#2 The Internet marketing business model with the most explosive growth?


Man, do we cover some ground in Episode 2 of Freedom Ocean. James lifts the lid on the various Internet marketing business models available to you, plus Tim pokes and prods James with questions like:

  • What comes first for the Internet marketer?
  • What outcomes can you expect from becoming an Internet marketing?
  • What were those three epiphanies James had that changed everything?
  • We then launch in to Jame’s list of Internet marketing business models.
  • What is affiliate marketing? And why is it so appealing?
  • Should you be an affiliate for others AS WELL AS have you own affiliate products and services?
  • What is James’s ‘Buy With Bonus’ strategy?
  • What is product creation all about?
  • What types of websites do Google like?
  • How are the learnings from all this Internet marketing business applicable to an offline business?
  • Is blogging really an Internet marketing business model?
  • What are these three blog types all about? Expert, News Reporter & Underground Auto Blog.
  • What is this before, during and after concept James mentioned in episode 1?

Quote of the show – “When I sell my time, I feel as though I’m putting my life on hold and giving it to someone else!” James Schramko.

In Episode 3 of Freedom Ocean, James continues to lift the lid on his top 10 Internet marketing business models … and he tells us what he loves about being an Internet marketer.

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Duration: 58 minutes

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Tim Reid:      James, welcome back to Freedom Ocean. How are you, mate?

James:          Excellent. How are you?

Tim Reid:      Iʼm excellent. I’m your host, Tim Reid, and, James, Iʼd love to say that since last episode, we’ve been inundated with inquiries, and questions, and feedback. But the reality is, there’s been a ten-minute a gap between episode one and episode two.

James:          Well, I wonder if we did have a flood of inquiries. What sort of things would they be asking, Tim?

Tim Reid:      Well, that’s a very good question. But before we do that, we should say that Freedom Ocean is the place where we show you how to use Internet marketing to get more freedom in your life. That would be a fairly simple brief synopsis of what we’re here to do.

James:          That would be almost as if we discussed and in an advance.

Tim Reid:      It would. Yeah.

James:          [Chuckles]

Tim Reid:      And be reading it from a white board.

James:          Now, if that was the case, weʼd be practicing what we preach.

Tim Reid:      Correct. Correct. But it is. It’s all about living a life of freedom for those who may find themselves trapped in a 9 to 5ʼer, or who might be running a business and think there might be something better out there, or someone who just wants to, dare I say, generate a bit of passive – smart passive kind of coin along the way.

James:          Thereʼs nothing wrong with any of those options.

Tim Reid:      Now, you asked me just then what kind of questions would we have got if in fact the show had been to air for number of weeks. Well, there’d be many and varied, and theyʼre all in my head, because as I said in show one, I’m the curious little child sitting in the corner with a huge amount of questions. I know that people what tool should you use? How do you register a domain name? How do you do it all yourself? What’s a shopping cart? What are these tools that I keep hearing about like Nanacast? And should I be using PayPal? Or do I need a merchant account? And – Man, the list goes on – Who writes content? Where do I get stock photography? The list is endless. Absolutely endless, but that’s why you and I are here.

James:          It is. In fact, I think even majority of the terms that you just rambled off–

Tim Reid:      Yeah.

James:          –would make someoneʼs eyes glaze over.

Tim Reid:      [Laughs] Yeah. Yes, that’s a very good point

James:          Because – I go to kids barbecue, dinners and things, and I’m sure that some of the parents look at me as if I’ve landed from another planet.

Tim Reid:      Yep.

James:          And, someone stopped me the other night. I said, “Just so you know, I have no idea what youʼve just been talking about.”

Tim Reid:      [Laughs]

James:          [Laughs] So, I think we really need to strip it back and go for the –

Tim Reid:      Absolutely.

James:          Thereʼs a whole lot of stuff that comes before any of those whiz-bang terms and I think we should probably need to get there at some point as we’ve talked about what Internet marketing is in episode one, and we probably need to cover a little bit about how you might go about using it and what’s the point of all this, what sort of outcomes could we expect, and how do we implement this – trying to label it further, I suppose.

Tim Reid:      Yeah, good point. And I think we should pull each other up every time we find – I do – in fact, I do this on another podcast I host with young Luke from Small Business Big Marketing – and whenever we find ourselves talking in acronyms, or abbreviations, or sharp talk – tech talk, we build each other over the head –

James:          [Laughs]

Tim Reid:      – with a large phone book.

James:          Let me just go and get my helmet. [Laughs]

Tim Reid:      Yeah, thatʼs right. Well, I think, we can. You can fall into that trap and – boy, if thereʼs an industry thatʼs got a whole lot of acronyms, and abbreviations, and silly words – then Internet marketing is right up there, isnʼt it?

James:          It is. Absolutely.

Tim Reid:      So, we must be really careful of that.

James:          Itʼs a new language.

Tim Reid:      Yeah.

James:          And our goal is to move people into it gently.

Tim Reid:      Yeah. You touched on outcomes? I think it would be a good thing to sort of start at the end.

James:          Yep.

Tim Reid:      What do you reckon if someone has – I was six months into this show, it’s going up, dare I say, weekly, that’s the aim – what you reckon – what kind of outcomes could our listeners expect?

James:          Well, I think they might not even notice it as their knowledge increases with Internet marketing because it’s like when you have a baby and it grows up into a manchild.

Tim Reid:      [Chuckles]

James:          Suddenly, theyʼre a big kid and you don’t notice it so much. So, I think some of it will be just natural osmosis. But certainly, if thereʼs an implementation happening, just a little change or tweak can make a tremendous difference. For me, if I were to think back at the process I went through, it was having as little mini epiphanies. The ʻAh – Haʼ moments where I realized the power – the profound power and some of the most basic concepts and one of those, for example, would be the concept that you can automate a lot of things that you can’t do in a normal world. For example, a website- It’s up there, working. And it doesn’t – it’s not like the plant or anything really, it doesn’t need any care. Itʼs not like a human; you don’t have to keep paying it or educate it, or whatever. Once you set it up – itʼs a machine and it just keeps perpetually working. So, it works to the extent that you set it up right and that you tune it once it’s set up. You can keep refining and improving it. But it’s so powerful. And the other thing that really occurred to me is that thereʼs no limit to one, it’s not like having a child in China or something.

Tim Reid:      Mm.

James:          You can have as many websites as you want. And then, the next epiphany was that: hang on, a website is not a business. So then I had to rethink that whole thing.

Tim Reid:      Thatʼs a downer.

James:          Yeah. Well, a website is a website and it’s just – itʼs a marketing –

Tim Reid:      Channel.

James:          – channel.

Tim Reid:      Mm.

James:          Again and it works if youʼve got a business behind it. So I guess at some point we should talk about the different types of businesses.

Tim Reid:      Oh, yeah.

James:          People might consider and pick one that suits them or, even better, one that they can implement using what they’ve already got.

Tim Reid:      Nice.

James:          Because that’s an easy way to get into this is to start adding it on to what you do now.

Tim Reid:      Yeah. Well, you did promise our listeners in our previous – in episode one, 10 business models. Is it still a ten? Or you’ve refined it.

James:          Well, it could be more or less. [Chuckles]

Tim Reid:      Yeah, I thought so. I thought so. I think you should – well, importantly, as you said previously, every single one of these has been tested.

James:          Yeah?

Tim Reid:      Thatʼs it. Okay, so thatʼs really important. Weʼre not here to recreate the wheel. We’re here to show you what works, tell you what works.

James:          And some of these models work in the normal world so we can relate to them, but we just take them online.

Tim Reid:      Mm.

James:          And, a classic example is the affiliate marketing model. And ʻaffiliateʼ is just a fancy name for salesman.

Tim Reid:      I nearly got the phonebook out there. [Laughs]

James:          Thatʼs it. I beat you to that one.

Tim Reid:      You did.

James:          So, affiliate marketing means that youʼre salesperson and the bottom line is you can sell someone else’s product online and get a commission for every time someone makes a purchase, you get a commission. And the amazing thing about this is you can pretty much step into the business fairly quickly because someoneʼs done all the other stuff, the hard bits. They’ve set up the website, they’ve researched the market, they’ve put together a sales offer, they’ve put the payment mechanism, they do pretty much everything except get the customer to decide. That’s your job. If you can just get the customer to the website and put them into that, I guess, I’d call a model run, you get them into that system and they make their way through, and they make a purchase, that company will then send you either a check or they’ll put money into your PayPal account, or do a direct transfer. I mean, that fascinated me when I really–

Tim Reid:      Mm.

James:          – connected with the concept because at the time that I learned this, I was sitting in a motor dealership in Sydney with one brand. Thatʼs all I could sell. I was only allowed to sell into my geographic radius because theyʼre very strict about that – one brand of car.

Tim Reid:      Quite limiting.

James:          It was very limiting and ultra competitive and I went from that to being where I can sell anything, and before someone finds in and say, “But, James, what can you sell us an affiliate?” I can tell you can sell just about anything.

Tim Reid:      Really?

James:          Like skin cream, shoes, clothing, insurance, telephones – just about anything that youʼve got in your household is probably sold online and you can probably step in between the customer and the seller and take a cut.

Tim Reid:      Now, I know that when you –when I got the sites, I look down the bottom because that’s often where the affiliate link – registration link is hidden. Not all sites have it. So, do you, therefore, shouldnʼt go with affiliate program, or should you go and contact that site if you dearly love their product and say, “Hey, how do I sell for you?

James:          Right so, what you’re asking is how do you become an affiliate?

Tim Reid:      Yep.

James:          Right. [Laughs]

Tim Reid:      Well, not all of them offer.

James:          No thatʼs – well, they don’t necessarily offer it on their sales page, and youʼre assuming also that you’ve gone to the source, but you may, sometimes, be buying through an affiliate without even realizing it. So they won’t have an affiliate link.

Tim Reid:      Mm – hmm.

James:          Because youʼve found the affiliateʼs page instead of the end customer.

Tim Reid:      Mm – hmm.

James:          Or the end source. So, yes. A lot of sites will have affiliate on the bottom. If you go to Amazon.com, on the bottom of their page is associate –

Tim Reid:      Yep.

James:          – and they call it associate program. And the other way that you can join up things as an affiliate is you can actually go to an affiliate network and what they do is they bunch together all these different products and services. And you can just join that network and it’s free to join these things too. That’s the other thing people don’t realize. It doesn’t cost anything to become a salesperson for most of these ethical affiliate programs. It’s not like some e-mailing scheme, where you have to pay money to be able to sell the product. You actually can promote it for free. So, these networks put together all these other peopleʼs programs, so there’s a bunch of them out there. One example is a marketplace called ClickBank.com and most of the products in there are digital products. So, they put together all sorts of things from how to cure toenail fungus through to make your baby sleep well at night type products online.

Tim Reid:      As a business owner – itʼs like looking at it for the other aspect too – the idea of, actually, if you do have an online business already, your idea of setting up an affiliate program sounds like a good idea.

James:          Well, thatʼs very advanced, Tim.

Tim Reid:      It is.

James:          But absolutely–

Tim Reid:      I take that back. I take everything I said back. [Chuckles]

James:          No. No, I think you should let the statement stand.

Tim Reid:      Yeah, okay.

James:          Sustained.

Tim Reid: Yeah.

James:          Okay. Now, the reason why I think itʼs important is – it’s one of the great secrets to my business – is I actually have affiliates selling my products. I have over 2000 affiliates and what happens is they go out and do all the marketing. So some, unless you knew our podcast, could virtually ignore most of the stuff we talk about, when we talk about getting traffic if they want to build an affiliate program, because their affiliates are the ones who are going to get traffic. It’s one of the best traffic strategies. Because what you’ve got happening now is you only pay a fee for our service. So, if someone actually sell something, you send them money.

Tim Reid:      Mm.

James:          If they don’t sell something, you don’t have to send them the money. So it’s a great situation, and you could look at it as outsourcing your marketing. And all this traffic comes to your site generated by other people and you only pay them a fee for service. You pay them if something sells. So, every week or two, I’m sending out thousands and thousands of dollars to my affiliates, but they’ve brought me in more than that in sales.

Tim Reid:      Mmhmm.

James:          So, thereʼs systems you can use to set these programs up, but I think itʼs probably above the scope of this call.

Tim Reid:      Of this – of todayʼs call, yes.

James:          [Chuckles]

Tim Reid:      Of the Ocean, of the Freedom Ocean? No, we will cover that.

James:          It has to come up again.

Tim Reid:      It has to come up again.

James:          Because itʼs just so important.

Tim Reid:      Yeah. Okay. So that’s business model number one. Before we move on to number two, I’m going to ask you a rank or write that business model. But I’m not sure up against what criteria. But how do you feel – being obvious, if you feel strongly about that it’s a business model? You got over 2000 affiliate selling your stuff. So,

James:          Well, I think it’s essential and I think should you play both sides of it. I think you should have affiliate selling your product or service, and some people will say, “Well, I don’t have a product or service.” Well, guess what business model number two might be. [Laughs]

Tim Reid:      [Laughs]. Get what?

James:          [Laughs] Yeah, so, I think you should have people selling your stuff and I think you should sell other people stuff a commission.

Tim Reid:      Mmhmm.

James:          Because if youʼre a product seller – which you should be, and there’s a lot of reasons why and weʼll cover that – you really want– you now have a customer database and you’d be crazy not to tap into that occasionally and recommend something that’s good and valuable for them and make a commission from it.

Tim Reid:      Mm.

James:          It’s playing both sides of the profit equation. If you only do one, I think you’re missing out. And I’ll give you a tip to – I’d like to cover of being an affiliate and having your own affiliate in a further episode – but if you really want to excel as – at being an affiliate, the best way to do that is to create products to use as bonuses to give away and it’s an advanced strategy, but it was really the foundation strategy that I use to make my first $100,000 online. And it’s a strategy that I still do now. It’s a fantastic way to make money.

Tim Reid:      So, is that business model number two or is that just a –

James:          I think it’s a – I think we could call it two –

Tim Reid:      Okay.

James:          – because it’s more advanced than just being an affiliate.

Tim Reid:      Yep.

James:          It’s a – I call it the buy with bonus strategy. And it’s encouraging people to buy from you because you’re giving them an extra bonus.

Tim Reid:      Okay. So, you’re actually selling an affiliate product, –

James:          Yes.

Tim Reid:      – you’re selling someone else’s product, but you’re bonusing it out.

James:          Youʼre giving them yours.

Tim Reid:      Youʼre adding value to it.

James:          Exactly.

Tim Reid:      So, therefore, when itʼs time to choose between two, hopefully people will go with you.

James:          Thatʼs it. If we were both selling the same thing and people could get an extra thing from me but not from you, then they’ll come to me. So I give them my product, but the person whose product Iʼm selling pays me.

Tim Reid:      Yep.

James:          So, I get paid. So, it’s as if I’m getting paid for my product but thereʼs someone else involved. But it saves me all the extra effort of setting up the core product.

Tim Reid:      Mm. And often, these affiliate programs – the good affiliate programs will provide you obviously with links that you send to others from which they can buy from – but also code, you know I’m getting – Iʼm actually [laughs], Iʼm not getting –

James:          Reaching for the phonebook.

Tim Reid:      Yeah, yeah. You just whack me over the head. But they’re going to give you the means to sell, so they’re going to give you the ads, they’re going to give you better ads, and they’re going to give you the sales lessons or whatever is required to sell an information to get the message across.

James:          Yeah, I think in the simplest form when you become an affiliate, the main tool that you’ll be given is a link to send to people to. And, if it never got more complicated than that, then that’s all you need to know. They give you a link and your job is to send people to that link. And later on, weʼll talk about websites, and traffic, and weʼll teach our listeners how to drive more traffic to that link. But one of the obvious ones is if you already have customers, you could just e-mail them the link. They click on the link, they buy the product, they – you get sent commission. It’s a fabulous business model.

Tim Reid:      Requires a list, which will be another thing we’ll talk about in a future show, but great to have an affiliate link, but you know a lot of people to send it to.

James:          Yes. Well, you don’t actually need a list, but you do need traffic.

Tim Reid:      Okay.

James:          So, I should –

Tim Reid:      Either or…

James:          – you should clarify that. Yeah, a list is sort of an optional desirable extra and it’s a whole lot to building a list or database. And I would argue that for most businesses, the real asset is the database. That list of customers. Whether you’re in a normal business, whether you’re in an online business, being able to contact people to market to is really the name of the game.

Tim Reid:      To engage with.

James:          Yes.

Tim Reid:      Yeah. Okay. Well, thatʼs good stuff. Business model number three, James.

James:          Okay. Well, this is selling your own product, and it’s very simple. It happens in normal businesses and it can happen online. And you can sell a digital product or a physical product. Now, before you slap me with the phonebook, digital project is – it just doesn’t exist in real life. It’s just electrons and an example of that would be an MP3, or a PDF document, a report, or what we might call an e-book. So, we could actually take a podcast like this, we could have it transcribed into a report or an e-book, and then we could sell it. But if people don’t want to buy our transcription, they could actually just go to our website and download it for free.

Tim Reid:      Absolutely.

James:          Where would they go, Tim?

Tim Reid:      Theyʼd go to FreedomOcean.com.

James:          hatʼs it.

Tim Reid:      And we are. We are going to transcribe every single show we do. But so people can – that serves a couple of purposes: people can print out, and read, and scribble on, and highlight, and mark action points and see what we’re talking about. But it also – it’s good for phone book time search engine optimization.

James:          Whoa.

Tim Reid:      Because it puts a whole lot more content on the website for the search engines to scour through. Right or wrong, challenge me on that one, but Iʼm thinking thatʼs –

James:          Well, a couple of things there. One is if we were putting it on the website for free without requiring someone to give us their details, then it would be freely available to the search engine.

Tim Reid:      Yep.

James:          And, if we were requiring people to give us the email address, –

Tim Reid:      Yeah. Itʼll be probably be hiding.

James:          Then weʼll probably hide it.

Tim Reid:      Yeah. Okay.

James:          Which should be clever for us because people tend to look for these things.

Tim Reid:      Yep.

James:          Or we could go both ways. Put in the site for free or offer people a

conveniently packaged version of it, or extra bonuses and resources. Hey, Iʼve got an idea.

Tim Reid:      Here we go.

James:          Why donʼt we send people who give us their email address bonus checklist and resources and things.

Tim Reid:      James, you are a thinking man.

James:          So, weʼll do that. I think weʼll put the PDFs Up for free.

Tim Reid:      Mmhmm.

James:          The search engines like Google will love that stuff because their job is to deliver relevant content to people searching. That’s their mission.

Tim Reid:      Yep.

James:          And they love these PDF documents.

Tim Reid:      Yep.

James:          So, weʼll cover how to create those in product creation. But, yes.

Tim Reid:      Go to FreedomOcean.com, sign up, and not regularly, but frequently enough to keep you inspired, and motivated, and action oriented. Youʼre going to get some goodies from us.

James:          Very good.

Tim Reid:      Is that what weʼre saying?

James:          At the very least, our listeners will be able to observe email marketing done correctly.

Tim Reid:      Correct.

James:          Absolutely.

Tim Reid:      Yeah, yeah. Absolutely.

James:          So just for that reason, I think it’s worth testing it out.

Tim Reid:      Yeah. Take in what we share, but also watch how it should.

James:          Watch what we do.

Tim Reid:      Yeah.

James:          We have a website, we have a podcast, we have a way to capture email addresses,

Tim Reid:      Yep.

James:          – and weʼre delivering content which means information –

Tim Reid:      Yep.

James:          – formatted.

Tim Reid:      I love business model number three. I love the fact and itʼs something that Iʼve been really exploring over the last 12 months about this concept of content creation and repurposing of content. When I first saw it, I thought, “You know what? Someoneʼs done an audio recording and theyʼve got it transcribed. Big deal. Theyʼre just doubling up and making a little because either offering a whole lot more.” But, it’s actually so much more than that, because it respects the way people absorb information.

James:          Exactly.

Tim Reid:      Some people donʼt want to listen.

James:          Multiple modality. Whenever I put information –

Tim Reid:      Phonebook. Bang!

James:          [Laughs]

Tim Reid:      [Laughs]

James:          Well, I donʼt think thatʼs an internet term.

Tim Reid:      Nah, itʼs not.

James:          Some people like to read, other people like to listen, other people like to watch. So, whenever I put out a new information product, I will generally start with a PowerPoint slide deck and Iʼll record it and turn it into a video where I talk over the slides, take out the audio , and that becomes a podcast, and I can export the slides as a PDF document. And I can also have it transcribed. So, now I can offer a video, and audio, a PDF of the slides with hyperlinked resource links, and a transcription PDF report.

Tim Reid:      Okay. And you think about where that can live. That can live, obviously, on your website, can live on iTunes, YouTube, all the other video syndicating sites, audio sites, –

James:          Well, thatʼs it and you know what we find that Google really likes mediarich websites, which means they like different types of formatted contents.

Tim Reid:      Mm.

James:          So, text drives the Internet. But, what weʼre saying is the rise in popularity of videos sites like YouTube, extremely popular. And I can’t recall the specific facts, so just make one up for the point offor emphasis.

Tim Reid:      [Laughs]

James:          But I think the average American user is watching something like eight hours of video per day.

Tim Reid:      Yeah.

James:          Which is phenomenal.

Tim Reid:      Really?

James:          Yeah. Itʼs –

Tim Reid:      Hang on. Eight hours of video day.

James:          Yeah. Yeah. Weʼll have to look up the real fact –

Tim Reid:      Yeah. Yeah.

James:          – and put in the future, but when I saw that I was astounded. But then if you go and look at how popular YouTube is, I think it’s in the top two websites.

Tim Reid:      Yeah, well, Google didn’t spend gazillion dollars buying it for nothing. I –

James:          Now, gazillion would be fact, wouldnʼt it, Tim?

Tim Reid:      Correct.

James:          [Laughs]

Tim Reid:      I give these talks at a local school age here for year 11 and 12 students looking to choose a career. And I do a little bit research at the end. Generally the rooms form about 60 to 100 year 11 and 12 students and I just ask them at the end of my presentation, “Hey, guys, whoʼs going home to watch TV?” And imagine asking that question 10 years ago and most of the room would put a hand up. I get maybe 1 or 2 put their hand up. Theyʼre just going home – theyʼre living online – these are the digital natives. Yeah, these are the people who – growing up with the iPadʼs, and iPhoneʼs, and iTouchʼs, and they just living online and the concept of actually having to be in front of a piece of plastic with glass, x730, to catch a show, which is how you and I grew up.

James:          Yes.

Tim Reid:      Itʼs either there or you missed it. You are either there or you missed it until the video recorder came along. That doesn’t exist anymore, and that’s worth considering. If you’re embarking- and many of our listeners will be embarking on an Internet career, or a hobby, or whatever you want to call it, having this informationʼs really important because the marketʼs just going to keep getting bigger.

James:          People want to consume, and I think we should tie this back to a real business owner and make some sense of these. So, let’s imagine that youʼre a pest controller.

Tim Reid:      Mmhmm.

James:          And you say to me, “Great, but whatʼs this got to do with me driving out of my van, exterminating termites?” And I would say, “Well, I imagine these people who go on Google looking for a pest exterminator, or pest controller, or a bug guy if you’re in America, and I think theyʼd be really interested in a guide on how to tell if you’ve got termites, or the top seven things you should do if you have a rat infestation before you call the bug guy, and create this content thatʼs useful for your target audience that you can give to them. And you can give them a nice PDF report, they could download it from your website, that could print it off, they could – a spider chart, thereʼs a good one.

Tim Reid:      A spider chart.

James:          Get a spider chart with all the dangerous and deadly spiders, –

Tim Reid:      Uhhuh. Yeah.

James:          – and put it into –

Tim Reid:      Yeah, yeah.

James:          – put it into a PDF document that people can print off, and it’s got your business phone number, and it says “If you see one of these spiders, call this number –

Tim Reid:      Yep.

James:          – urgently.”

Tim Reid:      Yeah. Now –

James:          And then – okay, and you can deliver this to your audience.

Tim Reid:      Yep.

James:          In fact, you can even get those pictures of the deadly spiders and the poisonous spiders and put them into a little slideshow, and make a movie from it, and upload to YouTube.

Tim Reid:      Now, I just want to say to that pest controller that you are talking to all of that brilliant idea may start to sort of freak out about, “Oh, how do I turn that into a PDF or YouTube videos.”

James:          Yeah, well, itʼs incredible example.

Tim Reid:      But, stay tuned. It is incredibly simple and –

James:          And what we are talking about here can be done from every person’s computer.

Tim Reid:      Yep. Weʼve all got an iPhone, weʼve all got a digital camera –

James:          Most people can use Windows Word, –

Tim Reid:      Yeah.

James:          – or use e-mail, that’s a basic skill requirement that we need you to be able to do.

Tim Reid:      Yep.

James:          And almost everyone has a camera these days, and then most cameras have a movie mode. It’s very easy to be a content producer.

Tim Reid:      Mm.

James:          So, it’s a separate topic, but I guess, what we’re really talking about is creating your own products, and it is as easy as making a PowerPoint slideshow, it could be that simple. If you have any sort of specialty, or expertise, or if you don’t, if you can find someone who’s an expert or has a specialty, and that could be the lady next door who cooks the best muffins.

Tim Reid:      Mmhmm.

James:          It could be the guy down the road whose got a fishing boat, who knows how to catch fish every time he goes out, it could be the lawn mower whoʼs mowing your lawn right now. Maybe he could put together handy how to maintain your lawn mower product. It’s so easy to create solutions to people’s problems.

Tim Reid:      I love the product creation one and I think what it also recognizes that we all have this knowledge and so often, that knowledge just doesn’t ever get to the surface because we don’t realize or maybe weʼd done put a value on it. We don’t realize how easy it is to bring it to the surface and turn it into something that’s a real value to your prospects. And in the world of Paroquet, there’s no shortage of pest controls, there’s no shortage of accounts, there’s no shortage of lawn mower guys, all of that. So, the guy who understands this kind of stuff and knows it, for a very low cost, I can create a very highly perceived value.

James:          Have a mass advantage.

Tim Reid:      Everyday.

James:          It goes back to what we were talking about in episode one – and if you haven’t listened to that you should go and listen to that – it is that the tips weʼre going to be giving away, practical things that you can start implementing right now –

Tim Reid:      Mm.

James:          – in most cases –

Tim Reid:      Mm.

James:          – to get you an advantage. So, I think at some point. It would be good to poll our audience to find out which business models they want us to dig deeper in –

Tim Reid:      Yep.

James:          – because we could talk for 10 episodes on any one of these models –

Tim Reid:      Yeah, we could and I think a poll is a good idea, I think also that we should explore them all anyway.

James:          Yeah.

Tim Reid:      Because there might be one, like affiliate, I know – I booked an affiliate for a long time and then I realized, you know what? It’s really good.

James:          [Laughs]

Tim Reid:      Itʼs actually really good and really easy. And maybe it was the word ʻaffiliateʼ that was freaking me out. So, sometimes you don’t know what you don’t know.

James:          It gives the listeners an example of time invested for profit return for an affiliate campaign you may have done.

Tim Reid:      Funny you should ask that.

James:          [Chuckles]

Tim Reid:      I host this other show, Small Business Big Marketing, and we had you on, and I think we interviewed you – I think the interview was 27 minutes – and you shared a lot of a kind of in brief form, a lot of the stuff that we’ve been talking about so far. At the end, you made a fantastic offer through our affiliate link to a product that you have called Fast Web Formula. And it just went off. It just went – we just sold a lot and it touch – and it was one of the reasons this show came about because I thought, “Well, thatʼs really touched a nerve in people. People want this information. And so, subsequently, we then – I think we – I canʼt remember the numbers but we sold hundreds of your – of that product.

James:          Yep.

Tim Reid:      And for 27 minutes work, plus a bit of editing time afterwards. So, itʼs only for less than an hour we made thousands of dollars.

James:          Yeah, that’s something that would probably excite most people. I know even if it was 1000, I don’t know if it was substantially many more. [Laughs]

Tim Reid:      Yeah. Yeah it was.

James:          27 minutes, that’s not bad going.

Tim Reid:      Not bad at all.

James:          I know some kids probably work at McDonald’s for a month for that sort of money.

Tim Reid:      Yeah. And that once again let’s be real here because the listeners are going, “Oh, thatʼs great.” It wasn’t an overnight thing in the sense that that show, that podcast, we’ve been doing for 18 months, we’ve build up a good audience.

James:          Yep.

Tim Reid:      People trust what we have to say. We don’t do a lot of selling. I put it in inverted comments. So, when we do have something to sell or something to offer, I think people really respect it and take it up. But, that said, as long as if it was really, really hard to build that list, we just doing something we love.

James:          Well, I have a similar scenario. I have a website it’s called a blog. So, before you hit me with the phonebook, –

Tim Reid:      [Chuckles]

James:          – a blog is short for Web log and –

Tim Reid:      Itʼs a website. Isnʼt it?

James:          Itʼs a website thatʼs updated often. So, I think almost everyone knows what a blog is now, but, gee, I can tell you I got laughed at five or six years ago –

Tim Reid:      Yep.

James:          – when I told my friends I’m blogging. And they just thought – they just –

Tim Reid:      I actually donʼt reckon everyone does know what a blog is.

James:          They ridiculed me, Tim. They gave me a hard time.

Tim Reid:      Were you okay?

James:          Iʼm okay now.

Tim Reid:      Yeah. Okay.

James:          Now, I only post to this blog, which means I update it with a content –

Tim Reid:      Yep.

James:          – occasionally. Probably once or twice a month.

Tim Reid:      You write in your diary.

James:          Iʼm write in my web log –

Tim Reid:      Yep.

James:          – a story or whatever. And one of the once that I did about three months ago has just gone past $20,000 in affiliate commission.

Tim Reid:      Right.

James:          From one blog post.

Tim Reid:      Wow.

James:          And that would be round out 300 words.

Tim Reid:      Okay.

James:          Took me about 10 minutes. And itʼs up to just past US$20,000 –

Tim Reid:      Yep.

James:          – in affiliate commission. So that means it’s sold over $40,000 worth of product. And I just want to give people some of the upsides to this.

Tim Reid:      Mm.

James:          And so, if you get the target market right, if you build your audience and we’ll talk about that, in fact, when we move from product sales, Iʼd like to talk about blogging –

Tim Reid:      Okay.

James:          – as a business model.

Tim Reid:      As a business model.

James:          Yeah.

Tim Reid:      Okay.

James:          Because –

Tim Reid:      Go for – Iʼm going to pour you up because once again, I donʼt want our listeners to be at the other end going that’s all very well jammed. Your 300 words in your affiliate link and your 20 grand. I know that if I’m going to write 300 words and put an affiliate link in, I ain’t going to earn 20 grand because the missing link is the list all the traffic.

James:          Exactly.

Tim Reid:      And so, please don’t lost hope over that. I’ve been there, and what James says is it’s absolutely, absolutely possible. And not only is it possible, it’s just getting more and more possible because the root to getting there is getting shorter and easier because of the tools and the techniques are available, the technology.

James:          Yeah, the technology is there.

Tim Reid:      So, I stick with this.

James:          Yeah, well –

Tim Reid:      Letʼs get in to number four.

James:          Yeah, well, this is blogging and weʼll develop this further. The funny thing about blogging is itʼs incredibly easy and probably most of us know of the famous blogger here or there whether itʼs the prime minister, or [chuckles], or whatever, famous people have taken to expressing themselves publicly because the bottom line is you ought to control of your reputation or else someone else will these days. So, my first advice for listeners is go and register YourOwnName.com if it’s still available.

Tim Reid:      Good luck.

James:          Yep. If itʼs still available. If you don’t have a very common name, you might be lucky. But certainly, it’s something you should do for you and your children and take ownership of your space.

Tim Reid:      What if itʼs not – what “.comʼs” not available.

James:          If “.com” is not available then maybe look for initials, or get a different type of extension: “.org”, or “.net” –

Tim Reid:      Mmhmm.

James:          – or “.co”. But in any case, you will get – if you ever plan on becoming successful or get any type of fame, people will buy different versions of your name and try and sell it to you, if you’re lucky. If you’re not lucky, they’ll put something unfavorable on it,

Tim Reid:      Mm.

James:          – as an extortion attempt.

Tim Reid:      [Chuckles]

James:          [Laughs] Okay. So, blogging is really where – there are three ways to do this that I found effective and I do all three. It’s really just putting up interesting and useful information that people can read and engage with. And of course, you can combine it with any of the first couple of models there. You can promote other people’s things, you can promote yourself and become more famous. And there’s a reason why you want to do that because as you get more fame – let’s say you get Oprahfamous. Anyone would do business with Oprah, anyone would pay her any sum of money to do something with Oprah. So the more fame and authority you get, the higher price you can charge for things, the easier it is to launch new products, etc. that a business deals. So thereʼs being an expert. That’s one reason to be a blogger. And if you’re an expert in your field whether it’s archaeology, plumbing, it doesn’t matter. But if youʼre an expert at something, a blog will let you get into the market, and leverage that, and get the message out.

Tim Reid:      Yeah. Express opinions, thoughts, ideas.

James:          Exactly.

Tim Reid:      Itʼs a great –it’s a very cheap way too over –

James:          Very cheap. Well, let’s talk to technology for a minute –

Tim Reid:      Okay.

James:          – because I’m sure that’s a question.

Tim Reid:      Yeah.

James:          Whatʼs involved? Well, you’re going to spend 10 or $11 for a domain name and you will need hosting for this blog. So we will cover it more in websites. But, hosting – you might want to budget 6 or $7 a month for that. And you can use a popular WordPress platform. WordPress is the most popular blogging website thing. Now, –

Tim Reid:      Itʼs a content management system.

James:          Itʼs a content management system and it’s free.

Tim Reid:      Mm.

James:          And if you can’t install it yourself, then you can pay someone to install it –

Tim Reid:      Yeah.

James:          – which is a separate topic again. Or we can use –

Tim Reid:      We have a lot of topics to cover, havenʼt we?

James:          We have. Weʼre going to be busy but –

Tim Reid:      Itʼs great.

James:          – never run out of topics.

Tim Reid:      No.

James:          You can – there’s tools to install them for you with a few presses of the button as well. Iʼve even had someone to program to make it easy for my customers.

Tim Reid:      Can I tell you a story about my installing of WordPress and –

James:          Go for it.

Tim Reid:      Yeah. So, to show you how easy it can be, this website called fiverr.com, FIVEdouble R dot com. And it’s a website where people post things and they’d be happy to do it for five bucks. And it’s a lot of fun, very addictive. I put a warning on it that once you get there you find yourself there for 2, 3, 4 hours and buying all sorts of stuff. You can also post things that you’d like someone to do for you for five dollars. I posted saying anyone out there willing to set up a WordPress blog, ongoing WordPress blog for only five dollars. To cut the long story short, I’ve got a lot of responses and I end up choosing a fellow whoʼs in Portugal and now, Hello, Johnny. Johnny, for me, will go ahead and I give him the domain name, and he goes ahead and installs the WordPress. He then installs a theme – because with WordPress you can choose a theme to make it look pretty and there’s hundreds and hundreds of themes – so he installs the theme. He uploads my content, he installs a little plugin – I’m getting geeky here, phonebook time, but stick with me – he installs a little plug-in, oneʼs an SEO pack, which allows the search engines to find you and understand what your blogʼs about. He goes and finds affiliate programs and installs the links, uploads the embed codes, all the so that the leads appear. And there must be some – there’s one other thing he does – finds photos for blog entries, etc.. All for the handsome sum. Guess how much.

James:          [Chuckles] I’m sure you are going to blow me away.

Tim Reid:      20 bucks.

James:          $20.

Tim Reid:      20 bucks.

James:          There you go.

Tim Reid:      And, God, his work is just so spectacularly good.

James:          So, let’s add this up. Itʼs 10 or $11 for domain, 20 bucks for your website, and probably six or nine dollars a month for hosting.

Tim Reid:      Yep.

James:          You’re in business.

Tim Reid:      In business.

James:          So, this really is a truly affordable business model.

Tim Reid:      Yep.

James:          And so, we’ve covered the expert model. The other one is the news reporter. So, –

Tim Reid:      Whatʼs the expert model? The blog model?

James:          Thatʼs where you are the expert.

Tim Reid:      Yeah. Okay.

James:          So, in this case, –

Tim Reid:      Yep.

James:          – Timʼs the expert on podcasts.

Tim Reid:      Yep.

James:          You could quite comfortably post information about that.

Tim Reid:      Yep.

James:          But what if you’re not the expert?

Tim Reid:      Mmm.

James:          Well, then you become the news reporter. That’s when you simply interview experts or you review experts. So, I could –

Tim Reid:      Like what I’m doing now.

James:          – you could be. I can be an expert reporter on television personalities and then I go and buy TV Week, and read about them, and I listen to news and I go and read Perez Hilton, and now I make my own opinion. I just repurpose and aggregate the current news, –

Tim Reid:      Mmhmm.

James:          – and put it with my own voice as the reporter, –

Tim Reid:      Mmhmm.

James:          – and form an opinion, and that is now interesting content for that target market.

Tim Reid:      Mmhmm.

James:          And thereʼs a third type of blog, which is the underground order blog. And –

Tim Reid:      Wow.

James:          – that one sounds-

Tim Reid:      That sounds sinister.

James:          Yeah. What this one is, weʼre not really taking a public stance, were not trying to become famous, or be a reporter, weʼre just posting information about products that we might want to sell and you can actually automate this website and we can make it actually create content and post it automatically.

Tim Reid:      Get out of here.

James:          We can. So, we can turn it on to order a product, –

Tim Reid:      James, you’re showing off now. [Chuckles]

James:          Yep. And it just grows all by itself.

Tim Reid:      Let me understand that because that gets a bit woo woo for me. So, underground what I blog.

James:          Yep.

Tim Reid:      Is that what you call it?

James:          Thatʼs what we call it.

Tim Reid:      Say, you gone and created your blog, and hosted, and domain name, and all that type of stuff, but there’s the secret source that allows that blog to constantly update itself with new information.

James:          Exactly.

Tim Reid:      How?

James:          Well, get the phonebook ready. [Laughs]

Tim Reid:      Yeah. Yeah. Okay.

James:          No, it is – they’re basically tools and technologies we can use and many of them don’t cost anything that will automatically aggregate, which means bringing different information from other places, and then format, and then post to your blog. So thereʼs – you’ve mentioned about plugins, so, put that back on you.

Tim Reid:      Yeah. Yeah. Yeah. Yeah.

James:          Pluginʼs like a pimp pack or an enhancement to your website.

Tim Reid:      But where is it going – yeah, plugins are like extras, arenʼt they?

James:          Yeah.

Tim Reid:      Itʼs like you can – yeah.

James:          It basically can go out, and grab things, and then post it to your blog –

Tim Reid:      Thatʼs a good word: pimp pack.

James:          – automatically.

Tim Reid:      Okay. So, where is it – it’s going out – do you tell it where to go?

James:          Yes.

Tim Reid:      Right.

James:          You tell it where to get information from –

Tim Reid:      Yep.

James:          – and you tell it where to post it.

Tim Reid:      Wow. And – that’s fascinating. [Laughs]. It’s absolutely really fascinating. I didnʼt know that it was possible. And, so all the time, the content of the blog is just going, of course you’re not doing anything, what about actual – where’s the revenue model there?

James:          Well, what you generally do with something like that is you put another plugin, a little device on the website –

Tim Reid:      Yep

James:          – that will automatically hyperlink a certain word to your affiliate link. So let’s say –

Tim Reid:      Yep.

James:          – you had an order of blog about shoes and it’s pulling in information from all different places about shoes, and it’s reformatting, and then posting it to your website. And anywhere it finds a word “shoes”, it would link to your affiliate link for shoe website. And any time someone clicks on that link and makes a purchase, you get a commission.

Tim Reid:      Hmm. Weʼre going to have to cover that in –

James:          I think so.

Tim Reid:      – weʼre going to dive into the Freedom Ocean and really explore that bay because that’s exciting.

James:          Well, I’ll give you really practical application for this. You can actually make an Autoblog that reposts content from your other blogs.

Tim Reid:      Wow.

James:          You’ve got your mother ship, we call it, –

Tim Reid:      Yep.

James:          – and then you have satellites.

Tim Reid:      Okay.

James:          And satellites take stuff from your mother ship –

Tim Reid:      Mmhmm.

James:          – and they repost it out on the satellites. It gives you – basically you giving extra traffic ports.

Tim Reid:      James, this is exciting. This is exactly where certainly – hopefully Iʼm representative as the audience is listening and it’s the stuff that I find really exciting and it’s where the opportunity is – where I stop to get a little bit crazy in the tummy is to think how does one – that’s great, I hear what you’re saying, wow, imagine having a blog that auto updates, and automatically links keywords to your affiliate links, and did everythingʼs happening while you’re asleep. There’s a gap though – isnʼt there – between understanding that and knowing how to implement it, and then once you know how implementing it, actually implementing it, to me thereʼs two big – to me theyʼre gaps, –

James:          Yep.

Tim Reid:      – which we’re going to cover, but –

James:          Yeah and I think thatʼs a fair assessment and I – it’s sort of exciting to know whatʼs possible and down the track for us in a few more podcasts.

Tim Reid:      Yeah. Yeah. Yeah. Yeah. Yeah.

James:          And you have to crawl before you walk, and walk before you run.

Tim Reid:      Yeah. Okay, so letʼs be excited, have those butterflies in the tummy because – let’s go back to why the show is called Freedom Ocean and it is about showing you had created a life of freedom and not be tied to the man, working for the man. But yeah, crawl before the walk stuff. We will in coming shows provide resources as we said, sign up on FreedomOcean.com and you will get the odd great resource for free, and we will provide you with additional resources, paid sources, that will show you exactly how to implement them, James.

James:          Absolutely. In fact, the exciting thing is once you’ve got the basics down to add an extra option like this to your portfolio, shall we say, is very easy and fast. I think from memory, one of the key resources that I learned some of these techniques from cost me the princely sum of $17 so, once you know it – once you know the language and you can access these sort of reports, they’re not expensive, and it’s really just a case of installing two or three plug-ins.

Tim Reid:      Mmhmm. Yeah, well, what number business model weʼre up to?

James:          I think it was four.

Tim Reid:      Okay. What we might do is cover the next one.

James:          Yep.

Tim Reid:      Weʼll cover number five. I think I’ve got a couple of questions I want to ask. We might close the show here and make episode three, we will cover the remaining online business models. So whatʼs number five?

James:          Number five is the local business market. And that is fancy way of saying there’s a whole market of people out there with businesses who have websites who need a new website and then need traffic to their website. And one of the most successful business models that I’ve had, and that my experience – students are covering is serving that market. They’re basically getting in front of the wave that is the Internet marketing waves sweeping through businesses, they’re stepping one step in front and they’re handing out the solutions. And I’ve built a few businesses around this market and it’s just going to go massive. It’s just a massive, massive market. We know that it is because we see Google approaching businesses themselves –

Tim Reid:      Mm.

James:          – saying, “Can we help you set up an advertising account with us? Can we help you get listed in our Google local places?” So, when Google’s paying attention to this market, we know that we should be there as well, –

Tim Reid:      Yeah. Good point.

James:          – holding the hand of the local business. So, it’s actually an extremely simple business. We don’t have to do the work, or we have to do it. It’s just almost like being an affiliate is weʼve just got to be the communicator, the conduit between the local business and the service provider for a profit margin.

Tim Reid:      Okay. So, what I’m hearing is that thereʼs an opportunity to get in front of local business owners and show them the why the need to be marketing is headed?

James:          Exactly.

Tim Reid:      But this is all of a sudden suggesting to at least they should become web developers?

James:          No. I suggest that the soonest our listeners get a handle on this, all of their business buddies and friends are going to want to know how they did it and what they did, and they can simply turn around and say, this is what I did. Use this and use that, and they can actually build the customer directly and then get the services provided for a lower price or they can pass them on to the end service for an affiliate commission.

Tim Reid:      Okay.

James:          But either way, they’re getting our reward for their information. Replacing your value on this Internet marketing knowledge, which is the whole premise of this podcast series, were teaching people how they can profit from Internet marketing and use that profit to enhance their own freedom. But I would suggest for many business owners, they will make more money helping other business owners learn Internet marketing than they can out of their core business.

Tim Reid:      Hmm. So, people who are currently wouldn’t consider themselves Internet marketers get to the point, learn enough, have enough knowledge to then go and share it with others.

James:          Exactly right.

Tim Reid:      Hmm.

James:          The soonest theyʼve got a redevelop –

Tim Reid:      Yeah.

James:          Itʼs that, it’s like quickly turning around with that new knowledge and capitalizing on it before it’s common knowledge.

Tim Reid:      Mmhmm.

James:          So, the analogy would be that if we were – let’s say, we won the clock back in the Yellow Pages is coming out for the first time and everyone realized that they should be in this document.

Tim Reid:      Yep.

James:          The first people to get in there and figure out how to place an ad and to get the phone ringing could then actually educate other business owners and say, “Hey, you need to be in this. You put your ad here like that, the phone will start ringing, and these are the people you should go and pay money to” and the Yellow Pages would give them a little commission or a reward.

Tim Reid:      Mm.

James:          That would be the old version of it. But the new version of it is really exciting because just about every single business is going to need a new website. They’re going to want a website that works from an iPhone or an iPod, device friendly.

Tim Reid:      Mmhmm.

James:          And they’re going to want traffic to their website instead to their competitorʼs website.

Tim Reid:      Yeah. Yeah, and I think that, I think as youʼre talking, the magic is not saying to us business, “Hi, you need a website.” The magic is in effect that I knew a website that talks to all these new devices, a website that actually sells and isn’t just a static brochure because I remember talking about static brochure 10 years ago, which is what the original websites were, but there’s still a lot of static brochures out there. Simple things like – and we talk about this on Small Business Big Marketing – where little ideas like having your phone number on the top righthand corner making it easy for people to contact you, making sure that every page on your website is set up so that Google know what the page is about. These are things – the job of having a website is not done once the websiteʼs live. It’s kind of like, it’s like having a box of brochures and putting it in the corner.

James:          Thatʼs it. The website has to be something.

Tim Reid:      Yeah.

James:          And I’m sure we’ll cover that.

Tim Reid:      Oh, yeah. [Chuckles]

James:          [Chuckles]

Tim Reid:      Oh, yeah. Anything else to add to that number five? Or you –

James:          No, I just think I’ll – of all of the business models, I believe that one is – it has the most explosive growth.

Tim Reid:      Mm.

James:          Itʼs supremely attractive business model for anyone who gets it. If they connect with the fact that this is coming, there’s no escaping it.

Tim Reid:      And to the irony that World Wide Web is now funny as why incredibly powerfully at a local level.

James:          Yes.

Tim Reid:      Yeah.

James:          Everythingʼs going local.

Tim Reid:      Everything. Yeah. Yeah, absolutely. James, they – great – five business models and some examples you gave – in our last show, I donʼt know how long the showʼs going for. I never put a time limit on it because it’s about giving gold until we exhaust ourselves, but we talked about the before – the concept or the technique of Before, During and After around selling your time, do you want to just talk about that? You mentioned in episode one, Before, During and After.

James:          Yes, it’s a – I really wrestled with the selling time thing because in my old job I used to get paid a wage and I still work Monday to Friday, 9 to 5. And I was effectively just selling my hours. When I sell my time, I feel like I’m putting my life on hold and giving it to someone else. And so, I’ve become resentful of that and I want to protect my investment of time. So, I decided that if I’m going to do this by the hour thing for me to exchange time for money, and thereʼs number of do that, then I want to get paid for it and I don’t want just get paid for the time, I want to get paid forever, –

Tim Reid:      Mm.

James:          – if possible. So the Before, During and After is really a way of looking at that and productizing the value in it. So I didn’t experiment. One way that I sell my time is by running webinars, and before you throw the phonebook over here, –

Tim Reid:      Yeah.

James:          – a webinar is an online event. It’s like a real event where youʼd go to a workshop but itʼs online instead. So that’s another business model weʼll cover. But the point is for this webinar, I decided to charge people to turn up to it. So I thought, I want to get paid for my time on the webinar. So, I got paid in advance and then I spent the hour or two on the webinar. So that’s the before. The during is on the webinar, I can actually recommend other products or services that will help solve the customer’s problem. So, that is the During. And then the after is I take the webinar, I package it up into a product and then I sell it as an information product. So I sell the video, PDF, audio, this should sound familiar by now.

Tim Reid:      Oh, yeah.

James:          And I put it up on a website and I let people buy it perpetually.

Tim Reid:      Mmhmm.

James:          So now I’ve got paid in advance, I’ve got paid during and I get paid afterwards from that one investment of say two hours. I made $6000 before the event, I made $25,000 during it, and I’ve made $38,000 after that.

Tim Reid:      Mm.

James:          Which is good for two hours.

Tim Reid:      Thatʼs a good hourly rate in anyone’s book.

James:          And you could throw in maybe four or five hours worth of preparation just to format and assemble and set it all up. But that’s a great example of how you can really maximize – if we were Chief, weʼd be saying, “Well, we’re using the whole animal.” [Chuckles]

Tim Reid:      Yeah, yeah. Absolutely!

James:          Weʼre not just going to take the ramp and throw the rest of the thing away. Weʼre going to use every single of that animal and effectively.

Tim Reid:      Yeah.

James:          So that the rule of thumb and it’s a great take away for this podcast, for anyone listening to this, use whatever you possibly can to multiply or leverage your efforts so that you get paid for the onetime effort.

Tim Reid:      Yeah, I think thatʼs great advice and particularly to the younger people listening to the show, it’s just good advice to learn us early on as you can. Don’t wait until you’re 43 to learn that ʻI’ve been paid by the hourʼ isn’t the best use of time. Thereʼs greater points of leverage and selling and exercise Before, During and After. Fantastic.

James:          One of the best ways that you can measure if you’re getting a Before, During and After, and I call it the BDA method, is are you recording it. That’s one of the indicators. If youʼre recording something, like a podcast, –

Tim Reid:      Yep.

James:          – or a video, then – or an event, you can probably make money from it later.

Tim Reid:      Mm.

James:          If it’s a onetime thing and youʼre not recording it, and the moments lost, it’s gone.

Tim Reid:      Yep. Yeah it’s amazing. I’m giving a talk next month and I said it to the people who are organizing, I said, “Look, you know what you should really do [Inaudible – 55:03] because she said there’ll be quite a number of businesses who canʼt make it. It’s out in regional Victoria. She said a number of businesses canʼt come. I said, “Record it. Do them a favor and record it. And get it transcribed and give them the audio, and give them the video,” and then that information – Iʼll be ta– I’m talking for three hours. I said that that information disappearing up in the atmosphere. It’ll be around forever. And it’ll be around forever for people to refer back to, it’ll be around for people who couldn’t make it on the day.” Great, I’m really looking forward to exploring content creation further.

James:          Tim, it expensive to have something transcribed?

Tim Reid:      No. I thought I have unbelievable deal going at getting 80 – paying $.80 per audio minute. Up until this week, and now itʼs – now, I’ve got someone whoʼs doing it for $25 per audio hour. So that’s pretty good. And I think you could even beat me on that. So, no it’s not and all of a sudden you’ve got a whole new product. Yeah.

James:          Yeah, I’m really looking forward to digging into product creation, –

Tim Reid:      Yeah.

James:          – and packaging and how we actually get people to pay money for these –

Tim Reid:      Yeah.

James:          – in future podcasts, so make sure you tuned in.

Tim Reid:      Yep, absolutely. So, that is the end of episode two of Freedom Ocean. Guys, do go and hop over the FreedomOcean.com and if you do sign up you are going to get goodies along the way that you want if you haven’t. In the next episode, James, we are going to cover those other five or so business models. Put a – get a bit of closure around that. I didnʼt ask you what do you love, not now, but in episode three, I’m going to just sort of dig a bit deeper and find what it is that you desperately love about this whole industry. I think it’s pretty obvious I’m sitting here in Jamesʼs lab in the far out ridges of Sydney and I don’t know whether our listeners can hear but we have got some serious – what are they? Cicadas? Or some kind of beautiful –it’s pretty hot out there. Pretty hot and humid. So, some insects making some – a serious cacophony of noise.

James:          Theirs is the symphony of insects.

Tim Reid:      A symphony, you can hear it, weʼre all about good production qualities, but –

James:          [Chuckles]

Tim Reid:      Itʼs kind of nice having that in the background. It’s part of the Freedom Ocean soundtrack. [Laughs]

James:          [Laughs]

Tim Reid:      Buy it now on iTunes. [Laughs]

James:          You could just slip it under your pillow –

Tim Reid:      Yeah.

James:          – and as you drift off at night.

Tim Reid:      Correct.

James:          [Chuckles]

Tim Reid:      Well, I reckoned we leave it there and see you next time,

James:          Alrighty.

Tim Reid:      Thanks, James.

James:          Thanks, Tim.


  1. Fantastic episode guys!!! That has just opened my eye’s to what is possible.
    Thanks again that was amazing!!

  2. brilliant interview folks, enjoyed having this playing in the background whilst I worked on some content 🙂

  3. Fantastic podcast guys, lovin it.

    Some minor feedback (not content related)… in itunes – once subscribed to Freedom Ocean – there is no artwork and Freedom Ocean is displayed as “Internet marketing training”. might be a setup issue in iTunes. (Tim – no artwork on Sm Bus, Big Marketing either) just helps when managing podcasts… Tried downloading artwork… but nada.

    Can’t wait for installment #3 .

  4. Really cool podcast. I like the way that look at a concept from several angles. Your not just putting a new names on the same old dog. Well done.

  5. loving all the questions Timbo

  6. fantastic stuff. Found this site yesterday, and I’ve gone back to the beginning. Love the detail you’re going into and the super-relaxed nature of the show.

  7. pretty cool stuff! love your aussi accent…

  8. I am guessing Blogging Underground would be a pre Panda/Penguin thing?

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