How A Business Spawns From Your Basement
This is a guest post by Finch from FinchSells.com. If you haven’t been over there and subscribed yet, you would do yourself a favor by doing so. Also stalk him on twitter. Finch actually posts real info on a wide variety of online marketing topics. Thanks Finch.
Before I hit my first lucky break with affiliate marketing, one of the resources I read was Nicky Cakes’ Newbie Guide on this site. It’s easy to hate on bloggers and hate on anybody who sells you a false dawn…but without knowing that an opportunity exists, you’ll never make money from it. That much is fact. The Newbie Guide was helpful to me and yet ironically when I look back on it now, I read that shit and think “Seriously Nicky? You thought THIS would prepare me for affiliate marketing? You son of a bitch.”
There’s only so much anybody can tell you before your brain has to click in to gear and start developing ideas of your own. If the moment never comes, and you’re forever grabbing at somebody else’s brainchild, jacking somebody else’s Facebook campaigns, then maybe this industry just isn’t for you.
I try not to read ebooks. When I do, I get this sorry image in my head of Noah marching a bunch of retarded penguins out to high sea, preaching to them the freedoms of making money online, expecting them to make the jump overboard and swim off happily in to the horizon. As soon as they get their feet wet, it’s the last you ever see of them. And that pretty much sums up the fate of 95% of newbie marketers who ever dared to invest their hopes in the bright lights of this industry.
But what of those who make it?
Growing a business is something you have to take seriously. I think far too many affiliates exist in a surreal cyberspace where they’re making money but getting no closer to having a real business. And that’s probably because they can get away with it while the going is good.
For me, the biggest challenges since I struck success have come through dealing with lifestyle changes and actually having to work with people. If you haven’t yet woken up and smelt the bullshit, you’re still a junior in this business. Managing people, managing relationships and managing your time are the three qualities that will get you out of your mum’s basement and laying down the first building blocks of a real business.
Managing people is an ironic requirement. You probably shafted your day job to operate on your lonesome in a comfy sunlounger, and now you’re going to have to actually get smart about how you work. Outsourcing or hiring people is unrealistic when you’re getting started. But sooner or later you’re going to realize that being a jack-of-all-trades is unnecessary and often unhelpful.
If you have just one skill – the ability to manage talented individuals – you have everything you need. I code like a spasticated monkey and my design work is functional to be polite. So managing people is something I’ve had to learn, and learn fast.
At 22 years old, people can find a lot of reasons not to respect you. I’ve never had the natural hardline approach of a manager. When it comes to telling people twice my age what to do, I’ve had to acclimatise pretty fast. But it’s so important. Whether you need to stick a boot up the arse of a hosting company gone awol, hold your ground against a network trying to burn you of thousands of dollars, or simply ask for better work than your freelancers are submitting – you can’t run a business without knowing how to deal with people. I get the impression from WickedFire that some affiliates out there think they’re fucking Clint Eastwood with Wifi.
Not only do you need to build relationships with your affiliate managers and reps, but there’s a whole new world of financial responsibility about to come crashing down on your shoulders. You need to worry about accountants to deal with your taxes. You’ve got to look at the legal implications of the campaigns you’re running. Am I one lawsuit away from blowing my fortune up the wall? There are a lot of talented and knowledgeable guys out there who can help you with these steps, but you won’t find them in your basement.
A successful business is built on solid ground. For many affiliates, the temptation is to say “fuck it” until circumstances dictate otherwise. Have fun living in your castle of sand.
Of course, it’s not just the people in affiliate circles that you have to deal with. It’s important to cope with friends, family and not to become the “favour guy”. You know the guy I’m talking about? The one who’s getting called at 2pm to see if he could just pop round Aunt Margaret’s estate to mow the fucking lawn since he’s “free in the day”.
People will try to drag you down. They might not want to, and it’s never intentional, but it happens. I’ve lost track of the number of people who owe me money, owe me favours and have just generally assumed that my own success is enough to bail them out of a bad situation. This is the case in an industry notoriously full of young entrepreneurs where the people you surround yourself with aren’t quite as sympathetic to the reality of your work. Building a business is hard if you live to the tune of the lifestyle your friends THINK you should be enjoying.
I wouldn’t dare to tell even those closest to me how much I’ve earned in a day, because it becomes a sticking point. If you’re young, it’s likely that your friends are still maturing in their handling of money, fast cars and Christ knows what else. It’s best just to keep any success on the down low. I don’t mean that in a bad way, and I’ll always be the first person to buy somebody a drink. But remember: you’re running a business, not an open-doored money buffet. Don’t become the human bank of your social circle.
A lot of affiliates exited the business with tails between their legs after the rebills faltered, and I never felt pity for them. So much of their downfall was triggered by being irresponsible with money, ballin’ when they should have been working, and flouting riches that were flowing from a limited supply.
Not only were they irresponsible with money, but I bet they wasted the most precious commodity a full time affiliate marketer can have: Time, endless barrels of time.
It’s easy to spend sixteen hours in front of a monitor screen, torn between refreshing stats and jacking off to XHamster. But just because you’re sat at your desk, it doesn’t mean you’re putting in a shift. I generally laugh at the guys who spend every hour of daylight working themselves in to an early grave. I used to be one of them, but it’s just not productive. You don’t need to spend excessive hours at work. You just need to make sure that the time you do spend, is time well spent.
Learn to be efficient and get the discipline where your working day consists of tasks that are going to directly relate to another dollar in your pocket. If you don’t have that discipline, you’re probably the sucker who just wasted ten bucks on another ebook. It’s your own voyeuristic needs to read about somebody else’s success are what will stop you ever finding your own.
I still refer friends to Nicky’s Newbie Guide from time to time. It’s a few quick pages that you can read in one sitting. And for many affiliates sat in the shadows of their bedrooms, it’s enough information to start actually making money online. I was one of them. That’s great, but it’s like your apprenticeship.
The real challenge is to take that knowledge and develop it in to something stable. Stop living in fantasy land, get out of your basement and start treating what you do like a real business.
Thanks for the great post Finch. Pretty much sums up a lot of what Nickycakes thinks about the people who have survived and the people who have moved on from the industry in the past year. ”…expect to fail, because chances are you’re too stupid or lazy to succeed, which is why the rest of us make so much money.”
Keep it real.
Great post!
I used to download or even pay for those ebooks only to find myself lost in the affiliate world.
Now I turn to read blog for the info I need.
And I love the Nicky’s Newbie Guide,
Thanks.
I agree totally! Without stumbling on this site years ago, nothing or no one would have inspired me like Nicky!
Wow, what an inspirational read, a real to real with what it takes to actually maintain success, I for one was one of those people who used their "barrels" of time un-wisely and after blowing 100K in 9 month's of "balling" reality hit me like a brick out the sky. My entourage slowely diminished as the cash did and it left with me with a huge chip on my shoulder, now I have this ruthless attitude toward people that don't genuinely care about my business or my time. Thanks for sharing…
You speak the truth Finch. I can’t even tell you were the first $100k I made went. Slipped through my hands like water. Oh well, live and learn.
Great post. That's a lot of wisdom for a 22 year old.
Man what a great read, Finch do you have an ebook I can pickup!?
Great post. I just started affiliate marketing and I’ve run a couple moderately successful campaigns, but more unsuccessful ones. I intend to keep trying but I have a full time job so I have limited time. I have deeper pockets than most though, so maybe that makes up for it!
How would a newbie bust into affiliate marketing starting off with PPC campaigns? I mean if they are truly a newbie ppc marketing is not the way to go, when u have no money..
New people looking to break into in this industry and make some money have no money therefore they are searching “how to make money”.
Where is the guide to help new affiliates without thousands to spend on a ppc campaign when they obviously are just getting by paying for their internet???
Sorry to sound like a bitch, but there is no guide or information for new affiliates I have found online anywhere.
The person who has the most informative info on how to get readers is problogger and this is the guy “gurus” crack jokes on.
There is no real info or guide for a noob online.
These are the 2 things I can’t stand on blogs…. learning about affiliates being shaved by a network, and no real guide for a noob…. the ppc info is not for a noob
i started with $25 a day
The Newbie Guide is a great reference for starting out. Most people I know (including myself) started out with not much more than this guide, a bunch of free coupons from yahoo & google and whole lot of determination.
http://www.nickycakes.com/newbie-guide/
Affiliate marketing isn’t all about PPC.
You’re looking at things from the wrong angle if that’s your mindset. Think of it more as connecting the right people to the right offers. You can do that with and without spending money. The entire Internet is your oyster.
http://finchsells.com/2010/05/26/building-an-affiliate-business-with-0-investment/
Obviously, as soon as you HAVE the money, things become a lot easier. But I don’t really have much sympathy for lack of startup capital as an excuse.
Finch, Nick and friends,
Even when you do well, please stay humble. I detect a little too much pride here.
Even for the talented, smart and hard working lightning can strike out of the blue. Never ever assume you have it licked.
We are now, and always will be Newbies.
Nick’s Dad
I feel like I’m allowed to be proud of success based on working harder and smarter than everyone else
But yeah, never forget where you came from for sure.
Really good perspective. Thanks for sharing it.
The days that in the morning I set myself some goals are awesome. The days I ant figure out what I’m supposed to do and sit down empty-headed are truly wasted refreshing screens like you mention.
Really figuring out how to move the ball forward every morning ain’t that hard. The difficult part is admitting you have to do something you don’t like, and just getting it over with.
-Slave.
I think it’s more than that. I like my work. I like reddit more.
You’re right about setting goals. I write down my 3 for the day on paper in the morning and do them. Worked well so far.
Fellow redditor here. I just finished reading the newbie guide and am thinking about giving this a shot. I will be losing my job in a few months (company is off shoring to the Philippines) and I would love to become successful. I have a small nest egg of 40K or so and want to use it to get started. Hope it works out because the bills never stop…
There’s plenty of places online you can get startup capitol from IF you know for sure that you have a method to multiply the small amount they will loan you, usually 0-$250. But you must have a checking account!. I did this and it helped me when I was planning a trip across coast. I conjured up $400 in 24hrs from payday loans online with no job and wifi on my laptop sitting infront of hotels utilizing their free wifi. I was surprised to see the money in my account.
worst advice i’ve ever heard
LOL. I was half expecting a payday loans link at the end of that.
Great post as usual, Finch.
Never said it was the best way to get some cash, it beats selling ebooks on DP with people asking, “Can I haz a review copy pleece.”
No. Payday loans will ruin your life if you can’t pay them back. Ppc is far from guaranteed easy money.
Yea I don’t think using a payday loan for start-up capital is a good idea either.
Good post Finch.
They Will, payday loans are horrible, and if you can pay them back, they increase your limit more and more until you cant!
I try to avoid even promoting them as they can ruin people.
“How I made $400 in 24hrs from payday loans with no job sitting in front of hotels leeching free wifi”
The perfect E-Course! And you can push Payday loans on the backend! Of course, you’ll go straight to hell, but it’s effing brilliant!
lol@ Liam. I might just outsource that ebook and push it on DP
Like Nick said.
Payday Loans are the worst type of loans you can get and it will screw you, if you don’t know what your doing. Stay far away from them and the ridiculous interest they accompany.
Great post.
Shifting from treating IM as a hobby to as a business is what made things click for me.
By the way, Nick, were you in Singapore recently? I swear I saw someone who looked so much like you when I was with a client at a hotel!
Haven’t been to sg yet
Good read, I like it, the basement is my room upstairs though
A good read and something that i’ll keep in mind when building my business up. Time management is very important in our area of work because it’s always too easy to waste time on the web . I use leechblock (blocks sites you list for a set time period) plugin for firefox to help with this.
can someone please define “so much money”
thanks.
Hey Finch, Great post as usual, I have been following your blog since 2-3 months and have read almost all posts there.
Keep Rocking!!
Cool post you write very well I appreciate your honesty. I agree with you on not telling people how much money you are making they will consider you a money tree and mouch off of your success. I tried telling non-believers the power of the Internet and affiliate marketing but they just frowned. When I started making good money now they want to know all about it.
Sorry you should of took interest in the beginning. Some people are not just cut out for this business. These people need to keep their 9 to 5 if they cannot see opportunity staring them in the face.
Great post loved reading it!
Cakes whats the name of that affiliate site that everyone is on I can’t think of it and its really bothering me? The one that is like popurls but its all affiliate sites basically?
Affbuzz
Thanks. The big wigs at my job went to the affiliate summit and said there was a few speakers that didn’t have a clue what they were talking about. Thoughts on how it was this year?
Did the big wigs mention the names of these speakers?
That was a great post indeed. Ive always wanted to know if people are making real money in this business and your proof of that. At least someone can give out real information for once. Im sick of reading make money now articles. That was definitely worth the time i spent reading it.
Thanks again for this post. Reading newbie guide again. Sometimes it really helps to re read stuff from the past. As Solomon once said " Nothing is new under the sun". Bless you
Cliffs: stay focused
informative post.thanks finch
Great post Finch. You summed up what I think a lot of people in affiliate marketing fail to grasp. Trading time for money is not a business. A business is something that you can leave for a period of time and makes more money when you return.
Finch always had a unique style of writing; and most if not all of the time, is spot on.
I think you hit the nail on this one again
There is a lot of truth in this article, I run a small business at 23, and have run my own firm – at various different scales since I was 16. My biggest problem is managing people, and having to deal with BS – I try to be firm but fair and reward behaviour that helps my firm, the problem with this is that many people try to take you for a ride and disrespect you. It’s all about choosing to work with the right people, and respecting them and rewarding them for their work as best you can.
Thanks
D. Offer
Chit Chat for Facebook
http://www.chitchat.org.uk
Nicely done. Great points and you made me laugh.
Nice Guest post. I do think it’s very true of the following:
1. Make your time work for you, don’t waste it
2. People will steal your ideas – be careful (see Mark Zuckerburg)
3. When you hit a “goldmine”, keep your tradesecrets secret! (Learn from this guy (a stud and he will not divulge how he makes money trading Nat Gas -> John Arnold/ Centaurus Energy).
now back to work…
I really enjoyed the read. Didn't realize you were so young Finch. I understand why you don't tell people how much you make. I'm the same way with old friends and locals in my small town. Even though I have this blog where I share exact numbers, I don't tell my real life friends about it usually. It's like 2 different lives.
Best line of the post…."Clint Eastwood with Wifi". It made me lol.
/me looks up xhamster
Nick, Do a blog on people who know how to fuck up an industry Jesse Willims
http://watch.ctv.ca/news/w5/w5-just-think-twice#clip312666
Just got around to reading this. Finch’s blog is great, and there were awesome points made in this article.
Hey great post, ive heard the name just havent got around to reading your blog yet Finch. Im on my way there, Thanks Nicki for the guest post, i cant wait until i see my ideas turning into an actuall business. LOL at the bot message, i forgot to enter the code, lmao 1st time ive seen that lol. Fck than it took me another min to find where to put it, bots be sure to stay away from this blog.
Ive been thinking a lot lately about how much money I have spent on certain tools, etc trying to figure out what works and I have come to the conclusion that if you keep testing new ways and stick with something you will eventually get it. Dumping money into something you believe can pay off and eventually will if you stick with it, its the people that giveup that end up wasting their money because eventually if you do become a pro at it you will be able to maximize your profits and the first couple thousand that you spent spinnning your wheels will be made up for.
Good post, thanks for the wake up call.
Excellent post Finch and Nick. Nothing less expected from you guys. CTRL+F5 + XHamster = SooooTrue.
In the past years the single most valuable thing have done in business was treat people well. It goes a long long way and you don’t realize that until you’re broken and depressed, crying in the darkest corner of your closet.
This business does take a level of competence, maturity, and intelligence. It certainly is not for the 80% majority of people. That’s why only 20% make money.
I like that last line a lot.
“We are now, and always will be Newbies.”
My physics teacher said something along the same lines.
Great info .. It’s important to understand the industry and realize your business is only what you make it.
Exactly Nicky! Affiliate marketing is just a beginning for internet entrepreneurs, a way to get your foot in the door.
After you learn the traffic game you either stagnate or expand. Running your own offer is a great way to take the game to the next level.
With the right systems, it takes less than 2k to get a good offer up and running. The problem is that most people don’t stick it through.
That’s probably why .5% of the publisher’s in the space push 99.5% of the traffic. You’ve gotta be willing to lose along the way in order to win in the end.
Great post dude!
Great Post, I like it and completely agree with you
yes, i love that line as well. We will always be newbies? Well, welcome to the human world!
thanks for this post mate. Finch you have covered teh subject pretty well.
Amazing work Finch and Cakes, most blogs are watered down junky info but this blog has some gold nuggets and I've been digging through the archives reading many of them. Thanks!
Insightful post. It is necessary to learn how to deal with people when running a business, and it does hurt to give out too many favors that won't be returned in the long run.
The Cakes-master always has it right. Are you going to ASE coming up??
Amazing work Finch and Cakes, most blogs are watered down junky info but this blog has some gold nuggets and I've been digging through the archives reading many of them. Thanks!