The California Gold Rush (1848–1855) was a gold rush that began on January 24, 1848, when gold was found by James W. Marshall at Sutter’s Mill in Coloma, California. The news of gold brought approximately 300,000 people to California from the rest of the United States and abroad.
The great gold rush lasted for many years and made several people rich, however the majority of people made very little or nothing. Some died, Many turned back tired and weary as the journey to the Gold fields was often treacherous.
So who were the winners and losers?
The economic winners of the California Gold Rush were the technologically advanced mining companies and entrepreneurs who saw an opportunity to serve —or exploit—thousands of fortune-hunters. The losers were the miners who left empty-handed and indigenous people who forever lost their way of life.
And in that paragraph above lies one of the biggest business secrets in the online space, can you guess what it is?.
Making Money Online – Why So Many People Fail
OK, I think you’ve guessed it. Sure some people made money mining gold. These were mainly the mining companies, high financed speculators and a few ordinary people. However, many of the people who supplied the tools, the picks, the shovels, the gold sifting pans (the batea), the clothes, the heavy boots etc, etc, these are the guys (and gals) who made many fortunes.
Selling, Renting & Hiring Tools
Let’s look at our own Internet selling environment. 175 Years on from the great gold rush and what have we learned? Answer: Not a lot.
FACT: People still “rush” into the online business space hoping to make a fortune, only to find that it’s harder than they have been lead to believe. Many of the phrases of mass exaggeration “Easy income” “Autopilot” “Business In a Box” have thankfully gone. People (mostly) are a lot more transparent these days.
FACT: Most online businesses fail. Around 3% of people actually make a success of it. This can be down to many reasons.
- Supplying cheap rubbishy products that either don’t work or people don’t want
- Giving up because they didn’t make a fortune in 3 months
- Not educating themselves enough to create a viable business
- Unrealistic expectation
There are more reasons, but these 5 will give you a rough idea.
People always want and need products to show them how to succeed. They also need products to help build their business, this is where you come in.
Selling Retail Products v Selling Tools
Sure there are many people making fortunes selling products retail. We hear of many people selling on Etsy, Amazon, eBay etc making a lot of money, however the real truth of the matter is, most people don’t make sh*t.
When I started selling on Etsy a few months back, I connected my Etsy shop to a piece of software called eRank. This software not only gives you insights into the best keywords to use for the Etsy platform, but it also tells you your own shop’s ranking on Etsy. I had only sold 6 products at the time, YES 6!! and this software was telling me that I was better than 51% of the sellers on Etsy…
This is really SHOCKING…. there are millions of sellers on Etsy… However, once you learn this simple secret, you will understand why most people crash and burn on the Internet, when it comes to making money.
Most people fail at making money online because they buy into something that thousands of like minded people buy into and they all do exactly the same (with the exception of a few people).
After spending money on courses and software, they are finally ready to go and do the same as everyone else.. But, and it’s a big BUT, this doesn’t have to be you.
Only Fools Ignore The Tools
Ok, here’s where the rubber hits the road.
Many people in the days of the 1848 gold rush got rich by selling tools. It’s a guarantee that today, the goldrush is the Internet and the same principles apply. People pay thousands for online courses (tool) and then buy the recommended apps (tools) and marketing tools, all before they’ve listed a product online.
Why can’t this be you?
I launched myself into the self-publishing business and after a little while, I wrote 3 books on how to write a book, how to find book ideas and the “secrets” of self publishing. Create you own tools. Create useful tools that help others to make money online.
On Etsy I buy tools (as do thousands of others) like mockups (product pics), I buy the occasional design to put on a product. Etsy sellers sell hundreds, if not thousands of different digital products. Not only do the public buy them but so do other sellers. This is a smart move, selling tools to other Etsy sellers.
I think you get the idea. you can be like the millions of other so called “internet marketers” out there who spend their time being the same as everyone else, most of these people don’t make much online. Around 3% make a decent amount of money online and about 1% make anything life changing. This must be telling you that probably 99% of the information telling you how to get rich on the Internet is bullsh*t.
I have spent nearly 20 years making money online and from my early days on eBay to my current days on Etsy and Amazon, most of it’s been a struggle but you get to learn what works and what doesn’t.
It’s not impossible to make a good living online, you really just need to think a bit harder, create good products that people want to buy, and also sell people the tools they will need. Think what you buy, can you sell them something better?.
Once you flick that switch in your brain and take that early step into the unknown, opportunities seem to come at you like bullets. I won’t get all spiritual on you here but most people start a business with the mindset of “how much can I make” The truth is, the customer is King, think about what you can do to improve his or her life, and you’re well on your way..
Sell the tools…
Have a great day.
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