Internet Marketing vs. Business as Usual

Internet growth prediction

 

Internet Marketing vs. Business as Usual

Its laughable, in terms of ease and scale when you compare starting an Internet Marketing business against the more traditional Business As Usual approach.

 

Here are a few obvious differentiators:

1. Leveraged Debt vs. Leveraged Reach

2. Geo Limits vs. Global Reach

3. Limited scale vs. Unlimited Scale

I’m no Steve Jobs. However, I did learn a little about business as usual after being involved with as many as 6 small companies. I’ve been fortunate enough to have founded one on my own, but not before Co-Founding 3 others. I go more into the details of my experience below, but keep in mind that I have had lots of failures along the way.
 
When talking about business as usual and all the “Stuff, that you have to do to start a business” is so true. This clip from the late great Steve Jobs sums this point up really well.
 

All the STUFF you have to worry about with Business as Usual.
 
The traditional cost and approach to getting a business off the ground on average is $30,000 to $150,000!
 
That’s just to get started and frankly, after having taking receipt of multiple 6-figure investment rounds… you always need more than you think you will. 
 
Heck if you’re building a SAAS business (software as a service) which, if you’re thinking about, you should check out the Starting From Nothing Podcast they teach an approach, where you really can get started from nothing, as they say.
 
Even setting up a simple coffee shop…typically requires much longer than expected periods of time not making any money, all the while you’re still required to pay overhead and staff. This is typically why so much debt is accumulated by small business owners, or they need big loans to get started.
 
Here’s the brutal truth about each of one my business as usual – businesses.
 
Three of these companies have failed completely; they’re gone along with hundreds of thousands of investment dollars. The first was a hardware product we built and sold into big box electronic stores. We were a small enough company that we could move faster than the larger player in this small gaming niche we made the gadget for.
 
It worked for a short time until a supply chain nightmare started; bringing products from overseas to be built, warehoused and then sold into retail stores. Looking below, that was how we sold products, off a shelf.
 
Internet marketing vs. Business as usual
Buying shelf space (yes you have to do that in retail electronics stores) shipping, selling and mainly holding… as in… no one bought our stuff… or at least enough of it at one time to make it work, became the major issue. 
 
This approach to sales made us a “cash carry forward” type of business. LOL… as long as we had the cash, we could carry it forward. The burden of capital costs in unsold inventory (which tied up available cash) was one of the key challenges.
 
Then ultimately realizing that we were just a tiny fish inside a big fish, eventually ended it all for us. Parts of the company were later acquired, not with cash, but with stock in the acquisition, which is now worthless.
 
The second company I Co-Founded was a cloud-based SaaS business (software as a service, on the right) for the Home Improvement industry, HomeProHub we called it. We solved a real problem in this space but could not get out of our own way.
Home Pro HUb
 
It was completely mismanaged, under-capitalized and to make matters worse, late to market. One of the final nails in the coffin was watching Red Beacon, our direct competitor in this space, beat us to market and was later acquired by Home Depot. Ouch.

Another one bites the dust…

I have an extensive background in both TV production and sales. Along with my Co Founder at the time, who worked at CBS TV Digital, we teamed up to leverage our connections at CBS, FOX Sports and SPEED (before it became FoxSports 1) television networks.

Looking back now, I can see we missed this window by about a year. If the timing had been better… I’m not sure if I’d be writing this blog. We had figured out a way to produce sports content very inexpensively (prosumer HD cameras, GoPro, etc.) compared to the networks which put us in a great position to start a TV production company.

We had a ton of sports content lined up too, network level producers and contracts signed with the venues and sports brands we planned to shoot… then the whole thing collapsed. This third business is where I lost nearly $50 grand of my own money. But then again, those are awesome looking (but sort of expensive) tee-shirts for SportsAlive.TV… I still have one.

The death blow came after we shot and partially finished producing an MMA (mixed martial arts) fight in Los Angeles, at the Orange County Convention Center. These are shots from the shoot. Unfortunately, with business as usual, timing tends to be very important.

A network television quality production, the same sort of set-up you would see the UFC or Showtime shoot. In fact, we had 3 UFC cameramen that day.

What we didn’t know (there is a lot of that with Business As Usual) was all the backdoor deals happening within the Network Television Industry leading up to Fox Sports acquiring SPEED and NBC creating the NBC Sports Network. Just as the technology for cameras where changing, another industry was making massive shifts and moving towards further consolidation – which pretty much left us out in the cold. In the TV business you don’t get paid until the product airs. The deal we had lined up fell apart and the product was never sold.

Out of a total of the 6 businesses I been involved with, 2 businesses are active and functioning in addition to the JV Marketing Group.

One of the success stories is another SaaS product in the financial services space Moneystream.com.

This business continues to grow and has some incredible IP (intellectual property) and traction inside the very competitive space of personal finance. I’m part of the founding team where I led the initial marketing push and customer acquisition strategies. Recently H&R Block (a tax service provider) acquired a small part of MoneyStream at the beginning of 2015. As we moved from garage to the world stage we presented at Finovate in NYC and received fantastic reviews from many industry insiders.

money steamThis recent exposure has unleashed a floodgate of users clamoring to check out our free smartphone apps: iPhone mobile app or Android.

Ironically, the other business is a brick and mortar niche retail store… ArtificialTurfExpress.com of all things. I Co-Founded this business midway thru 2012, its profitable and growing.

Sales doubled for us in 2014 bringing our collective sales volume to over a million dollars since founding the company. This year we’re on track to see 2015 produce our first 7-figure year.

What’s remarkable however, is that our growth has been the direct result of the tactics and strategies of Internet Marketing. No sales were made online, this is retail outlet. By leveraging the internet I drove foot traffic to GEO location.

I don’t say any of this to boast, toot my own horn or in any way try and impress you. I’m trying to make a very serious point…business as usual is very difficult, and more often than not, it requires a ridiculous amount of things (typically out of your own control) to go right in order for the business to work – a completely polar opposite to the Internet Marketing business model.

What I’ve learned thru all of my failures and what I teach now… is that business as usual is tough and… in many cases, unless you execute on a number of things perfectly…the innate headwinds of business as usual can be very difficult to navigate.

Teaching Inbound Marketing Strategies in San Diego.

Teaching Inbound Marketing Strategies in San Diego.

 

This is precisely why Internet Marketing strategies and online opportunities have so much appeal to me.

Testing and experimenting in the vast world that is internet marketing gave me the opportunity to really explore all the crazy “get rich quick” or “push button traffic” and pyramid scams that litter the highways and byways of the internet. The FCC is all over these fake deals anyway and are getting more and more aggressive in shutting down illegal and non-compliant entities.

Having spent a few years trying to figure this stuff out, I was finally able to create direct relationships with some very successful Internet Marketers which paved the way for me to establish partnerships in Leadership Branding, Direct Response Marketing, and Mentorship Training. That’s what I do now, help people create online businesses.

 

 

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There are no secrets to succeeding, you just need to set up the right kind of business structure, understand the formula and build out the process.

Check out my blog: Discovering the 7 Secrets to living the laptop lifestyle.   

Troy Scott

Troy Scott

Founder at JV Marketing Group
I've created a 7-figure business from scratch and built marketing automation systems responsible for over $50m in sales. Today I coach other entrepreneurs on how to build proven online systems that grow their businesses faster and easier. Can I help you? Go Here ==> http://LearningOnlineStrategies.com