Online Business for your Small Business
Congratulations to Gary Walker of Southern Cross Financial Planning who has won $50 cash from Webnerd.
We cut up all the entries, squished them into little balls and put them into my motorcycle helmet. Anthony Gillespie from Best Practice Living was kind enough to do the honours.
This competition is now closed. Click here to find out who won!
Imagine that I gave you $50 cash with the instruction to spend it on something fun. On what would you spend it?
Tell me and go into the draw to win $50 cash.
The winner will be announced here on Monday 9th March. The $50 is in Australian currency.
How to Enter: Leave a reply, telling me how you would spend $50 in a fun way, and go into the draw to win $50
Artistic, fashion and travel photographer Ben Heys lives like a king. Highly respected in photography circles for his artistic nude and fashion photography, Ben makes his entire income online by licensing his photography to designers.
This is called “stock” photography and he currently has 1300 images available in his Shutterstock.com library. Each photo is licensed for a lean amount of money – and his commission is even smaller – but the numbers add up to provide a consistent flow of passive income sufficient to live like a king while he travels Asia. Even when he doesn’t work for weeks at a time.
With not many sleeps left until Christmas it’s time to delete your corporate email and enjoy your Internet connection for a change!
Here are seven little Christmas treats from me to you.
Merry Christmas and I’ll catch up with you in 2009! Follow me on Twitter in the meantime.
Over the past year or so I have compiled lists of YouTube videos that have inspired, intrigued and irritated me. This is a list of videos that made me laugh myself silly. Just in time for Christmas!
I had a different article scheduled to go out this week but sometimes a seemingly unrelated series of events line up to show you something you wouldn’t have otherwise seen. Something important. Something worth sharing.
Knowing he had only months to live, Carnegie Mellon University Professor Randy Pausch (Oct. 23, 1960 – July 25, 2008) gave his last lecture at the university on the 18th September 2007 before a packed McConomy Auditorium. In his moving presentation, “Really Achieving Your Childhood Dreams,” he talked about his lessons learned and gave advice to students on how to achieve their own career and personal goals.
And I’d like to share it with you:
If you know what it’s like to go without sleep, consider Brisbane’s homeless. They often bed down on bare concrete or in wet gardens.
Informal shelter for homeless people in Newstead, Brisbane Australia. Photo by Craig Jewell.
The 139 Club Homeless Shelter is located at 505 Brunswick Street, Fortitude Valley in Brisbane. My cousin Jason volunteers at the shelter on a regular basis. They are holding a walk to raise much needed funds this Saturday (30th August) at 2:45pm. It is a scenic 6km walk from the 139 Club taking in the Story Bridge, riverside walk, Goodwill Bridge and Botanic Gardens. It will finish back at the 139 Club.
I am writing to you to ask you to sponsor me this Saturday.
If everyone reading this (including YOU) donated just $5/kilometre ($30 total), we would raise over $1000!
There’s noone on my mailing list who doesn’t have it better than any of Brisbane’s homeless and cannot afford $30 (or more)
To sponsor me, make your donation in either of the two ways:
Put it on your credit card (Note: you do not need to be a PayPal member and you do not need to join up – see the link under “Don’t have a PayPal account?” on the left)
Do a direct deposit (Account name: WEBNERD; BSB Number: 304-123; Account Number: 900529-9). Please include your name as the “reference” and email me to let me know that you’ve done it.
Donations over $2 are tax deductible. If you want a receipt, please email me letting me know how much you donated and your postal address).
If you would also like to participate in the walk, let me know and I will send you the information.
On my previous visit to Patong Beach I stayed with a friend of mine, master photographer Ben Heys. Upon arriving he warned me about the pushy tailors who would try to shake the hands of tourists as they walked past. Trick is, they wouldn’t let go! For reasons unknown I, the suit-wearing businessman, was able to resist the automatic reaction to shake a pro-offered hand while Ben, the reclusive artist, controlled the impulse only after a week.
In the wrong mood the pushy salespeople who line the streets of Patong Beach can be extremely irritating. Here are some tactics to deal with them when you’re not in a shopping mood:
Most of all, don’t forget common courtesy in the land of smiles. More irritating to me than pushy sales people are rude tourists, like those who completely ignore a waitress whose job it is to welcome customers to a restaurant. A quick smile and a shake of the head is sufficient to tell her that you’re either not yet hungry or not interested in that restaurant.
As I soak up the sun, smells and sounds of Patong Beach a smiling face appears above my borrowed copy of The Life of Pi. Yesterday a Jet Ski hire operator had waved to me and I had given him a friendly wave before he dashed back to his duties. Now Op asks me how I am, where I’m from and if I’m travelling alone. The usual dance leading up to the sales pitch but I play along until we get down to it: No, thanks, I don’t want a Jet Ski today.
Op doesn’t leave, however. He’s intrigued. He wants to know why I’m on the beach alone. He points out that most of the other beach-goers have companions: either family, friends, girlfriends or Thai ladies (the paid and the mail-order varieties). He’s now like an Aussie taking the piss out of his best mate and he presses, “Why? Why you not have girlfriend?” I try to explain that I have one back home in Australia but he’s having fun with this and asks me if I’m a man. He wants to know if I’m gay. I promise him that I will go out and find a nice Thai girl and he tells me that he’ll be keeping an eye out for me and my new Thai girlfriend tomorrow. It’s all light-hearted banter and he has made me laugh. I return to my book.
A little later I have abandoned my half-emptied Sprite. A bee has declared it his, just as the little bugger had done each of the two days prior. Op appears again – this time he asks if I’d like a beer. “No, thanks,” I reply. He explains that he wants to give me a beer as a friend, that I don’t have to buy one. I decline as I’m not a big beer drinker and, to my relief, he doesn’t challenge my assertion that I’m Australian. As he then passes by on route to do his duties, he taps me on a raised knee or a shoulder in a good-natured expression of friendship. In a place where most tourists are, by this time, exhausted and irritated with being forever approached by pushy sales people I had joked and conversed with Op and he, in return, had let me to my peace. He knew that I would return to the beach in coming days and that if I wanted a Jet Ski I would think of him. I knew that if I returned a year later he would remember my face and pick up where we left off our joking and conversation.
Six days ago I had arrived here from Phang-Nga and presented myself at the open-air entrance of S&G Family Restaurant. The “Big Boss” recognised me at once from my trip the previous year and honoured me by adopting the Australian greeting of shaking my hand, something I have seen very rarely initiated by a Thai person during my time here (with the exception of a few pushy tailors). It is a genuine gesture and not used lightly in place of the traditional Thai greeting. Others, too, were like that on my return to Patong Beach. Sofia, seller of luggage, recognised me and greeted me warmly. Her cousin asked me if I remembered him from the last time he’d sold me DVDs. The welcoming waitress at one of the Italian restaurants enquired about my friend, Ben, with whom I’d stayed last time. And one of the tailors, seemingly endlessly amused by the very fact of my being, asked me if I remembered our brief but cheerful conversation in November. I did!
For their warm and friendly treatment I have eaten a meal most days at S&G Family Restaurant and at the Italian restaurant, too. The DVD guy gives me a smile as I pass by and occassionally I stop in to stock up on movies. I chat with Sofia and the tailor as I pass them and if I need a bag or a shirt, I know who will look after me.
The principle that people want to do business with friends holds true. It should be noted, however, that it can’t be faked and must be developed. The Thai rotee (pancake) maker who pretends to be my friend while actually trying to scam me is easily spotted. The endless stall-keepers and tailors who line the streets and call to me, “My friend, one moment,” are even more clearly ingenuine.
The five year old perched on a stall reciting the learned, “Hello, you buy,” is also only interested in my money (although in this case, is also too adorable to refuse)
At the end of the day, those who show a genuine interest in their prospective and existing customers reap the rewards. Those who show disinterest or disingenuity don’t. This rule holds just as true in online business as offline and the online techniques mirror offline psychology. It is for this reason that opt-in email mailing lists can be such a hugely effective marketing and sales tool. Consider that the typical e-commerce website will convert somewhere around 1-2% of all visitors. After building rapport with its opt-in subscribers, the owner of a mailing list can eventually convert more than 25% of the subscribers. How do you get subscribers to opt-in? Offer them a free beer!
Update: One of my proof readers, events photographer Pat Brunet of Event Photos, has already applied this lesson. One of his prospects was going to hire a car to drive from Brisbane to the Gold Coast and Pat offered her a lift instead. Pat now has plenty of relaxed time with his prospect to develop a relationship that may well turn into a very profitable sale.
Hi there,
I’m writing to you from a deckchair in sleepy Chiang Mai. I have been here for two weeks with my better half, who will return to Brisbane tomorrow to take on a new job. I’ll continue travelling and working from my laptop for another two weeks.
Prior to spending this time in Chiang Mai I had visited Phuket for three weeks last year. I love the Thai people, their culture, and their beautiful land. (I’m not so wild about being called “Harry Potter” by many of the Thai girls here – it really is a mystery to me how they make any visual connection between me and Daniel Radcliffe – but that’s a minor thing, really.)
As I soak up the culture and the sun, I also take note of the business. It’s unavoidable, really.
In a land where competition for tourist Baht is incredibly fierce I have noticed some very clever, and simple, business and marketing strategies that are employed by the best (and copied, to varying levels of success, by the rest):
1. Charge a low entry fee and then upsell
Upon landing in Chiang Mai, we didn’t even have to exit the airport before we were approached by a taxi driver. He said he would deliver both of us to our guesthouse, about 20 minutes away, for 120 baht (approx $3.85). I could have bargained that down but it was cheap enough (in fact, we ended up tipping him). During the ride he made small talk with us and asked us our plans (of which we had none).
With great pride in his town he told us about the various attractions and one in particular that he considered quite special: a temple at the top of a mountain and then up a further 306 steps. He told us that most tourists don’t visit Doi Suthep at night and he showed us a photo from it’s look-out. He was right: it was spectacular. By the time he dropped us at our guesthouse he had given us a flyer for the temple and told us that he’d take us the thirty minutes there and then back again for 800 baht ($25) and we could stay as long as we liked.
The next day I called him and set it up.
This is the same technique used by multi-millionaire online entrepreneurs. They will offer you something dirt-cheap first and then upsell you later. The initial fee is usually just enough to cover their advertising costs and once you’ve bought from them, you’re on their highly targetted mailing list. Once there they can start building rapport and promote higher ticket items.
2. Use testimonials to establish credibility
A tourist wandering the streets of Chiang Mai will walk by plenty of Tuk Tuks (similar to taxis). If you look like a wandering tourist on holiday they will offer their services to take you around their city to view the attractions, usually at a very good price. 40 baht to see the temples? Sure, why not. So after temple #3 I’m presented with a notepad of testimonials, flipped open to two signed by Australians, and told that they were written by those who had employed him for his full-day tour.
The tailor that we visited also presented us with testimonials – as soon as we’d entered the door. In this particular case we had been referred to this tailor by a New Zealand university teacher who was adament that this place was the best in Chiang Mai for tailored clothing.
Quite by chance the teacher arrived while we were there to pick up his new tailored jacket and it did, indeed, look good.
I would give them big points if that was staged.
3. Attract your audience and then pounce!
It was actually quite by chance that we had stumbled across the tailor to which we were referred. We hadn’t gone looking for it that day. We weren’t even going to go in that particular day but there was a free map outside the shop and I needed my bearings.
As soon as we approached, a sales girl rushed out to help us with our map-related query. I decided to ask where the post office was and Vanessa was shown in great detail. Once that was sorted we were then invited into the shop, “Just for look.” From there it was assumed that we wanted tailored clothes and we were presented with fashion books from which we could have anything made.
Half an hour later Vanessa was measured for a suit jacket, skirt and pants; and I had agreed to try one business shirt at a discounted rate. That afternoon we returned for our fitting and for the first time in my life I had a shirt that fitted me, and my short arms, perfectly. I ordered two more and two casual pants.
Another example is the cafe that I frequent in Chiang Mai for its free wireless Internet access. It baffles me why they don’t promote it. I found out about it quite accidentally, but it meant that I kept coming back and ordering more food and drinks while I worked away on my laptop in blissful airconditioning.
4. Focus on one quickly- and easily- replicable product or service
Thailand is a place where a street vendor can and will specialise in one thing only. Sports socks, for example. You wouldn’t pick it, but apparently there is money to be made selling ankle-high sports socks and only ankle-high sports socks. Oh, there is variety in ankle-high sports socks: you can have Nike, Adidas or Reebok and all the different colours and designs but, at the end of the day, they’re just socks.
The pancake (“rotee”) vendor makes only pancakes, too. Different flavours but they’re all just pancakes.
In the same vein of beautiful simplicity there is a book shop down the road from our guest house that sells used books, all for 99 baht. All books, all 99 baht. How simple is that?
One of my favourite Thai restaurants is Just Khao Soy, whose main dish is – you guessed it – just Khao Soy, a noodle soup served with your choice of meat and accompanied by about eight different condiments to change the flavour as you like.
5. Establish business alliances (How Tuk Tuk drivers and tour operators really make their money)
Just as the Internet moguls make their real money from back-end sales, Tuk Tuk drivers make a significant portion of their money from commissions. The tourist factories make their sales because Tuk Tuk drivers and tour buses bring tourists to them. So, as an incentive, they pay a commission for every tourist who spends five minutes or more in their shop or factory. It’s a bit like pay-per-click advertising (e.g. Google Adwords) but off-line.
The more advanced operations pin ‘gifts’ to your shirt on arrival. These gifts are usually a coloured flower identifying you to your tour group. If you then buy something they can assign a sales commission to the right tour operator. This is akin to Clickbank and other online affiliate programmes.
6. Put your customers on a buying pathway
While in Chiang Mai we visited an elephant training camp where we saw an elephant show and took a ride on an elephant. While we had already paid our tour fee there was always an opportunity to hand over more money. At the show we bought bananas (40 baht) to feed the elephants and during the ride we were told on four different occassions that the elephant was hungry (and thus that it was time to hand over another 20 baht for more food).
This is another example of upselling but my point is that as customers we were on a pathway set by our tour guide. Furthermore, we weren’t just given the option to buy more, it was guaranteed that we would. Were we going to deny the hungry elephants their food to save 20 baht? No way!
To see an example of a Brisbane-based retail pathway, visit Photo Continental in Mount Gravatt.
And here are a couple of extra, quick observations:
1. Smile and your customers smile with you
Most Thai people work hard and for long hours and yet most smile more easily than a waitress in a comparatively cushy Coffee Club job. Those who smile on my approach and treat me well get my repeat business.
For those of you who have staff serving your customers, make sure your staff are friendly and happy. Whether I’m in Brisbane or Chiang Mai, I don’t return to a cafe or restaurant whose waitress couldn’t even muster a smile and clearly wanted to be at home, instead, watching Sex in the City.
2. Sometimes a small difference is all it takes to tip the scales in your favour
Whilst looking for a Thai cooking school Vanessa and I visited a tourist office where we were presented with three different brochures. I couldn’t get a clear answer out of the assistant as to which one was best but after a few questions we had established that “Thai Chocolate” offered essentially the same service as the others but were more flexible. They also had a more professional-looking brochure than the other two and that inspired the confidence needed to tip the scales in their favour.
Well, I’m off to Phuket tomorrow so I’d better pack. Here’s wishing you happiness and success in your endeavours – business or otherwise. If you get a chance, take a break and visit Thailand!
James Quinn-Hawtin is the owner and founder of Webnerd, a Brisbane-based Web Design company.
James began working in the Internet industry in 1996 when he was still in high school.
In 2002 he started his first passive income earning online business.