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How Simple Can A Business Be?

Updated on October 16, 2012

After 34 years of working with home based businesses, I thought I had seen in all by 1990 something. Then the internet came along. Invented by Al Gore (ha ha) it took awhile for me to come along for the ride. I was happily buzzing along with my IBM-XT making money as usual.

The internet opened up a whole dynamic to businesses, especially the type that requires sponsoring people and direct sales. The dynamic was leverage. It has proven to be an awesome tool. This leverage tool took on a whole new concept with the advent of businesses like matrixes, penny auctions, and the like.

I always have my finger on the pulse of these businesses as my clients are always trying to get me involved and/or asking me to review one for them. I have had pretty good success predicting the outcome of these types of businesses. I tested AD Surf Daily with $100 only and I knew when I could not withdraw my money, their days were numbered.

Also, the recent fall of Zeek Rewards was amazing only in the fact that it was allowed to go on so long.

The one thing that I always look at in any business opportunity is what I call the flip side. How does the company make it's money and how much?

I've been in plenty of businesses and have had some success and some failures. The failures mainly came from either the company making too much money off the backs of the distributors or the fact that the company could not sustain it's compensation plan. Plus, I just plain flopped in some of them!

I ran across this business that was selling $6.99 sales websites. I thought that it was interesting so I had a look. Interestingly enough, there are a ton of products on the internet that are selling for $7! This seems to be a magical number!

The sales site was typical. Flashy sports cars and dollar signs here and there. Statements of income potential and some pain triggers. All typical sales letter copy. It is not multi-level, which was interesting. You just sell the same sales site to another person directly for $6.99. You keep 100% of the money and it goes right in your Paypal account.

I did my usual due diligence and looked on Youtube and Twitter. Not much action on these sites, which is unusual. Just a few videos with people talking about the basics.

Even on Facebook, there was not a whole lot of activity. So, I let it marinate in my head as I do. I thought, it wouldn't be a very hard business. You buy a website for $6.99. Heck, I've lost $7 in the crane machine at the local mall 10 times over! (I guess that may be why $7 is magical!) So what would be the hurt if I got it and threw a couple of ads on Twitter. After all, Twitter is free and if I get a couple of sales, that's still ok.

Then I had my ah ha moment. How did the company make money?? So, I purchased the site. Then, I found out that I had to build it myself on BEEP or pay the company $10 to build it for me.

FIRST WAY - The "company" behind the sites is BEEP and they get $10 if you cannot build a website through their software.

OK. So, that's not too bad. They have a software online that you can use for free to build simple sites. They will probably get pretty many people that want their site built. After all, it's just another $10, and a total of $16.99 is not bad to start a business. Now you need three sales to be in profit!

I built my own site. It's not that hard if you just go slowly. What I noticed at the top of the site was a box that said ADVERTISEMENT in it. We were not asked to put anything in their so my brain discarded it for the moment. I had a look later at my finished site and I saw that the advertisement was for BEEP web builder!

SECOND WAY - They advertise their web builder on your site AND everyone else's! Not bad!

So my brain is saying why would they want to keep having people use their free website building software? Then I noticed that you could upgrade to a pro version!

THIRD WAY - They get traffic to their site through all of these sales sites to get others to build sites and a percentage will upgrade to a paid version! Yay!

OK - Brain is rolling now! I thought of the worse case scenario. Nobody upgrades! Now what? If you build a site with BEEP, they host it for you and you have a sub domain. They get to put ads on your site!

FOURTH WAY - The put adsense ads on all their site! Excellent move!

The only thing that makes me mad is that I did not think of these ideas!

SUMMARY - You have a company that has designed a cool sales website. The engage business opportunity people to resell their sales websites for $6.99 each. The reseller keeps 100% of the profit on the sale - beauty!

You (the company) make money on the back end with web building, web building upgrades, and ad sense and you have an army of people out there promoting your sites 24/7 to millions of people! That, my friend, is an awesome business model - from the company’s perspective.

From the resellers perspective it is a great business model for an additional stream of income. I wouldn’t do it as my only source of income, but I certainly would not discard it. Get yourself a sale a day with free promotional methods, you’re looking at $2,555 per year passively. About $200 per month to round down. This is enough passive money for a good night out or to play with!

I say why not! Add it to your streams. I did. I am also giving away my $397 ebook on Tax Advantages for Home Based Businesses to anyone who buys the site. Not a bad incentive! Just click the link below! Enjoy

Get Your Website Business

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