Firstly, a big thank-you to all of you who have helped make Freedom Ocean the #1 Marketing podcast on the Australian iTunes store … within 72-hours of launch!
In this episode, James continues to lift the lid on five more Internet marketing business models … any of which could be a $10,000, $100,000 or $1,000,000 a year business.
James shares what he loves about his life as Australia’s leading Internet marketer? And even tells us what his wife thinks of his career beyond the corporate jungle. What she says will amaze you!
We’re all reminded just how modular the process of starting an Internet business is.
Plus we explore the pain of disconnect … a concept that once understood, can provide a platform for many Internet marketing ideas.
Quote of the show – “Time = Life.” – James Schramko.
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Duration: 61 minutes.
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Tim: James, welcome back to Freedom Ocean.
James: It’s good to be free.
Tim: Isn’t it.
James: It is. [Chuckles]
Tim: The water is cool and invigorating. Listen if this is the first time tuning into this show James and I are here to show you how to get a little bit more freedom in your life through the power of Internet marketing. That would be a basic summary of the show wouldn’t it?
James: Absolutely, we’re teaching tips and tricks and more importantly the baseline strategies that underpin Internet marketing-
James: That you can apply whether you-whether you’re a Mum and Dad at home with kids or whether you’ve got a business at home already this is a great thing to learn because it has so many applications and where we’re up to recently was talking about different ways you can use internet marketing perhaps you can bring us up to speed, Tim.
Tim: Well, what I did want to say too James is that these things we share on the show they’re tried and tested and they’re tried and tested by James who’ve been- how many years have you been in internet marketing now?
James: I think I’m coming up to my sixth year.
Tim: Okay, sixth year, business doubling every year, living a lifestyle that you love here with your family and all is good. I am the little curious kid in the corner that dabbles in internet marketing, owns a number of small businesses, loves business generally, is a marketer by trade and have a whole lot of questions about this thing called internet marketing because I say the potential are saleable courtier every second day and other various products-information products, but hopefully between the two of us our listeners will really, will really get a sense of what’s it’s all about and how to do it and dispel a lot of the myths.
James: Yes, we like dispelling myths. I mean myths- myths are sexy and fun-
James: You know like the Loch Ness Monster-
James: Big Foot and UFO’s.
Tim: They’re like headlines, they get your attention.
James: Yeah, they’re fun and they get attention, but there are a couple of truths in Internet marketing and there’s also a couple of fake solutions.
James: So we’re going to cut straight to the chase.
James: And I can tell you.
James: I’ve been down many, many rabbit holes in my journey to find what worked.
Tim: Yep and so in- and that’s really important you don’t need to think- you’re not starting from the scratch. You’re hearing it from somebody who’s done it all before. So, now in episode 2 you started to share with us a number of business models including blogging, affiliate marketing, local marketing, two more?
James: Selling your own products.
Tim: Selling your own products, product creation – love that one.
James: And we have the hybrid model which is combining product and affiliate model into one.
Tim: I think the best thing to do if you have just tuned in for the first time actually go back to episode 1 and have a listen.
James: Start from the beginning.
Tim: Start from the beginning every episode is going to get bigger and better build on what we shared previously so that would be a good thing. So in this episode James before you give us your five or so business models for internet marketing I just want to ask you what do you love, what do you love about what it is you do?
James: I think actually this is something that I talk to- with my wife who I get to spend a lot of time with now and that’s something that I didn’t enjoy when I was working a traditional job.
Tim: You might want to rephrase that (chuckles).
James: Why’s that?
Tim: [Chuckles] You did enjoy spending time with her, you just didn’t get the opportunities to spend time with her in your previous job.
James: Yeah, what he said.
Tim: Yeah, yeah, yeah.
James: So, the thing is that I get to be creative now and actually do things that make- make- that make me excited to live, you know I’m not looking for an easy life, I’m not looking for that traditional retired thing where you don’t do anything, you know just sit around. I think that would be boring, I’m engaging myself in activities that make me excited.
James: And I actually like building things, I like creating and having these skills has allowed me to do that. I’ve got the flexibility to literally start off with a clean slate on how do I want to live my life and for many people it seems like a long way away especially when you’re toiling away at work or you’re buried in problems, challenges and debt. It does seem like a long way away and you hear people talk about it, but it doesn’t seem real. I was one of those people and now I’ve got this immense power and let’s take it back to the ocean analogy.
James: The ocean is big.
Tim: It is.
James: The ocean has a lot of opportunities, you can scuba dive, you can water ski, you can sail, you can, you know luxury motor cruise-
Tim: Swim, float, fish.
James: Exactly, surf so there are several ways you can enjoy it. It can also crush you on the rocks if you’re not careful.
Tim: Hmm. Hmm.
James: So, I’ve got tremendous respect for the freedom and the responsibility that comes as being master and captain of your own ship through life so I think the thing that I enjoy is the ability to-to-to literally to have that freedom to create a life that I want to live.
James: And I’ve ticked off a lot of goals that I’ve had and some of them are five or six years old and I pull out my old goals sheet and at the time when I was
buried under the tremendous pressure I mean literally thought I was just going to die out of stress in my old job and when I think back to then I had no way of knowing how I would achieve those goals, but my goals were absolutely certain and somehow applying the very stuff that we’re talking about in these episodes I’ve been able to achieve that and that’s the most exciting thing to think that you can actually have what you want and to be able to do it.
Tim: Mm, yeah and then just sitting here in the lab and seeing one of your boys come in and sit with you and I have that same [and high?] way, the ability to spend more time with the family, still doing work and, you know being focused, but it is a different way of looking at life and you talked previously in episode 2 about that concept of, you know how much do you value your time. So…
James: Time is life.
Tim: Yeah and it’s limited, you know and then so therefore focus on leverage and then get more out of every hour that you put in.
James: And that’s it. I want to draw a distinction there. So I love the equation that time equals life because when you’re out of time, you know life’s up.
James: You should invest it wisely, but I’m not looking for an efficient or effective life, it’s not that I want- I don’t want an easy life where I do nothing. I want a rich and full life. My wife recently said to me that she could die now happy that she’s achieved everything that she ever wanted out of her life which is-
Tim: Wow, how’d that feel?
James: It was like, “Wow, I’ve actually sort of made it”. You know that feeling,you’ve actually made it and you touch yourself, sort of you pinch yourself and say, “Wow, is this real, is this actually happening?” and once you get over that it’s like you can really enjoy the moment and a lot of things change once financial pressure goes away because for most people it’s like I’ve got to go to work today.
James: And make money so I can pay the bills and tomorrow I have to go to work to make money to pay the bills. When the bills disappear, when you don’t actually have to go to work to make money what would you actually do?
Tim: What do you say though to people that are going, “That’s all very well for you, James.” Good on you, great that you got over the hump and your wife’s happy and she could die happy and you’re doing what you love. There’s that group of people who are just going to go, “I can’t do it” and now that’s a hugely limiting belief and we are going to talk about mindset in a future show, but I don’t know I just- when I hear you say stuff like that I do want to represent those who think that’s it not possible so what do you say to them?
James: Well I think- look it’s pretty simple, some people are doing it and other people aren’t so I say to them-
Tim: Doings the word there. Doing.
James: Doing- well it’s about doing the right things if you listen to someone like Peter Drucker who was way ahead of his time predicted the Internet. He said one day we’ll be paid on our knowledge and knowledge workers and we would be working remotely and universities would crumble.
James: And here we are. You can work from your house if you want anywhere in the world.
James: So I would say to them- well you know I’m doing it because I saw
someone else do it because I saw someone else do it and I figured why not me, why not me? What’s so special or different about someone else that they can have it and not me?
James: And the other aspect of it is you will have to pay a price. You’ll have to put in the effort; it’s not going to be handed to you in the lap. I stopped buying lottery tickets because a) I don’t need the lottery to be wealthy and b) that’s not my best strategy to become wealthy. I have to take full responsibility and I’ve got to own it. I got to be responsible for what happens to me in my life.
James: That person is responsible for everything that I’ve got right now in their life, pretty much. You know, everything that they’ve done up until now, everything that they’ve read or not read or participated in or not participated in is getting them to where they’re at right now. If you want a different destination you got to get on the train and you know I pulled out my notes from ten years ago from a millionaire who I went and sat with and I said to him, “What’s the secret?” And, he looked at me and he said, “There’s no Holy Grail”. There is no Holy Grail you have to- you’ve got to decide the destination you want to get to. He said it’s like getting on train and make sure once you get on that train that you’re happy with the destination you chose and I think that what he was teaching me was program the coordinates of where you want to get to and you- and you’ve gotta go, and you’ve gotta be like train track focused.
Tim: Well, I also like your quote of like, “be like water”.
James: Yeah, that’s definitely helped me through tough times.
Tim: Yeah, which is you could explain that.
James: Well, I mean within a few sentences I’ve told you my life’s fantastic and things are good, but I also told you I almost died through stress. I don’t want people to think it’s a cake walk.
James: I’m not advocating that and it was no magic button that I tripped over one day walking in the park and I pushed it and everything happened.
James: I put in the hours like- like in that book by Malcolm Gladwell, you know you’re going to have put in the 10,000 hours if you want to be good at anything. It’s going to take time, an investment in energy or an investment in money to short cut the time so I just feel that there is a journey, there is a certain price that you have to pay but make sure that you’re worth and I think my overriding advice is that you’ve got to believe that it’s possible
Tim: Yeah, absolutely and but that’s about as dark and dreary as we’re going to get on this show, but it is worth saying that, you know if you’re not a selfstarter, if you’re not an entrepreneur, if you’re someone who thinks, “God, how can I ever do that on my own?” You don’t have to, you don’t have to be because it’s about, you know it’s about associating with other people that have the same mind set, get in a Master Mind group, just tap someone on the shoulder you’d really like to go on the journey with and say, “Hey, how about we try some of the stuff that Tim and James are sharing on the show” or joining membership forums. I mean there’s a lot of stuff out there and we are going to share those resources along the way, so don’t think that this is a lonely road because it ain’t. There are a lot of people out on the Freedom Ocean –
James: It’s definitely not lonely there’s a huge community. In fact, I built one community and gee, it could even be a business model that we may cover.
James: But yes, you do have to be like water coming back to the original question and that is that water is just indestructible.
James: You can freeze it, it turns to ice that goes to the polar cap and it melts. You know if you burn it, it turns into steam, goes to a cloud and then it rains down into the ocean again. I mean it comes up against a log it just goes around it you can’t really kill water off.
James: It’s just impenetrable so it was in The Art of War by [Sun Zu] and that taught me about persistence so whenever I come up against an obstacle, you know you may even hear me say” I’m just being like water today.” My server’s crashed, my email’s getting blocked, my Pay Pal is blown up or whatever. If thing’s happened, get over it.
James: You know decide that you prepared to pay the price and push through.
James: And my most successful students have they be like water persistence about them.
Tim: Hmm. And know that there is- I mean part of the reason we’re doing this show is we know the monsters are waiting, you know. We talked earlier, I think episode 1 where this- this- the life cycle of Internet marketing it’s still very young, you know yea sort of that the gold rush has happened, but now the monsters really starting to awaken, you know and the local marketing, the local Internet marketing is Google getting out there and knocking on shop doors and things are starting to really take some shape and it’s a good time to get in and so there’s a lot of other people with similar mind sets and with similar dreams and it’s all about finding them and we’ll show you how to find them. So, James let’s start back into those business models – number six?
James: Well, I’m going to go with one that we just touched on and that’s building communities and this could be called the “Membership Model” and the principle is you bring to be- you bring together a like minded group of people who have a particular passion or interest and you go and get good information for them and you create a community or a membership model around that and you charge a fee for that. It could be a one-time fee or it could be a monthly recurring fee, which is a very good model to approach for obvious reasons and if you can- if you do the numbers on this it’s very easy to see how this can work out in your favor. Now let’s take an example, if you had 1,000 members in a community and they each paid you $9.00 per month.
James: Which really isn’t that much. That’s $9,000.00 per month each month and the assumption is you’ll lose a few people and you’ll add a few people if you continue to build it. If you were to say you had 1,000 members at $99.00 a month, well, you’re talking about nearly $100,000.00 per month coming in to your account so you can see the power in that type of community. So there’s a few aspects to this, what do you have to give to make people pay for that, how do you set it up, you know what sort of things are involved. I don’t know how far you want to go, but being the curious guy in the corner…?
Tim: Well, it’s- yeah [laughing]
James: I’m sure you’re going to ask me to.
Tim: I’ve got [chuckles]. I’m listening here, I’m listening to you talking and I’ve got a 1,000 questions knowing- knowing that, you know once again down the track we can- we’ll do a show on membership sites and how to build a community. Suffice to say that once again the technical aspects of building a community ain’t what they used to be there are now products, there’s like you know there’s this software that allows you to install a membership site onto your web site, onto a domain name, you know into your hosting so it isn’t that hard and don’t do it yourself. We will show you how to outsource it.
James: Well, let’s just touch on that briefly. One type of membership that a lot of people would be familiar with is some type of form or, you know portal. Okay, that’s one and so probably the most complex one which is still quite simple once you know how, of course. The simple ones are just a subscription membership. I don’t know- have you ever subscribed to a magazine Tim?
Tim: Yes, I have.
James: And how does that work?
Tim: You pay them a yearly fee and every month your magazine arrives in the post.
James: Have you ever owned a mobile phone?
James: Does it have like- then they keep sending you a bill.
Tim: Every month.
James: And they keep sending it until you say stop.
James: So this is the recurring subscription type model so in effect you’re a member of their phone club.
James: And with the magazine you’re a member of the magazine and, you know this is such a common normal business model offline and, you know if you saw the numbers that people make in the pharmaceutical market, in the skin cream market.
James: The vitamins market, the supplements they are some staggering, I mean like just outstanding amounts. Even things like IPhone applications where people can sign up for regular updates. It provides tremendous opportunities.
Tim: It’s becoming quite popular like software is a service, I mean my invoicing software I use instead of just being able to go out and pay a few hundred bucks for that software I’m paying monthly fee to use it. It’s a small fee and it’s constantly being improved.
James: Well, are you ready for your head to explode?
James: Okay. Well, you recall in our last episode the business model of being an affiliate so imagine if you could get paid for everyone else who you recommend that same software-
James: From your blog which is another model, right?
Tim: Yeah, yeah that’s right. [Chuckles] Yeah, yeah.
James: Now you see how modular this is. These things snap lock together so I’m imagine people are having some “aha” moments about now because you could literally make a list of everything that you currently subscribe to and pay for on a monthly basis and then you could actually start promoting those things to other people who are just like you. Now because you already used them, you know the ins and outs, you know what’s good about them so that’s one way you can actually make money from a member ship program without even having to have your own one.
Tim: Mm. Yeah, yeah, yeah, absolutely.
James: It’s too complicated so the big shift for me in my business was when I moved as an affiliate I moved from one time products to recurring products. I love subscription products and there’s this fabulous thing about subscription products is that many subscription products are vital for the customer; they can’t live without them and people tend to stay in recurring programs if there is still constant value provided. So I like consumer markets, mobile phones are a classic because people generally stick on a plan for a while these days.
Tim: Well, it’s hard to change.
James: It’s hard to change and hosting- web hosting.
James: Or email services, you know it’s something- it’s a bit of pain to change so actually call that “pain of disconnect”. [Laughing] And that’s worth writing down if you’ve never heard that before, but when you’re providing solutions to the customers you want to make it a valuable solution that’s hard to go without.
James: And people will continue to pay so if you’re up for a membership site or a membership model or you want to create a newsletter that goes out each week or each month that could be the simplest form. People pay you a monthly fee; you send them out premium content.
James: Via email it could be that simple.
Tim: One of the resistance- resistance is that a word? One of the blockages I’ve heard people talk about to this is you know you can follow that information on the Internet so it’s already there.
Tim: Whether you’re looking- whether it be some kind of ongoing monthly membership model but the fact is that people love to see it packaged up and if it’s been packaged up and coming from someone whose opinion and thoughts they trust and they’re going to pay for it because you’re adding value to it.
James: Damn, why do people still buy newspapers or magazines?
Tim: That’s right.
James: Or pay TV.
Tim: It’s all out there.
James: It’s all out there for free. Yeah, there’s certainly a way to create extra value by compiling and sifting and sorting and putting things into a really cool format-
James: Tailored for that audience.
Tim: Mhm. Okay. What are we up to business model number seven?
James: Wow, yeah, we’re getting some- but you know the exciting thing is each one of these could be a million dollar e-business for somebody.
Tim: Mhm. Or a hundred thousand dollar e-business.
James: Hundred thousand or a ten thousand dollar e-business.
James: You know that’s the sky lit whichever way it needs to go.
James: Or even a thousand dollar e-business. I mean in our last episode you talked about fiber.
James: And you know the things that you can buy. Now, my little daughter she makes about $70.00 a week on fiber as a provider on $5.00 jobs and she’s thirteen and she’s got her own business.
James: So I mean this sort of opportunity didn’t exist before. I mean she’d have to have a lemonade stand or a newspaper route.
Tim: I think what- I think a real mind set shifted. Now listen to this, it would help if I talk if there’s still kind of questioning this whole notion of Internet marketing is that the incident enables so much commerce to happen easily where previous- pre-Internet it was much harder.
James: Yes, it was physically difficult.
Tim: Yeah, it was it really was.
James: Well, if we were in the industrial age I’d have to pop down to my textile factory, you know.
Tim: Yeah, that’s right [chuckles]
James: And, you know check the stock.
James: And make sure the machines are working.
James: And deal with workers.
Tim: If I wanted to sell someone else’s product I’d have to meet with over phone, face-to-face, probably invariably be physical product so I’d have to store it, it may have a date, you know a use by date on it where as the Internet it just say like this knowledge information age and knowledge age it’s in the way it allows you to say I want to sell your product, give me a link so that every time someone buys it I get a commission. Man, that’s a very, very simple business model.
James: That is. Well, you know what the funny twist is Tim and I’m sure this will come up later is the biggest trend and the biggest leverage point in the modern Internet marketing business is to incorporate back some of those old world things that just don’t happen anymore like sending a letter or picking up the phone and talking to a human.
James: Those things are the way you get your leverage points so I’m looking forward to coming back to that point later on.
Tim: I’m looking forward to digging upon every single one of these because I’ve got too far many questions which, you know my wife knew that would be the case. I’m might even come out with more questions than I have- than I had at the start, but hopefully not because over the course of time we will pretty much- we’ll explore all concepts and aspects of Internet marketing. Back to you.
James: Okay the next business model I’d like to call this one “lead generation”.
James: I’ll explain what that means.
Tim: As opposed to love generation!
James: As opposed to- now it does happen in the love generation market, but…
Tim: Yeah, yeah, yeah I get it.
James: It certainly happens in the real world.
James: Off line.
James: Most businesses refer to prospects as a lead.
James: And what this business model does it actually lets you set up a business or in particular a website where you collect information and then you pass that on to someone else and they pay you for that. Now they can pay you in many different ways, they can pay you a commission for the sale, or they can pay you per lead. So this would be pay per lead and I guess in this case we’re sort of a publisher. So we put a good useful website, we attract people to it and we collect details and then we pass those details onto somebody and we get paid for it.
Tim: Mhm. Okay so is that the same as cost per requisition?
James: Oh, get the phone book out. [Chuckles]
Tim: I know, I know that was very technical of me but sometimes it’s hard not to use some of the lingo.
James: Yeah. This is a form of cost per acquisition or CPA.
James: Yep. So cost per action or cost per acquisition it could be referred to as [ARDOR? 0:25:32.8]. It’s usually – that’s cost from the other side, that’s the person paying for the lead. That all basically, in many cases a company will set up a cost per action campaign where they say to the market or the marketers we will pay you “X” per customer that you send to us so we may if we want to use the “lead generation” model we may put CPA offers on our website that track back to that person and we get paid per person that fills out.
James: Again, we could do this through a network rather than dealing with individual companies just like we could if we were an affiliate.
James: So with an affiliate model where that’s slightly different is we generally get paid per sale and with cost per action, or lead generation we would get paid per lead or per action, but there are other ways to do this too. We could actually joint venture and go in partner with the person and we could be their external marketing arm and paid on a profit share of the whole company if we want.
Tim: Mm. I would have think joint ventures your next business model is it?
James: Well, it is there, but it’s not my next one.
Tim: Okay. Fill her up, what is it?
James: Well, let’s- we could actually cover that you know. We’ll talk about joint venture or brokering.
James: And just like normal offline business, well, I call it offline but when I say offline that’s just like bricks and mortar business. There are people in the market place who are brokers and they join up buyers and sellers and they take a commission. So we’re all used to real estate brokers and list brokers perhaps if we’re in a business already who match resources and buyers and sellers. J.V. Brokers can actually find somebody extra promoters or extra affiliates and they can actually take a slice of the action.
James: Let’s say you have a product you want to sell and you have a bunch of affiliates you can employ a J.V. Broker.
Tim: A bunch of salespeople.
James: A bunch of salespeople. You could employ a J.V. Broker to go and find the salespeople and for everyone that he introduces to you- you pay him 10% of whatever they get so now he gets an override.
James: So this would ideally suit someone who’s a connector, who knows people.
James: Who could match people buyers and sellers and bring people together and take a slice of the action.
Tim: How do you keep track of something like that?
James: Well usually you can just set up a tracking identification link.
Tim: You make it sound so easy. [Chuckles]
James: That’s my job because I’m petrified of that phone book.
Tim: Yeah, yeah, yeah.
James: At least you found a good use for the phone book.
Tim: The tracking identification link. Yeah that’s true, we need a sound effect.
James: We can add one in later.
Tim: Yeah. So tracking identification link, that- surely that’s something that we’ll talk about the haves later but something you need someone else to do.
James: Well, here’s something that’s so cool in Internet versus traditional commerce. Everything is trackable and measurable and that makes life easy when we want to sell things or buy things because we can actually track the effectiveness of it in real time.
James: Versus the old days. The old days the market would mail out envelopes, wait a few days and then see if checks came back so they would spend all this money and even if they did a test it would be a month before they could get it out to the market again. Now we can stick up a campaign today and we could know by this afternoon or tomorrow if it’s working or not.
Tim: Yeah, that’s amazing and we’ll talk about all our responders in another show, but just the ability to send out a mass email via [some? 0:29:18.7] responder software and see how many people have opened it, how often they’ve opened it, when they’ve opened it. I mean that’s powerful stuff real time.
James: And we should explain what order responder is so I don’t have to hit you.
James: An order responder is literally an email service that can automatically send scheduled emails.
James: And it can actually- it can have an intelligent function where it-it’s behavior will be determined by the actions that happen once the emails gone and this, and you know this is just fascinating stuff.
James: But we could send an email out to people who opened our previous email or we could send an email out to people who didn’t open the previous email but not the people who opened it and the real power of that is we can start powering out our message. So let’s talk about another business model something’s that got bigger potential.
Tim: And James in the background I don’t see any reason to pause here, but it’s the power of Internet marketing, your families arrived home, it’s midafternoon, you’re here in your shorts, hopefully Jenell will come in and say you know, good afternoon, how are you both, the kids will run around.
James: Yeah, it’s nice to- the portability aspect of it is phenomenal.
Tim: Yeah, yeah and they’re only growing as the amount of devices flourish. So are you about to launch into another business model?
James: I’m going to talk to you about flipping.
Tim: Oh, yeah.
James: Flipping is actually quite well known in the real estate market and that is where you buy say a house and then you sell it again for profit and that’s flipping a house, flipping a property and you can actually do the same on line. You can buy a website and then sell it and just like in a normal real estate market you can renovate the website, you can update, refresh it, change it, repurpose it and you can add value to it and sell it for profit and even if you didn’t do all that you could simply buy it low in one market area and sell it higher in a different market area.
Tim: What do you mean market area?
James: Well, I’m saying that there’s probably a wholesale market and a retail market and most business owners would be familiar with that, but in case you’re not let’s talk that through. When I go down to my local shop and buy milk they bought that milk at wholesale.
James: And they’re selling it to me at retail and they’re keeping a margin. Did they change the milk? No.
Tim: They didn’t do anything.
James: That’s exactly the same. They’ve just got a bit of arbitrage going on where they buy low.
James: Sell high and keep a cut. We can do exactly that with websites we just have to know where to buy them from and where to sell them to.
Tim: Okay and you’re going to reveal where to buy them low and sell them high?
James: Well, the other thing you can do is buy domains.
James: Just sort of- I don’t know if it counts as half a model.
Tim: Yeah, well it’s…
James: But you can do- you can do exactly with domains without even having a website.
Tim: Absolutely you can. Yep, like wine- a domain is like wine.
James: We call this domaining. So we can find domains and the real money in domains is in the pre-owned domain market. It’s domains that have already been registered before and we can pick up the up.
Tim: Bit of age.
James: Bit of age. [Chuckling] Yes, well age is one aspect it’s probably not the most important. There’s a lot of other things that can change the value of a domain and again it’s an entire topic, but let’s just get the concept down. We can find the domains, buy them for a price and then we can sell them again either as a domain for a profit or as a website of if we want to go all the way through we develop it out into a real business and sell it for a massive profit. I mean it’s not unheard of to buy a domain for $10.00 or $12.00 and develop it into a real business using one of the other models we talked about developing it into a blog or a membership and sell it for hundreds of thousands of dollars. Now I just want to put this one out therethe chance of you coming out with huge, [who? 0:33:44.3] of Facebook are very remote.
James: Okay that’s rare.
James: Certainly not normal. Now I see a lot of dreamers going after that big one. I think, you know it’s important to know that this domaining and website flipping is a daily occurrence, it’s a main stream activity that is just going to explode as people switch on the fact that online you can do everything that you can do offline. You can lease domains. You can actually set them up to do revenue streams and hold them just like a property. You can renovate them; you can turn them around the same day. They’re quite liquid as well, especially the dot com market. They’re easy to buy and they’re easy to sell.
Tim: Mm. So places like aflipper.com is a place where you can go and just observe, and not even get involved but just exactly what you’re talking about you can see it action.
James: That can be the homework for today; it can be go to flipper.com.
Tim: Oh, homework. Yep.
James: And the thing to look for there is have a look at the recently sold ones, okay? Because that helps you get a feel for what the market’s paying.
Tim: What they buy and what they’re paying.
James: And the great thing is on those listings is they show everything about the domain and the website, and they show the traffic and the way it was monetized. By monetized- how people actually money if they make money from it and it shows you all this stuff and you could actually start observing that on a regular basis and just like if you were a share trader doing paper trading or pretend trading you could actually look at listing coming through and try to predict what it would sell for and go and check.
James: And get a feel for what these things are worth and now I think it’s still quite, it’s quite a small part of the market. It’s not very well understood and it will be big, it will be very big.
Tim: Well, you’re talking about sort of an industry with its own language. Domaining is another one of those industries is just a barrier to entry for a lot of people where I think, you know even buying, I mean buying a domain is pretty easy. Let’s, yeah, that is-that’s probably the easiest part of domaining. It’s then figuring out for those who don’t know how to develop it, how to point it elsewhere, how to get it hosted, all that techo stuff. How to park it, but we will cover it in future episodes. But it’s certainly a growing area and you know if you haven’t a .com go and buy one, go and buy one and sit on it for the $7 or $10 you’re going to pay for it. Like [fiver? 0:36.27.6] can be addictive. [Chuckling] I’ve been there and sat there for hours and hours and typed away and can’t believe that’s available and then bought it and then realized that was a waste of time and then there were others I bought off the secondary market like is a great forum, I think it’s dnforum.com and it’s a great way once again just seeing what people are selling and what people buy it for.
James: Well, that’s a great example of a wholesale market.
James: That, you know there’s very experienced domain is in that forum.
James: And they’ll list a stack of domains some of them can be quite well priced and what happens is there’s a secondary market behind that most people never see and if you buy a domain or two in there then what will happen is the people who you bought it from will start emailing you directly within the next viable domains before they even posted it in the forum so you’re going off market what we call that and you start to pick up the real bargains.
Tim: Mhm, I didn’t know that- it’s a good tip.
James: Well, yeah. You should listen to our episodes. [Laughter]
Tim: Exactly, right. What are we up to business model eight or nine?
James: Look I’ll go with either of those.
Tim: Yeah, yeah give us one more.
James: I want to talk about- I’m going to give you two more.
James: I want to talk about webinars. I think this is just massively underrated.
James: And webinar and we mentioned this in podcast two. Webinars are online events and it’s like going to a normal event except its on line and this there’s some obvious benefits here. If you’re holding the webinar there’s no requirement fee to even get dressed. Okay, now one of my friends he sells the product teaching people how to run webinars in their underpants, but I think what he’s pointing out is it’s not like a normal event and I’ve spoken from stage before as an expert and it means that I’ve got to travel to the country, I’ve got to hire a hotel room, I’ve got to get all dressed up and, you know look after myself and heat meals and speak in front of crowd and then pack up and come home it might take me three or four days and forty hours on an airplane and at least eight or nine thousand dollars in travel expenses to speak to say three hundred people or I can just run a webinar using software that costs a couple hundred dollars a month.
Tim: Not bad.
Tim: A hundred bucks a month.
Tim: Well-there’s a yeah- cheap.
James: I pay a hundred dollars a month but I know the price went up-
James: On the popular software that I use and it’ll host up to a thousand people.
James: I could speak to a thousand people from anywhere in the world
Tim: And I can see your screen and they could ask you questions.
James: They can see my screen, they can ask questions.
Tim: And they talk, chat.
James: And I can do all that from the comfort of my own home and I only need to tune in for that particular time. I think you’re absolutely right there in terms of untouched markets and business models. Go out on the street and I would probably say as high as nine out of ten people will say, “Have you heard of a webinar?” “No.”
Tim: The indicator for me is when you type it into word it underlines it as a misspelling.
James: That used to happen with blog, Facebook…
Tim: I think it still does with podcast, actually.
James: Right. [Chuckles] Well that’s an indicator you’re on the edge of the curve.
Tim: Yeah, that’s right.
James: Okay so the great thing is you can record these things Tim and you can sell them as products.
Tim: Yeah, yeah.
James: If you combine these with some of the other techniques, if you want to combine them with affiliate marketing or your own product or service. I mean go back to the pest inspector; he can literally hold a webinar on protecting your investment property from dangerous bugs and termites or something.
Tim: I think a great mindset for webinar is it’s a bit like having your own show and, you know if you are simply a business owner listening to this webinar is a great, you know if you did nothing else have a monthly Q&A for your customers and your prospects to come on and ask any question and maybe in the middle you might present them with one of the products or services that you’ve just introduced to your portfolio and as you say you can record that, you can transcribe it, you can send it out afterwards, you can post it on your website, it can be a free giveaway for people signing up, it’s a great value ad and a great point of difference.
James: Yeah, well I think you- you probably said that last statement too dismissively and I want to grill you on that. [Laughing] You can give them away for a signup. Tim, what do you mean by that?
Tim: Yeah, gosh. You can- often you can- you can treat them. You know what that is.
James: I mean that is just, that’s something I do in my business we build a customer data base by giving away webinar recordings.
Tim: What you’ve got already, you’ve done for another reason.
James: I’ve already done the work, I mean, gosh, this is almost like a B.D.A. method.
Tim: Yeah, yeah.
James: That we do the work once, we get paid over and over again and that’s the leverage of the Internet so my website’s up there right now as we’re recording this, my website is up there and when people come along if they want to get my webinar recording for free they’re just going to give me their details and once I have their details I’m going to offer them another free webinar and eventually I might ask them to buy something and that is the tremendous power in all of this automation.
James: But webinars are cost effective, easy, leverage way to reach a large audience from the comfort of your own office or home and you have the ability to further leverage it by recording it and selling it or you could make a membership where you simply just run a webinar at a set period and people keep paying you each month for membership to that and that’s another thing that I do as well.
Tim: It’s-its interesting just listening to those last few business models. You’ve mentioned from me, already set up when you talked about domaining and webinars and I’m thinking also our listeners that there’ll be business models where people- the eyes glaze over and there’s a couple you’ve mentioned that I’ve just gone well I didn’t know that existed but, you know information [inaudible 0:42:46.9] I just- I just can’t even go there right now. My advice is stick with it because we are going to dig deep on lot of it.
James: We are going to dig deep.
Tim: We are going to dig deep on all of them.
James: I want to give you some context to this. My first $100,000.00 came from one business model.
James: It was that affiliate business model and the important thing to remember is that you don’t have to do all of these at once.
James: The only reason I do it at once is because I’ve been doing it for five or six years and I’ve mastered each one and tested it and then I add them on and I hope it’s obvious now, but many of these are quite modular and they fit together and they help each other and that’s the way you get, that’s why business keeps doubling every year because when I go and bought one of these things onto my whole business I can roll webinars out over several of my businesses. I do it for my Master Minds, I do it for my coaching membership and I do general to the public ones just to get new customers on to my database so it’s a really powerful business and I know people who make their whole business just doing webinars and here’s a business model for people interested in this one. You can have your own Oprah show. You don’t have to be the expert; you could literally set up a webinar business model and invite a new guest each week.
Tim: I love this one.
James: You know and you get people on board, they come and listen. The guest could sell something and you could be the affiliate and pocket some commission.
James: Okay, so we’re really talking about, it’s more than just a traffic method, it’s more than just a content creation, it is a whole business model.
Tim: Absolutely, so that model is actually- looking at as a show I mean that’s a great way of looking at it and you know five, ten years ago imagine a small business owner thinking like how could I possibly afford or put together their own show? You know that was left to the top end of town, brand marketers where as these days the idea of having a show, you know here we are sitting in your lab having-creating a show, you go and run a webinar, $99 bucks a months, whether you charge people for it or whether you sell something on it- you’re decision, but it’s a great mindset to take and it’s another channel to market.
James: Well, you know there’s a side extension to that and that is like streaming videocasts and you can actually get an application on Facebook that will let you stream live and there’s other websites like ustream.
James: And, you know as you mentioned the ability for anyone to create content and be a producer is viable now with YouTube.
James: With Ustream, with Facebook. We can all be producers and pub, I mean in our lab here we’ve got some basic equipment that will allow us to create audio with green screen technology for videos.
James: You know can make stuff that used to cost hundreds of thousands of dollars in a professional studio is freely available in the marketplace for every small business owner or Mom and Dad.
Tim: I’ll just add to that webinar business model there is also some software and I’ll put it in the show, I think it’s called “Webinar Replay Software”, but I could be wrong and what that allows you to do is create a landing page, or a little web page or one page website where that webinar lives and people can come in and you can actually put a timer on it to say, “This webinar will start at 12:30 tomorrow” and it constantly replays every day at 12:30 or you can decide.
Tim: And that’s a selling and that’s just a- that’s a ever great selling tool.
James: Yeah so I’ve known about people doing that three years ago.
James: And here we are now and nine out of ten people still don’t know what a webinar is.
Tim: Still don’t know.
James: And I think it’s tremendously untapped, there’s plenty of room in the market for experts to come in and just own it.
James: And think about this if you’re expert in the field, perhaps accounting you could actually be the leader in your field and have all the other people in your category, all the other accountants coming to you to have access to your accounting show and you could own the market place in your industry.
Tim: There’s a vet in Sussex in England, I think its Sussex and he’s called “The Webinar Vet” and he runs a veterinary practice, but I know for a fact because I know the guy who’s helping him establish this little side business. He’s earning more money from running webinars on veterinary care from both other vets and for pet owners and he’s dispensing his veterinary services.
James: You’ve got the Webinar Vet; I mean that’s a practical application. [Chuckles]
Tim: Give us that last one James; I’m excited for the last business model.
James: Well, all right I’ve actually have plenty more, but I’m just going to sneak this one in.
James: And this is the services model or the middle man model and this is something that, I mean I just love this one you find. You basically find a group of buyers, who need a service, and then you go to suppliers of the service and you say, “I’ve got a group of buyers” and then you join them together. So it’s sort of like a J.V. , it’s sort of like an affiliate, but what you do is you put your name and brand over the top of it and you build a customer. So, you- say you want a service you would pay me and then I would go to my service provider and I’d say, “Hey, listen go and help Tim with the service”, but you just be under my company when you do that, it’s literally like putting my t-shirt on for my company and you feel as though you’re dealing with my company.
James: But I actually had someone else apply the service.
James: It could be called a white label, it could be called a private label, it’s basically the middleman strategy where you’ve placed yourself in between the buyer and the seller, you’ve got a wholesale service provider and you are a retail service seller and you’re dealing, and you’re keeping the margin and this works really well with volume. The more you do the more profit you make.
Tim: That’s doesn’t- that’s not too automated that strategy. That sounds like a fairly hands on one.
James: That’s 100% automated.
Tim: Okay, tell me about that. [Laughter]
James: Well, in my case what I do is I will set up a website to sell the service, I will set up in my shopping cart to receive the money and then I will actually get the end provider to give me the page that they need to have filled out by the customer and I’ll put that in the shopping cart.
James: Now, I get my affiliates to go and sell the service. So this is how it works, my affiliate gets a customer, they send them to my website, the website takes the money and then the customer fills out the form for my end supplier, my end supplier supplies the service- so what did I do?
Tim: Not much.
Tim: And you’re end supplier is providing the service to the customer.
James: Under my brand.
Tim: Right. So for all intensive purposes the customer is dealing with your brand.
James: And this is hardly any different to a normal bus- next.
Tim: What about quality control?
James: Well, look at the biggest telecommunications provider in our country here. It’s Telstra?
James: But when you call up, you’re – if you call up after hours you’re probably going to speak to someone from another country.
James: And that somewhere in the other country is more than likely working for a company that white labels their services to that telecommunications.
James: They’re not directly employed by the biggest telecommunications carrier. They’re just a service company pretending to be from that company under contract.
James: So what’s the quality control? Well, you put feedback mechanisms in there; I’ll give away a juicy tip here. On all of our correspondence we have a direct feedback form that comes straight to me. So any customer on any one of my services can send me a confidential note without even having to leave their details so I’ll know straight away when there’s a problem.
Tim: And that form goes to the customer upon completion of the job?
James: No it’s on every correspondence in the signature line.
James: It’s like- You want to tell James something? And it comes straight to me, I don’t even have to check it; I can have my team check it and tell me if there’s a problem if I really wanted to outsource it. But there’s one metric that I really care about in my business and it’s not customer service, its loyalty.
James: I want to know if the customer will buy again. If something will stop them from buying again I need to fix it straight away.
Tim: Well, if they’re buying again then obviously you’re customer service is okay.
James: You can have a dissatisfied customer that’s loyal, but you’re not going to have a loyal customer- a disloyal customer who’s satisfied is still not going to buy from you even if they’re happy. It’s a – it’s a crucial differentiation that I don’t think many businesses understand.
Tim: So given that the Internet is a virtual world and given that, you know you’re saying- you’re not eyeballing clients. You’ve got this survey on your email signature when people are transacting with you, but there is also… You got a Help Desk set up haven’t you?
Tim: That allows people to – I mean you never…
James: I have a Central Help Desk for all of my business units.
Tim: Okay, you’re never far away from knowing exactly what’s happening.
James: I have two ways for people to get to me before they have to go on Twitter and say something negative.
Tim: Yeah, yeah, okay.
James: Which is a topic I think we really should cover in a further thing is “Representation Management”.
James: And “Authority Building For Your Brain or Your Business Using Social Media”.
Tim: Mm. Absolutely. Well, I have a funny story about social media this morning as I told you it.
Tim: I was, I was mucking around by the airline that I flew in on which was Jetstar and I went to see- I like to test to see whether there are brains, where the big brains are listening whether they are on Twitter or on Facebook so I for example, Telstra is fantastic. I mean, you put out a, you put out a Tweet with- at Telstra and they will respond within five minutes has been my experience, often much quicker. Jetstar really stuffed me around on my flight getting up here today and I was standing at the airport and I just put out a Tweet to say, “Jetstar are you listening?” thinking that Jetstar would be they’re Twitter handle but it wasn’t and some bloke in England came back and said, “No, no I’m not. I’m on the couch watching TV.” which I was thought was great [laughing] so he somehow beat Jetstar to getting their Twitter i.d. God knows what Jetstar’s Twitter i.d. is if they got one at all.
James: So, what would your advice be based on that?
Tim: To Jetstar?
James: No, to a business owner that is listening to this who hasn’t currently reserved their own properties.
Tim: Ah, boy get out there and reserve- try and identify that one social i.d. or handle or whatever you want to call it so you can consistently cross all channels and walk it.
James: And what are all channels, Tim I want to stop you there.
Tim: Well, that’s a massive question, but I mean here in Australia?
James: No, let’s say globally. If you had to pick a handful of properties what would they be?
Tim: Okay. Twitter, YouTube, Facebook, Yourdomain.com and dotcom and dot com dot au for Australians, Flicker.
James: I think perhaps Linkedin is another one.
Tim: Linkedin, of course.
James: Especially for the business audience.
James: But I don’t think you have to go too far past that. I just think UTube, Facebook and Twitter are good places to get started and definitely Yourowndotcom that would be great.
Tim: Also I like Formspring. One left of center but lets people ask questions anonymously or with their name and so, yeah they’re good ones. There are websites too that will sort of let you key in your name or an identified i.d. and tell you what’s available.
James: Yep, and you know while we’re on this I think we should hand out one more tip before we close and that is.
James: And that is go onto Google Alerts. Google it to find the official Google site, there’s an imposter- don’t go to that one. [Laughing]. I think Alerts.Google or Alert.Google- we’ll put in the resource guide.
James: And enter your own name and your business name into that so that Google can send you an email whenever there’s something with your name in it so you can start monitoring what’s going on and, you know you can be aware of situations, shall we say.
James: And you can also put in your competitors details if you want to go for brownie points and keep an eye on your competitor because chances are they haven’t really got on to this yet.
Tim: It’s certainly a great- especially when you’re dealing with this virtual world to be able to put a face to a name, I mean even yesterday a bloke bought a book that I sell on one of my sites and he just couldn’t find it, he paid the money, you know Pay Pal confirmed that he paid the money and it’s an automatic download that he gets it. He didn’t get it. It had gone somewhere else on his computer; it didn’t matter he emailed and I happened to be in front of the screen and within ten minutes I bounced him back an attached copy. That’s fantastic to be able to do that and I’ve actually have had that happen. On a previous- a similar example about a year ago where someone once again didn’t get for whatever reason, the technology let him down, I fixed it up within a half of day, the next thing I know he’s booked to come onto a course that I was running for a couple of grand and, you know.
James: Yep. I think the faster you can get someone onto a situation the better.
Tim: Yeah, yeah absolutely and just because you’re dealing with the virtual world it’s not a reason to hide at all.
James: In fact, it gives you more opportunities to shine.
Tim: It sure does. It sure does. I’ll leave you with last thing I was talking to a colleague only a couple of days ago and I’m sure he’ll be listening to this at some point and just saying, you know he was showing me how to respond to email using audio, which is great! Once- it’s just another little trick, another point of difference that sets you apart from your competition and the Internet allows you to do that so if you are- and cause a bit of a – he’s a better talker than a writer so for him, say “Look at this you know”. Quickly I opened up, I think he was using Quicktime or whatever he was using, but talk your response, save it, drag the file into an email and send it off to someone and all of sudden someone’s opening up an email at the other end and getting an audio response as opposed to a written one.
Tim: So, James that’s the end of episode three of Freedom Motion. What should they do now, what should our listeners do now?
James: Well, make sure you go onto the site at FreedomMotion.com, enter your email details so we can send you special reports, checklists, resources
James: etc. and we make sure that you’ve got the PDF version of our podcasts.
Tim: And they’ll be the first to know when a new show does come in.
Tim: All right that leads us to the end of episode 3 and episode 4, well, we haven’t quite planned that one but there’s no shortage of topics, that’s for sure. [Laughter] So, mate until then I’ll see you there.
James: See you there.