Your YouTube is in danger…
In the last few months, the new Internet revolution has taken
another hit, marketers are starting to talk about the power
of creating the web 2.0 type of business.
In fact, I have several apprentices of mine who were trying
to convince me that they should put up a social networking
site to create viral marketing for their website. Of course,
now they changed their mind 100% after they found out the
MasterMind Secret that I have showed them at:
Let me explain this to you very quickly…
Many marketers talk about YouTube.
Many marketers talk about MySpace.
Many marketers dream about having their own Web 2.0 website
immediately, with a hope that ONE DAY Google will come after
them and say, “I WANT TO BUY YOUR COMPANY“. This way, you
will live happily after.
The truth is… “It will NEVER happen that way“.
C’mon… Look at it this way. I saw some guys who were trying
to put up a website similar to digg.com. BAMN, the website
ranks at 10,000 on alexa.com’s ranking. All of SUDDEN, one
week after that, his traffic DIED.
He is wondering what is wrong with web 2.0.
He is wondering why YouTube can do it, but he can’t?
Here is the problem:
YouTube has millions of dollars to back them up. In fact,
if you looked at it very carefully, even though the company
was SOLD to google.com for $1.69 BILLION, the Co-founders
of YouTube only received $300 Million each.
If you calculate this carefully, it means that the founders
ONLY received 35% of the MONEY PAID BY GOOGLE.
“Where Does The Rest of The Money Go?”
The Venture capitalists. The guys who helped fund YouTube
17 months before YouTube was sold to Google.
What does this tell you?
What does this emphasize to you?
This gives you a CLEAR SIGN that YouTube had millions
of dollars in the bank account before they even started their
business. In addition, they are willing to BURN millions and
millions of dollars before they started selling the
advertising space on their existing traffic.
They had STRONG venture capitalists who backed them up. The
Venture capitalists injected millions of dollars for YouTube
to create the company.
They do NOT care about early losses.
They do NOT care whether they were making money or not.
They did know that once they were big enough, they could sell
advertising spaces on their websites.
Now, the question is….
“Do You Have Millions of Dollars to Burn?”
Well. For a person who has a dream to retire, you may NOT
have a couple million dollars to burn. You do not have
venture capitalist to back you up.
If your reason to build a web 2.0 business is because you are
looking to make money later on with it, once you have a lot
of members or traffic to your site, you are in a state of
a dream.
You are NOT realistic with what you can achieve.
You are NOT realistic with the goal. It also means,
you do NOT understand business.
Business is ALL ABOUT systemization.
Business is ALL ABOUT making things impossible to possible.
However, it has to be based on a flow chart or based on
the right calculations.
If NOT, it will be costly BUSINESS.
This is how people FAIL. They do NOT understand that YouTube
was calculated very closely in term of cost and how long
it would take them to create the company from scratch.
FURTHERMORE…
For those of you who do NOT understand how business works,
you will start to learn about Pay Per Click, Search engine
optimization, affiliate programs, Viral marketing, and much
more.
With a HOPE that the secrets you find, will give you the
money you are looking for to retire early.
However, you forgot that BUSINESS is more than just learning
traffic strategies.
In fact…
If we really take a closer look at those traffic generation
systems, on a business’s definition, it is what we call
“Marketing”. When you define the Web 2.0 as if it will give
you the money you need for your business, you DOOM yourself.
You simply set you foot for FAILURE!
This is one of the biggest reasons why 99.99% of Internet
business owners will go back to their jobs in the next two
years. No EXCEPTION!
I encourage you to go ahead and download the rest of the
reports at:
In addition, look into the MasterMind Package closely.
Not for me, but for yourself. It changed my life TWO years
ago. It changed my business. It has also changed my personal
friendship with others.
I am very confident it will change yours as well.
Go for it.
Success is YOURS,
Henry Gold
HenryGold.com
TheSuperGifts.com
If you enjoy this post, subscribe to the Free Henry Gold Newsletter
Related Posts:
Do you know your Digg saturation?
Introductions and other fun stuff
The Power of Podcasting To Get Targetted Traffic
Using Overture/Yahoo To Get Website Traffic
What's a Traffic Light Up There For at Your Intersection.....
Tom said,
February 14, 2007 @ 6:18 pm
“They had STRONG venture capitalists who backed them up. The Venture capitalists injected millions of dollars for YouTube
to create the company”
I am suprised at how many people don’t realize this. Just a small site I am developing in a poular niche (not IM) will lose $2,000 to $5,000 the first year to get it launched using offline and online marketing. No profit is expected until the 3rd year for this one and there is no garuantee
You see tons of turnkey dating sites etc sold to people “with the dream”. They need to read this post.
Tom
George Fischer said,
February 14, 2007 @ 6:23 pm
I appreciate you work, keep me informed.
Thank you.
Ari said,
February 14, 2007 @ 7:44 pm
Thanks Henry for nice information. I am sure you saved many.
Mark Hultgren said,
February 14, 2007 @ 8:40 pm
As always, Henry, your info on this is pure ‘Gold’
I am sure that many ‘membership sites’ that sell the turnkey websites with the promise of a dream are aware of this, but they sure don’t tell thier membership!
Jorge Pinkus said,
February 14, 2007 @ 9:39 pm
Henry…
Good post to your blog, but please get off your soap box (this said with respect…).
Many marketers and business owners (or would-be marketers and would-be business owners), need to be taught about the opportunities as well about the perils of going into business –online and off-line– but I think that what they do NOT need is for somebody else (even someone with more experience or knowledge) to step on their toes to be told the “truths”.
On to my reply: I think that all web 2.0 and the so-called social sites are not being developed to earn money at the beginning. On the contrary: following a sound marketing and business principle, they are developing first the market and then they will sell something to them (whatever needs the market develops).
As a marketer, you have two options (being this the very basic concept) to have prospects to buy from you: either a) you enter a market with the need for what you market or b) you develop the market first and then start marketing.
Web 2.0 was not developed in the first place as a marketing ploy or because some big corporations deemed it plausible… Social sites started as a need from the very core of users (in a similar sense as the www itself got developed): first the public started it, then the marketers came.
[SIDEBAR: Well, really before the marketers, the porn industry was there. Wanna see where do the opportunities are? Check what the people are doing to get their dose of porn! A little down the road, the marketers of other areas are going to start using their techniques and developments.]
Those are my 1.99 cents…
Jorge Pinkus
Your Maximum Success Coach
http://www.123-sites.com
Ding F. Arenal said,
February 14, 2007 @ 10:03 pm
Henry, yours is an eyeopener….now the truth is out about YouTube and other businesses be it online or offline. You have to invest big to earn big! And sure $300M is NOT peanuts
Wanita Busch said,
February 14, 2007 @ 10:24 pm
I appreciate the information about YouTube.
I bought YouTube for $20 and thought it would benefit my traffic and I sold about 5 memberships. But as of it I dont think I got the drift of how to really use it.
T E Ang said,
February 14, 2007 @ 10:58 pm
Just as I’ve always suspected….but you confirm it for me…..Thanks, Henry….
Laura Childs said,
February 14, 2007 @ 11:18 pm
Amen Jorge!
To add to your well worded post, a web 2.0 site doesn’t require millions to create and market.
In many ways a web 2.0 site can be promoted and marketed the same as any of our other sites - be they html, mini-sites, blogs, whatever.
Not to mention the fact that some web 2.0 sites are built for pennies, using open source, server side scripts.
Of course YouTube cost millions to create - the technology was new and bandwidth extreme. But not every Web 2.0 site has to be new technology or a bandwidth hog - simply fresh in ideas and viral in nature gets and keeps things rolling!
Arne Yri said,
February 14, 2007 @ 11:56 pm
Some years ago, I was hired in to take care of the service department of an IT business back where I live (Norway).
The situation was rotten, and management wanted to spice things up, by doing some cleaning up - before merging with a bigger company.
This company was ICL, a big international company that wanted to buy their way into the Norwegian market.
They bought this company (where I was hired in) for a pretty neat sum, plus, plus plus.
In the overall picture, ICL decided to buy “my” company, well aware that they would lose loads of money.
They had it figured out, pretty much on the dollar how much, and how long it would take before even making a nickel.
So remember this:
ICL calculated they’d not earn a single cent (Kroner) - for the next 5 years with their new project/investment. They knew exactly how much it would take them to create a positive cash-flow… how much investment in cash, hard work and time it would take - in order to just break even.
Then, after - ( in this case ), the 5 year mark, they estimated they’d start generating some profits. Long time, huh?
Before that, they’d be “losing” boatloads of money. Or, did they?
Actually, because they had a realistic view to their plan, and things, they didn’t see it as “lose” money…
Rather - in their terms, even though they took “tremendous” risk - they had just made another long-term investment.
And, that is the main problem with the internet marketing arena these days.
You cannot as a norm, expect to just enter a market - whatever market, and with no work, no endurance, no knowledge and no money or time - generate millions and millions of dollars.
Besides, the competition, whatever niche on the internet is way more fierce these days, than just 2 or 3 years ago…
Remember that, the next time you hear of a great success-story from an up and rising internet guru mogul magician…
Most of these “Quick Rich Internet guys”, just like ICL, or in this case - Google buying up YouTube did this with some monetary backup didn’t rise up from nothing - no work - no time or no money down at first…
Same goes no matter the business you’re about to build, whether online or off.
No matter what general belief you happen to be trapped up into, you’re deemed have to invest some helluva lot of time or money - or both, in order to get going.
By the way:
Did you know, that a Boeing 747 - just in order to fly from Norway - to for instance New York (Approx same distance as going from UK to New York - USA) - that airplane will spend about 80% of it’s fuel reserve simply in the act of getting lifted off the ground, up to it’s cruising altitude.
Then, some 30k feet off - up in the skies - the remaining 15% of that tank of fuel - is spent - getting to New York… And 5% of the fuel is for reserve, in case of an emergency…
So, what does that tell you?
Simply this:
Do not expect to get awfully rich overnight, unless you’re already stuffed with either :
1) Piles of CASH and, / Or
2) Knowledge and Special SKILL
Preferrably BOTH.
Another thing most people starting up never realize (I didn’t either, when I started my own company) - is how much time administration of your business will take of your time… Not to mention the time working out proper routines and the logistics of it all.
Just one of these things, are all the stuff that your government wants you to do. Things like accounting, taxes and different sorts of reporting etc… etc… ( having employes for instance, makes this mill of red-tape even more extensive…)
So, in general, most people cannot expect to just put up a business, web or not, and make wades of money - “just like that”, by tomorrow afternoon, unless you - as said:
Already have CASH, and / or Appropriate knowledge.
Also, should you go from Zero to One million dollar from one day to the next, how you think you’d be equipped to handle that? You simply wouldn’t. You’re not stacked for that yet. You don’t have your logistics prepared for anything like that yet, unless you’re already there…
Believing anything else, such as going head to head against YouTube and / or Google, or similar, is equal to setting yourself up against disaster…
That is, unless you first have a realistic plan, and the means to follow it through.
Then… maybe… with time and lots of work (whether that work is by investing your time, or your money? Same difference, as long as you know what you’re doing)
When, some years back, I made a full-time living as project-manager - mainly in the IT / Telecom arena, I had to adhere to the very same principles.
I needed, and as such - had a plan to follow.
In turn, that plan was created - based on a goal, or a set of goals.
REMEMBER - it’s your goal that will be the framework for your plan! (Not the other way around!)
Next:
I needed expertise. Others, as well as my own. Million dollar projects took millions of dollars. REAL cash, real man-hours - and not just imaginary assets… I needed the REAL thing.
Then, when all this in place, we could set off, within our budget and time-frames to get going somewhere…
However, project-managing like that, I had something that most people just starting out never have access to… A thing to important to dismiss, or ignore, because, without it, or unless you manage to create it - you will never succeed…
And, that is - the framework and foundation and the logistics around any project - crucial to make it work.
In other words, we’re talking resources over a given period of time here…
A Few More Words On Time Spans:
An internet marketer “normally” has a time span of “24 hours” - in order to “generate” a million dollars - or more… (thus becoming a millionaire… Overnight… at least so, should we dig into the hype… Right? )
My timespan when bringing totally havocked projects back on its feet, was and normally is 3-4 weeks. Next, approx 3 months, before getting into some kind of profits…
BUT, with such a time span, I had something most people just starting out - will never have. I had at the least - most of the mandatory resources, funding and expertise at hand already… My own, as well as my crew’s, and the company’s logistics to support it all.
Provided this, we were profitable as hell, within the first 6 to 7 months, no matter the size of the project….
ICL - when taking over that company - which I was hired in to fix up some years back - had a time span of 5 years before they reckoned they’d even break even… And then, the 6th year, they calculated on only making a very modest profit… (So much for “burning off” tens and tens of millions of dollars… )
A wood farmer (don’t know the english word for this one) - has a time span of between 20 to 50 years, before taking out any profits what-so-ever on the lumber they’re planting - for later taking out of their forests - for sale to the general public…
So, what am I getting at here?
Well, simply put, what I’m getting at here… simply…
..the crucial question you ALWAYS need to ask yourself is…
What is your own time-span…? What are you putting in? What’s your investment? Investment like time, expertise, cash… etc…?
Not least; how realistic are your plans, your goals and your overall settings…?
Then: What’s the quality of the information and the feedback you’re able to afford, and/or get access to?
Me, as projectmanager had a serious advantage that most newbie entrepreneurs never had and will never have even…
I had both financial backup, proper expertise in my back, as well as realistic goals - nested up with a realistic time-frame.
Not least, simply because I had decent sources of information at hand. And, some authority to give some hell whenever my people, suppliers and even my own management - didn’t deliver their share of the deal - I had a tremendous advantage to skyrocket “my business”…
My guess, you don’t have that privilege from where you’re at right now.
Do you?
Heck, even I don’t have that in my own business “just starting out”… Things are way easier when backed up by a million-dollar company, with funds buying most all you want, as opposed to creating it all yourself - from the bottom up…
So, what it all boils down to in the end, no matter your fundings….
What is your budget?
Not least: What is your frame of time?
Arne Yri
3d digital
www.articlefire.com
www.ProjectManagementMadeEasy.com
Jonathan Gunson said,
February 15, 2007 @ 1:09 am
Hi there Henry
It made me smile to read the comment of
Mr Pinkus above. Like me he would prefer some of your positive magic Henry.
I don’t think you mean that the sky is about to fall in like Chicken Little would have had us believe.
That is not about to happen.
Better still I think that the future online never looked better.
You are correct about warning folks not to make the Web2 mistake:
For example I have heard bright ideas guys recently say things like “I’m going to be the MySpace of Coffee.” Or “I’m going to be the YouTube of Dog Training”.
Well, sorry, but MySpace is already the MySpace of coffee. And YouTube is already the YouTube of dog training.
There is no use trying to copy an already successful idea. The problems of the market need solving, and that is where the next great idea is going to come from. So Henry, we need to to motivate us to see these things.
I have seen you on video at the the Master List builder Mastermind. Man that was GREAT! It was MOTIVATING!
So hit us with some of those positive vibes again Henry.
:-)
Jonathan
Allen Lundy said,
February 15, 2007 @ 1:25 am
I enjoyed your article. I never envisioned myself as the new creator of another MySpace or YouTube.
I did think (7 years ago) that all it took was a website and a product and the money would come rolling in. Well, I saw the money rolling, but it kept going out, not in.
I’ve learned a lot in the past few years, and articles such as your help me keep my feet on the ground and my head out of the clouds.
Good review and there are some good comments from both sides. Thanks for the opportunity to read your blog.
Allen Lundy
Waheed Elqalatawy said,
February 15, 2007 @ 3:04 am
Hi Henry,
Good work and eye opener for the dreamers,
but what about those not dreaming that very big? and why the savvy marketers are not devoting some efforts towards developing the capabilities of small fishes in the internet sea , who are thinking about
adsense, affiliate comissions,…etc of the rest of the small business list, and not digg,
youtube, myspace…etc.
I mean, they need to be injected with the knowledge that make them aware of the impact of technology and big marketing on
their small business.
The big marketing minds perceiving the notion that the whole online activity is all about information, and they give marketers
the opportunity to manage their information
- because no one would re-invent the wheel
- and it is the way each marketer deals with
the given tool that makes the difference.
To give an example, YahooPipes is a tremendous solution for the problem of good content, and actually it is ideal for the
non-specialist people fine tuning the information, when each of them adds his own experience to a given piece of information, no one holds the whole truth.
Yet, it is launched without tutorials, screenshots leaving you helpless in front of it. The small business people neither have the time nor the communications needed to quickly unlock the very simple techniques
needed to deal witha new tool.
Would we make this blog a forum and ask about some one who knows any thing about Yahoo Pipes?
Thank you.
Thomas said,
February 15, 2007 @ 3:28 am
Hi Henry,
You put it so well that I like the way you have pointed out. Truely, there many of us has big dreams and hopes. If we all can focus on smaller goals i believe we can achieve some success in our own niche market.
In order to grow, you need to keep on learning and trying new things.
Thank again henry,
Keep it up and to yr success.
Thomas
Kostas said,
February 15, 2007 @ 6:32 am
Very nice article on You Tube indeed.
But can you please tell me,
what’s wrong in getting 300M$ each, after all they did not spent even a dime.
35% is quite a big number for someone who spents absolutely nothing moneywise.
In fact this proves that ideas(Spirit) are above money(matter) and reinforces the concept, that you do not need any money at all, in order to make many millions of Dollars which is super.
Just good ideas are enough to make you retire.
Hugh Simpson said,
February 15, 2007 @ 5:18 pm
Henry did you get info for this blog from the recent issue of Business Week? They had an article in this very subject.
Henry Gold said,
February 15, 2007 @ 7:15 pm
Do you have the article, Hugh?
Bring it on!
Henry,
Matt Z said,
February 16, 2007 @ 4:09 am
Thanks for the blog Henry.
Unashamedly marketing a high ticket item, I often disqualify prospects when they choke on the pricetag of buying into a business. It amazes me actually that many will be attracted to potential high rewards, but don’t understand the work, risk and nature of business that comes along with that potential.
In my day job I run a farm. We sow seeds in moist soil in May/June, spend a half mil nurturing it, and hope it rains. If it does, we harvest in December. If it doesn’t, wages don’t make up the shortfall. In Australia after droughts, some farmers continue to sell their farms, walk off their farms, or shoot themselves. Have done for decades, and not because they have a loss year, but because they run out of capital, either in reserves or equity.
It doesn’t matter what style of business we run; in the startups or downturns we need capital - some more than others.
Keep up the good work Henry.
Matt
kar said,
February 16, 2007 @ 10:04 am
you are damn right henry
well, the only problem with most guys here
are , they are ready to go the Office for 8-10 hrs each day but not do even half othe effort
online on their business , they just want automated money making machine
well, this will kill them all.
take care
http://www.sumitkar.org