a few things I am going to try to see if I can connect with him and get him to do an interview. I will let you know how it goes. :) )
  • Great comments here. I truly think that the business model you pick and can stay with as an entrepreneur is the one that suits your personality and core beliefs.
    A DotComer has to come up with a vision of a model that would become a general broad communication or data tool that people can use. Then it takes programmers, etc. to build this model, and distribute it to as many users as possible to make some big companies pay attention to it and eventually "buy" it. Although the DotCom does not have to be a large company, it has to be very innovative and bring out a new model or a highly improved model of existing ones.
    New DotCom soutions now are "Data Mining" and "semantic search" . These are models to pay attention to.

    The information "gurus", on the other hand, bring out "shiny" solutions for specific niches, e.g.Internet marketing niche, sofwtare niche, Forex robots, etc. They actually "package" information and bring them to market. It does not have to be especially innovative but mostly with buzz around it.
    Then come affiliate marketers who do their thing to spread the word of the above models.
    I personally like to stay behind the scenes and work as an affiliate. Of course now adays affiliate marketers also have to be a little creative to find solutions how to get their links found through the "noise".

    So you can feel if you are an "innovator" or an "information king" then stick with what you feel more comfortable. That is, stick with who you are......
  • Justin Brooke
    Very insightful stuff, thanks for dropping by with your comment and I love the avatar image!
  • Mark Twain once said "the secret to success in life...
    Is to make your vocation your vacation."

    Love what you do....

    When you passionate about what you do
    it is not work.......

    The reason most people fail regardless of the business model
    is they treat it like a hobby not a business.

    When you are passionate about it as a business
    then you can become successful.

    While there is no shortage of different approaches to
    "business models"
    when it comes to the internet

    It always boils down to the fact there is but
    a single business model

    1-having a website (or an affiliate website)
    2-driving targeted traffic to the website
    3-converting the visitors into revenue or a list

    Find what people want in a very specific way
    and give it to them

    I liken the selling a website like youtube
    along the same odds of becoming a movie star
    For most people it is not going to happen......
    Not to say it does not happen... because it does...
    Even the lottery has winners...

    Affiliate marketing on the other hand is easy to get started with
    and someone else does the product fulfillment and the
    all important "salespage" (conversions)

    Internet Marketing or IM is code word for
    Either: Make Money Fast Doing this
    Or: Here is a tool to help you Make Money

    It is just another niche that some seem to
    be stuck in.....?

    The advantage of the IM is that in most cases you take
    the exact same marketing techniques and apply
    them to almost any niche - and you will be
    miles ahead of the "competition"

    A balanced business approach is to have
    multiple income streams - to be totally dependent
    on a single company (google) or a single
    income stream is not a very prudent approach.
    (Anyone recall the google slap(s)?)

    Not every website/product/campaign is going to be
    a home run, in fact it mostly like will come down to the
    80/20 rule

    Where if you had ten websites - 80% of your income
    would come from two of the websites and the other
    eight websites together only account for the other 20%
    of your income. In reality, several of the sites don't make anything.

    So a person creates 2-3 websites/products/campaigns
    Does not get the Return on Investment...

    That is the point that separates those truly passionate
    about what they do and the "hobbiest"

    The passionate ones build more websites/products/campaigns...
    The hobbiest go try another IM product...

    I say a person can be successful in
    almost any niche .....

    Find what people want in a very specific way
    and give it to them using as many marketing
    channels that you can utilize.

    Ray La Foy
  • Justin Brooke
    Well Ray... One of these days you'll have to post a comment and really tell us what you think! haha just kidding... Thanks for the in depth comment and there is a lot of brain food in there.
  • Clint
    I don't think Ray could have put any more cliche's in there if he tried! lol Great post Ray, I bet you could make an e-book out of that if you expanded out even more!
  • Justin,
    Loving the images in every blog post. Did you hire a cartoonist?
    -- Jelous But Cheepy Wallet
  • Justin Brooke
    Actually no, I just find the images on sites like iStockphoto.com and then throw them together in Photoshop.

    Glad you like them though, I was wondering if they were making things better or worse...
  • Clint
    Definitely better with the images! I really like this blog Justin, its the only thing I have been focusing with online lately... Thanks Buddy!
  • We at Cazoodle struggle with this very subject on a daily basis. We have this apartment search engine which utilizes semantic search technologies (http://apartments.cazoodle.com) we need to keep it the most inclusive on the web, and to do this we need to keep it free for the landlords and the renter. So we have plans down the road to make some money, but it still is a struggle to find that balance.
  • Justin Brooke
    Cazoodle is a pretty cool lookin website... I hope you guys do well with it!
  • Hi Justin, one immediate thought I had was that many people are completely forgetting to define a business model at all!

    What's happening all too often is that they're dabbling a bit in a few areas, and the principles overlap, and they wonder why they're getting no results from their combined efforts.

    If they do a+ b+ C + x + y + z all together, then they won't know what is working.
    However, splitting them into a+b+c and then x+y+z will highlight what is working, so they can improve it further and do more of it.

    I know this because I have horribly guilty of it in the past.

    <abbr>Tony Finbarr-Smith’s last blog post..Thanks Russell Brunson!</abbr>
  • Justin Brooke
    There's definitely too many people "playing" business out there, griping about nothing working, but lying to themselves about having actually tried hard enough. Thats just part of this industry that we have to accept.

    However, you totally lost me with the abc's and 123's - Dude I took algebra for 4 years in high school. You start trying to add and subtract letters and my brain starts packing its bags!
  • Clint
    Haha, I think he meant split testing with the abc's Justin... lol
  • Hi Justin , seems to me I can relate to a pinball not the wizard when it comes to affiliate marketing , selling on ebay, article marketing, blogs, traffic generation, video, backlinks, twitter,facebook, adsense, adwords, SEO , Google ranking and html, php etc etc. Isn't it fun though, sure can take all night and the next day and night after into next week , next month , 6 months, even years. What else you going to do. If you already got the bucks you dont need to do this you could take up guitar playing in a rock band for fun instead or go hiking the Himalayas. My point is party less , get websites up, make sales and stay on track until your have money to do something else.

    <abbr>Richard’s last blog post..Creativity is the key! One has to think out of the box</abbr>
  • There is no competition between spreading yourself around and focusing on one thing.

    Justin you decided you did not want to sell your seo services and you wanted to focus on email marketing---If my memory is correct--

    I am surprised at your questioning.

    There are so many business models to choose from.

    To my view there is no comparison between the monster Bloggers and Frank Kern Model.

    The Frank Kern Short period of intense focus and excitement, and activity vs the continual pressure to put out by the blogger. Also the Blogger is always looking for a product to promote that they can make money on...

    When you bring in other models my thought is to build a couple of high quality membership sites that are to some extent self regenerating.

    I do not think any model is better than the long term value of a good membership site.

    The other model I particularly like is to build an authority site in a growing long term niche. And then building more authority sites in a the same niche.

    I do not understand the flipping thing if the sites themselves will continue to make money.

    rick

    <abbr>Rick Text’s last blog post..Tracfone Text Messaging</abbr>
  • Goods comments. I am still finding my way. There is so much information out there and the learning curve can be quite awesome. Everyone is different and by communicating with others, one should be able to find their own comfort level.
  • Hi Justin,
    “Where do you begin?”
    If I had a buck for every time I heard that phrase I wouldn't need to bother with any kind of business model. For me at the moment I am still fighting my way up Niagara Falls and it’s a tough gig. I agree that MLMs are really only benefiting the top dogs and everybody else is just picking up scraps.

    I diversify as much as possible but do find the workload to be intimidating at times. Most of my time is spent on WP blogs trying to find decent niche areas.
    For sure if you can hook onto the next big thing on the Internet like the dot com moguls then you’ve made it. I think mentoring programs are a profitable area to get into also.

    Thanks for the read,

    <abbr>Bill Masson’s last blog post..How to Get Free One Way Backlinks Virally</abbr>
  • Dan Hellman
    Justin,

    I think the one thing that separates the men from the boys and really creating wealth is building the team. How many of us have spent hours burning the midnight oil, tyring to meet our responsibilites at work and at home and then starting up an online business our your spare time. Most just don't make it.

    All the great entrepreneurs hit their stride when they focused on becoming great team builders. Carnegie, Rockefeller, Ford, Edison, Jobs, Gates, etc. - all of them were great team builders. Sure they had great visions and ideas, but actually many people have great ideas. It is the ability to actually implement those ideas that seperates the men from the boys. You need a great team to implement great ideas.

    We have to change our focus, we are not internet marketers. We are online entrepreneurs. We are not the actors and actreses. We are the Hollywood producers with our creative team taking action as we call the plays. It is the difference between playing in the big leagues and the minor leagues.
  • shane_k
    I think first it takes building a business that is systems dependant, not people dependant. Why? Because people’s desire and energy to work fluctuates up and down each day. And that would create inconsistency in a business. Some days things would get done some days they wouldn’t. But in a systems dependant business the systems are more consistent and things would get done more consistently, and you can repeat the experience for the customer over and over again. And you can repeat success again and again.

    Then you need to separate yourself from your business, so your business is a system that can run without you. Create systems and hire people to run those systems. I have done this with my Real Estate Investing. This has allowed me to free myself from that so I can pursue other opportunities like Internet Marketing.

    And finally the most important you need to take advantage of "Leverage"

    Look at all the little IM people out there. They are all trying to do everything themselves. Then look some of the more successful people out there, they use leverage, by outsourcing the work which leveraging other people’s time and effort.


    As for the guy who talked about there are no affiliate marketers on the billionaire list again it has to do with leverage. Billionaires leverage the time and effort of hundreds if not thousands of people, affiliate marketers do not. Most affiliate marketers try and do everything themselves.

    I see another post where the advice is if you enjoy math do ppc, if you English was your best subject start a blog. This is what I mean, now I am not trying to knock that post it`s just that too many Affiliate Marketers feel they have to do everything themselves. If you don`t like numbers hire someone that does, if you don`t like English hire someone that does. Leverage, Leverage, Leverage. I understand that some people don`t have the money right away to outsource but it should definitely be in your plan to do it as quick as possible.

    Without leverage one person can only do so much. I would rather have my own product with a couple hundred affiliates selling it for me, or a couple JV partners promoting to their lists, than me trying to do blog posts, and article marketing, link building, SEO, etc. all myself.

    A systems dependant business, that can run without you and is taking advantage of leverage.
  • Keepit onde Downlow
    Justin,

    This is a nice little dance that is going on here
    so I thought I would step out on the floor and
    join in.

    The right question is worth spending time on.

    Growing a net worth to monster levels (or
    achieving a certain lifestyle) has more to
    do with who rather than what plus a bit of
    luck.

    I have been fortunate to have made (and lose once) 9
    figures multiple times. I also get to be in the company
    of those that have done the same or figured out how to
    achieve the lifestyle without hitting the money mark.

    I will spew forth what was told to me a decade ago when
    I was broke but hungry.

    It is about being. That is it. The big secret. Game over.

    It all ties into the integrity of who you are. I have watched
    partners who were brilliant in business self-destruct because of
    a character issue they just could not face. Often it was a slow erosion
    of something that was way under the surface covered by
    years of incredible performance in other areas. I was one
    of those.

    I had to lose everything and face the truths about me. It took
    more courage than any business risk or venture I had faced.
    To move to the next level I had to wrestle with the demons
    that kept showing up in my life. I had to be passionate
    and obsessive about the clearing out of belief systems
    and thinking that ate at my core. Even the small things.

    All those in my peer group have some things in common:
    --None make it a habit to escape from painful
    realities (whether that be through drug use, sex, food,
    smoking, ect). Notice how that is phrased.

    --Truth (seeking what is real) is a group and individual
    practice. They keep their word to others. More
    importantly they keep it to themselves as in:
    I am going to get up at 5 a.m. Done.

    -- All lead healthy/fit lifestyles not for looks but for energy
    and a vibrant life.

    --Send time in the company of friends daily.

    --Laugh. Alot.

    --Dedicated to encouraging/talking/being about
    growth.

    --Gentle with themselves when failures and mistakes happen but
    hard on the issue.

    --Tend to believe that they are 100% responsible for all things
    in their lives. Rarely is there victim mentality. (If you can't
    own it you can't solve it).

    They read and its high quality.

    They don't have much idle passive time.

    They practice some sort of 'centering' activity daily (religion or
    meditation, art, exercise, watching the sunrise).

    They are curious and when they find something
    they want to do they start at zero. They chase learning until
    they get diminishing returns.

    Here are some character traits I see in them:

    Courageous. They ask directly for what they want.
    If they do not get it then at least they practiced courage
    which is now stronger as the result.

    They seek truth at all times knowing it is less painful
    than avoiding it.

    They practice compassion and lots of love.

    They believe in their ability to author and create
    their own lives.

    They gather people around them that support them
    and do so in return.

    Through the practice of truth they are really good
    at discerning what is junk science/psychology and
    where the good stuff is.

    Seeing your story on youtube moves me to think you
    are on a path I took. It inspired me and took me
    back to the last line of powder I hit that numbed
    me to the personal pain I felt. I am encouraged
    by your movement.

    The answers to which biz model is best for you
    (or why not all as part of a multi-national corp)
    will become more clear to you while you
    dedicate yourself to facing those things
    in your life that need to be addressed.

    Gather a team (friends, coaches, therapists) around
    you that will be absolutely honest with you.
    Go through the pain. Grow.

    Very few executives come to me about business
    problems. Most come to me because of personal
    or people issues. They say biz stuff is often
    easily solved.

    I look forward to watching your journey.
    Who knows, maybe we can meet up sometime
    and talk about this very time in our lives.

    (The character traits are loosely joined from Steve Pavlina's
    Personal development for Smart People)
  • Ricky
    Although your comments were very insightful, indeed, and peeks into the character of those building money-making enterprises in the Web, some of us in this blog would like to hear the actual model(s) you prefer, specially if coming from a multiple 9 figure earner. Mind sharing this? The reason is that this question posted by Justin is making people think and we all benefit from the answers. Your take on personal development issues is actually excellent, but your take on which model(s) is missing. I am not sure there are that many multiple 9 figure earners' opinions, which surely can make of yours a significant one. Would you oblige? This is a question that merits finding all sort of marketer's opinions.

    Ricky
  • Rob
    Hi Justin,
    I just recently found your blog and I'm very impressed. Your posts are compelling and well articulated.

    One of the most intriguing models to me is one where the content is user generated. You build the infrastructure and your user base adds the content.

    One example that comes to mind is plentyoffish.com. According to the much publicized Jan 09 article in Inc. magazine, Markus Frind - the site's owner makes about $10 million annually.

    Another popular example would be hotornot.com.

    I don't mean to trivialize what it takes to build this type of site but I think that if you find the right niche and build and market it correctly "they will come".
  • Getting retarded-big:

    1) Have a great idea.

    2) Realize it first.

    3) Have people realize you've realized it first.

    4) Scale.

    <abbr>Needmoney.com’s last blog post..Traffic: Search Engine Optimization - SEO</abbr>
  • Finishing...

    The difference between a hobbyist and a pro is the pro finishes the job. The hobbyist never gets the house remodel job done, (oh Honey I am almost done, I just have the trim to paint and put up in the living room) never stays on a project long enough to make money.

    Rick

    <abbr>Rick Prepaid Cell’s last blog post..Net 10 Unlimited Calling Plan</abbr>
  • Justin,
    There are so many who have hit paid dirt using different models that makes me think that any model can work. As a newbie my problem is in choosing a model that fits with my personality and beliefs. In the past I would jump on the band wagon of anything that looked good. The problem was that I had no idea that any one of them would work if I gotten a mentor and stuck with their model.

    We all have to find where we are in our business and what is needed to get us to the next level. We can be persistent, have the determination build a team and take action. But if we are using the wrong system/model/road map or what ever you call it, we will not be as successful as we could be.

    Justin, I'm going to take the liberty to add to something you said in your post by saying; If you don't begin and stay on the right path you won't get any of the rewards. ( "If you don’t know what it takes then you can’t even begin. If you can’t even begin then you don’t get any of the rewards. No traffic, no money, no exposure… Nothing!")
  • Clint
    Hey Donovan,

    This is where I think I am at... Don't know what to do to get started and see results. I don't want to pick something and then waste money, and beat my head against the wall trying to figure out what to do to become profitable in that niche. I tried the No-nonsense abs and Truth about abs programs, and that is what I did.. wasted money and then got discouraged. There has to be a way to figure out a sub niche for the more popular niches so that one can have a chance at being profitable. Weight loss / diet niche is big enough, but what could the sub niche under that be? How do you figure that out... and then what to do once you get there? I know there are probably a couple dozen review sites under the weight loss / diet niche so how do you distinguish yours from the others and make it stand out and convert?

    Regards, Clint
  • Justin Brooke
    Affiliate marketing is all about testing offers... How many different review pages do you have out there? How many of them do you have full tracking on? How many of those landing pages are you running split-tests on?

    You know what... Your blog comment just inspired my next blog post.
  • Clint
    Glad I could help there Justin, I never got to the review site... I was just saying... there has to be more than a handful of them out there. So how would one make it work. I guess by split testing and full tracking... right? lol My initial look at this market was with PPC and google adwords in order to try and find out if the niche was even worth getting into.. Needless to say, after $250 of adwords pulling the plug is what I did with not even one sale. At the time I was sending them right to the landing page of the clickbank product. You would think that this would at least get one sale. I am sure I did absolutely nothing right with the whole process even though I followed the course instructions.
  • It's Good. Thanks So Much for Your Information

    <abbr>internet-business’s last blog post..Trick to Increase Traffic or Visitor.</abbr>
  • Darlene
    I agree with Shane_k that you have to leverage your efforts. Jay if you have so many ideas and you need CF there was a post that indicated an answer, if you read it. Do you know how to raise private funds? If not, I suggest you research the subject if that kind of money is needed for your venture. Many people in many businesses have raised money for their business plans. You don't have to go it alone, but you do have to do your due diligence to get them interested in your project. First you have to decide what your business is and then your business plan and how you will fund it. That goes for on or off-line businesses.
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