James Dalman : Branding Dude and Freestyle Entrepreneur » Business Lessons

Why Affiliate Marketing Sucks

James Dalman — Fri, 03 Sep 2010 20:38:31 +0000

I’m just gonna say it how I see it; affiliate marketing is driving me to the point of extreme nausea.

There’s nothing wrong with wanting to make a little jingle to put in your pocket, but when I visit your site or read an RSS feed and every other image or link is an affiliate ad, you have lost my interest and respect. I feel like this over the top, in your face pushing of products is like a cheap whore who will do anything for a nickel. I don’t mind people sharing a great service or product, but when you continually throw it out there and every thing you write includes (affiliate link) over and over again, it just communicates to me you are desperate.

Here’s another thought. People don’t want to be hit up all the time.

I started to follow you because I trusted you and your expertise or insight. When you turn into a marketing machine for every company you can make a buck from, I feel that trust has been broken. You’re no longer a friend, you’re a snake-oil salesman.

Yes. Being an affiliate is fine. Really.

I admit that I have signed up for a few affiliate programs, but I rarely try and promote those links. I tell people about MailChimp, FreshBooks, House Industries, HostGator, and others because I love using their products and think they’re awesome. They don’t have to pay me to spread the word because I already believe in them. I’ll gladly do it for nothing.

My rant is over.

What I want to say is be careful how you do your affiliate marketing, because if you do it wrong, it sucks and people are going to get tired of following you. I’m deleting a couple well known people from my feeds and bookmarks because they’ve abused this privilege.

Am I off base on this?

Go Ahead … Fail!

James Dalman — Wed, 18 Aug 2010 13:42:52 +0000

I like to fail. Why? Because when I fail, it means that I tried.

There are things that I’ve done that didn’t quite work out like I planned and there have been times where attempting a challenge may have made me look foolish. But I don’t care because it is better to try and fail than never try at all. This is one secret to being an entrepreneur and launching a business.

I talk with people all the time who tell me they are dying on the inside. They work in a career that makes them feel like they are in a death march to the weekend or they have a superior who robs their soul of all joy. Sometimes they’ve wanted to live a dream they hoped for since childhood. They want to do something so badly but don’t because of fear of the consequences.

You will never taste freedom or victory, if you’re never willing to taste fear and failure.

There can be no other way to know if your business idea will work, if you’re book will sell, if you’re recipe is great, if you’re product is wanted, or whatever … unless you are willing to take a step forward and risk what you hold onto so dearly. Stop making excuses and GO FOR IT TODAY!

Free. Does It Kill Your True Value?

James Dalman — Fri, 13 Aug 2010 15:55:11 +0000

Give it away for free.

Give away your E-book, insider knowledge, business secrets, that new product, your professional insight, or whatever else that makes you and expert at what you do. You’ve heard this advice from great thought leaders like Seth Godin and Darren Rowse. It’s about creating and using the Whuffie Factor or being a Trust Agent. If you give away your best stuff then it will help you become “the go-to person” and positive karma will return ten-fold. Maybe that’s The Secret.

I agree that BETA versions to free samples to blog giveaways really do help increase website traffic or a person’s willingness to “try you out.” Our free-economy has definitely changed our business strategies and this mindset has proven to be highly effective for some entrepreneurs. Yet I am still not convinced this is always the best strategy.

In a previous post I wrote on pricing, I talked about how offering your products or services for cheap will hurt you and the market. I believe this same principle applies to freebies as well. Do you think that this strategy could teach customers that they should expect something for nothing or that it communicates that there is no value in our expertise or products? I do!

This week I talked with a web developer who has been providing advice and services without compensation in order build an in-road for a bigger potential opportunity. During the course of our conversation I could see red flags everywhere and it’s evident that the road is going nowhere, except providing immense free help to the client. I’ve heard similar stories from other bloggers or business owners who are trying these techniques to build their community … but building community and fans can only help so much.

In order to stay in business and thrive in business you have to make a profit with your business!

Creating a fan base and being known as the expert is awesome, and I love the online and offline communities I’ve built for myself and others but if you just build a crowd of people wiling to listen and no one is willing to buy, then what good does that do for you? You HAVE to get paid for your knowledge, skills, experience, products, and services. You’ve invested your time and money in getting to where you are. And you deserve to be paid for what you are offering.

I truly see the reason behind giving away some of your best work or ideas, but if you are not generating a Return on Investment for these actions, maybe your true value is being killed by the free-economy. Whuffie and karma can only take you so far before you end up in a cardboard box.

What do you believe?

Business Communication. Be Clear and to the Point.

James Dalman — Wed, 11 Aug 2010 15:14:20 +0000

Why is it that we sometimes have a hard time saying what’s on our mind? How come we feel that we should sugar-coat our words or deliver a barrage of business jargon that confuses people instead of clarifying? Ineffective communication in business and life is a waste of everyone’s time.

Business communication should be simple and straightforward.

We should strive to make what we are saying so easy that a seven year old can easily understand it. This doesn’t mean we speak down to a person like they are a child, but that we should avoid adding confusion to our conversation by becoming superfluous with our words. We should also be honest and straightforward when communicating with others. It doesn’t benefit you or the other person to beat around the bush … just say what needs to be said and move on.

My current free agent life has opened up dialogue with others about collaborating or potential partnerships. I love the conversations I’ve had with Randy Cantrell of Bula Coaching. We have talked business ideas and it’s always straight to the point – no hidden agendas and no BS. There are things we have agreed on and others where we didn’t see quite the same, but we’ve moved quickly through the topics because we value each others time and avoid useless hyperbole.

Then there are other situations that leave me wondering because the communication breaks down or never took place.

Maybe you are really busy or it’s been a chaotic month. Maybe you really don’t want to work with me or think my idea is way off the grid. Maybe I did something to offend you and you don’t like me anymore. Maybe the entire Internet has taken a massive dump and clogged the bandwidth. I don’t know because I’ve not been told, but I can say this … I’d rather know the truth or have a clear understanding than being left in the dark. Wouldn’t you?

Business communication needs to be clear and to the point. Most business people or entrepreneurs don’t have the time to play games or like to try and figure out what is being said. What we do want is to hear is what’s really on your mind – expectations, interests, concerns, agenda, disinterest, plans, or hard truth. We just want people to be clear and to the point. Nothing more, nothing less.

How about you?

Pricing Your Services. Why Going Cheap Hurts Everyone.

James Dalman — Mon, 09 Aug 2010 19:24:33 +0000

Pricing always seems to be a difficult process for designers, artists, developers and others who provide some type of creative service. We all want to make money with our skills and receive fair compensation for our work, but sadly I usually find that many service businesses do one of two things that hurt themselves and others; undervaluing their services or bottom dollar pricing.

Undervalue of Services

This usually happens because a designer or developer doesn’t believe in themselves or because of inexperience. While newbies won’t often get the prices that seasoned veterans can command, they often undercharge causing financial hardship in their lives.

Bottom Dollar Pricing

Some designers or developers just focus on doing work for the lowest bid or price. They hope to undercut their competition or get more work because it’s based on how cheap they are. This is a stupid strategy.

Why Cheap Prices Hurt Everyone

Cheap pricing due to either of these situations hurt the community and yourself for a variety of reasons.

The first is you train customers to NOT VALUE what it is you are doing. I observed this in the screen-printing industry in the late 80′s. Screen printers started to give away the artwork and this in turn educated customers that the design had no value and was not worth paying for.

The second reason these situations will hurt you is that once you start charging a specific fee for your work, it will be very difficult to raise your prices substantially when you figure out that being a starving, unprofitable business is no way to go! You should be in business to make money, not loose it.

What Can You Do to Avoid This?

Research: There is no excuse to not be able to learn the right pricing structure. The Internet gives you every opportunity to learn from others or contact professionals for advice. There are training programs and books that can help you determine profitable pricing for your skill set and experience.

Educate: Teach and show your clients or potential customers the value of what you do. You can blog about the requirements or training you had to undergo to learn your skills, offer free webinars on the ROI of great design, or do a video on the power of correct SEO. Help people understand the value you provide and that the fee you charge is worth that!

Your end goal should be creating a sustainable and profitable business. Don’t fall into the trap of undervaluing your skills or low-ball pricing. In the end, you won’t win and it will damage the marketplace and industry for your future and the future of others.

Make Money in Web Design. A New Course and Coaching,

James Dalman — Sat, 07 Aug 2010 14:44:18 +0000

This September I will be launching a new course and coaching that will show people how to start, operate, and run a small profitable web design and blog business.

Over the last two years I have been asked by stay at home moms, bi-vocational pastors, students, and people ready to leave their current job on what they could do to make extra money or how to launch a business. Every time I responded by saying learn how to use WordPress and then learn how to install and modify premium WordPress themes. The biggest problem is that most people don’t know how to get started. This is what I will be teaching on.

Make Money in Web Design will walk through all the steps of setting up your business including naming your business, marketing, branding, the minor technical skills you will need to know, how to price your services, invoicing, and creating a business system to run smoothly. It covers everything that I know and more. Students will also have access to all of the business forms I use and my treasure chest of design files. There will also be group and personal coaching involved to ensure you progress through the course and hit your goals!

Please know, Make Money in Web Design is not a get rich scheme or magic bean. It is a proven business model that I have used to generate a great income and will be a business you must work and invest in.

I am currently offering people the opportunity to get on the waiting list for when I launch. Seating for this course will be limited and once the spots are filled they are gone! You can sign up for notifications for the latest details and be on the list with no obligation to enroll in the course. Visit my page with the current information by clicking this link and you can sign up from there.

Also, those who sign up and enroll in my first class will be receiving the BETA launch discount … so don’t wait to get on the list.

Does Size Really Matter For Business?

James Dalman — Thu, 18 Feb 2010 21:16:32 +0000

Have you ever wondered if the size of your business really mattered?

Many entrepreneurs believe that success comes from how big their business grows or how many clients they can close on. Bloggers determine that having a larger audience or comment base is better and hardcore Twitter lovers place an extreme value on how many followers they have. If bigger is better, then why do so many big businesses fail?

Think about Starbucks.

They are hurting right now and have been closing stores because they grew way too fast. The placement of Starbucks stores in about any location or venue they could place it damaged the unique experience people loved. Now they are trying to regain market share by becoming small again and by inventing “local coffee shops” that are forced and inauthentic. It’s an epic failure. The same thing happened with Krispy Kreme and Orange County Choppers. Something unique is created, the demand is raised to higher levels, and then mass production destroys the uniqueness … and profits.

Seth Godin preaches about how scarcity generates value. This is not a new concept but it is absolutely true. The less likely you can get something, the more it is worth.

I like love this mindset for business! Cory Miller and I had a conversation about this while at WordCamp Boston. He asked if I thought highly popular “mom and pop” shops should grow to meet the demand of new customers or stay small. I believe that when you start getting bigger and making more of your services or products available to a wide range of audiences, that the short term profits you might earn now, will hurt the life of your business later. I’ve seen entrepreneurs who keep their businesses small or limited, thrive year after year. Eischen’s Bar in Okarche, Oklahoma is well known for their fried chicken. It’s a small bar that is packed out every weekend and lunch day (regardless of reviews going either way) and much of the allure is because they’ve decided to keep the special “whole in wall” experience to one location and a limited menu. Other businesses that use similar strategies are In-N-Out Burgers and Tom Bihn Bags.

My point is that you don’t have to have a large client list, following, or readership to be a successful brand or business. Sometimes the best thing you can do is stay small and focused, or just create a really cool or unique experience. If you are something remarkable and worth talking about you won’t have to worry about being a huge success.

Can You Be Trusted?

James Dalman — Wed, 03 Feb 2010 16:44:28 +0000

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.” - Friedrich Nietzsche

Trust is sacred. It is a value that should be held tightly and protected. Once it’s broken between a person, a friend, or company it’s almost impossible to earn back. This is why it’s important to not lose it.

If you are in business and talk ideas with your clients, co-workers, or even your competitors, then make sure you always do the honorable thing by keeping the trust sacred. Don’t stab people in the back. Give credit where credit is due. Always be honest.

I would rather a person fail in a task and lose a lot of money in our company than to discover they cannot be trusted with sensitive information. It’s that important for me and it should be for others as well.

My Takeaway from WordCamp Boston

James Dalman — Wed, 27 Jan 2010 16:41:42 +0000

I’ve been home from Cambridge, Massachusetts a couple of days now and have finally had the time to think through what I learned from WordCamp Boston.

The best thing from this trip is that I got to meet some really down to earth, talented and cool people who felt as though we’d been friends for longer than just a few days. The NERD Center from Microsoft was an amazing place to have WordCamp, and Harvard was an awesome site to see. But there are some other ideas and takeaway’s I’d like to share:

WordPress is about community.

It seemed that most of the people I met and talked with all had a common synergy and bond. Community is essential and it helps us to grow and connect. Business in the future will be about community.

There Are Still Hidden Agendas and Egos.

I love analyzing people and figuring them out – it’s an innate gift I suppose. What I assessed is that there are some people who think they are better than they are and need to get that in check. There were also what I call “wolves in sheep’s clothing” or people who appear to have your best interest but really are waiting to rip out your jugular. As the saying goes, “keep your friends close, but keep your enemies closer”.

There is too much power at the top.

I’m not going into the specifics, but for an organization that was built on the open source philosophy and spirit of free, there appears to be One Hand that rules all that can be done or not done in the WP community. This surprises and shocks me – but from my conversations with WP people, it reminded me much of the history of feudal Japan.

There are no limits.

Technology has changed the game and for the most part, we are all equal on the playing field. You and I have so many tools at our disposal that can bring us the success we may want. The only thing holding us back is ourselves. Those who move first and fast win; everyone else is a spectator and will watch the others raise the trophy.

People you might not know but might want to connect with.

Michael Torbert @michaeltorbert, Steve Mortiboy @mpsmort, Sonja Leix @sonjaNYC, Elisha Elisha NYC, Michael Debyah @mikedebyah, Clay Griffiths @claygriffiths, and Danielle Morrill @danielleMORRILL.

That’s it…my takeaway from WordCamp Boston. Keep an eye out for the short videos that Cory Miller and I shot on the campus of Harvard.

I’m Not Number One!

Business Advice: Pick your horse and stick with it!

James Dalman — Thu, 07 Jan 2010 18:52:19 +0000

I am an idea nut! Every day I can find opportunities to explore or can create a fresh plan for world domination. It’s in my blood to want to design new products or services. I’d love to be like Richard Branson and the plethora of Virgin Brands. But I can’t! I can’t because there is not enough time or money or focus.

Years ago my brother-in-law gave me some great advice that I really hated to hear. He said “pick your horse and ride it for all it’s worth and don’t stop riding it until it’s dead.” Crap!

The problem with entrepreneurs having a successful business idea isn’t always a lack of interest or market, but a lack of focus to see it through. It’s challenging, almost impossible for most of us to juggle. We lose the vision and drop balls.

Stop trying to ride the whole stable. Pick your stallion …train it, feed it, care for it, love it and ride it for all it’s worth. Unless it dies, you will cross the finish line.