Home Wealth Project
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
On buying something for the first time
Dec 16th
There are only three kinds of sales:
- Buying a refill, another unit of a service or product you’ve already purchased before
- Switching to a new model/brand/style
- Buying something for the first time
Here’s an overlooked truth: until quite recently, buying something for the first time was a very rare and almost revolutionary act. In fact, more than a billion people on Earth don’t do this as a matter of course. The standard is to only purchase the seeds, fuel or shelter that your parents, grandparents and great-grandparents did. That’s the way it’s always been.
Take a minute to think about what it means for someone in poverty (which until recently was almost everyone) to buy something for the first time. The combination of risk and initiative can be paralyzing. One of the little-known transitions of the industrial revolution was the notion that companies and individuals could set out to discover and buy stuff that they didn’t know about until just recently.
You see a box or a store window or a product on the web and you start imagining how cool it would be to open the box, own the product, use it, engage with it and benefit from it. A product you’ve never purchased before. That’s new behavior. Until a hundred years ago, that sort of imagining was rare indeed, just about anywhere in the world.
If you are trying to grow your coaching practice or b2b saas business or widget shop, understand that you are almost certainly pushing against a significant barrier: most people hesitate before buying something for the first time. If you’re trying to develop trade in the underprivileged world, understand that teaching people to buy anything for the first time is a revolutionary concept.
Campbell’s soup is almost never bought for the first time. It is a replacement purchase. No one switches to Campbell’s either. They buy it because their mom did.
The first iPhone, on the other hand, was a first time product for just about everyone who bought it… most of the people on line that first day were buying their first smartphone. Worth noting that a few years later, many millions have made the switch–we don’t make first-time purchases lightly.
And most of what gets sold to us each day at work or at home are switching products. “Ours is just like the one you already use, but cheaper/better/faster/cooler.”
The potent mix of fear of loss, desire for gain and curiousity fuel the appeal of buying for the first time. But it’s magic, it’s not science, and it doesn’t often happen on schedule.
Here’s a six-minute video presentation I did on this for the Acumen Fund. Sorry about the video glitch near the beginning–part of the magic of being on stage is that I wasn’t even aware of being projected upon…
View full post on Seth’s Blog
Pros and Cons of Buying A Franchise
Dec 9th
As with anything in life, there are pros and cons involved and it’s important to consider every aspect of them. In this piece, we’re going to take a look at the pros and cons of buying a franchise as a way of getting into your own business. So let’s get started.
Pros
Operating system:
This is the system developed by the franchisor that enables the business to be easily replicated by franchisees. This includes standard operating procedures and methods. By getting an already-established operating system, it means you don’t have to start from a blank sheet of paper creating everything yourself for your business. When I think of “systems” I think of McDonald’s. They’re the franchise industry standard.
Formal training program:
Good franchisors provide good training to franchisees. This usually includes classroom-style training at corporate headquarters. Franchisees are taught things like pre-opening procedures, daily operations, marketing techniques, hiring practices, software use, and more. There’s usually on-site training also, right at the new franchisee’s location.
Read more about franchisee training at Entrepreneur.com.
Specific marketing and advertising plan:
Part of the general business plan, the franchisor will have a proven, detailed plan that allows its franchisees to rapidly get to market with their products or services. Here’s what a franchise marketing plan looks like, courtesy of the folks at Palo Alto Software.
One new trend in franchise marketing involves automated solutions that are designed to help franchisees at the local level. Companies like Balihoo are leading the way with this new technology.
Product supply line / purchasing power:
When the franchisor buys products that the franchisees will use or sell, there’s a discount involved, because the franchisor is really purchasing these goods on behalf of a large number of franchisees. The franchisor has bulk buying power. This makes it tough for an independent business to compete on price with the franchisee. 7-Eleven (over 36,000 stores worldwide) is one franchisor that does this quite well.
Support staff:
Usually based at the franchisor’s corporate headquarters, the support staff can help franchisees with whatever problems they are experiencing. These support areas include, marketing, technology, sales, real estate, and operations. Some franchisors have field reps that go out to visit and assist franchisees at their locations.
Cons
Rules:
Part of the attraction of the franchise business model is of course, the system. For a system to work properly and effectively, the users of the system must follow it closely. The franchise operations manual contains pages and pages of rules that franchisee’s must follow.
For instance, if you’re a franchisee of Ace Hardware, there will be certain items that you must carry in your inventory. If you invest in a Seattle’s Best Coffee franchise, you’re going to have to be open certain days and times. You’ll also have to purchase and use the technology that the franchisor has chosen. Everything that you’ll need will be disclosed to you, before you sign the franchise contract.
Complex legal documents:
All franchisors that are registered in the United States must have a Franchise Disclosure Document (FDD). All franchise buyers must be presented with the FDD before they are permitted to purchase a franchise business. There are 23 items listed in this document, including specific information about the executives of the franchise, litigation, start-up costs, franchisee obligations, franchisor assistance, and information about site selection, territory restrictions, and more. The actual franchise contract is included in the document, and it’s written in fairly complicated legalese.
Reputation management:
Your local reputation is only as good as your franchisor’s. If the franchise brand runs into trouble, you will probably suffer at the local level. Case in point: a pretty distasteful video that two employees of a local Domino’s Pizza franchise filmed, was posted on YouTube in 2009. Things got so bad that the president of Domino’s decided to film an apology and put it up on YouTube, himself. Dominos franchisees were definitely affected by this negative publicity.
Limitations on product/service offerings:
If a franchisee owns a franchise like SignsNow, he or she is only allowed to sell signs, banners, and related sign materials. If the franchisee wants to add window cleaning services to the business, if it’s not in the franchise agreement, then it’s not going to be permitted.
* * * * *
When it comes time to decide on buying a franchise — or not buying a franchise — you will have to weigh these pros and cons. You know your tolerance level for things such as needing to follow rules … versus making your own rules. You also know whether you are the type of person who can create something from scratch, or whether you are more successful when systems and processes are already set up for you. You will need to think long and hard about what is right for YOU.
Pros and Cons of Buying A Franchise
View full post on Small Business News, Tips, Advice – Small Business Trends
Social Commerce: Buying and Selling Inside Facebook
Dec 8th
We’re used to being online, and we’re used to using social commerce sites like Amazon.com. But what about Facebook shopping? Talking to friends, spending money. Laughing with friends, spending a little more money. Sounds good, right?
The revenue generated through social commerce in general is expected to grow sixfold within the next four years. But now, people are also shopping on Facebook. Since one out of 13 people are on this social networking site, how can you take advantage of this trend?
For the quick version, you may want to look at Stephania Andrade’s infographic over on TabJuice, Social Commerce for Brands and Fans. She gives you an easy-to-digest overview of how you can use a store on Facebook.
Before you dive in, consider this…
While the facts about the number of people on Facebook are impressive, Amy Kean of Havas Media offers a few points worth thinking about. Writing on Our Social Times about 13 Essential Facebook Social Commerce Tips & Statistics, she says:
“Don’t sell expensive things on Facebook. On average, people say they will spend up to $85.”
She also makes the point that:
“89 percent of social network members have never bought anything on Facebook.”
Not yet, anyway. You know that there is no magic bullet. Whatever you do will take effort. But once you decide that you’re ready to dive in, here’s a shortlist of some free or inexpensive options for setting up a Facebook store.
3 tools for building a Facebook ecommerce store
TabJuice.com: Lets you create a free store inside Facebook.
Wix.com: Wix offers free Facebook templates for your fan page including some ecommerce options.
Vendio.com: You create a free store inside Vendio. But as you upgrade you are able to load your products in one place and sell them in multiple spots including Amazon, Facebook and eBay.
For a more robust collection of ecommerce options, check out Small Business Trends contributor TJ McCue’s list of 68 Ecommerce and Shopping Carts for the Small Business.
More stats and facts behind the graphic:
50 Fascinating Facebook Facts and Figures by Jeff Bullas. He rattles them off quickly, so it’s an easy read.
10 Facts About Consumer Behavior on Facebook from the 2011 Chadwick Martin Bailey Consumer Pulse.
Social Commerce: Buying and Selling Inside Facebook
View full post on Small Business News, Tips, Advice – Small Business Trends
Media Buying Guidebook
Dec 1st
This 263 Page Media Buying Guidebook Is A Complete Guide On How To Do Media Buying For Affiliate Marketers. It Pays 50% Commission And Converts At A Very High Rate. If You Require Any Banners Or Articles Or Anything Else To Promote It, Just Let Us Know.
Media Buying Guidebook
31 Experts Share Advice for Buying Web-Based Software
Nov 29th
Every day, thousands of business owners buy software. Some are moving to the cloud and purchasing Web-based (aka SaaS – software-as-a-service) and often start with a free or low-cost trial. If you’re considering doing this, here are words of wisdom from 30-plus business owners, including some insights from software creators.
Jon Ferrara, CEO and Founder of Nimble:
Today, business has changed. With the advent of social media, email, IM, text messages and more, businesses are overwhelmed by the myriad applications needed to listen to and engage with their customers. The question is no longer how to stay connected – it is how to efficiently and cost-effectively build business relationships given all the channels of communication. The best Web apps should address all of these issues.
Mark Grilli, Director of Product Marketing at Acrobat Solutions:
SMB owners should look for services designed to meet the needs of today’s fast-paced, interconnected world; services that provide their businesses with simple-to-use solutions to help them deliver their best work, every day, with the productivity, reliability, fidelity, control and cost savings that they expect and deserve.
Pamela O’Hara, President of Batchbook:
Functionality is king! That includes customization, security, ownership, mobility and portability.
Customization - Based on the priorities and the personality of your business, look for flexibility in how you can analyze the information you are collecting, as well as in the user interface.
Security - For desktop or local applications, keep anti-virus software current and back up your data frequently. For software-as-a-service (SaaS), the company hosting the SaaS product is responsible for the security of your data, so check the security policies.
Ownership - Use a business email address when registering the account administrator to protect your business from legal ambiguity about who can access the data.
Mobility - With desktop software, make sure it can sync with your mobile device, either directly or through an application like Outlook. With an online system, see if it has a mobile-ready version or app.
Portability - Ask: What information can be exported? What formats can be used? With what other software can it share data?
Costin Tuculescu, CEO of AnyMeeting.com:
Look for:
1) An active support site that features FAQs, a knowledge base and an active support community through their Facebook or Twitter presence, showing that they care about their users
2) Other companies or users that are using the software, and find out what their reviews are when compared to the competition
3) A history: How long has the company been around? Have they demonstrated financial stability?
4) A free trial that lets you experience the software as closely as possible to what you will be purchasing
Michael Pesochinsky, Cofounder of GovernmentAuctions.org:
The main thing small business owners should look for when it comes to Web-based software is the cost versus output. How much more productive will we be with this software? Will the program do the job efficiently? Can I get this product cheaper–if not for free? Asking these questions prior to selecting the software will help you make the best choice.
John McMahon, Founder and CEO of Sheetster:
Lower upfront software licensing costs combined with standards-based services mean that 90 percent of an organization’s needs can be met using off-the-shelf, open-source services yet still provide “future-proof” and interoperability with line-of-business and commercial desktop products for everything from Excel to Quickbooks to SAP.
The benefits to this approach are many. With a cloud-based server, you no longer need to worry about hardware, networking or maintaining physical systems. Modern cloud servers and drives are extremely reliable and redundant, typically more so than in-house systems. And by running standards-based application server software in the cloud, you get the benefits of dedicated website and database hosting, Web spreadsheets and docs, email and messaging that works with any mail client, mobile-friendly services such as email and calendaring and more.
Sarah Belfer, Director of Public Relations at eDealya:
Rather than focus on quantity, focus on quality. Look for software that engages your fans in meaningful ways – if you listen to them, then they’ll listen to you. Reach out to them at the times that they want to hear from you and about the products that they want to hear about – keep your contact relevant, concise and personalized.
Stephen Fung, Cofounder of Inflow Inventory:
Especially when looking for Web-based software, look for companies that you can trust. If you run into a bug in the software, they should be able to fix it. You’re paying not just for the software, but also for their help and for improvements to the software over time. Look for a company with a track record of regular releases and great customer service.
Robert Landsfield, CEO of Skymira:
It is imperative that companies vetting a software solution ensure that the application can easily exchange information/data/records/etcetera with other applications.
There are cloud-based solutions available that enable companies to gain efficiencies in specific business or manufacturing processes. Think of it as a “business app” store where companies can source apps that do one or two tasks well. What’s new here is there are cloud-based companies with the expertise to tie multiple apps together so they exchange information, in essence creating in a tailored ERP system for an SMB that focus only on the processes that are important to the company. This approach enables a company to layer on additional apps as they see fit over time.
Liz Pearce, VP Sales and Marketing for LiquidPlanner:
Just as important as what to look for is what not to look for. Don’t look for a silver bullet. Forget the mile-long list of requirements and focus on finding a tool that will solve your top three problems.
Darren Levy, CEO of GatherSpace:
Choosing the wrong kind of Web-based software could be a massive waste of time. Look for the following attributes:
1) Free trial – this is a must. If a company can’t let me test drive their software, than they must be hiding something.
2) 1-800 number for customer service and sales, an intuitive website that works well and has great product information, a blog, and any similar signs that show there is customer-centric management behind the curtain.
3) Solid security policies and backup to ensure your data is safe and secure.
Marc Itzkowitz, Senior Director of Product Marketing for Support.com:
When buying Web-based software or any Web-based service, your provider should be an adherent to the Tech Support Bill of Rights, which means that they will honor my right to live support from people who understand my issue but also my culture and my language; the right to have the latest tools brought to bear on my issues so they are solved efficiently; the right to flexible packages of support that meet my financial and business needs; and a guarantee they’ll fix my problem or direct me to someone who can.
Steven Aldrich, CEO of Outright:
You should have no learning curve and get immediate value … if the software is not immediately useful to your business, you don’t have time to waste on it.
Tim Beranek, Partner at BKD:
An important consideration is that the application be device agnostic. The smartphone, notepad, etcetera, trend continues to evolve as new technology is developed. However, with this consideration come huge concerns related to security. Those concerns may depend on the ability to initiate, process, store and query data and transactions. So one must think about the level of encryption on these devices, restricted and secured access, and ability to “wipe” the device if lost or stolen. Periodically, it is important to run vulnerability scans and perform penetration testing.
Eric Peters, Marketing Communications Manager at Mendix:
Look for a balance between out-of-the-box functionality and customizability. You’ll want your application up and running fast, but with the option to make it fit your organization’s business process and integration needs.
Make sure future modifiability is built in to the software: You will want to be able to continuously receive feedback from end users and apply it to the application to maintain a good ROI.
Raj Sheth, Cofounder of Recruiterbox.com:
It should be as simple as email and cost less than your monthly Starbucks bill.
Alan Canton, Owner of Adam-Blake Publishing and Jaya123 small-business system:
Make sure that the service didn’t appear yesterday. If possible see if they have been around for a few years. There is nothing worse (or more expensive later on) than hitching your business wagon to a falling star!
Craig Griffiths, AskFindBuy:
SMEs should look for software that moves customers down the sales funnel without relying on their own site–like Yelp! [does] for the restaurant business. You need a service to promote your category so all you need to do is market your position and not the category itself.
Arun Prakash, Vice President of Marketing at Thinkspeed:
No matter how great the software is, you will likely run into some issues. Make sure they provide proper support so you are not hung out to dry when those issues pop up.
Brandy Sites, Owner of BR Graphic Design LLC:
When I evaluate Web-based software for my small business, the first thing I look for is an active support community. If the forums are very present and up-to-date, it makes me feel more at ease with the new software knowing that I have the proper support when I need it. The next thing I look at is the ease of use. I wear many hats in my organization, so it’s important for the software to be straightforward and easy to use.
Joe Manna, Community Manager at Infusionsoft:
Choosing software based on features and shiny objects alone will result in disappointment down the road as a user. Instead, focus on the strategic benefits that you’re really after, and the features will follow. An example of this distinction is the ability to “stop a vehicle at high speeds” (benefits) vs. “high-temperature ceramic brake pads with drilled and slotted rotors” (features).
Shane Neman, CEO of Ez Texting:
SaaS should be more than just software. Good Web-based software should be backed up by great customer service. If you’re paying for a product you should get prompt, helpful support.
Robby Slaughter, Owner of Slaughter Development:
Most importantly, you should choose Web-based software that has a clear exit path. If you can’t easily export your data and get up and running somewhere else quickly, look elsewhere. Beware vendor lock-in. Don’t confuse “open source” with “free.” There are hidden costs to all Web-based applications, and if you’re not paying someone up front to keep the system running then you will eventually pay for it yourself.
Local options trump faceless mega-corps. If a hometown company is offering a Web-based solution that has merit, the ability get support from someone in your own community is of incredible value.
Eric Richard, Public Relations Specialist at Appointment-Plus:
Make sure the cloud-based software provider is an established and proven business, not a fly-by-night operation that may cease to exist in a year. Also, be sure the provider offers sufficient customer support–including live phone support–for you and your staff.
Grace Sales at CardWiX:
When choosing Web-based software, users must keep in mind the privacy and security of their data.
Jitka Sykora, Vice President of LeaseRunner.com:
Avoid any software that charges on a “per user” basis. Collaboration, one of the biggest advantages of Web-based tools, then gets really expensive.
Amy Bennett, Cofounder of ShopKeep.com:
Know that Web-based means you are dependent on a stable internet connection and cloud server uptime. For mission-critical applications like point of sale, consider companies that provide a native app paired with a cloud-based service. Even if the Internet or cloud servers go down, you’ll still be able to ring up sales.
Juli Klie, CEO of InfoPreserve:
Remember, the Web is just another delivery mechanism (albeit a practical, cost-effective one!) The core rationale for choosing software still needs to be:
1) What’s the problem I’m trying to solve? and
2) Who does it best for our needs today and for the near-term future? Don’t get caught up by “hot” buzzwords or solutions that are great for someone else but not a one-size-fits-all answer for you.
Michael Kaiser-Nyman, CEO and Founder of Impact Dialing:
The best way is to try it out. Most Web-based software has a free plan or at least a trial; pick a few different offerings, try them all out and then stick with the best one.
Steve Tennant, Managing Director of Tennant Consulting:
Consider the total cost of adopting a software package–most of which is the time it takes for your team to get trained to use it. Do the math on the cost of training employees: days per employee multiplied by the number of employees. You might find a more expensive-but-easy-to-use software product makes more business sense.
What’s your “Plan B”? Walk through and test what happens if the Web-based software is no longer available due to circumstances beyond your control. Can you really get copies of your data, say each day or week as an offsite backup, and could you really use that data backup in another software program? Believe it only if you’ve done it as part of your evaluation process.
Michael Ortner, Founder and CEO of Capterra:
Five years ago the common wisdom regarding Web-based software was to be careful about things like security, data access and uptime. But these issues have been dealt with fairly adequately by the vendors, especially as they relate to small businesses, so the main things to consider when buying Web-based (or any kind of software, for that matter) relate to functionality and usability:
1) Does it do everything we need it to do?
2) How quickly can we get our users trained?
3) How user-friendly is most of the functionality?
If you are using Web-based software to operate your company, please share your expertise and wisdom in the comments. We’d love to hear about your experiences and advice for other small business owners considering moving their software into the cloud and operating on a SaaS platform.
Image from LilKar/Shutterstock
31 Experts Share Advice for Buying Web-Based Software
View full post on Small Business News, Tips, Advice – Small Business Trends
Muscle Media: The Complete Guide To Buying Online Ads For Less
Nov 18th
Find Out The Secrets For Buying Online Ads For Less! Muscle Media: The Complete Guide To Buying Online Ads For Less Is Packed With Proven, Powerful Money Saving Ideas And Ways To Boost Online Ad Performance (banners, Ppc, Emails, Newsletters, & More!).
Muscle Media: The Complete Guide To Buying Online Ads For Less
Holiday Goldmine – Secrets To Buying & Selling Wholesale Closeouts
Nov 13th
Hot New Product For 2011: Absolutely Huge Conversation Rates! Start Making Money Today Promoting My Products… Affiliates Earn 50% Commissions Per Customer That You Send To My Offer!
Holiday Goldmine – Secrets To Buying & Selling Wholesale Closeouts
Guide To Buying & Selling Cell Phones
Oct 29th
Checked Us Out In The Past Or Never Before? Now’s The Time To Reconsider! New Sales Page, Banners, Video. Our High-quality Product Now Sells For $37 With 75% Commissions! Visit Resellcells.com/affiliates! Check Us Out – We Promise Not To Disappoint!
Guide To Buying & Selling Cell Phones
Buying earned media
Oct 25th
The term has been around since 1988, but it’s not truly understood by many.
You can’t buy earned media.
It doesn’t arrive on schedule.
Earned media isn’t free media, because the amount of time and energy and risk you have to expend to get it is hardly free.
It’s like all the other things we earn. It is worth more precisely because you cannot simply command it to comply.
[An aside: throughout the history of advertising, ad agencies have rarely, if ever, bought ads for themselves. Worth noting that firms that would seek to help you generate earned media are much better at taking their own advice.]
View full post on Seth’s Blog
Car Buying Scams.
Sep 7th
Never get ripped off again buying a car! Save up to $5000 off of your next purchase. Former Auto Dealer Gm blows the lid off of the auto industry and comes clean on every scam and trick used in car sales. Discover the right way to buy a car!
Car Buying Scams.
