Recent Updates
Black Hat PHP
If you're wondering how the launch of Black Hat PHP went... it brought in 186 sales for the main product ($1,616.10) and 6 sales ($562.37) for the $97 upsell, for a total of 192 sales and $2,178.47. That's calculated after taking fees into account.
I priced this one slightly higher (start at 7 cents and increase by 10 cents) because I wanted to get more money out of it over a slower period of time.
I made almost exactly $2,400 in sales total yesterday.... that's from one day! If you're wondering how I'm doing for the entire month, I've brought in $8,241.26 in gross sales for February 2008 which is $7,837.90 after fees.
Factor my day job income after that and it means that even if I take the next week off, this month was yet another $10k month for me.
I can tell you right now that having the 10-comment rule on this blog has made that level of income much easier to attain than in 2007, because:
- I'm building a list -- I've always built a list but the blog is yet another list-building source.
- I'm more motivated to pump out new products and write new sales letters because if I don't, I feel like I'm letting REAL PEOPLE down.
- Having the blog posts available permanently, instead of temporarily when I send out a mailing to my list, means those blog posts can slowly bring in sales over time.
I can't tell you how important number three is. Before starting a blog, I noticed lots of $2000 weeks and lots of $500 weeks in my PayPal income reports. Now it is more like $1500 weeks every single week.
That's much more reliable income. When I first started making big sales on the internet, I'd have a couple of days during a launch when I would pull in $1000 or $2000 in a day, then no more money would come in for the rest of the month.
Check out Black Hat PHP if you missed the big launch. It's quickly approaching the $20 price range so act fast.
Also, can you comment below and tell me if you are making any efforts to stabilize your income, going for steady streams instead of short bursts?
- Are you looking into AdWords or some other form of paid advertising?
- Do you have a blog?
- Do you have an affiliate program that's promoted directly from your e-book?
- Do you offer upsells or one-time-offers... do you have a product funnel?
- Do you have a membership site?
The 10-Comment Rule
This blog has what I call "The 10-Comment Rule."
I Post a Blog Entry, But I Don't Post Another One
Until the Original Post Gets 10 Comments.
I have the ten-comment rule because I'm just like you and have been to loser forums with tons of posts and zero replies to all of them.
On a blog, there's less focus on the replies and more on the original post, but that "empty restaurant" effect is still there.
- Participation. If someone fills out a comment to a post of mine, they're no longer just surfing. They are now in interactive mode and are more likely to buy from me if I mention a product.
- Search Engine Food. Search engines love lots and lots of content, and with comments, your pages can become much longer than the original post... that means more keyword matches for you and more search engine listings.
- Intrigue. If you see lots of comments on posts you are more likely to read them, which means you spend more time on my site, which means you're more likely to see something you like.
Remember, your blogs are there to make you money. Update it and tell people about yourself, tell them what stuff you are working on and what products you have just put out. Try to work a call-to-action at the end of every blog post. Either you want to send them to a sales letter of yours, sign up to a mailing list or subscribe to an RSS feed.
If you are talking about someone else's blog or site, mention that in the BEGINNING of the post. Don't make that your final call to action (unless it's an affiliate link).
Don't forget to apply what you know about selling and direct response sales letters to content site and blogs:
- Try not to link out to too many sites. On the blogroll on the right side of the page, link only to your own products.
- Offsite linking includes "chicklets." Have one chicklet, i.e. "Digg this." But not: "Add to My Yahoo!" ... "Add to Reddit!" ... "Add to Bloglines" ... and so on. That's
- Build up a mailing list and send an e-mail to that list every time you make a new post.
- Stay away from AdSense. AdSense is for people too lazy to build a list and make a product. Believe me, that was me too at one point.
I researched how to make WordPress more optimized for search engines:
- I added meta tags to the header and made a robots.txt file to prevent duplicate content penalties.
- I changed the permalink configuration so the full URL of the post was actually revelant.
- I tweaked the template so there wouldn't be a bunch of extra text in the TITLE tag.
Got it? Your blog is just another part of your business, it's not "just for fun." It can be fun but it has a purpose:
- To present yourself as an authority figure in your niche. (BRAND YOURSELF.)
- To capture untamed search engine traffic and funnel it into a list or to your other products.
- To maintain a relationship with your list and past buyers. When you update them every once in a while, they remember who you are.
A minor side effect is that sometimes the conversation will meander off-topic and give you an idea for your next blog post.
Try your own 10-comment rule if you have a blog. My 10-comment rule works because I have a list of 10,000 subscribers (66% buyers) so you might have to make it a 5-comment rule if you have a smaller list.
Or, the ten comment rule might just mean that you can only post one blog per month. You can spend the rest of the month creating products, building up a list, and maybe advertising for your blog.
Seriously, what is the point of doing ANYTHING if no one is going to read it, or if they're going to just read it and lurk and not say anything about it?
Action PopUp
Is it possible to take an old outdated idea and put your own twist on it?
The thing is, I hate opt-in forms that take me off the current page. Luckily there has been a rise of Ajax-based and iframe-based subscription boxes in the last couple of years where you can fill out an opt-in form and you are NOT taken away from the page you are on.
In August of last year I first released Action PopUp.
Strategy #1: See If They Buy It In the First Place
I didn't know if it would sell well or not... the only real way to find out is to test it with a version 1.0 and see if people buy!
I am not a fan of releasing a free report, or offering nothing but a newsletter in your niche... just make a simple product, price it accordingly (a low price if it's a simple early version of your product) and see if people are willing to pay money for it!
There's really no other way to know for sure.
I launched on August 15th, 2007. It was a dimesale, the price was $7.99 plus a 2 cent price increase with each sale. The launch lasted for two weeks, totaling 242 sales at $2,504 profit ($2,348.36 after PayPal fees).
$2500 for two days of work? I definitely consider that a success! It was something people actually wanted to buy (instead of just saying they would buy it -- beware of this).
Strategy #2: Feature Creep
Because it was a new source of income, I knew I would spend the time to develop it more.
I slowly added new features and released them for free to my existing buyers. This is how you should roll out all your products: software OR information products.
I've developed the heck out of this idea and it's now at version 1.5 with a price of $13.31.
Strategy #3: Eating Your Own Dog Food
I added an option to make it work directly on a page, instead of as a pop-up... which is how I use it on this blog. When someone reads a post, they have a chance to subscribe to my newsletter for updates. Once they do, the subscription box disappears.
Action PopUp personalizes any web page (including this blog) after you fill out the subscription form... and remembers it for future visits.
You might have noticed it already... for example, on one of my posts, I start with this sentence:
"Don't forget, it's okay to make mistakes."
If you are reading the actual entry (not just on the front page)... after you fill out the newsletter box... let's say your name was Steven... the blog entry now reads:
"Steven, it's okay to make mistakes."
The more I used it on my own sites, I found I kept adding little "tweaks" in the script to get it to do what I want... these tweaks eventually became advertised features.
I added a one-time-offer countdown, link capture functionality, a delay-onload pop-up... only when I needed them for my sites.
Have you heard of the phrase, "Eating your own dog food?" It means if you use your own products, they will kick ass. Dog food tastes like crap, but if you were a dog food company and all you had to eat was your own dog food, you would tweak it to make sure it tastes great.
Action PopUp was something I actually used on my sites, so with all the unintentional self-testing I performed, I weeded most of the bugs, added features that people like me would actually use, and made it as easy to install as possible.
It's because of those three simple strategies that I am able to consistently pump out products.
Are You A Professional Newbie?
Don't forget, it's okay to make mistakes. When you break into any niche you have to deal with a learning curve and the only way to learn the most important things in life is to make mistakes doing them.
A "professional newbie" is someone who never wises up, never figures out what they are good at, and doesn't belong in the niche they are in.
Are You a Professional Newbie?
There are people in the internet marketing niche, in the stock trading niche, and in the programming niche who lurk on message boards who have no idea what they are talking about, who post on blogs and have no idea what they are talking about.
In internet marketing, a professional newbie is someone who gets hyped up about AdSense, makes some sites for a few weeks and then gets bored. He gets hyped up by another guru about article marketing, writes some articles, but that doesn't make him any money so he moves onto the next thing.
The professional newbie tries Squidoo, blogging, Craigslist, eBay, Forex, AdWords, Clickbank, PLR, ELance, all only for a few months all with no results.
Oh look... a rock over there... oh wait... another rock over there.
Idiot professional newbies spend all their time "thrashing" from idea to idea without any focus. They don't accomplish anything besides losing money.
I read someone's blog in the stock trading niche who is a professional newbie and probably always will be. He follows the advice of random strangers who post comments on his blog and invests tens of thousands of dollars into some stock he has hardly even heard of, but was given "a tip" that it will make him a bunch of money.
Usually it blows up in his face.
Do you make this same mistake in your niche?
(That newbie whose blog I follow was ahead $200,000 at one point and is now almost $500,000 in debt.)
I see the same mistake in the software niche...
- Professional newbies switch from project to project.
- Professional newbies begin learning how to program, but they get bored and switch around to some other languages.
- Professional newbies want to make their products so perfect that they never get launched.
- Professional newbies want to make the most unique product there is... the only problem is... it's a stupid hair-brained idea and no one wants it.
I could go on forever. In every niche there you are going to deal with a LOT of noise. Moreso if the niche is in any way profitable, because that means others can prey on you -- they profit from your inexperience.
Don't be a professional newbie. Stick to one single project for a month, get off your butt and do some work.
If you have a niche you've always wanted to break into, spend 1-2 days writing a short report and create a sloppy sales page. Send some traffic to it and see if that path is worth pursuing.
Find out what niche you are good at and like.
The only way you are going to get anywhere is by working hard and working smart. You need both. If you work smart but not hard, you're a philosopher. If you work hard but not smart, you're a McDonald's employee.
DO SOMETHING! Stay focused. Don't even think about what your next product will be until the one you're working on now is launched and is selling.
One last thing. You need to know where you want to end up. Do you want to host seminars on your topic, do you want to produce an autoshipped monthly CD series? Do you want to do freelancing and then move up to high-end paid consulting? Or do you just want to sell off the rights to your products and bail out at some point?
It's like a map, you need to know your start point and your end point, and always be on a road that is getting you one step closer to that end point. Just one little step in the right direction.
You can't possibly be thinking about every single road you're going to take to that destination... but on the other hand you can't turn at every single street hoping it will lead you somewhere.
My friend Steven Schwartzman has this problem of taking action... so recently when he had a great idea for a niche to break into, I told him to make the small report, get it out there as sloppily and as quickly as possible, and see if it takes off.
I have been building my business just a little bit every day. I don't think I'm ever going to go full time in internet marketing but I want to build a bigass product funnel, get into physical products then maybe hit some seminars. I don't want to host seminars or speak at any.
The way for me to get there is with more video products, which is why I have been upgrading my e-books to video packages. So far this month I have released Simple JavaScript, Sales Page Tactics Volume 1 and Sales Page Tactics Volume 2 as video products.
I'm not going to try to break into any other niches at this time or pursue any weird projects right now like a membership site. I'm not going to go back to freelancing or put effort into any big joint ventures because that's not the direction I want to be headed towards... but that's just me personally.
What you want with your sites, your products and your niche is going to be way different than what I want.
Simple JavaScript
A week ago I made a very subtle change to my blog. You probably didn't even notice it, I bet. I moved the link on the right side for "Simple JavaScript" from the e-books to the video infoproducts category.
That wasn't a mistake.
I went back and recorded the videos for it. So, do you have any old e-books that you can update for the year 2008 and record some quick videos for?
They don't need to be super great. All I have is an out of date copy of Camtasia 4 and a USB headset. I open my PDF e-book to the beginning of the chapter, read the title and the first couple of paragraphs, then get to work, actually performing the steps the book tells me to, step by step.
I am very liberal with the pause button. I read part of the book and then do exactly as the book says, explaining what I'm doing as I'm doing it. Sometimes I'll ad-lib some comment, or go on a rant, or notice something I didn't notice when I wrote the instructions -- but did notice when I actually performed them. (Yet another reason why videos are such a valuable part of any infoproduct.)
People are lazy. If they can watch something instead of reading something, they'll be more interested in it.
My videos aren't award winning or clever. They really aren't that great. But they're good enough -- remember "it doesn't have to look good, just be good?"
I wasn't even decent in my earliest videos. In the winter of 2005 (I think) I recorded about 20 hours of PHP videos that just stunk. I don't even have them anymore. In retrospect I probably should have at least sold away the rights to them.
But I recorded the videos with the intention of selling them. You shouldn't record videos just for the purpose of wasting time and keeping yourself from building your business.
Video takes practice just the same as it takes practice to write well. It probably took an additional 3 or 4 video infoproducts to get it right. Now I don't mumble, I project my voice as well as I can and I speak slowly enough in the videos that I don't trip over my own words or click my mouse around too much like a babbling idiot.
My videos used to take 25 takes on average to get right, now I get through them in one take. Okay, I'll admit that every now and then I will screw up and have to record a second take.
- You can record videos for your old infoproducts and double their perceived value.
- You can avoid what Willie Crawford calls "The $20 E-Book Syndrome."
- You can create products that include audio, video, physical materials or DVDs that sell for $97 instead of $27... that require only 10% more work for you to make.
No one cares if you sound stupid as long as they understand you and you have something interesting to say. If you "get excited about your topic," that's no big deal.
I find that if I try to record a bunch of videos in a row, I get tired and just try to plow through them. They end up feeling substandard and rushed... not good. If you sound rushed and eager to finish the video, you don't sound like you're excited about your topic.
Instead, record a 10 minute video and then do something physical for 10 minutes (hey, let's not get dirty now).
You need to recharge your batteries.
- Record a 10 minute video then get in your car and drive around the block for 10 minutes.
- Record another 10 minute video then go have dinner.
- Record another 10 minute video, then mow the lawn.
- Record yet another 10 minute video, then buy groceries.
Even if you could only set aside time to record one video per day, you could convert your old boring e-books to exciting video information products. That's what I'm going to do this month.
I haven't blogged all week because I didn't want to talk myself out of doing this, but I have three more old e-books that are ready to be converted into video products. I have them all recorded and uploaded as of last night, I just have to work on the sales letters for them, one at a time.
I'll be re-launching Sales Page Tactics Volume 1 with video within the hour -- it's probably already out by the time you read this.
Do you have plans to record just one video per day to breathe new life into an old product? Comment on this entry below and tell me what you are working on.
[HELPDESKLINK]
How To Break Into Any Niche Part 2: Relationship Building
Once you get in the habit of setting up a list for every product you create, the way to get people to remember you is by showing your personality.
I build relationships through forum marketing.
- You could post special offers every now and then by giving visitors of a certain forum a huge discount compared to the general public. I do this with WSOs.
- You could add video responses to posts every now and then and send traffic there so people see your face instead of the words you type. I did this with a YouTube video but I'm not sure if I'm going to post to YouTube on a regular basis because I felt like I was talking about myself too much.
- You could do a low tech link exchange. If someone posts a comment on your blog with their URL, visit their blog and leave a thoughtful comment with your URL.
Use your real name. Any time you join a forum, use your real first and last name. If you plan on pumping out lots of small products you are going to have lots of small web sites and almost never one big web site. The exception could be if you register YourName.com and stick a blog on there with a link to all your products.
Find a forum in your niche that ranks high on the search engines, and make that the only forum you visit for a month. I don't care if there is some forum you are addicted to and have to check every 5 minutes. Take a vacation from that forum and build a reputation on that forum.
I want you to make 50 posts over time on this new forum. They need to be real quality replies that use your expertise on the subject. They need to be answers that could only have come from you.
Never make a "me too" post. Never mention your web site in any reply. Don't start any new topics, just reply to existing ones. Many forums have a link to find posts with no responses... you can reply to these but stay away from any more than a month old.
Once you have these 50 posts, edit your forum profile and add a signature with a link to your web site. Many message boards will require a certain number of posts before you can add a signature anyway.
Only put one link there. Make the text on the link a headline, not just the name of your site. Don't make the text any fancy size or colors, just center if it possible.
Then leave the forum and forget about it. Search engines like Google will pick it up. Now if someone is looking for the solution to one of those specific problems you solved on the forum, they'll find that thread and if you were helpful, might click your signature link and end up on your site. This is in addition to all the members of the forum who visit it on a regular basis.
I have done this with nearly a dozen message boards in my niche. What got me started doing this was checking my referrer logs. Your referrer logs in your control panel will tell you what sites send traffic your way. So someone might ask for help in getting a freebie script of mine customized, or ask if a product I offer is really legit. I register on the forum using my real name, answer the question, then poke around a little while after.
I have even signed up to a $60/month private forum to build relationships based on my referrer logs... but that's just because I'm crazy.
I consider using referrer logs to decide which forums to hit a better indicator than Google search results, because you're already certain traffic is going to flow in your direction.
Top Secret PHP: 300 Sales in 24 Hours
Early yesterday morning (about 24 hours ago) I released yet another PHP video series. This one is called Top Secret PHP.
I launched it using a nickel sale.
What's a nickel sale? Keep reading...
Just so you know what I'm talking about, it's like my other video infoproducts where I supply 7 PHP scripts, provide detailed step-by-step PDF instructions on how they were made, plus a 10-minute-ish video showing it in action, and how you can customize it to fit your site.
It has scripts to run some pretty unique special offers... like fast action bonuses, client-side one time offers, and upsell series.
The rest of the scripts and videos deal with affiliate marketing: how to stop affiliate vendors from stealing your keyword research, how to place pop-ups on other peoples' sites.
It even shows how to tweak your vendor's sales copy to make sometimes very necessary changes (like remove THEIR opt-in forms and ads from sales pages you risked your hard-earned advertising dollars to promote).
Because my most successful product launch (that $3,000 day last June when I announced Web Sites on Crack) was a nickel sale, I decided to go with what works.
A Nickel Sale is Where You Set the Price of Your Product At $0.05.
When someone buys, the price changes to $0.10 and the second buyer has to pay 10 cents for the same product.
Buyer number three has to pay $0.15. And so on.
You wouldn't think it adds up, but it does. I got Web Sites on Crack to run up to the $20 level, which means 400 buyers, so even though people were paying under a dollar at first, the last few people paid $20 for the exact same thing.
With 400 buyers, you average out to about $10 per person or $4000.
Even with just 200 buyers, that's $5 per person on average or $1000 in profit.
An added surprise bonus: That rush of early buyers provides the social proof for others to buy in quickly so THEY don't miss out before the price rises again. It feels like buying a rising stock in the stock market.
Gary Ambrose did this exact same thing with a program called "Nickelmania." I didn't hear about it until a year or so after he did it, after I began doing it.
The difference was with Gary's opp, he offered an affiliate program AND a physical DVD. That is even more ballsy. I'm only offering a downloadable product. If I don't make any money, that's no big deal. But a DVD costs about $5 to have autoshipped. If he gets less than 200 buyers, he loses money.
Then again Gary is all about list building. He is one of those guys who doesn't care about losing a little bit of money because... it's just like AdWords! He's paying for each lead, just like with AdWords you pay for each click to your site, and try to funnel it into a list.
His system is even better than AdWords, because he only pays per lead, not per click, and he's paying for a lead of someone who is willing to give money to him... now he can hit them with a backend product or market to them later down the line.
I've seen Russell Brunson have a site where he PAID affiliates $1 for each newletter sign-up they referred. He doesn't mind the initial loss because he's build a huge list of responsive people.
Even better: pre-qualify subscribers by making them buy something first. I recently saw a site that offered a 1000% commission affiliate program. What he did was charge people 10 cents to sign up to his newsletter, but paid affiliates $1 for each confirmed subscriber. It's the same idea... thinking of it in terms of pay-per-lead.
The moral of the story?
5 cents isn't that cheap, it isn't even a loss after you get a couple hundred sales in.
Here are my sales statistics for Top Secret PHP starting on midnight Thursday January 24th, 2008 and ending on 11:59 PM on that same Thursday...
Number of sales: 298
Profit: $2,179.60
Profit Per Customer: $7.31
Profit after PayPal fees: $2,019.75
Additional sidetracked sales: $124.38
Sure beats the hell out of that slow burning incremental product launch I did with PHP Uncensored, doesn't it? The Top Secret PHP launch just made in a day, what it took PHP Uncensored to two weeks to earn.
P.S. That dimesale / nickelsale script is a part of Sales Page Tactics Volume 3 if you were curious.
PHP Uncensored Version 3
I released the updated "PHP Uncensored" e-book and video package last night, complete with chapter 4.
Some of you were interested in my sales numbers for this launch, I'm going to give them to you. Keep in mind they aren't super great and I never put a lot of work into product launches.
Buyers at $10.00: 168 = $1,680.00
Buyers at $12.50: 28 = $350.00
Buyers at $15.00: 6 = $90.00
(Remember, we want to tally up profits -- not the number of sales.)
Total buyers: 202
Total sales: $2,120.00
After PayPal fees: $1,988.84
No advertising, no JVs, no affiliate programs, just a little bit of good old fashioned lazy forum and list marketing. That means zero expenses for me.
I'm only happy with about $3,000 from a single product launch. Remember that in June I made $3,000 in a single day. I keep telling myself that there are three more chapters to add so maybe things will pick up a bit.
My "Web Sites on Crack" and "PHP on Crack" products sold 405 copies each so I consider that the absolute highest number of buyers I am capable of attracting at this time.
But anyway, back to "PHP Uncensored"...
This latest script in there is a "Link Spy" and shows how to find out what pages on your web site are losing the most visitors.
You get a complete list of what pages on your site your visitors leave from... and which URL they end up going to!
If you can narrow down the links on your site that lose you the most traffic, you could:
- Edit the page and place an opt-in box right before that link to make sure you don't lose visitors permanently.
- Investigate the link and find out if the site you are linking to has an affiliate program you can join.
- Contact the owner of the other site and offer to setup a link exchange.
If an article or page on your site was really really popular... and you plugged that one leak... even one extra sale per week for a year would add up to a nice chunk of change.
Here is the URL to that product so you know what I'm talking about:
www.PHPUncensored.com
Remember that because I'm following that mini product launch plan outlined on my blog earlier this month, every time I add a new chapter, I give free upgrades to existing buyers and then increase the price for new buyers. So the lowest price to get in is right now.
How To Break Into Any Niche Part 1: Funnel Everything Into A List
Any time you offer anything, you need to create a sublist for it. If you have a paid product, create a sublist to put customers into.
If you offer a freebie report, create a sublist for it and require your visitors to opt-in so you can send the download link via e-mail. Don't ask for an e-mail address after they get the product, this works about as poorly as if you sold someone a book and then asked them to pay for it after they're done reading it.
These all need to go to the SAME autoresponder (so you can broadcast a product launch to everyone) but have segmented sublists so you can deliver updates only to some existing buyers, or offer special deals to certain lists.
Do you want to know everything I know about list building?
- Turning existing customers into subscribers gathers the most responsive subscribers.
- Requiring an opt-in in exchange for a free product gathers much less responsive subscribers.
- Trading free information (a newsletter) for an e-mail address gathers even less responsive subscribers.
- Getting subscribers from pay-per-click traffic, co-ops and traffic exchanges gathers subscribers not worth marketing to.
Here is how I broke into the PHP niche: I created a newsletter and offered a free 30-page PDF report in exchange for signing up. This is my "main" sublist. I found some old articles of mine and filled up an autoresponder series with 6 months of follow-ups (1 or 2 messages per week). Most of the time -- especially at the beginning -- I would offer lots of free advice and information. A few weeks into the seriesI mention some of my freebie products to get them on more of my lists. Then I mention some more of my paid products.
Notice how I say "mention." I don't say I switch from articles to promoting my products. I talk about something and then say, "Here is how you solve that problem: (my URL)" or, "If you are interested in that topic, here is more information about it: (my URL)."
Blend content with sales. Too many people try to sell too early or try a hard sell after piling on lots of free info.
About filling up an autoresponder, I tend to do one per week for six months for the main newsletter. For the product sublists, I will space out messages at about one per month.
- First I would ask what they thought of the product, and sent them to a feedback form so I could actually get their response.
- In the next message I would offer a surprise bonus for being a loyal subscriber.
- At some point I would send them to a feedback form again asking for a testimonial and telling them to make sure to include their name and web site URL so they could get some free promotion from my site. (It's always about what's in it for them.)
You don't need to fill up every sublist with an autoresponder sequence because you're going to be pushing your product launches to all sublists every now and then. You also need to remember that many people will be subscribed to more than one of your sublists -- and who wants 5 e-mails a day from the same person? Not me.
You do need people to remember who you are and that's what we'll deal with next: relationship building.
Financial Goals
What do you do with the leftover internet marketing money you have laying around?
The easy answer is, reinvest it back into your business. That doesn't work for me because I very rarely do any outsourcing or advertising.
Okay, so what about financial goals? I already own a car, there are no specific places I want to travel.
I want a house. Actually I want a condo... I don't want to have to deal with keeping up a yard or mowing the lawn or any of that stuff.
With a 30-year fixed mortgage at 8%, I could get a $100,000 loan for equal to the same rent I pay now, living in a 2-story townhouse, with no roommates. Okay great you say, what homes in California sell for that much?
There are condos down the street slightly larger than my apartment... PLUS a garage... that sold for $250k this summer... that are now $160k. If I can put $50k down, my monthly mortgage payment on that thing would be close enough to the rent I'm paying now for me to be happy.
So how have I been doing? Since buying my car with all cash in June (I should have had it financed... but that's another story) I added $20k over time into a stock brokerage account.
With a little bit of work and a LOT of aggravation I built that up into $30k by December. I learned a lot along the way. I avoided so many of the usual stock trading newbie mistakes.
It was way too emotionally taxing to gain $1000 in the morning on some days only for the gains for the day to go back down to $0 by the end of the day. I would check several times daily, sometimes every 5 minutes.
What I learned quickly is that I was creating another job for myself. It wasn't even a fun job. Either I gained some money and started worrying about losing it, or I lost money and worried about how I was going to get it back.
I was a freaking full-time gambler and I didn't even realize it. So where do you stick your leftover money?
- Figure out a way to reinvest it back into your business. You need to find some way.
- Put it in a savings account and slightly beat inflation.
- Put it in a CD for a 4% yearly return.
- Invest it in an index fund or money market account for a 5% return.
I no longer daytrade.
Whatever you do, don't create extra work for yourself. Don't create an extra job. Your time is way more important than any amount of money.
What are your financial goals? (Seriously, post here and share them with me.)
What do you do specifically to reinvest your profits back into your business?
Would you still pursue internet marketing and create products for fun if you had all the money in the world?
