LESSON #3: Is an online business right for me?

By | June 14, 2008

Unlike many of the internet marketing teachers, I’m not going to tell you that ANYONE can successfully run an online business.

The fact is that it takes hard work to build a business, and there are certain abilities that will greatly increase your chances of success.

Watch this video to see what I mean…

Main points:

  • The startup COST for an online business is a huge variable, ranging from zero to millions. The good news is that it can be very cheap: less than $100

  • The more TIME you can devote to it the better, but don’t let a lack of time stop you. If you can only devote a small amount of time at first, that’s OK.

  • Stop buying stuff! You don’t need it. (unless you really know what you’re doing)

  • Stay out of debt! It’s not necessary to use debt to start this kind of business.

  • You need to be willing to be a marketer. If you don’t have any marketing experience, then at least:

    a) you must be OK with marketing
    b) you’ll need to learn it along the way

  • Same thing for technical aptitude. You DON’T need to be a computer expert, but you must be comfortable with computers and willing to learn.

    Action steps:

    1) Right now, you simply need to commit to the following.

    a) I’m willing to be a marketer
    b) I like computers and the internet
    c) I’m willing and able to learn (and I know it will take work)

    Take some time and be honest with yourself (and don’t WORRY about WHAT you’ll need to learn. That’s what I’m here for, and I’ll guide you through the entire process.) If you are confident in those three things, then I’d say you meet the basic requirements for being able to start an online business, and you’re ready to move onto the next lesson, in which we’ll explore several different types of online businesses.

    As always, you are welcome to post your questions and comments below.

    Have a great day!

  • 675 thoughts on “LESSON #3: Is an online business right for me?

    1. dave chan

      Hi Eric – Folks,

      Thanks for a great video series so far! I just wanted to say a few words about the theme of this latest installment.

      I used to h8 the idea about Sales and Marketing, but the more I learnt about it the more I grew to love the subject. I started looking into Internet Marketing out of desperation and originally I just thought that the end justifys the means. Of course it is better to have an affinity with the subject to begin with, but sometimes you don’t know until you try.

      I have also been a compulsive buyer of Internet Marketing stuff as well, but I made this decision not to buy anymore a while back. The fact is that even if the stuff you buy is good and useful and if you don’t use it, then it is as useless as a chocolate teapot.

      I’m very unsatisfied with my job and have been since 8 years or so and I have been searching for that internet pot of gold since a year and a half or so, but have not had the courage to take the plunge…yet. I would like to say to everyone, that as a conclusion to about 1.5 years of research, I think that there is no quick and easy way to success. It will take time, effort, commitment and perseverance and I’m currently devoting about 5 hours a day in getting my thing started (on top of my day job, 2x kids and a chronically ill wife and it is tough).

      Thanks again Eric!

      Brgds,

      Dave “mchappy” Chan
      (Sorry for the bad english)

      Reply
    2. Iftekhar Hussain

      Hi! Eric,
      Honestly speaking, I was trying to understand what this on-line (internet) marketing is?
      With the blessing of God I started receiving your lessons. This is the third(3) one.
      This is encouraged me to start my own online business. I hope by the end of your lessons I will be able to start.
      God bless you dear.
      Regards/Iftekhar Hussain

      Reply
    3. anthony severn

      hi eric ,l love sales and marketing l have taken your very good advice and from today l will stop buying products for my business until l learn more about selling products online .you have given me a good insight into what happends online .l will be listenig to your info all the time .thanks anthony

      Reply
    4. adri

      Thanks, eric
      I always waiting for your next lesson and still curiosity what the next step. I think I have spend more than $ 100 to make money online do I have spend more and for what ?

      Reply
    5. Albert

      Hi Eric,
      this is just another great lesson.
      Most people only see the money they can make with an online business and not all the work they have to do! Am I right?

      Reply
    6. Andrea

      Hi Eric,

      First, Happy Father’s Day to you and all the other Dads out there!

      With regard to lesson #3, “Stop Buying Stuff” is a biggy! Because everyone and their uncle tries to sell, sell, sell. It took it me a few purchases before I realized the names I liked and trusted (quality content and products) were also JV partners and affiliates just promoting to make some extra cash.

      Enjoying the lessons. And by the way, an additional lesson for me within your lessons is patience! Want them all now!

      Always Grateful,
      Andrea

      Reply
    7. Nadine Fletcher

      Honestly Eric

      This is just what the doctor ordered. I am sick of
      Scammers and worthless trash sites that are legit
      but offer no real information getting rich off me.
      And not only me but others like me.

      You are a breath of fresh air.
      For the first time in life I am actually learning mow to market and loving it.

      I am studying marketing with articles that I
      write and a whole lot, lot more.

      And to think I was crying because I had wasted
      over $500.00 on internet trash just this past
      April. Lost my job this May past and still trying to figure out how to borrow $250.00 for
      yet another opportunity.

      And one of my Internet buddies said; Nadine…
      don’t buy that course you don’t even have a job
      I’ll give it to you for free.

      No I didn’t write the course he wrote but I’ll
      give you the link of the guy who did. So I know
      what you mean here.

      I heard it a hundred times learn to market yourself and once you do you’ll be able to sell
      anything. Responsibly of course, so you are one
      of my teachers an d mentors.

      Thankful for those like you.
      Nadine

      Reply
    8. Nico Pisani

      STOP! WARNING! Myth: Anyone can run a PROFITABLE online business.

      AAAGGGHHH! What? Are you kidding me? but..but… the GURU’s said it was easy.Work! What do you mean work? Like hard stuff? I think I just soiled my jamies:(

      Eric starts Lesson #3 with a rude Awakening for some.. This internet Business stuff is WORK! Let me say that again WORK, WORK, WORK, WORK!

      After you leave your comments for Eric..

      you can read my full review of Lesson#3 and get involved at:

      http://ericstips120forum.com/index.php?topic=5.0

      Pura Vida! Nico

      Reply
    9. Dora Kok

      Eric hi,

      Thanks a lot for being so generous as to impart your knowledge to all of us naive internet marketers.
      I’m really enjoying your course and hope to pick up as many tips as I can from those lessons and to apply those techniques into my newly setup home based IM business.
      Thanks again.

      Dora

      Reply
    10. Melvin Roy

      Hi Eric, I’m a computer programmer/instructor and I’m very much enlightened with your topics about sales and marketing.. I hope that I can learn more from you and I want to personally THANK YOU for sharing your ideas FREELY!

      God bless you and your wonderful family!

      Reply
    11. Juliet Easton

      Thanks, Eric! I think you are really doing a lot to help people know what is really involved in building a sucessful internet business. There is no magic pill. Yes, you can work in your pajamas from home if you want, but note that that sentence has a very important critical word – WORK!

      I started my first internet marketing business in 1997 when there were no expensive training courses out there. I had three small kids at home, a computer with a 14.4K modem and used Netscape Navigator Gold to design my first two sites. The only internet marketing training that existed was newsletters from Cory Rudl and Mark Joyner. I studied and worked my butt off to build my first company, set up a seperate checking account and reinvested every penny that I made for YEARS into building up a business that eventually was bringing in $75K per month. It took a lot of hard work!!!

      Things are so different today – there is SO MUCH training out there – some good, some bad and it can be overwhelming. But none of it will work if you don’t apply what you learn. Yes, you can outsource certain things with your business that you couldn’t in 1997, but managing those outsourced relationships is still WORK. You are only going to get out of your business what you put into it.

      Thanks, Eric, for your honesty! People need to hear more of this in the IM world and less hype!

      Juliet Easton

      Reply
    12. Sarah V.

      Hi Eric,

      Thanks for your honesty about this business, I only hope I had met you much earlier. I came in without any kind of knowledge, but was told it was alright, anyone can do it, and I have learned the very way, after getting in debt to the tune of $25,000. at this point I am determined to make it work for me as I must get out of this, Thanks for you honesty and clarity of instruction. Looking forward to making it with you. The lessons so far are great. Thanks, Sarah

      Reply
    13. Gerald Low

      Hi Eric,

      Thanks for the tips so far and for sharing them with us.

      I think I’ve to learn how not to buy from the Internet anymore cos I’m one of those compulsive Internet spender!

      I believe selling and marketing on the Internet is a different ball game altogether. I want to know from you how long it took you to master and become successful on the Internet, and whether you will reveal your income as of today!

      For all internet marketers, keep going:
      “Do not think of today’s failures, but of the success that may
      come tomorrow. You have set yourself a difficult task, but you
      will succeed if you persevere; and you will find a joy in
      overcoming obstacles.”

      Reply
    14. Daniel

      Hi, my name is Daniel and I’ve been around the web looking for ways to make money a few years now. The biggest problem I have faced is the information/oppurtunity overload, I certainly know that this is a big problem for many people, including myself.

      After listening to the so called guru’s in almost every area, trying hard to figure out what to do next or what latest greatest new information product to buy, I gave up! I was confused and exhausted really by all this information flying around and everything they wanted to sell. One sales letter after another and one promise after another really drove me nuts.

      The thing is about most of these informaion products the “REAL GURU’s” are selling is not that the informaiotn is bad, but by reading to much you lose focus and think you need to know it all! That is so so wrong! You not only lose focus, but also alot of time and money, not good!

      You don’t need to know everything at once in the world of the web. What’s way more important is focus focus focus!! I can not say that enough times. When I found myself focusing on what to do and made a plan that I executed with very little sidestepping or altering of the plan, then I was moving somewhere.

      Listen up now everyone! This is my first blog post ever on a blog like this, I never ever spend time reading anything that’s probably not worth the time anymore. I don’t know any so called GURU or are in some way affiliated with someone but I’m still moving to where I want to.

      My opinion about buying things and startup costs is, it really depends on what type of business you are starting. Eric talks about being a marketer and acting like one, I agree there. But you also must know what type of marketer you are. For example, do you need the skills of copywriting or don’t you? Do you need articles that will serve as material for contextual advertising(adsense) or do you need great copy to sell products or other people’s products?

      A couple of years back, my answer would have been, I need them both and every the other skill existing! This is where confusion, exhaustion and total loss of focus came for me. There is no way you will master everything and being able to do everything yourself and still remain productive, if you are going to try to master and succeed in every area you are doomed to fail. You need a plan and focus, focus focus!!! And the plan cannot include everything you have ever heard of, it must a very focused plan with a systematic approach taken.

      So, what about buying things. IMO you are going to have startup costs most definetely! How much depends on what you are doing of course and there is no simple answer to that as Eric said. Down below are my tips on what to think of when buying something.

      -Does this purchase make me more effective or even removes the specific task completely?

      Start by doing your tasks manually so you know for sure what is taking the most time!
      If you don’t know the process of your work in detail, how can truly you know what you need.

      NOTE: Everything written here is from a perspective where money is something you need more than something you got!

      -Does this purchase take me closer to my goal much faster?

      if yes, go for it!

      /Daniel

      PS. You can even see that I don’t even own an internet marketing webiste, NO LINK! DS

      Reply
    15. RonnieMarz

      Hi Eric, how are you?

      I already the latest flash player version installed on my computer. But, your video would not play. Was it your link or my computer? I did read your main points and I will have to agree with you.

      Thanks for the help,
      Ron

      Reply
    16. Norman

      Thanks Eric well said, its people like you worth being around with. Thanks again I’m looking forward to the next lesson.

      Norman

      Reply
    17. Dennis Styer

      Hello Everyone

      I was routinely deleting my emails tonight, when the words”Stop buying stuff!” caught my eye.

      I clicked on the link to lesson 3. Wow, I am so glad I did.

      I listened intently to what Eric had to say, after 4 years of trying to absorb internet marketing, Eric explains it better than anyone.

      Thanks Eric for the email and lessons.

      Reply
    18. Dexter

      Internet marketing is a whole different way of doing buisness.Your teaching videos are the best way to bring across the message.I am enjoying it,please continue with the good work.

      Reply
    19. Edward Han

      Well spoken! I was in Manufacturing plant doing design, service and automation for the plant. After spending 5 years in this job to fully automate the plant operation, I decided to quit and do my most desire hobby – computers and internet. So I took the daring step to quit my most comfortable job in 1987 and run my own computer business. Now I am investing myself with online internet business. It has been a long journey but with passion, I have survived till today. Now looking forward to learn more with your lessons.

      Cheers!
      Edward Han

      Reply
    20. Hugh Fraser

      Great video, most people don’t realize that you can’t simple stick a page up on your website and wake up the next day to have $2000 in your paypal account. It just doesn’t work that way!!

      Hugh

      Reply
    21. Sid

      Good point about “Buying Stuff” Bankers generally won’t loan money for an Online business… they want collaterial. I think what you are recommending is “Sweat Equity.”

      Once a person has cash flow and a track record a banker will suddenly become your friend!

      Reply
    22. SK

      Hi Eric,

      I think you advise is very aptly on stop buying stuff. For years I have been buying new ebooks and software but stock up in my notebook and suffer information overload. Recently, I decided to clean no all these stuff and unsubscribe lot of newsletter which send me junk and offer without much substance. my inbox is now cleaner and am now more focus on what i need to do.

      Apparently, your newsletter is still in my inbox, I guess, I still have not unsubscribe, at time,I actually thinking of hit the unsubscribe link when you send me the GURU offer which I received lots of them, some with ridiculous bonus as you did one time. But frankly your newsletter is one of the very few with value information and hope you maintain that way. I now have a very simple check on newsletter I subscribed, if I received 3-5 continuous sales pitch emails I will hit the unsubscribe link. Period.

      Reply
    23. Bid Directory

      Hi Eric I love to know more about the little girl who started an online business with the borrowed $8, can you email it to me or refer me to her link Please

      Reply
    24. Dave Schlatter

      Thanks for the great advice Eric!

      It is good to know there are some good people in the world that are really trying to help others succeed.

      One of the key points to remember in any marketing venture is not to get over your head and buying stuff that you don’t really need or know how to use. Take it from experience because I have done that myself and wish I would have had this knowledge a long time ago.

      Anyway, thanks again and keep up the great work!

      Reply
    25. Ron Wiebe

      Hi Eric,
      I’ve been fortunate lately to being introduced to fellows like yourself – honest folk – who actually provide some useful info that is productive. I’ve always been an entrepreneur and I’ve had some limited successes in mail order marketing in the past. Online though is another matter and I’m still not at the point where I’m making any consistent money – so your lessons are like gold to me! A few years ago – I had some success online but found that what I was marketing did not perform as it should which resulted in others not being able to profit from it like they should have. Even though I was making profits – I dropped that venture because of this problem. If I can’t make an honest buck online – I’d rather not do it. So I’ve been searching for a long while to start a profitable business online that is ethical and offers value. I’m looking forward to taking in all your lessons to help me towards that goal.

      Thanks for your help. Signed Ron

      Reply
    26. Grant

      Dexter,

      I am intrigued by your comment that IM is a “whole different way of doing business”. Perhaps it is just a semantic difference in our perception of the words, but I feel what Eric and most other gurus of IM are now saying is that IM is very like existing business. Aside from the work required, the disciplined processes, there are still fundamental requirements of any business in order to be successful ;

      1) Identify a target client

      2) Identify their ’emotional wants’ (note NOT their needs)

      3) Establish a empathy / relationship with them

      4) Provide a product or service that satisfies that want

      5) Exchange money

      6) Repeat over and over.

      This is of course the very simplistic list but is what I believe are the fundamentals.

      These fundamentals are the same whether you operate a off-line or on-line business. For example a sales person in an off-line business focuses primarily on building empathy and relationships with his prospects. The “new” social marketing world of Facebook and Myspace is about…… building relationships. This is why you will sometimes hear the term “Relationship Marketing” used in place of social marketing.

      Where I agree with your comment is perhaps in the area of tools we might use in each of the types of busienss. For example in an off-line business I may purchase a ‘Yellow Page’ ad to drive my market to my business. In the on-line world I may purchase a “Pay Per Click” ad to do the same thing. The purpose is exactly the same, to drive traffic, but the tool is somewhat different.

      Many internet gurus are curently giving away their “secret” process charts, get your hands on one and look to see how very much alike it is to running any regular business (well ok, any regular sucessful business).

      I wish you every success in your on-line endeavours.

      Regards

      GC

      Reply
    27. Fauzi

      Hi Erics,

      On the early part of your lesson, you did mention about the “Don’t buying any stuff!”. But at the end of it you’ve stated, to be a succesful marketer you need to learn all along the way.

      How to learn if are not buying any stuff within our niche? Or just visit blogs or forum to get materials to learn!. A bit confusing here. May be there are something hidden that I couldn’t catch up your words.

      Any way, thank you.

      Reply
    28. mohd ariff

      We are really lack of knowledges on this business but we are interested to learn. Opening heart lessons like your do will give us more confident to learn as to be success on this Online business.

      Thanks to your great infos, regards

      Reply
    29. Marian

      Good and useful video Eric.

      I’ve realized quite some time ago that I won’t be rich overnight!

      Since then I’ve learned good deal of IM knowledge and I’m heading for success.

      I just need to be more focused and I know I’ll make it 🙂

      Thanks.

      Reply
    30. Greg the Writer

      I agree with this.

      Though along with your presentation I must suggest everyone to read Think and Grow Rich by Napoleon Hill and How to Win Friends and Influence People by Dale Carnegie.

      They’re not specific in what they are talking about, but their philosophies will both give you the tools and the motivation to truly succeed in life. Along with Eric’s slideshows here, it will make a powerful Rosetta stone as you learn the languages of marketing and technology : )

      Keep up the good work Eric. I’ve been on your newsletter for well over a year now and never started reading any of your stuff till now, cause as you said in lesson #1 it was by far too fragmented knowledge for a newbie to really grasp and put together.

      Many thanks

      Sincerely
      -Greg the Writer

      Reply
    31. Eric Post author

      You might have to spend a little more, but probably not much. Keep following he lessons…

      Reply
    32. Eric Post author

      Yes you are right. And I think most of that is due to all the hype from other marketers saying you can make $xxx in no time flat. It’s true that I make money while I’m sleeping, but it took a lot of work to set that up.

      Reply
    33. Eric Post author

      Juliet- cool, thanks! Since 1997… you’ve been doing it longer than me 🙂 Congrats!

      Reply
    34. Eric Post author

      Nice tips 🙂 as you will see throughout the lessons, my philosophy is very similar.

      Reply
    35. Eric Post author

      Cool thanks 🙂 The funny thing is that I could stick a page on my website and wake up the next day with $2k in my paypal account. But it took a LOT of work to get there! So you’re right

      Reply
    36. Eric Post author

      Sure… her name is Ashley Qualls

      http://potw.news.yahoo.com/s/potw/52250/teen-millionaire

      http://www.fastcompany.com/magazine/118/girl-power.html

      quote from FastCompany: “Ashley is evidence of the meritocracy on the Internet that allows even companies run by neophyte entrepreneurs to compete, regardless of funding, location, size, or experience–and she’s a reminder that ingenuity is ageless. She has taken in more than $1 million, thanks to a now-familiar Web-friendly business model.”

      Reply
    37. Eric Post author

      There are some things which are good to buy… such as things that truly save your time and cut your learning curve. I’ll be discussing these things as we go. But just remember the qualifier on my statement: Don’t buy stuff **unless you know what you’re doing**

      Reply
    38. Eric Post author

      I agree those are good books… I own both of them. Here’s my affiliate link to Amazon in case anyone decides to go buy them 😉

      Go to amazon.com

      I’ll be recommending a couple other books as we go along…

      Reply
    39. Oscar

      Eric, this is so so, good. I am learning a wealth of information. You Rule, BRO. I wanted to ask, Can a person make a living off the internet using Adsense only.

      Keep it Up

      Oscar

      Reply
    40. Eric Post author

      thanks! Yes it is possible, but I don’t recommend it… for 2 reasons…

      1) there are more profitable forms of monetization (which may take a little more work)

      2) you don’t want your business to be 100% dependant on Google or any 3rd party

      I personally think adsense is a good side business. If you want to learn the best techniques I recommend my friend Joel’s $9.95 ebook: Adsense Secrets

      Reply
    41. Leonard

      Hi Eric,
      Your eye opening tips have been a true treasure so far!
      I plunged into ecommerce just a couple of months ago. Now please don’t blame me for doing one very stupid thing. I googled “how to make money online?” After that all hell broke lose, and I got bombarded with so called opportunities from every corner of the earth (but mainly from the US of course) I fell into a couple of traps the gurus so cleverly had set up. Now, please bare in mind I’m Dutch and we Dutch are well known for our sceptism. That didn’t count for me, though! I was all too willing to devour one product/training/or what ever after another. I must have spent at least 5 grand. But I realized buying stuff is leading to no where. So I’m now only spending some monthly fee’s on products that don’t have anything to do with MLM. I gave a system called “Bebiz” the benefit of the doubt. I have an offline business as well, so I wasn’t a wage slave in the first place, but the idea to work from home was very appealing to me. I haven’t made a dime so far, but I believe this mainly has to do with the fact that I haven’t put that much effort in it. Anyway I have all the ingredients (a couple of hosted sites, my own autoresponder, templates, some products, banners e.g) ready to fire my business to a new stage, but I take it step by step now. So, thank you for your clear and honest approach towards ecommerce!

      Leonard Roscam Abbing (Mokumkat)

      Reply
    42. Oscar Toft (JazzOscar)

      (Not every day you see two Oscars in a row, having to further qualify your name.)

      These lessons are a great idea.

      Personally I have done my IM preparations for some time now and are about to enter into a more action oriented phase.

      Although I have already thought thru many of the basic steps you are talking about in the first lessons, I think I will be following along to fill in the holes in my knowledge. Great to go through important stuff in small chunks.

      You are so right about stoping to buy stuff. One thing is the money you spend unnecessarily, another is the loss of focus that might follow.

      The same goes for internet marketing forums. You really do not need to be a member of all of them. Just stay with a few good ones that have either knowledgeable forum members or great learning resouces, or, best of all, both. And, what is interesting is, those are not necessarily the most expensive forums.

      All the money you save being a little conservative with your buying habits will come in handy when you some day feel the need to pay for a really great tool or service.

      Best of luck to all of us!

      Oscar Toft

      Reply

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    The maximum upload file size: 50 MB. You can upload: image, audio, video. Links to YouTube, Facebook, Twitter and other services inserted in the comment text will be automatically embedded. Drop file here