Tag Archives: money-making

The Myth of Money-Making Internet Affiliate Marketing

Let's admit something to ourselves.  What are the chances that the next Internet money-making product you buy online is going to make you a substantial amount of money?

If you have ever bought any of these products in the past, your email inbox is probably full of these kinds of offers, unless you get sick of them and choose to unsubscribe.

I say slim to none, but that is by design. Let's look at the question from the point of view of the vendors of these products. The reality is that any product that could make you rich is the opposite type of product they would be selling.  Where is their income going to come from tomorrow if they sell you something that makes you rich today?  You will no longer be their customer, and they may go out of business.  So what kind of customer are they looking for?

They want fairly gullible customers that are willing to believe the promise that you can make money with their product. It is better if you can make a little bit of money with their product, but as long as you keep coming back for more, it doesn't really matter if you make any money at all using what they sell you. That is the stark, cold and somewhat cruel truth that needs to be told. They will sell you a small piece of the Internet money-making pie as long as you keep coming back again and again to buy their products. 

You can find hundreds, even thousands of these kinds of products at JVZoo, Warrior Forum, Clickbank, and others as well. These vendors are working hard constantly to come up with clever ways to promise you money-making methods so you keep coming back to the trough to feed on a regular basis.

The kick in the head is that you will never become financially independent with their methods because limited success is built into their products.  I call that a win-lose-lose proposition.  It seems like you are winning, but as P.T. Barnum used to say, a sucker is born every minute.

Let me give you a prime example of this from my own experience. I used to work for a company that is an Amazon FBA reseller. FBA means fulfillment by Amazon.  You list the product for sale on Amazon and Amazon ships to the customer for you. Simply put, you buy products wholesale and sell them at retail prices on Amazon in a storefront.  Amazon is so highly successful at online retail you would think that selling on Amazon is a goldmine, right?

The reality is much, much more complicated than that.  The truth is that over 100,000 small businesses each year hope to cash in on the Amazon FBA opportunity and begin their FBA business on Amazon.  Would you like to know how many of them are still in business after only one year? Only 10% survive after the first year. That success rate speaks volumes about how "easy" it is to become successful on Amazon as an FBA reseller.

There are many reasons for this, but I will give you three of them.

1) Most new FBA resellers are consumed with a "get rich quick" mentality.  This is a sure-fire way to fail at any kind of business in my opinion. Anything worthwhile comes from hard work and perseverance, so most of them are doomed from the start.

2) If you really want to be successful at almost anything, you need to find a good mentor. In other words, you need to find someone who has already become successful as an Amazon FBA reseller.  Most new FBA businesses lack that resource.  Usually, they purchase an online course or go to YouTube in order to find out how to become successful on Amazon, and the people they listen to are not actually successful themselves, so they are easily led in the wrong direction.

3) Most new FBA businesses on Amazon are way, way undercapitalized.  People cash in their 401k for $ 5,000.00 or $ 10,000.00 and think they have enough money to run an Amazon FBA business.  Unless you have $ 100,000.00 to invest in your new Amazon FBA business I would not consider even getting started.  5 or 10 years ago, when Amazon was a bit easier and less competitive it might have been possible to start with a smaller amount of capital, but not today.  An Amazon FBA business today is much too competitive to run without a substantial amount of capital to invest.

So I believe that even based on these three reasons alone, most FBA resellers on Amazon are doomed to fail from the start. I have to say that the company I worked for was highly successful on Amazon and avoided most of the pitfalls that have doomed other FBA businesses.

With the knowledge I gained working for a top Amazon FBA reseller, would I start my own Amazon FBA business today?  There is no way I would do that, even if I had $500,000.00 to start the business. Why not?

1) The FBA business on Amazon is much too competitive now.

2) It requires a vast amount of work to manage, and only large companies with a large staff and an experienced management team will survive.

3) All in all, even with sufficient capital and intimate knowledge of the Amazon FBS business model, there is much too great a risk involved.

 

So I guess you could say I am still looking for the ideal online business in which I can invest my time and energy.

Keep this under your hat, but I may have already found at least one or two ideal online businesses in which to invest my time and energy.

I am in the process of proving them out at the moment, so let's keep in touch.  Either one or both businesses may prove to be a lucrative opportunity for you too.

 

Whatever I find, I am not the kind of person to keep it under my hat.  Markethive will be the first place I will let people know what I have found.

 

I wish you the best possible success in all your endeavors.

 

John Lombaerde – Markethive Entrepreneur