Gangster Profit

Business and Marketing Web Radio Show featuring Robert MacDonald and Kevin Bombino

Episode 020: Buddy's Bad Idea

Filed Under: Business, Length: 4:14
The guys tear into Kevin's buddy's business idea and talk about why it's a bad first business.
020

Transcript:

K: Alright. So a buddy of mine came to me with the following idea for his first internet business. This is the business he wants to use to become self sufficient, meaning he just quit his job and he’s moving out to start an internet business. And basically he wants to do is to create a blog that talks about travelling. And the blog is gonna make money by recommending certain products and trying to make an affiliate commission on the products that he recommends. Does that sound a good business idea to you listener?

Listener : Well, I don’t know. It sounds nice.

K: Well, here are the problems. My buddy suffers from, we consider the number one newbie mistake which is he assumes that if you build it, they will come.

R: Horrible, horrible mistake.

K: I mean, we, I can’t think of anything that is less true. I mean, if you’re gonna build a blog about travelling or a blog about anything or any business, the number one problem that you face is how am I getting costumers. You know, you could even build a Mac Donalds which is a perfect you know, perfect business that is guaranteed to make a profit if you have people walk through the door. But if your Mac Donalds in the middle of the forest, you’re not gonna make any money. Well, any website that you create, starts out in the middle of the forest. And it’s your job to move that into a populated area. You know, via SEO, advertising, whatever, you have to bring the people to your site. They’re not gonna come in your site on their own free will.

R: Not to mention, he has even created a further hurdle for himself because it’s a social community site. So, once the first few people show up there, they will see that it’s basically a baron site. There is no community. There’s just a maybe him and a handful of people chatting about nonsense. So, they’re probably not gonna come back. There’s a barrier to creating a social site that is extremely difficult and anytime the year. To be honest, just, this is a blanket statement. No one who’s starting business should be starting any kind of a social website. Anything that requires other people to ourly be on the site in order for new people to be attracted to the site. Such crazy..

K: Yeah that’s right. I mean, we hear our people who talk about oh you know facebook and myspace, you know. Among a number of other things neither of those was that of person’s first business or their second business. You know, at that point, they had already solve all of the just general hurdle associated with getting something running and they knew a bunch, they knew a lot.

R: And beyond that, they were insanely lucky, just insane like shot in the dark luck.

K: Yeah it’s not to say that they weren’t very smart and did a lot of hard work.

R: Yes, but they are extremely talented.

K: Of being in the right place at the right time.

K: And you know, one of the things we are about a gangster profit is we are not about taking risk. We wanna do something and have a guaranteed profit happen.

R: That’s right. We avoid risk in every possible way. Even from the very beginning, we don’t spend. We spend as little money as possible on any idea. Even if we love an idea we think this is absolutely gonna work and this point what we do think that our idea will absolutely work, work, usually pretty right about it. We still don’t spend money on it in beginning because we’re just hedging our bet. We hedge our bet in every possible way. We avoid risk everywhere. And also, if you’re spending a lot of money on stuff, then you have less money to spend on your other business ideas. I want you create as many businesses as we have. You start to realize that you know, you’re gonna have time more good idea, always, everyday a new good idea.

Comments:

Next Episode (in order):

Popup