Ries and Trout talk about finding a horse …
Dear Fellow Entrepreneur,
Ries and Trout talk about finding a horse … a good company, a good idea, an angel banker … make the internet your horse.
1. One hour of clear thinking is better than a lifetime of confusion. Internet is the only way I can think where small players can score big. Really big—better than land in Costa Rica, better than surging gold, better than most investment vehicles out there. I want to sell you to you; I don't care what your background is, there are people willing to pay for what you know and what you sell.
2. The internet market will be 2 billion users in 2010. Newegg went from zero to 1 billion in sales in 4 years using the internet. iTunes had a million downloads in the first week -- now iTunes has 3 million downloads a day. Sony sold $125 million in the first day. Where the real money is selling good-value items to a huge number of people— just like Microsoft did, just like Wal-Mart, IKEA, and tens of other companies. The secret? Sell cheaply to millions. Think you could do that?
Suppose that you sell a $1 item to billion people. Yes, I agree, very unlikely. How about a $2 item to half-a-billion. No? How about $10 item to 100 million … $1000 item to a million people — out of 2,000,000,000 potential buyers? See what I mean, the numbers begin to make sense.
The internet is about big numbers—even for us small players. A little bit here and a little bit there from a huge customer base. Your business risk is spread over thousands if not millions of customers. And look at this:
A Vancouver Canada company has over 100 web sites operating in 11 high-margin consumer and business sectors. Their pay-per-click advertising budget is over a million a year. And they did it in FOUR years with a customer base of 25,000. What's wrong with that?
You can't build an airline flying solo these days. That's where we come in. We work with fellow entrepreneurs and companies that are well positioned for global internet sales—sufficient search activity, good margins, integrity, and a sense of entitlement to have fun while paying all them taxes.
It's no longer Who-You-Know, now it's Who-Knows-You. Can you imagine the number of people and companies around the world who simply don't know about your business, your products, your reputation, and what you stand for — across North America or in the Global Village? Whatever you sell locally, multiply by 10 when you start webworking …
We run multiple internet businesses ourselves, and instead of working with the local markets, we get orders from Japan, Germany, Ireland, England, the Bahamas … it's amazing … total strangers from around the world who want to do business with you — now, that's webworking.
There are literally thousands and thousands, maybe millions of people who would buy from you if they only knew about you. We hear it on the phone and see it in our online customer surveys all the time: "Just found your site … Glad I found you guys … I like your site the best …"
The worldwide market size is staggering, and if you can sell locally, we help you sell across North America or globally. Expand your business in a matter of months.
Beat the top 10 guys and suddenly you're the Coca-Cola of that niche, maybe even the emotional favorite. The second key point I want to make is that internet sales is about differentiation: enter any product word on a search engine, you'll probably get a million page returns. Of those, the visitor clicks on first few top listings — they are now your competitors in the mind of the buyer. You simply have to outperform the top 10 guys, and you've improved your conversion rate.
If you are in the top 10 rankings (and you should be in the top 3), you need to pay particular attention how your web site differs (in a better way) from the others — we hear from people that one of the reasons why they buy from us is because they like our web site.
If 93% of communication is non-verbal—why on earth do you think you have an edge with a text-only web site? Video gives your web site visitors the front row seat. It is the easiest way to transmit information to your visitors — a picture is a thousand words, that's what made television so popular.
Video informs and educates without additional clicks or lost visitors — and it differentiates. Of all the sites out there, less than 1% use video to differentiate their products! Yet research shows that 5 out of 6 people actually prefer to receive information in video format compared to print.
Audi got a 325% increase in leads generated from their web site when they redesigned the site and included several online web commercials.
Big-name brands spent $198 million on full-motion video last year -- a 70% jump over 2004, according to Jupiter Research; and that's expected to surge to $657 million by 2009 as broadband spreads everywhere and compression technologies evolve.
The opportunities for small players on the internet are like never in the history of mankind — and internet has barely even started, it will be bigger and better than television, radio, magazines, newspapers combined.
Ries and Trout talk about finding a horse … a good company, a good idea, an angel banker … make the internet your horse.
1. One hour of clear thinking is better than a lifetime of confusion. Internet is the only way I can think where small players can score big. Really big—better than land in Costa Rica, better than surging gold, better than most investment vehicles out there. I want to sell you to you; I don't care what your background is, there are people willing to pay for what you know and what you sell.
2. The internet market will be 2 billion users in 2010. Newegg went from zero to 1 billion in sales in 4 years using the internet. iTunes had a million downloads in the first week -- now iTunes has 3 million downloads a day. Sony sold $125 million in the first day. Where the real money is selling good-value items to a huge number of people— just like Microsoft did, just like Wal-Mart, IKEA, and tens of other companies. The secret? Sell cheaply to millions. Think you could do that?
Suppose that you sell a $1 item to billion people. Yes, I agree, very unlikely. How about a $2 item to half-a-billion. No? How about $10 item to 100 million … $1000 item to a million people — out of 2,000,000,000 potential buyers? See what I mean, the numbers begin to make sense.
The internet is about big numbers—even for us small players. A little bit here and a little bit there from a huge customer base. Your business risk is spread over thousands if not millions of customers. And look at this:
A Vancouver Canada company has over 100 web sites operating in 11 high-margin consumer and business sectors. Their pay-per-click advertising budget is over a million a year. And they did it in FOUR years with a customer base of 25,000. What's wrong with that?
You can't build an airline flying solo these days. That's where we come in. We work with fellow entrepreneurs and companies that are well positioned for global internet sales—sufficient search activity, good margins, integrity, and a sense of entitlement to have fun while paying all them taxes.
It's no longer Who-You-Know, now it's Who-Knows-You. Can you imagine the number of people and companies around the world who simply don't know about your business, your products, your reputation, and what you stand for — across North America or in the Global Village? Whatever you sell locally, multiply by 10 when you start webworking …
We run multiple internet businesses ourselves, and instead of working with the local markets, we get orders from Japan, Germany, Ireland, England, the Bahamas … it's amazing … total strangers from around the world who want to do business with you — now, that's webworking.
There are literally thousands and thousands, maybe millions of people who would buy from you if they only knew about you. We hear it on the phone and see it in our online customer surveys all the time: "Just found your site … Glad I found you guys … I like your site the best …"
The worldwide market size is staggering, and if you can sell locally, we help you sell across North America or globally. Expand your business in a matter of months.
Beat the top 10 guys and suddenly you're the Coca-Cola of that niche, maybe even the emotional favorite. The second key point I want to make is that internet sales is about differentiation: enter any product word on a search engine, you'll probably get a million page returns. Of those, the visitor clicks on first few top listings — they are now your competitors in the mind of the buyer. You simply have to outperform the top 10 guys, and you've improved your conversion rate.
If you are in the top 10 rankings (and you should be in the top 3), you need to pay particular attention how your web site differs (in a better way) from the others — we hear from people that one of the reasons why they buy from us is because they like our web site.
If 93% of communication is non-verbal—why on earth do you think you have an edge with a text-only web site? Video gives your web site visitors the front row seat. It is the easiest way to transmit information to your visitors — a picture is a thousand words, that's what made television so popular.
Video informs and educates without additional clicks or lost visitors — and it differentiates. Of all the sites out there, less than 1% use video to differentiate their products! Yet research shows that 5 out of 6 people actually prefer to receive information in video format compared to print.
Audi got a 325% increase in leads generated from their web site when they redesigned the site and included several online web commercials.
Big-name brands spent $198 million on full-motion video last year -- a 70% jump over 2004, according to Jupiter Research; and that's expected to surge to $657 million by 2009 as broadband spreads everywhere and compression technologies evolve.
The opportunities for small players on the internet are like never in the history of mankind — and internet has barely even started, it will be bigger and better than television, radio, magazines, newspapers combined.
posted by John Kumpunen at 9:23 PM
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