Hi my name is Kurt. I'm old enough (50) to have finished college and worked professionally prior to the introduction of the office or home PC. What changes we've seen since I grew up in Mayberry! Wow! Who could have imagined the technology we have today. Anyway, I have two degrees. A BS in business and an MS in computer science. Yes, I'm one of those overeductated idiots! I'll be the first to tell young people that education doesn't guarantee financial success or happiness. After my first college experience, I went to work for the largest corporation in the world - AT&T. What a bureacracy! The experience persuaded me to go back to college. After my second degree, I worked at several companies. All of which weren't a good fit for me. I was just not interested or inspired by my responsibilities.

I bought a business. Good idea, right? It was a successful business performing automobile damage appraisals for insurance companies. I decided after two years this business wasn't fun. I also decided that having employees and trying to provide health insurance was a pain in the ass. I did finally understand how much of a pain in the ass employee I had been to my previous employers! Anyway, it took four years to sell the business. I sold it for substantially less than I had paid. I got my money back. That was it. No big gain on that venture.

For the last 18 months I've been burning through my cash trying to figure out how to make money without employees. I set up a photography business - www.highfxphoto.com. So far it's not making money. I'm working on my 2008 marketing as it's a seasonal business. In January of this year I decided that I'd like to try internet marketing. So far I have signed up with ClickBank, Commission Junction, LinkShare, Amazon, Adsense and Adwords. I added some pages to my website to test and try out affiliate marketing. I'm aware that my site is now butchered as the original intent wasn't affiliate marketing.

I've found that learning how to market on the internet is challenging. There's a lot of hype and BS. Be aware of anyone promising instant riches. Their probably selling snake oil! It's difficult to tell who's giving you straight information. I determined that the learning curve is steep. I found quityourdayjob.com and downloaded the ebook. That's how I ended up in the Black Ink Project.

Here's what I've done, discovered and established. January 2008 - I've spent many hours researching internet marketing, affiliate marketing and PPC campaigns

February 2008 - decided I wasn't making as much progress as I wanted; bought two books at the local bookstore (this is one of those generational things as I like going to a book store); Purchased The Ultimate Guide to Search Engine Marketing by Bruce C. Brown. Also, Affiliate Millions by Anthony Borelli and Greg Holden. Both of these books were informative for someone who was brand new to the game. However, I realized quickly that they were somewhat outdated. The curse of the internet age - as soon as it's published, it's outdated!

In February I created Commission Junction and ClickBank accounts. I tried creating a LinkShare account but they had just updated their system and apparently didn't test it with Vista. I haven't used LinkShare yet. I ran across the QuitYourDayJob.com site and downloaded the eBook . I read the eBook within 48 hours. It too had a great deal of information and though somewhat outdated, not as outdated as the print books. Geez, even ebooks become outdated fast in the internet age! I spent some time in Frebruary updating my existing site because my research indicated that my original design wasn't great.

During March of 2008 - Well, I didn't know what kind of site I'd like to create so I used the one I had. I added links to Kodak, PhotoPrint & SmugMug. I signed up as an Amazon affiliate and added a page for Amazon deals. I researched the photography offerings on ClickBank as my offline business is photography based. I added two pages to my site for ClickBank products. One page lists ebooks on learning photography and the other lists ebooks covering making money with photography. I also added a photography links page to enhance the value of my site. That said, I'm fully aware that High FX Photo.com isn't designed properly at this point. The point of adding affiliate links and pages was to go through the process and understand it better. I hoped that I would make money, but that wasn't the only purpose.

April 2008 - I spent more time modifying my photography site. I found WhyPard.com and used it for www.highfxphoto.net. Inbound links are important to ranking sits so I submitted my photography site to 10 directory websites via onewaytextlink.com. I dedicated quite a bit of time to marketing elevated photography in my local area. I just set it up last fall and need to get the word out. It's a unique offering and I'm not sure how much I can make doing it. I signed up for the Black Ink project. On a personal note: my wife was diagnosed with cancer in early April. We're going through the treatment process and hoping for a positive result.

May 2008 - I created this blog. I'm participating in The Black Ink Project class. A great opportunity!

Jeremy Palmer announced that he would conduct three additional classes for the participants of TBIP. These 3 classes are in response to feedback from the participants and Jeremy's willingness to provide valuable information. Two of the classes will focus on implementing a PPC campaign on Google and the 3rd class will focus on designing in FireWorks. These classes will be free to TBIP participants. I'm sure most of the participants are anxiously awaiting them. The classes will be on July 1, 2 & 3 of 2008. Wow! I can't believe this is all free!!!

Jeremy Palmer announced TBIP 2.0. The 2.0 class is also free (except for signing up for a free trial at WebEx). The 2.0 class will be similar to TBIP 1.0. However, it will be "action" oriented. Each class will be delivered with the action items so class participants will be able to dive in immediately. The course will also focus on how to implement website marketing in the real world.

This is unbelievable! Another installment of a free guide to website marketing by one of the best in the business!!!

TBIP 2.0 begins on July 7, 2008 and runs for two weeks. Here's a link to The Blank Ink Project 2.0: The Black Ink Project 2.0 announcement.

Due to my wife's illness, I haven't had as much time to work on a new site. Here's what I've done so far:

1. Attended or listened to all of TBIP classes. Followed the action guides provided by Jeremy.

2. Purchased web hosting & domain names at 1and1.com. I purchased two new domains which I will tell you about later.

3. Researched WordPress at: WordPress

4. Downloaded WordPress & installed it on my development domain.

5. Played around with WordPress to understand how to use it for marketing. I'm developing a site for one of my existing domains - HighFXPhoto.net. Here's the test site: My Development Domain

6. Purchased a WordPress theme called WP-Magazine. Installed it and made a number of modifications.

7. Created a project on Elance for photography articles. Worked through that project and received the 25 articles for $400.00.

8. Downloaded all of the free photo software I could find. Installed it and reviewed it. I wrote reviews for all of them.

9. Signed up for free photo prints and wrote reviews for the photo print sites.

10. Signed up for some photo sharing sites. I wrote reviews on them too.

11. CJ threatended to close my account since I haven't earned any commissions. I had my step daughter make a purchase so I now have $1.80 in commissions! Yeeeeehaaaa!

12. I decided to implement my site with what I have completed. You can take a look at my first Black Ink Project site: High FX Photo.net

13. I signed up with additional CJ vendors & am waiting to here back from them. I signed up with Shutterfly at LinkShare and was approved.

14. I still have a number of reviews to post. And I have additional articles that I will post weekly to keep the site current.

What's the point? My objectives for creating this blog are two-fold. The first is to generate some traffic to my photography sites. It's one way to generate traffic. People who visit this site may click on the link below and thereby increase the number of visitors. The search engines use unique visitor counts to rank all sites.

The second objective of this site is to provide real information about affiliate and website marketing. Along with the general information I've provided, I will provide an ongoing update on the Black Ink classes.

Class begins tomorrow - May 5, 2008. I'm excited to get started.

May 5, 2008, Finding Your Niche:

Excellent class!!! Very informative!!! Jeremy is clearly very knowledgeable and is sharing that knowledge with the class. Here's what was covered:

First and foremost we were advised to follow Jeremy's guidelines exactly as he lays them out in the classes.

Finding a niche is the foundation to being successful. Marketing on the web is like playing poker. Those who master it will be back in the poker tournament time and time again. You may not win every hand, but if you persist and become skilled you will be succesful.

Any niche can make money. No niche is too competitive. Even the highly competive markets or products can be made profitable. This can be done by new people. You don't have to be highly skilled. The reason it's competitive is because it's profitable.

The Hard Way to Make Money:

- pursue what you think are the most lucrative categories
- copy a "guru"
- work with a product/service in which you have no knowledge

The Easy Way to Make Money:

- work with a product/service in which you have knowledge, interest and/or experience
- carve out a small piece of a big pie
- take a large piece of a small pie

Specialists are normally paid more than generalists. Work with one product or a small number of products to get started. Appear to your customers as an expert on your product(s).

Niches in which Jeremy has been successful (these are not recommendations for the class):

- Online dating
- Web hosting
- Music downloads
- Voice over IP
- Online marketing

Niches in which Jeremy hasn't been successful ( the class wasn't discouraged from these niches):

- Payday loans
- Mortgage lending
- Contact lenses

Jeremy's point in describing his successes and failures was to point out areas in which he had knowledge, experience or interest. These were his successful niches.

Jeremy's next niches: Ha, you think he told us that? He'll use his current knowledge, experiences and interests to pursue new avenues. That's what you should do to expand your sites or choose a new course. Be sure to research and determine if you can gain experience or knowledge quickly with any new products.

Characteristics of Good Niches:

- a good selection of merchants - good websites and affiliate policies
- there's an advantage to buying the product online - price, convenience, shipping, availablility
- buyer gets instant gratification - it's downloadable
- only available online - exclusively online
- lead & trial offers - get people to fill out a form for a business

Bad Niches:

- the markets needs are met - online or offline
- products have a high return rate - shoes would be an example
- poor merchants - poor site, poor affiliate policies
- no advantage for the customer to buy online
- low volume, low price items

Here's an example site where niche marketing is done right: www.buytheflip.com. Check it out!

Notes from the Q&A session:

What's the typical commission?

Depends on the sale & commission rate. Go for better payouts. $10.00 per sale is good.

Does the economy affect online sales?

Yes. However, sales continue even in a bad economy. Some products do better - coupons. Sites or offers that save people money. Ask if it's still something people will buy. Target current trends or new products. Don't focus solely on the economy. Your experience and interest in the product will make you successful.

How do you determine the potential volume before entering a niche?

Not always easy but their are some ways. Use wordtracker.com, google keyword. Do some research by finding customers online. Check out blogs & communities. Look at how many people have signed up & are posting to blogs.

Should you buy a domain or test a niche another way (subdomain)?

Jeremy recommends buying a domain. The cost is about $8.00 on GoDaddy.com. It's low cost. Google doesn't like subdomains. If you use a subdomain focus on Yahoo & MSN for marketing.

What niches should be avoided?

None. Your experience and interst should guide you to a niche.

What's a good way to test a niche before setting up a site?

Use direct linking to the merchants site. (Note: I believe he's referring to creating a PPC campaign. Set the link to the merchants site. Count the number of clicks to determine if there's interest. This wouldn't necessarily result in commissions. It's just a test. I'll find out more on this.)

****

Check with affiliate managers before entering a niche. Find out what the return rates are for the product. Ask for a range if they won't give you a specific value.

***

Make a written plan to attract people to your site. Answer these questions: Why should they buy from you? What is different about you/your website? Why is it different?

***

How long should you try a non-profitable site?

There's no definitive answer. Check the results every 100 visits and evaluate the results. Typical conversion rates range from 1/2% to 40%.

***

Some resources for determining niches:

- nichebot.com, google trends
- check magazine & TV ads, what's hot?
- is it a game changing product?

***

CPA lead offers:

- pre-qualify you customer in the ad to avoid unwanted clicks
- submit the lead from your site rather than redirecting them to the merchant site

***

Use Commission Junction, LinkShare, Perfomix, etc. to determine what products are available and what policies they have for affiliates. Buy the product from the merchants site to test their whole buying process from a customers point.

***

How do you determine if a niche will be costly to market?

The best tool is Google keyword cost estimator. Enter keywords and the price you want to pay. Google returns the estimated cost to run a campaign.

Is the weightloss industry a good market?

It's highly competitive, but it's a massive market. Carve out a small niche and you could be successful.

***

CPA is cost per action. Sales lead or product trial forms. They typically have high conversion rates and decent commissions.

***

Should you focus on one niche or use a shotgun approach when starting out?

Do one niche really well!! Add niches or move to another niche later. Stay focused when you're starting out.

***

Put a plan down on paper before committing to a niche. Does it make sense?

***

Are ClickBank products a good way to make $$$?

Yes. They are all downloadable, many can only be purchased online and provide instant gratification. Make sure you understand the product before committing. You should have knowledge, experience or an interest in the product to be successful. Many people have been successful with ClickBank products.

Are consumer products better than business-to-business (B2B) products?

B2B products have a longer buying cycle. The approval may not be made by the person looking at your site. Consumer products are purchased by the person looking at your site. B2B marketing is usually done differently. It's not necessarily bad, just different.

Should someone focus on a product like Zune or market all MP3 players?

Can you be an expert on all MP3 players? Focus on one product and be the expert. Go narrow to start. If it doesn't work, try another product. Maybe the IPOD.

May 6, 2008 - Getting Your Business in Order

Jeremy introduced John Shaw his accountant and business advisor. The information in the class applies to U. S. affiliates only. Always consult with a legal and/or tax adviser if you have questions.

The three best entities for affiliates:

- Sole proprietorship - easy; just put up a sign and your in business; has tax implications - self employment tax of 15.3% applies; business income is reported on Form C for federal tax purposes; you can start or stop the business at any time; there's no liablility protection separating the business from your personal assets; you can't transfer the business to someone else as it's related to your social security number.

- LLC - provides liability protection and separation between the business assets and your personal assets; easy to set up; it's flexible - single or multiple members; self employment tax applies; it can be more expensive and complex to form an LLC; an LLC can be converted to an S corp later.

- S coporation - it's a small business corporation; 1 to 99 shareholders; you have to file incorporation with your state; provides liability protection and separation between the business assets and personal assets; self employment taxes don't apply; you file your federal taxes for the business without paying any taxes; the profit or loss is reported on your personal income and you pay taxes accordingly; you can take employment tax-free distribuitons; you pay yourself a reasonable wage with an S corp.

Recommended forms of affiliate business:

- If you're on your own with a decent income - form an S corp
- If you're on your own with little or modest income - form a single member LLC
- If you have other members (spouse or associates) - form a multi-member LLC

How to form a business:

Online services like LegalZoom (QYDJ is affiliated with LegalZoom). The process is easy and the cost is minimal. Of course you can always use an attorney. The cost for an attorney will probably be higher.

You may need a license from your local government. It should be an easy process. It's required in most states.

You need a Federal tax ID (TID). You can get this from the IRS from their website. It's a fairly easy process. You'll need this to form an LLC or corporation.

Open a bank account for the business. Keep your personal and business monies separate at all times. Don't use your business checks or credit card for personal business. You'll need your LLC or corporation and your TID filing papers to open an account.

Records - keep your records organized. Keep copies of all receipts. You must keep them for seven years according to the IRS. It's especially important to keep receipts for cash transactions. If you purchase online, print a copy of the invoice/receipt and file it away. If you pay contractors more than $600.00 you'll have to file a 1099 with the IRS. Otherwise the expense may not be allowed. Use an accounting software like QuickBooks to keep track of your business.

Paying taxes - it's a given. You can't avoid it. At least not for ever. File your taxes on time. Keep track of everything that goes into or out of your bank account. If you owe a large sum at the end of the year, you may pay a penalty. Therefore, you may have to make quarterly payments to avoid a penalty. Check with a payroll service and/or an accountatn. The highest tax rate is 35% in the US so keep 40% of your income to pay income taxes quarterly or at year-end.

Payroll - a good payroll service is Paycycle.com. They file most tax reports and let you know when payments are due.

Some ways to reduce income taxes:

- you can write off 50 1/2 cents per mile for mileage (business use of course)
- or you can write off part of an auto lease payment
- or you can write off actual operating expenses of an auto
- some equipment can be written off at 50% the first year; check with an accountant
- you can write off part of your home expenses if you work out of your house; the IRS has limited this
- meals can be written off at 50%
- business trips are 100% deductible

Jeremy's favorite deductions:

- business retreats and travel
- put cash into PPC counts prior to year-end
- buy electronics for your business
- retirement savings
- test purchases for your new niches

Always consult with a tax person before buying!

Tax avoidance vs. tax evasion - we all have to pay taxes. However, legitimate deductions are OK. Use creativity but don't be ridiculous. Listen to the advice of an accountant. Don't use foreign accounts or try to hide money.

Notes from the Q&A session:

Can you purchase personal liability insurance for an LLC?

Yes. You should be able to purchase it. Check with an insurance person.

Can you set up an S corp. on your own?

Yes. You can do it yourself online in most states.

Why not form a C corporation?

A C corp. is taxed as a business. You are then taxed again on your personal taxes. You end up paying twice. You can convert an S corp. to a C corp. when it's appropriate.

Should you incorporate immediately or wait until you have cash flow?

Jeremy recommended doing it first. It's a small cost and will protect you. Form an LLC and convert it to an S corp. later if you want.

If the end of year distribution in an S corp. is larger than the salary you paid yourself, is that a problem?

It shouldn't be if you paid yourself a reasonable salary for a business that generated the income/profit you report.

When do you have to file a 1099?

When you pay an LLC or sole proprietor more than $600.00 in one year.

What are the tax ramifications with a foreign partner?

Jeremy recommended they consult with an accountant that has this type of experience.

At what income level would you recommend an LLC? an S corp.?

If your only source of income is the business, from an S corp. If you have an income (job), then form an LLC.

Do you have to let the IRS know all of your websites or URLs?

No.

Are they tax advantages to forming a business in another state?

You must file your taxes in the state where you earn a living of where you live.

What is the self employment tax paid on?

It's paid on the profit, not revenue.

Any advice on finding an accountant?

Information will be provided on how to contact John. Otherwise, ask your friends or people who are in business. Check with your Chamber of Commerce. Look on the web!

How often do you have to file minutes with a corporation?

At least every year.

How do you pay yourself in an LLC?

You don't. You take moeny out in the form of a draw or distribution. You're taxed when it's included on your personal income taxes. Check with an accountant.

Should I set up a business for affiliate marketing along with other business?

Keep it simple to start. Form one business for all of your sites. Multiple business may be appropriate later.

Developing a Rock Solid Business Plan

"Tomorrow's success depends on today's plan. Learn how to develop a long-lasting business that can withstand market disruptions. Develop your site's unique selling proposition."

Live sessions - Jeremy will deliver content and produce recordings. He will provide the assignments for the off weeks. The course will focus on learning this week. Next week you'll practice what you've learned with the assignments.

The Black Ink Project builds session upon session, module on module. It's a natural progression between modules & sessions.

You should build on finding a niche - cultivate it and bring it to the next level.

#1 goal - think objectively about your business model; don't be emotional ; analyze it objectively; make judgments based on reason not emotion; successful stock investors invest based on numbers not emotions; Warren Buffet - he's objective, doesn't over-react, takes long view to his investing; use this model for your business; don't act like a day trader;

This class is a real world course - Jeremy has to give real world examples; he will go through the whole process with us; his selected niche it is: Notebooks, not all notebooks; carve out a niche because it's competitive; his focus will be on ultra portable laptops; he will put his concepts & techniques to a test throughout the course; we will be able to look at his site and understand what and how he's doing it; competition in ultra portable websites could increase dramatically due to this course.

Why ultra portable laptops - Jeremy likes gadgets, computers, kind of a geek, he's in the market for a new laptop, understands what features are important; particularly interested in ultra portable; purchased several laptops recently - XO laptop give one get one; done research into product line - has more knowledge than average; product line is red hot; so hot MS decided to continue selling XP because of this market; large target audience - business people who travel, tech people, mobile society, people want to take tech with them; highly competitive; focus on ultra portable segment; many merchants for the product - Dell, HP, Apple, Toshiba, Fujitsu w/ affiliate programs

Start with a SWOT Analysis

Analyze your opportunities.

Strength, weaknesses, opportunities, threats - how businesses evaluate new products. Used to decide if the business model is viable.

Strengths - things you have control over
Weaknesses - under your control
Opportunities - outside of your control, macroeconomic issues, trends, sales
Threats - outside of your control, competition

SWOT - helps you look at your niche more objectively and critically; you need to evaluate objectively; write it down on paper/

Strengths

- can you create a more useable site than your competitors?
- can you write more in-depth content?; build on what exists, don't re-invent the wheel; just do it better
- can you provide more product selection? focus on one niche; go deep with products;CNET has many laptops of all types but it's not a deep niche.
- be an expert on a product or service; position yourself as an expert; there are a lot of affiliate marketers just throwing stuff at the wall to see what sticks; they're not taking the time to develop a deep niche; become the authority in your niche
- build a site that's difficult to replicate; make it unique - build a shopping wizard that asks the customer questions and then recommends an appropriate ultra portable laptop;lots of simple sites that list products & compare; or create unique content/tools.

Weaknesses

- you may lack technical skills - you're new to affiliate marketing; trying to figure out thetech skills; find out what your challenges will be - you may lack site design skills
- you may not be a good writer - black hats are good at technical skills, maybe not writing
- you may not know as much as your competitors - they may be more knowledgeable; invest the time to learn it so you are on the same level
- you may not have as much money to execute your plan - almost always a concern when you start out

Opportunities

- market trends - use Google trends, search volumes; where is the market headed?; ultra portable trend is hot
- sales increases - look at company press releases, wall street journal, yahoo finance; sales trend up or down?;
- lack of competition - niche w/ few competitors is great
- competitor's weaknesses -exploit them; good content w/ broad selection not deep; reviews are one-sided, not neutral enough
- macroeconomic factors - digital music industry has changed dramatically since the 1990s; now music is downloaded not CDs; people are buying more digital music;

Threats

- savvy competitors - how savvy are they; notebooks have very savvy competitors; Jeremy chose a heavy competition niche w/ savvy competitors
- your angle is covered - Jeremy's wizard will ask questions; what if it's already done?
- too easy to copy/replicate - is your site too easy to copy?; just a simple landing page?; these types of sites aren't lasting long; competitors will copy your site; focus on building a real website; be an authority
- macroeconomic factors - gas prices may affect buying trends; gas saving products or ideas could be good in this market

Add up all of the strengths, weaknesses, opportunities and threats to determine if your niche still makes sense. Each factor will have a different weight. How important is each factor? You may have an Achilles heel that will be the determining factor.

Dig Deeper - Market Study

Dig in and write it down so it doesn't become overwhelming in your mind. Put it in front of you so you can be less emotional.

Can You Create the Site?

- Do you have the skills? - Do you have what it takes?; you can find skills online; elamps.com, odesk.com, 99designs.com; cost effective way to create a site; what do I need? where can I get it?
- Do you have the tools? - Photoshop, Dreamweaver?; make a list, find out how you can get it.
- Do you have the time? - are you working full-time?; outsource?
- Do you have the money? - enough to produce and run the site?; free tools will be discussed throughout the class

Who are your competitors?

- Look at your competitor's sites; spend some time to understand their strengths and weaknesses; perform SWOT on their sites & products; write it down - URL, strengths, weaknesses.

Is There Enough Demand?

- What's the process? - type in keywords used for buying your product in Google for example;it will tell you how high the search volume is and how many competitors; gage if there is an opportunity in the niche.

Understand the Customer

- Search for communities and forums to harvest information about customers and their needs; write down forum questions so you know what people are looking for; any niche with its own print publication has decent demand for the product; how many raw searches are there for a product/service?; get inside the shoes of your customer; hone your knowledge of your customer

Is Your Angle Unique?

- How does it add value? - or is it just another site?; why the site is better; more images, more/better information; it can be as simple as that; doesn't have to be completely innovative
- Is the value clear in the customers mind? - do they see why you're unique?
- Do you have key differentiators? - what makes you different from competitors?

When You Need a Plan

Bounce your idea off of others. People tend to keep their ideas secret/close. Others may not be able to or interested in competing in your niche. So discuss it with trusted colleagues. Others will have a unique perspective that isn't emotionally tied to your idea. Lay it out for your colleague so they understand your idea. Present it as a business plan. Does it make sense to them? Explaining it to others will help you understand it better as well.

Q & A session

Do you target by a particular country?

- Jeremy focuses on the U.S. He has done some campaigns in other English speaking countries. Google does allow you to specify the country when researching keywords. MSN has good tools as well for demographic info - it can tell you who is doing the search.

What are your thoughts on coupon sites?

- Look at the economy. It's not growing as fast. Some markets will be better in this economy. Coupon sites are growing in popularity. Anything that focuses on saving money can be good. Green products can be a good market, but what are the products or services. Do research before you get into any niche. Jeremy would recommend the coupon market. However, you may want to focus on a narrow niche as the competition is extensive.

How much competition is acceptable for entering a niche?

- Look at the number of competitors. For example, the IPOD is hot with lots of competitors. Take it from a different angle if you want to enter the market. You can't open a McDonalds next to a McDonalds. Take your own unique angle and you can be successful in any market.

Can you recommend a resource where you can find a subject matter expert?

- Can be hard to find. Talented professionals are hard to find. Go to where the experts are. IPOD - go to a community site; who's the moderator, join the forum; ask them to help you; bounce ideas off of them.

Will you be doing a direct linking or quick landing page for the ultra portable laptop campaign?

- Yes. The merchants do allow it. You don't want to get too involved in a niche without testing the market. What types of keywords convert. Simple niche sites can help you save time and money.

What's a good system to create a keyword list when you want to go wide?

- Wide - related terms. Google keywords tool is OK. Some paid tools are better at this process. Wordtracker is one. Use a trial subscription to try it. Or buy a short-term subscription.

What typically makes you reject a niche after the SWOT analysis?

- Resource constraints don't apply - time, money, technology. Jeremy can overcome these. Competition would be one that does apply to Jeremy. There are many laptop sites that go wide. The market is saturated. He will focus on a small niche - ultra portables. Merchants play a big role in decisions. Low commissions or conversions would affect his decision.

How do you use Amazon to find products to promote?

- Jeremy posted to his site - ways to use Amazon to find products. Go to his site to find out this information - quityourdayjob.com.

What is a good budget to create a site?

- Will be covered in Friday's class. You need at least $500.00 to get started otherwise it will take more time.

How will you decide how many products to buy for the laptop campaign?

- Use the factors buyers use to decide on a product. Evaluate the specifications and reviews on products. You don't have to buy everyone of the models. Used Amazon, CNET reviews. Don't copy reviews for your site. You need to create your own content.

What do you do to get accepted into an affiliate program as a new affiliate?

- Applying to an affiliate programs as a new affiliate - apply and contact the affiliate manager directly; or contact CJ and let them know that you have good ideas; create a sample sales page so the merchant can see how you will market their products; affiliate managers have many applications to review.

Setting up a mastermind group - have you been involved in one?

- Yes. He competes with some of the other members. Jeremy finds that he can open up with these people because they're doing the same things. Find people on community sites that you feel comfortable with. It can help you learn and have someone to bounce ideas off of. Jeremy can't work with every group on his site.

Do seasonal campaigns follow the same business model?

- Overall, yes. Do the SWOT analysis, market trends. The window of time to make money is shorter. Some affiliates focus on seasonal markets like Halloween.

Is a niche store a good idea vs. a content site?

- One major advantage to a niche store - Google would rank you higher as a store where the transaction occurs If your landing page isn't significantly different than the merchant's, Google will shut it down (?). Focus on building real websites not thin landing pages.

Adwords doesn't like direct linking - where should you test this technique?

- Direct linking can help your quality score. Direct linking is an affiliate link in the ad that goes directly to the merchant's site. If you bid on a keyword that the merchant is using, your ad wont' display.

You can use keywords the merchant isn't using. Direct linking is a good technique. Yahoo allows direct linking. You can't use the merchant's trademarks. Or build a quick landing page or micro-site that will allow you to get around the direct linking situation.

Does having a high traffic blog help you with affiliate applications?

- A blog may help. Any internet page may be helpful. Build a portfolio site - a quick about page with some of the niches you want to get involved in.

You need to get inside the mind of your target customer. You can attract the right prospects by learning their browsing, searching & buying habits

Who is your customer? You'll have success if you have knowledge of the products or industry.

If you try to sell to everybody, you're not selling to anybody! When you target people your conversions will be higher. Think of it as a funnel. At the top are all potential customers. As it narrow to the bottom you identify your target customer. As it narrows you have defined the niche customer who is more likely to buy.

Using the ultra-portable laptop model: There might be three targeted customers. The first being a business person. They're interested in mobility and probably need a more complete system. The second might be college students. They would be interested in mobility and have less money to purchase. The last target might be children. Their parents would be interested in durability and low cost. You should have a landing page for each of these targets that gets them to buy from your.

Understand your customer's motivations:

- Why do they want the product?
- What need or want does it fill?

Customer Data:

Demographic Data: age, income, location, gender, occupation

Psychographic Data: buying habits, hobbies, attitudes, interests, lifestyle

How to Identify Your Customers:

Product Advertisements (magazines, TV) - check them out as the manufacturer has already collected the demographic and psychographic data

- What benefits do they demonstrate?
- Who does the product appeal to?
- What common characteristics are apparent in different product models?

Product Websites (merchant)

- Who are they selling to?
- What needs/wants do they address?
- Look at the images - who is in the picture?
- How do they show the product being used?

Company Reports

- often have demographic & psychographic information in them
- identify trends affecting their customers
- Yahoo finance is a good source for company reports; use their RSS feed for a company

Community Websites

- What products do they speak highly about?
- What products are they critical of?
- What are common questions they're asking?
- Join the community and contribute; community sites can reveal opportunities for
comparing competitive products

Consumer Review Websites

- focus on the user ratings not the editor's ratings; they sometimes conflict; you're selling
to users not the editor
- look for pros & cons of the product
- do the users talk about how they use the product? users will chat about how they use
the product in their life and the benefits to them

Magazines/Newsletters (industry newsletters)

- look at the cover headlines - what are they? what are they talking about?
- what criteria is used in reviews and comparisons
- Bonus - contact the publication for their rate sheet and advertising information; ask
about their demographics

Books

- like laptops for dummies
- get books with product selection guides in them; and tips for buying the product
- understand the common needs & uses of the product
- these are great for customer education

Be the customer

- walk in the shoes of the customer
- go through the buying process as a customer would; buy from your merchant
- gain credibility & expertise with your audience by using it
- how can you be an expert if you have never used the product?

Segment & Target Your Audience

How to Categorize & Target Your Ideal Customer

Keyword Search

- start wide, then go deep - get related keywords & delve down into several areas so you
don't miss potentially good markets
- demographic search - http://adlab.msn.com is a good source
- use competitive keyword research tools - Google & Yahoo have URL search tools that
return keywords from a URL
- use keyword spy tools - they don't do what they promise they'll do; use them to get
new keywords; or to explore potential keywords ideas

Keyword Buying Cycle

- Browse - these are keywords people use when they first start looking for information
- Compare - keywords used when people want to compare products
- Buy - keywords people use when they want to buy; you want to focus on these
keywords

Customer Matchmaking

- assign keywords to one or more personas ( a specific type of buyer e.g., college student)
- assign landing pages to one or more personas
- identify negative personas - using the laptop market you want to exclude people
looking for support, drivers, repair, etc.
- people decide very quickly if your site/landing page will help them; you have to have
the right product, the right content and the right imagery to get them to stay & buy

- you may want to survey your customers at some point; not on the landing page! if you
offer the right incentive, people will provide information; surveymonkey is a good
survey company

Q & A session:

What's the best way to find community sites?

- search engines

Will you use (in the laptop campaign) the same site for all of your personas?

- you could use one site with sub-domains; however, don't let them get lost inside your
site; keep it simple; you might use this strategy to test a new niche
- if you use separate domains you must have sufficient content to attract and keep your
customers; you want them to come back again and again; this is a long-term strategy

How much time do you spend on community sites?

- Jeremy indicated that he does most of his research. It's worked best for him over time.
He spends as much time as needed. He feels like he's good at it. Outsourcing it hasn't
worked as well.

Any other recommendations for company information?

- Yahoo is free; other companies like Jupiter charge for their information; Google may
have similar information to Yahoo

How much time should you spend to identify your customers for a new niche?

- spend enough time to feel confident & that you understand your customer; then move
on

How can you tell if traffic manipulation is occurring on a community site?

- you could use Alexa to see the volume of traffic; use sites that have more traffic

Can Facebook demographics be used for marketing?

- Facebook has a PPC product; Jeremy hasn't had success with it; however, you may
have success; try it for test marketing

Do you prioritize your target personas?

- the persona includes your keywords and landing pages of course; you don't know what
the priority is at first; once you determine where the most revenue is, then you can
prioritize them and focus your efforts on the money makers

Should you put a survey on the landing page or in a link with an offer?

- your landing page should be optimized for one and only one action - to get them to buy
or to provide information
- the more options there are, the less actions are taken; studies have shown this; Google is
a very good example; their landing page has only one option - to search
- you must have only one goal/action on your landing page!!!

Do you have sites with competing products on them?

- Jeremy has two vonage sites - one with just Vonage on it and another that compares
Vonage and competitors; be careful about using one brand/logo to send customers to a
competitors site; this is not acceptable with Commission Junction merchants

Would you use sub-domains for segmentation?

- don't put your standard navigation on a sub-page so your users don't get lost.

Another questions on keywords - wide & deep

- download Jeremy's book from his site; it explains it in detail - High Performance
Affiliate Marketing; it's free at quityourdayjob.com

Would you recommend a landing page for each persona?

- yes; use your search keywords to assign a page

How do I keep up with product life cycles (new models)?

- use data feeds from the merchant; how interested are you in the product?; keep your
product selections narrow to start so you aren't overwhelmed with research

Can you get small company data on Yahoo finance?

- Yahoo & Google have alert tools - sign up for a company or industry and you'll receive
updates on the products, company or industry

General discussion:

- focus on fewer niches
- focus on long-term products & categories
- focus exclusively on them

- competitive information resources: spyfu.com, quantcast.com (sp?)

Will you share information on your adgroups for the laptop campaign?

- yes, Jeremy will be sharing much more detail regarding the entire campaign as we go;
including the domain names, thought processes and the SEO process;

Can your efforts be compromised by the merchant?

- yes, if their landing page isn't targeted like your site; you should look for the deepest
link on their site so that it's more tareget; you can contact the affiliate manager to
recommend improvements to their landing pages

How do you find the best selling products?

- Amazon is a good source; or you can contact an affiliate manager and ask for their best
selling products

Setting Up Shop

Find out how to get the most of your limited time & budget. This session will focus on essential time management, work habits & tools of the trade.

Typically you don't have a lot of time or money when you get started.

What's your situation?

- limited money / limited time
- have money / limited time
- limited money / have time
- have money / have time - this is the least common situation

Components of Your Business

- Planning & preparing - time intensive, but low cost
- Designing & building - time intensive, costs money
- Marketing & traffic generation - time intensive, costs money
- Optimizing & testing - time intensive, low cost; you can make big gains from this activity

Getting the Most Out of a Limited Budget

Your Business Budget

If you have:

- $0 - $500 = difficult, but you can still succeed; be patient
- $500 - $$1,000 = reasonable; Jeremy started within this range; he ran out of money more than once but succeeded
- $1,000 - $2,000 = ideal; it's a good amount to work with
- $2,000+ = gives you maximum flexibility; you'll be able to build more dynamic sites, more professional looking sites, generate more traffic

Stop Buying Information Products

- those training manuals on affiliate marketing; those selling secrets
- most information is free; find it
- it's why The Black Ink Project & QYDJ are free
- save the money for when you're profitable

Jeremy has decided that he doesn't want to sell information products any more. He's found that some people buying them aren't ready for them. He's not selling hope in a box as are some others. He wants to make money on merchant products.

Step 1 Finding Your Niche

Niche research - low cost if you use Google & the internet
Keyword research - low cost if you use Google or a trial on Wordtracker
Finding merchants - no cost with networks like CJ, ClickBank, Pepperjam, offervault.com
Products - no cost if you already own it; you may have to buy some
Niche/product education - purchase some books or magazines; budget $50 - $100

Step 2 Business Planning

SWOT - no cost if you use Google & the internet
Competitive research - no cost if you use Google & the internet
Market study - no cost if you use Google & the internet
Customer education - no cost if you use Google & the internet

Step 3 Designing Your Site

Free site design - no cost if you do it yourself, use open source web design (OSWD) templates, or use Wordpress
Cheap site design - use templatemonster.com cost is $30 - $70
Affordable site design - use 99designs.com or eLance.com, cost is $200 - $1,500
Do it yourself (software) - $0 - $1,500 for the software

Watch out if you want modifications to a templatemonster.com design, the cost can be significant. Search on Google for custom wordpress themes for additional sources. 99designs.com is designed as a competition for the best design. You post a contest for your design with a prize of $200 - $500. Submit the design requesting HTML & CSS. Stick with the higher prize money for the best designs & designers. Go to QYDJ on 99designs.com to see some of Jeremy's site designs.

Step 4 Developing Your Site

Design to HTML/CSS - eLance contractor $100
Simple dynamic functionality - with changing titles or images; eLance contractor $50 - $500
Complex functionality - with a data feed or shopping cart; eLance contractor $500+
Do it yourself software - $0 - $500; Dreamweaver is good

Step 5 Domain Name & Hosting

Register domains - less than $10 on GoDaddy; use the anonymous option; avoid upsells
Web hosting - don't sign up for the lowest or highest priced service; get the multiple domain option; should be $6 - $10 per month at GoDaddy

Step 6 Marketing/Traffic Generation

PPC - budget $500 - $1,000 for this, provides instant traffic, highly controlled, easily tracked
SEO/Organic/Social/Viral - $0 - $500, requires some skill & time
E-mail auto responder & broadcast - less than $20 per month on aweber.com
Sticky traffic - $0 if you have good content & add value to the customer's experience

Step 7 Optimizing Your Site

Testing ad copy = more clicks, same cost per click - $0, may result in higher profitability
Testing landing pages & design - $0, use Google website optimizer
Web analytics - $0, use Google analytics
Keyword tracking - $0, Jeremy recommends tracking202 or Optimize My Site will be available soon from Jeremy, class participants will get it free!

Step 8 Business Formation

Form a simple LLC - at LegalZoom the cost is $149 plus your state fees
Local business license - $25 - $100, varies by state
Taxpayer ID (TID) - free at the IRS site

Money Management & Savings

Re-invest every dime back into the business.
Use free ware, trial software & services.
Increase the cash flow by avoiding long-term subscriptions.
Keep your day job until the profit is sufficient to live on.
Trade & barter services - if you're good at something, do it in exchange for help you need.
What can you part with? - you'll have to make sacrifices, give up something for cash if you need it
Don't buy information products, ebooks or courses.
Only spend what you can afford to lose because you might.
Avoid using credit cards or financing as long as possible.

You're Profitable & Ready to Scale-Up

Get cash from family or friends.
Increase your credit card limit.
Get an SBA loan.
Sell what you don't need for the cash.

Time management books recommended by Jeremy - The 4-Hour Workweek & Getting Things Done. Both of these books can help you better manage your time.

Your Time Budget

0 - 5 hrs per week = time poor
5 - 10 hrs per week = time stretched
10 - 20 hrs per week = adequate
20 - 40 hrs per week = ideal
40+ hrs per week = you need help!!!

Information Diet

Ignorance is bliss?? - cut back on all the information you consume needlessly
Unsubscribe from all non-essential newsletters & blogs
Don't just surf the net - have a purpose when using it

Stop Multi-Tasking

It's over rated.
Your brain can't handle it.
Tasks take longer.
Quality suffers.

While You're Working

Close IM, twitter, etc.
Turn of the TV, music.
Close all applications, browser tabs not being actively used.
Avoid noisy places.
Don't surf.

Write it Down

Make a list before you start working.
Limit it to just a few important tasks.
Don't deviate from the list. When the tasks are complete, update the list.

Prioritization & Urgency

Continually ask yourself "is it important?"
Set a time or alarm for task completion.
Use a laptop on the batter. When it runs down, quit working for a while.
Learn to say NO. Balance your personal time with business needs.

Q & A session:

Is a domain name with a dash in it a poor choice?
Jeremy wouldn't recommend it for a site you want to develop long-term. It could be useful for testing. He recommends a domain name without dashes, that's easy to spell & relatively short. Good luck with that!

Is the $1,000 budget one-time or monthly?

One-time.

What content management system should we be familiar with?

Wordpress can create a complete site with content in a database. There are a lot of wordpress developers. Druple (sp?) is also good as it provides maximum flexibility.

Is XcitePro (sp?) good for designing your site?

Jeremy uses dreamweaver as it's more sophisticated.

Can you talk about how much money you've made?

Jeremy doesn't like to talk about it because it creates false expectations.

Did you build all of your sites?

Yes. However, nowadays outsourcing is cost effective and professional.

Do you recommend Fireworks or Photoshop?

Fireworks for creating & editing vector graphics & bitmaps.

Can I trust tracking programs?

Tracking202 is a good program. Jeremy believes they are upstanding & trustworthy.

Should we use a different web host for each niche?

Use the same one to start. You can use different ones later.

Productivity suggestion - use Google as your home page as there are no distractions!

Should we make our priority list the night before?

Either the night before or before turning on your computer.

Do you have any advice in finding office space?

Use a virtual office. You can get small spaces - 200 to 500 sq. ft. Budget $500 per month. Use skype for your phone service.

Do our sites have to be small to be effective?

No not necessarily small, just focus on a tight niche.

Will this class cover any technical issues?

Yes there will be some technical issues covered. However, it's not a technical course. Jeremy will recommend how to get the technical task done for the non-techies.

Where do you get logos?

Jeremy gets logos & images from Istockphoto.com. They're low cost & professional.

Assignments will be emailed to the class participants. He'll send a checklist to follow. The next class is Monday 05/19/08.

Excellent week!!!

Finding Your Niche

1A. Make a list of all of your jobs throughout your career. Use your prior experience to identify your knowledge and expertise. There may be a niche you can develop. For example, you may have helped companies design & build websites. Finding reliable and affordable hosting for companies could lead to a niche for web hosting. What skills on your resume would help you develop a successful niche?

1B. Identify the products & services you used to perform your jobs. Make a list & identify the skills, tools, products & services used.

2A. Make a list of your hobbies & interests. Start with those with which you have the most experience. Do you have a passion for digital music? There could be a niche there.

2B. What products/services do you use when you're doing your hobbies/interests? Make a list of the skills, tools, products & services used in your hobby/interest.

3. Make a list of products/servcies you have recently purchased or plan to purchase.

4. Make a list of niche sites that you visit on a regular basis. List the URL and products/services recommended by the site. Are there products/services recommended by the community on this site?

5. Make a list of magazine, newsletter & blog subscriptions. What products/services are advertised or reviewed?

Points: What are the niches/products/services with which you have the most experience? Rank yourself from 1 to 3 on each.

Rank the size & activity of the communities for each product/service/niche on a scale of 1 to 3. Which has the largest nich & most active community?

Look at the competition. Do you have any unique ideas or angles for targeting new customers?

Does your niche have a good selection of merchants?

Are there advantages to buying online (e.g., save money, convenience, exclusivity)?

Is your niche a small piece of a big pie or a big piece of a small pie? Or is it too broad or too narrow?

Come up with a short list of niches (2-3) that you think will do well. The next assignment will be to do a SWOT analysis and market study.

Further assignments:

Due to time constraints and the fact that Jeremy's audio, class outlines and assignments are available from The Black Ink Project, I won't be updating the course outlines and assignments. You can listen to the WebEx audio or download a .WMV, download the slides and download the assignments. You can get course and assignment information at: The Black Ink Project Course - it's free!!!. Just click on the Register link - it's free!

Thanks for reading this blog! I enjoyed learning about Squidoo.

Further course summary:

Due to time constraints and the fact that Jeremy's audio, class outlines and assignments are available from The Black Ink Project, I won't be updating the course outlines and assignments. You can listen to the WebEx audio or download a .WMV, download the slides and download the assignments. You can get course and assignment information at: The Black Ink Project Course - it's free!!!. Click on the Register link - it's free!

Thanks for reading this blog! I enjoyed learning about Squidoo.

Wow! What a great class! Jeremy covered many topics in this class and it was a great learning experience. I can't believe that he shared all of this information for free! If you're interested in website marketing, take the time to listen to all of the courses. You'll be happy you did.

As yet, I haven't started a new site using the information that I learned in this class. Life kind of got in the way. My wife has completed her treatments for cancer. She's recovering from the brutal nature of radiation and chemotherapy. We're waiting until the doctors request another scan. They will do that in about 2 months. Until then we can just hope.

I'll be starting on a new site shortly and will update this blog when it's ready to go live.