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Is saving money the same as making money?


Meet Bob.

Bob has an incredible online business idea he is trying to get off the ground. It's a great service at an amazing price, there is just no question this should be a successful business.

Bob doesn't know much about computers though, and he saw this as a drawback. So he looked around to find someone that had a handle on the subject. Bob asked around and heard that Jake is a wiz on computers, and Bob is sure this is just what he needs to get things moving! Bob went ahead and hired him to be the new webmaster for his great idea.

Meet Jake.

Jake is Bob’s webmaster. Jake has built a bang up website for Bob. Jake also handled registering the Domain Name and finding a place to host this new business website. Jake chose a popular shop online to get this all done (afterall he sees ads all the time for them, they must be good because they seem to be really big).

So right now things are looking pretty good for Bob and Jake with this new business; at this point Bob has a computer wiz doing his webmaster work and it's all hosted with a really big outfit. 

Time passes and one day Bob asks Jake “Jake, why is there no response to my site?

  • I’m paying you
  • I paid for a domain
  • I pay monthly for hosting

"Everyone is making money but me.”

Jake says “Hmmmm, let me take a look and make some recommendations.

Jake returns to Bob and says hey Bob, I found a great new place to host your site. They are 3 dollars cheaper per month and the domain is only 5.95 per year! This is great news!

Bob's not sure he understands, but says “okay Jake, I don’t know much about computers so do what you have to do.”

And Jake goes about moving Bob’s site and domain; Bob is going to save money, Jake is doing a good job.

“While we’re at it Bob, lets update that logo, it’s not very “today” and people look for that. It says something about you. Again, Bob says he knows very little about computers so he agrees, gets a new logo... and waits for some action.

Six more months pass and Bob really wants some action now, after all this net thing is supposed to be a great extension of business and it’s doing absolutely nothing except cost money.

“Jake, it’s been a while now and there is still no action from my site, what gives?”

“OH, well Jake here’s the thing. The hosting outfit is not very good, they are unresponsive. We need to move. I did find a new place, it’s a little cheaper too.”

And so Bob once again waits while his site and domain are moved to a new home.

So far Bob has saved 19 dollars per year on hosting and 6 dollars per year on his domain. He has bought a new logo and paid a webmaster to oversee all this.

Has Bob made any money though? Nope. Not a dime.

Bob has made some classic mistakes.

  1. I don’t know anything about this stuff. I want it out of my hands.
    Truth is, when you start a business the first item of business is to learn, and this step was left out. It is common for people to confuse internet business with “computers” thus leaving it all up to someone else, even if the order of business has nothing to do with computers.

  2. Bob left all orders of business up to one person, the Webmaster. Now Jake may well be a brilliant designer but this does not make him a brilliant business person and if you reach back, the intention of the project was business not design.

    This would be much like having your new store's interior designed by the best interior design person in the industry, and then asking them to also make the thing make money. You have put a really good fish out of their water and they're doing their best, but in an industry they're likely not trained.

  3. The both of them confused saving money with making it for too long. Saving 6 dollars here and 9 dollars there will never make a business money. SURE if there is hundreds to be saved perhaps consider a move. Be darn sure to find out first what services and kind of support you will be leaving behind for yourself though, all providers are not created equally and Jake is not a businessman he is your designer.

  4. Bob needs to seek out professionals in marketing. Much the same as the brick and mortar business, getting advice in where is best to advertise and what to expect is the next intelligent move. The marketing team can evaluate your current site, check it over to make sure it asks for something, make suggestions that will cause conversions (and those suggestions can all be taken to your brilliant designer for implementation).

In actual fact “domain bouncing” and “site moving” is of no value at all, but is one of the most common moves taken when sites are not prosperous.

When seeking out internet business professionals forget how well they work with computers, instead ask for credentials just as any business would that is run from a building on the street. Ask about the education behind the person, about the successes and experience in the industry, and ask for referrals.

NO you can probably not DIY your way through to success. Amazon, EBay, ITunes; very few globally successful businesses are run on DIY sites, marketing and customer service platforms. This answer will depend on your goals and idea of success.

Ultimately, by surrounding yourself entirely with the right people your chances of success increase. Having a team to work with should please a professional webmaster not insult them, so make this a priority from the get go.