photo credit: José Encarnação
I want to build businesses – not just make money.
What’s the difference? By my definition of business has intrinsic value. You can make money all sorts of ways but it doesn’t mean you’re building a business. My version of this is affiliate marketing.
I make 100% of my income from doing Internet marketing. I refer people to all sorts of online offers, products and services, and widgets online. Merchants will pay me a commission or part of the sale for moving eyeballs from one place to another. This is also known as affiliate marketing.
I’m also a hired gun. Companies will hire me to help position them on the Internet and drive traffic to their offers. I will build them websites and landing pages and help them set up their PPC campaigns.
This is different from traditional affiliate marketing in that these companies are often very niche and can’t be found in the affiliate networks.
Don’t get me wrong, this can be a great way to make a living. As a matter of fact, the potential is almost limitless. After all, there are over 300 million people in the United States many of whom are online on a daily basis. I have acquaintances who are making well over $1 million a year doing affiliate marketing. Big potential!
But I don’t just want to grow somebody else’s business.
Look at it this way, if I’m using my hard-earned cash to promote somebody else’s product I’m building equity in their business and they pay me a commission for doing so.
But at the end of the day if I’m not there to promote their service or product I don’t get paid a commission or residual. They’re not giving me a stake in the company or a big payoff when they sell their company.
I want to be able to offer my company up for sale one day and earn some multiple of its annual profits. For example, if I have a business that generates $2-$3 million a year in profits after expenses, I can usually sell that for 2 to 3 times that amount in a sale depending on the business vertical. And along the way, if I’ve managed the business correctly, I’ve also paid myself well via a nice salary. (Granted, that’s a very optimistic scenario but shoot for the moon and all that…)
Regardless of whether or not I sell the company one day, I own the company. I have equity in that venture. Maybe I pass it on to my children, maybe I sell it. It doesn’t really matter because I’m building value in something I own. Something that has its own intrinsic value aside from me being there to manage it on a daily basis. (Even though it will take a lot of my daily effort!)
So how do I go about transitioning from being an affiliate marketer who refers others to someone else’s product to owning my own business?
My plan is to create and brand my own products and sell them directly to consumers.
I’m getting ready to launch my first venture and I’d like to share my progress with you. I know I have some smart readers and welcome your insight and advice along with the accountability that comes from making my plans public.
I’ll continue to practice affiliate marketing because it’s a great business model and how I make 100% of my income right now. Bu, to challenging myself by launching myself by building my own business and perhaps bringing on my own affiliates to promote my products.
For the time being keep your eye on WellSlept.com
