Splattered across media channels in UK lately has been a surge of Internet failure related news.
After millions of pounds/dollars have been spent in development of an exciting new venture, a couple of years down line company has realised that gold mine they thought they were sitting on wasn't really a gold mine... it was a flop. Millions wasted.
They had hundreds of employees... millions in bank, plus enough venture capital to enable them to last a lifetime. But even with all of this support and monetary backing, they go bust and wind up in financial ruins.
So what went wrong? Is Internet to blame?
Not likely. The good news is there's a flip side to that coin. Individuals who are starting with less than a couple of hundred bucks are grossing PERSONAL incomes of $50,000 per month or MORE. How can this be possible?
It's all about using money wisely. The smart individuals learn required development skills themselves and save HUGELY on third-party working costs. Here's how...
The big businesses feel need to spend lots of money on every area of business, just to feel more secure. Example costs of a typical "big Internet startup" might be:
Office space: $200,000 Website development: $50,000 Employee wages: $500,000 Business/Legal expenses: $10,000 Marketing expenses: $500,000 Product related costs: $100,000
In first year it's likely that they'd have spent $1.5M or more. Each product they sell might produce a 200% mark-up at best. Now compare that to an entrepreneur running an automated web service that he sells for $20 per month:
Office space: NO cost (they work from home) Website development: $35 p/m for web hosting Employee wages: NO cost. It's fully automated. Business/Legal Expenses: Maybe $500 a year Marketing Expenses: $200 a month Product related costs: NONE
After a year, a little over $1000 is spent whilst product brings in a mark-up of over 10,000% or more.
The money that is earned belongs to entrepreneur. He/She has NO employees, NO additional overhead expenses, NO product costs and their marketing is sorted through affiliate/joint ventures. If handling email gets hectic, they could pay someone a couple of hundred dollars per week to outsource support to someone else... NO need to work from an office, since they can handle it from home.