A new approach...

Flavel · #1 (**permalink**) 09-08-2008, 02:52 PM

Hello my Website Babble colleagues,

For almost a year, I have asked many, many questions and all of you have been wonderful with your responses. I have done a lot of research lately, including speaking with Lawyers, Accountants, Ad Department and Sales people from my job about the best ways to start an on-line business. For 15 years, I have worked as a journalist/on-air personality for major news stations and radio stations across the country. In addition, I sold $10k to $25k ads for a couple of radio stations I represented. I want to share with you the information given to me. I am new to building websites and do not possess the technical background of many of you, but I always like to share information with my colleagues.
First, all of us want to monetize our websites. We know that affiliate programs, ad-sense and selling products from our websites are a great way to accomplish this. I also plan to use this approach for my websites, but what else can we do? Let us face facts, when your site makes .25 cents a day from clicks it seems like an up-hill battle and all of us would like to have the control/power to mold our own financial destiny. Using the information gathered from this website and professionals I approached, here is what I am attempting….
I decided to personally sell ads to companies that would benefit from the websites I am building. My first site is only 40% complete, however I was eager to see how difficult it would be to try and do this. Before I tell you about my two day experience last week, I want to share with you the steps I took before I attempted to sell an ad to a potential customer/business.

My approach is not the only one and you may decide it is not for you, so take this with a grain of salt.

A. Speaking with an attorney and accountant, they advised me to register my business name with the state, seek a tax ID number if it is needed and open a free business checking account at a bank. I chose one name that all my websites will be umbrella under and registered my “in home” online business as a DBA (Do Business As). I did not want to spend $500-$1,000 dollars for this so I used a legal website which cost me $120.00, which included registering my business name in my state, and included all legal documentation for me to open up a business account. This will allow me to claim business expenses as a tax write-off on my personal taxes. For example, I can claim up to 20% of my house utilities, also I can claim my internet connection, home phone, cell phones, office supplies, gas, business diners and other tax benefits. There is a book you can obtain at the library or your local book store called “Home Business Tax Deductions” by Attorney Stephen Fishman which is an excellent book to read.

B. Speaking with the ad and sales department of my TV station, I was able to pick up useful information. First, decide what the focus of your site is and what businesses can benefit. Create a “Contact Sheet”. In a Contact Sheet, you will have information about the name of your business that you are approaching, their contact information, date of when you contact/approach the business and a space for remarks. This is your space to record what the potential client liked or disliked about your site or sales approach. Then, create a “Sales Contract” that you can mail, email or present to a client. For me, I obtained a sales contract from my TV station and created a sales contract for my business using it as a reference point. Third, write out a sales pitch and practice it over and over again. Try and role play with your spouse or friends and have them resist your sales pitch so you can feel comfortable overcoming your potential client’s objection. This will build confidence and allow you to handle situation when the client may say no. Don’t give up if they do say no. Ask them politely what is the reason for their answer, and then write it down on your Contact Sheet for the future. For my business, any company that says no, I take my Contact Sheet and file it in my yearly folder three months ahead. I do this because I plan to go back and try again. For some potential clients, I use a personal approach (I set up an appointment and go see them). Others, I use the phone or email to make contact. When contacting a customer, ask who is the decision maker for buying ads for your company? For potential clients in your city, contact your Chamber of Commerce and ask them to send you business listings. For clients not in your area, search the internet and or library to gather contact information.

C. Have a separate folder so you can record your profits/loses for the year. In addition, keep track of any expenses for potential tax write off. The nice thing about having a business checking account instead of using your personal checking account is you will be able to better track the financial gains/losses of your business. Also, it takes away the temptation of spending your profits so quickly. You would be amazed at what you can deduct from your taxes. Every penny counts.

D. Sales, Sales, Sales…When using your fictitious business name, using the method listed above, approach potential clients in a confident/aggressive nature. No matter what your website is about, there are hundreds of thousands if not millions of potential clients. Decide a price for the ads you are wanting to sell (Note: it is always better to start off high and come down on price, then to start low and not gain the full sales potential of your site). Remain positive and upbeat when speaking with your clients and always keep your cool, even if the answer is no. Don’t forget you can always approach that client again in the future. When giving your “sales pitch” be sure to give examples of why your site is a good place for them to advertise. For me, I tell clients that I will make their ad interactive so they can offer monthly coupons, specials or any important information about their site. This is just a few things to do and feel free to add to this post your ideas. Also, when you have sold a yearly ad to a client, make sure you contact them every other month to see if they wish to add anything to their ad on your site. This helps to build a relationship between you and your client and will increase the odds that the client will continue to advertise on your site. Remember, no matter what, the client is always right.

Let me give you an example. On Website Babble, a member has a website about hamsters. I will not name the site because I do not wish to violate the self promotion rule, but here are a few ideas on how to obtain potential clients for that site. First, go to your local library or use the internet and find out what pet stores are in your area. Create Contact Sheets for each potential client. Let’s say you plan to sell a year’s worth of advertisement on your site for $100. Imagine, if you will, that there are 10 different pet stores in your area. You contact each and give your sales pitch and land four out of the ten. You just made $400. However, this is only the beginning. Next, you gather contact information for every veterinarian in your area. Let’s say there are approximately 20 vets in your local area. Again, create a Contact Sheet for each potential client and then make appointments or try to sell your ads for your site over the phone. Out of the 20 vets you have contacted, you are able to sell ads to three of them, earning you $300. Just in your local area, you have earned $700. This does not include affiliate programs you have on your site. However, let us think larger. Your site is about hamsters and you want to figure a way to make money on a nation-wide basis. One way is to list vets and pet stores by state on your site for your users to obtain information. However, don’t give this away for free. Using the internet or contacting the Chamber of Commerce for major cities in different states, is a great way for you to obtain contact information for new potential clients. Ponder, if you will, the potential income your site can achieve by approaching clients by yourself.

Now, in the beginning, I promised to share with you my two day sales experience from last week. As I stated above, my site is only 40% complete, however, I wanted to see if I could sell local ads for my site. With my Contact Sheets and Sales Contracts in hand and dressed in my best business suit, I approached 17 businesses that I felt would be a good match for my site. Out of the 17, I made four “pre-sales” for yearly advertisement for my website. Two of my sells were for $200 per ad and the other two paid $150 per ad. I demonstrated that by advertising on my site it would cost the client approximately forty-three cents to fifty-five cents a day for 24/7 advertisement on my site, which would start on completion of my website. I also gave them the option to change their ad once a month (for coupons or special deals), which they could change by contacting me via email or phone. I can’t explain how good it feels when you make your own sell. My success rate for completing a sell was around 23%. So, I have a lot of room to improve and will work on my sales pitch and defining more reasons for clients to advertise on my site.

In closing, I can’t tell you how appreciative I am towards Website Babble. Lisa, you have a wonderful website and the members are very helpful. As I stated above, my approach may not be the best nor most efficient, but it has shown promise. If anyone has any other ideas/thoughts on how to better your income potential for websites, feel free to list them on this thread.

Sincerely,

Flavel

Kerry · #2 (**permalink**) 09-08-2008, 04:26 PM

First and foremost Flavel, Job well done!

As a Director of Sales for a prominent Telecommunication Co., I must commend you on your initiative!

The manner in which you have shared your findings with us here at WB, was both informative and helpful and I hope that others find your post to be a good read as I did.

Lisa, just posted a great blog today about how most get caught up with the Alexa, PR and keyword brainstorming and do not necessarily focus our energies where they should be going initially- I feel that your efforts are exactly where they need to be at your stage in the game.

Registering your business is key for tax write-offs and SALES is oh so important, granted not all sites have a hard-good to sell- but your post explains that there is still money on the table.

Again, job well done and thank you for your contribution!

Much Success to you my friend!

lisa · #3 (**permalink**) 09-08-2008, 04:26 PM

Wow, Flavel! Looks like you have done your homework and it's good to see you making progress. Keep us updated on how your business goes. BTW, thanks Kerry for the compliment. I missed your post the first time around.

Flavel · #4 (**permalink**) 09-08-2008, 11:40 PM

I sincerly appreciate all your comments. If Lisa doesn't mind, I desire to keep postin in this thread with updates, articles and any informtion that would assist our members.

In addition, I hope other members of the WB will contribute as well. Belive it or not, we are a team. True, all of us are creating different websites but we share a common goal, which is, do something your love and earn enough to strengthen our financial futures for a better quality of life.

If any on you want to ask me a question, just send me a Private Message. I don't have all the answers, but we can try and find the answers together.

Best to all,

Flavel

Jewel · #5 (**permalink**) 09-09-2008, 08:34 AM

Thanks Flavel, for that great information...and the time you put into it to share with us!

Radenau · #6 (**permalink**) 09-09-2008, 09:11 PM

Thanks for the effort and time in your post. Success takes effort and the best way forward is with a solid foundation but many want instant gratification

jazzguy · #7 (**permalink**) 09-10-2008, 10:03 AM

Wow Flavel. That was an awesome read and had lots of food for thought. Kudos to you for going out of the.box. I did exactly what you talk about on my Jazz Guitar site and it has worked well for me and keeps getting better. My Jazz Guitar site is very much like a magazine and I decided to approach potential advertisers as such. Armed with a strategy and an Ad rate card, I approached, via email and snail mail, businesses that I felt would benefit from the exposure I could give them as well benefit my readers. To me it is a win-win situation and so far it's been working nicely.

Now mind you, my site is very niche specific AND has an established reader base since it's been on the Web for the past four years. But that doesn't mean that someone juts starting out couldn't do the same. As long as the site is informative and continually (daily, weekly, monthly) being updated with new content, I think the kind of enterprise you have discussed would be a viable one for anyone.

Once again, thanks for taking the time to put your thoughts into words for all of us to benefit. Much success and all the best.

jonathanfigaro · #8 (**permalink**) 05-30-2009, 03:33 PM

Great information. I appreciate the tips and incite!

doritos · #9 (**permalink**) 05-30-2009, 08:38 PM

it's really an effort for writing that quiet long message Flavel.. but you've made it, you've touched us.. just wanted to thank you for that..

sgtmac66 · #10 (**permalink**) 05-31-2009, 10:46 AM

Great information, all of us can share. Probably my downfall on the net, is on the sales end of things...Thanks for some great insight.

I am printing off your info and keeping it on file.

michelle98 · #11 (**permalink**) 06-02-2009, 11:36 PM

Great post!

QUESTION: I got an Employer Identification Number (EIN) and I thought that was enough. I have to actually register my website as a business in a state in order to claim tax write-offs?

I wouldn't want to spend thousands of dollars to register (if it is absolutely necessary for me to do) so could you let me know the website you used to register your business for $120?

ithinkican · #12 (**permalink**) 06-03-2009, 10:12 AM

I'm rooting for ya'! Just relax, you haven't opened your website yet. I think Miss Lisa (or Misses) uses a program that is called AdBrite, which would be less stressfull for you. It is a program that does all the work behind those bannar ads.

James · #13 (**permalink**) 06-03-2009, 07:03 PM

Quote:

QUESTION: I got an Employer Identification Number (EIN) and I thought that was enough. I have to actually register my website as a business in a state in order to claim tax write-offs?

I wouldn't want to spend thousands of dollars to register (if it is absolutely necessary for me to do) so could you let me know the website you used to register your business for $120?

Don't bother. I have done business all my life and never spent even that kind of money. Actually you did not even need the EIN unless you have employees. You can just use your social security number for tax purposes.

The one thing that you might need would be a fictitious name. For that you have to register with your state (you might pay someone to register for you I suppose but the form has about six or eight blanks to fill in which are nothing more than your name, address, and business name). Then you usually have to publish the name in your local paper three times.

But you only need this in order to do business in a name other than your own. If you always do your official business, that is take checks, etc., in your personal name you do not need that. Usually the state charges $20 for a ten year registration so I have done that so that I could advertise and have people write checks to me in the name of the business, as well as open bank accounts in that name. That is a professional/business image advantage.

Here is what you need to do. Check with your state. In every state I think you will find there is information available free of charge to help you. I can search for "How to do business in Minnesota" and get all the information I need for my state. Search the same way substituting your state's name and look for the official government site. It will probably come up as the first listing.

There are quite a few things you have to do if you have employees. Also, for many businesses you have to have a local business license if you have anything resembling a store front or even heavy traffic to your door. But there is nothing too difficult for you to do yourself. Keep your money in your pocket. That is what I do, and I highly recommend it.

azsoftware9 · #14 (**permalink**) 06-07-2009, 03:01 AM

I think you uses a program that is called AdBrite, which would be less stressfull for you. It is a program that does all the work behind those bannar ads

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michelle98 · #15 (**permalink**) 06-07-2009, 11:21 AM

Quote:

Originally Posted by James

Don't bother. I have done business all my life and never spent even that kind of money. Actually you did not even need the EIN unless you have employees. You can just use your social security number for tax purposes.

The one thing that you might need would be a fictitious name. For that you have to register with your state (you might pay someone to register for you I suppose but the form has about six or eight blanks to fill in which are nothing more than your name, address, and business name). Then you usually have to publish the name in your local paper three times.

But you only need this in order to do business in a name other than your own. If you always do your official business, that is take checks, etc., in your personal name you do not need that. Usually the state charges $20 for a ten year registration so I have done that so that I could advertise and have people write checks to me in the name of the business, as well as open bank accounts in that name. That is a professional/business image advantage.

Here is what you need to do. Check with your state. In every state I think you will find there is information available free of charge to help you. I can search for "How to do business in Minnesota" and get all the information I need for my state. Search the same way substituting your state's name and look for the official government site. It will probably come up as the first listing.

There are quite a few things you have to do if you have employees. Also, for many businesses you have to have a local business license if you have anything resembling a store front or even heavy traffic to your door. But there is nothing too difficult for you to do yourself. Keep your money in your pocket. That is what I do, and I highly recommend it.

Yeah, I always take checks in my own name, not my businesses name. I don't have employees it is just me. I have no store, I just make money off of affiliate links.

So I don't need to register as a business?

I still have to pay taxes on what I've earned, but will I be able to have tax write-offs if I am not registered as a business?

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