Here's Mr. X's take on the whole "Death of..."

The Death of Crap

Just learned about this from our member Ryan Healy. (Thanks, Ryan!)

One of the most honest letters I've read this year.

Amen to that.

I'm somewhat not clear on something, though: the link at the bottom
leads to the Warrior Forum. I thought Allen doesn't want people to be
able to actively find that.

This is so true! However, I do not agree with the conclusion at the end of the letter that the only way to survive the competition in this market is to develop a very, very specific expertise (he gives a number of examples in a list). On the contrary, there is always going to be room for the person who has the big picture in mind and can identify and communicate what is missing or what is being done wrong. People who need guidance will always flock to such experts regardless of how many people there are with specialized kinds of expertise.

I'm talking about experts who can truly zero in on marketing problems and solutions - not those who "solve" every marketing problem with their favorite one solution. Dan Kennedy is a master at this. He is always so insightful. I am listening to CDs where he's a guest speaker and can't wait to get to the hotseat section of the program to hear him in action.

Marcia Yudkin

This was one of the most refreshingly honest looks at the Internet marketing scene I have read in a long time. I respect anyone willing to tell it like it is.

This is why I myself have chosen not to follow the typical route, following a "guru list". Instead, I have quietly joined forces with an SEM expert, JV networking expert and Internet marketing expert to create our business (not linked to in my signature). That's because we market our services to businesses interested in making money, using a marketing model that has worked over and over again to make money.

This is why we have angel investors interested in funding our next efforts. Because it's built on a solid, real business model.

I don't believe in "gimmicks". I do believe in "real marketing". And I applaud this letter for sharing that there is no real, long-term, "quick and easy" route to making money online.

The tried and true basics are what works, and have, for years. And delivering real quality is at the heart of it, as was mentioned in this letter.

Sheri,

First, let me congratulate you on your success.

Second, please note that the term "angel investor" should be an oxymoron...it often describes a vulture capitalist instead of a venture capitalist.

The pockets of a lot of trial lawyers have been filled when VC deals go bad. Usual reasons are the business takes a downturn, the investor is dissatisfied with the ROI, and/or the investor (who knows little about the business) decides to take a hands-on approach because it is 'his' money at stake. The lawsuits ensue.

Yes...there is a place for VC. But rose-colored glasses shouldn't be worn when examining what is brought to the table.

Best of luck ("luck" being defined as preparation meeting opportunity).

Regards,

-Mike

Quick Angel Story:

I co-founded a web tv network in 2000. At the time there were only 3 or 4 of us. This is way before Youtube.

Anyway we had 7 fulltime employees, and an angel keeping us afloat while the VC's put together their deal.

As the VC's told me, we would go IPO 20 weeks after the VC's 2 mill kicked in and the stock was projected to open at $10 a share. I had 400,000 shares.

Well, we all know what happened to the internet in 2000. The market crashed. The VC's disappeared and later waves of VC's also disappeared.

All along though, our Angel kept the doors open.

I never got my $10 a share and we closed our doors about 4 months later... and our angel lost around 300K.

He never balked. He always lived up to his committment.
Still friendly with the guy to this day.

Rick and Vin,
Both of you make excellent points, and trust me, we are being cautious. That's why we have a business plan in process, and plan to check out carefully anyone we work with.

Real story: my partner and I helped a business with a software product out, begin marketing their product online. Through our online marketing, they sold $250,000 worth of products in a three-month period; our commission was 10%, which we have put back into the company as capital.

It's case studies like this that have the investors interested, because we have created a business plan that covers the market research, development, marketing, and even the exit strategy for the businesses we develop. Plus lots of "success stories" like the one above.

Our goal is to capitalize our business within one year, to be able to develop our own products. And yes, I agree completely, we need to be very cautious about who we approach for this initial funding.