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The appearance of a business

July 1st, 2009

The appearance of a business vs. a REAL business‏
From: @infusionmail.com on behalf of Perry Marshall
Sent: Monday, January 05, 2009 5:25:52 PM
To: business2k.com

Bill McClure, founder of www.Coffee.org is a serial online
entrepreneur, going all the way back to eFlowers.com and
FlowersDirect.com which he sold in ‘02. He’s also a Roundtable
member.

When Bill investigated the coffee market, he considered several
existing websites that were available for sale.

One of them was doing $3 million per year in sales with a tiny staff
and strong profitability. On paper, it was a superb business.

Only two problems:

1) Almost all the traffic was from free organic “Search Engine
Optimization” traffic. The left side of Google.

Now that SOUNDS really great. Free traffic from Google? Great
SEO? What’s not to like about that?

The problem with it is, what happens when the free traffic goes away?

Notice that I said “when” it goes away not “if” it goes away. It’s an
eventuality that there’ll be some Google Dance and one sad morning,
the guy’s showing up on page 6 of Google instead of page 1.

The traffic dries up and suddenly a $3M business becomes a $300K
business.

2) There was no benchmark of being able to buy traffic AT WILL (i.e.
with paid advertising) and make convert to sales profitably.

Which is to say:

That business, even though on paper it was worth several million
dollars, was not even a real business. It relied on the availability
of free customers – which is a foundation of sand. Temporary
success at best.

(As a matter of fact the owner was afraid to even TOUCH the
website, which was clearly out of date – because he was afraid
changing something might ruin his great SEO rankings.)

If your business is dependent on free customers, you do not
have a business. You do not have any kind of “real” business
until you have the ability to buy advertising from a variety of
available sources and transform that traffic into sales and profits.

Instead Bill bought the domain Coffee.org and in cooperation
with my other Mastermind members, is building it into a traffic
conversion machine and an established brand (Miss Elly’s
Coffee – a southern twist on America’s favorite morning beverage).

The kicker is, once you have solved the conversion puzzle, ALL
forms of qualified traffic convert. You dominate your market in
multiple dimensions and you become nearly impossible to displace
by other competitors. You are feared in your market. A force to
reckon with.

Bill is feared in several markets, not just coffee. Once you’ve
mastered this in one market, you can take it to others.

If you’re a serial entrepreneur like Bill you will undoubtedly enjoy
Roundtable and the 2-day 4-man Intensive. You’ll almost always
meet one or two other serial entrepreneurs like yourself, and most
people report that they learned more from the other members’ hot
seats than their own. Because questions got raised that they
themselves would’ve never thought to ask.

Unexpected discoveries that come from surprising places.
Discoveries that make your website scream.

Join me in 2 weeks: http://www.4manIntensive.com

Perry Marshall

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