The dark side of gimmicky digital businesses: Why you should stay away

A Note From Colleen

Hi, Friends.

This week’s Gumption Gazette is a bit abbreviated as I am finalizing my notes for TODAY’S (FREE) WORKSHOP. Are you coming? Details and register below.

I’ll be laying out the realities of launching a low-risk digital business for women over 50 (and why starting a digital business is such an incredible opportunity to keep earning money in your 3rd Act.) 

Also, I am sharing my not-so-demure opinion on gimmicky-style digital businesses and why they should be avoided at all costs if your goal is a long-term sustainable business with regularly occurring revenue.

Thanks for being here.

Cheers,

Colleen Kochannek, Publisher

*This publication may include affiliate links and links to products I sell. If you click and buy, I may earn revenue and/or commission. 

TODAY: August 18, 2024. 3pm Central Time. Limited-Time Replay.

REGISTER HERE 

What You’ll Learn:

1. You'll learn how to create a simple (low risk) digital product from your own expertise and experience, without having to learn some new skill.

2. You'll learn the fastest way to get that digital product out and selling using a tool as simple as navigating Netflix.

3. You'll get a no-nonsense approach to marketing so you don't have to shake down family and friends to buy your product.

4. You'll learn what time and cost commitments are involved in launching your business (much less than you might be thinking).

OPEN HOUSE: Get personalized advice and answers to your burning questions. This isn’t just about generic information – it’s about addressing your specific needs.

What are gimmicky-style digital businesses and why should you avoid them at all costs?

You know the ones I am talking about. You’re bombarded with the same marketing messages on social media.

• Get started fast

• No product needed

• Just do [THE THING] and just make money.

What am I talking about?

1. Dropshipping

2. Affiliate Marketing

3. MLM’s / Network Marketing

4. MRR - Master Reseller Rights

Why do I keep going on and on about the perils of these gimmicky-style digital businesses? Easy…

You’re building an entire business on somebody else’s product over which you have NO control. You can’t control:

1. Availability

2. Quality

3. Customer Service

4. Deliverability

But, your name and face are what the customer sees. Uh, oh.

• You are the one left holding the bag when the product is bad quality or no longer available.

• The company that makes the product and allows you to sell it for commission makes ALL the rules, which they can change at any time.

It’s what we’re seeing in the MLM space right now with Rodan and Fields - moving from MLM to an affiliate marketing model (like many MLM’s). People who have spent so much time (years) building a ‘down line’ are learning they’ve just spent all that time creating their own competition in the market.

There are many other reasons to NOT spend time on these gimmicky-style digital businesses, but the biggest reason of all is they’re not sustainable. They’re meant to be quick cash grabs.

In any digital business you need two things:

1. A product to sell

2. An audience

You will spend the majority of your time, no matter which model you choose, building and nurturing your audience (aka marketing). 

If you spend all your time building an audience based on somebody else’s product and the product goes POOF! You’re out of luck and starting over. Waste of time.

So, would you rather your effort go towards building an audience based on a product you control, or one that could disappear overnight?

Also, since you will spend the majority of your time marketing, which do you think you will enjoy talking about more? The product that comes from you, something you love; or, somebody else’s product in which you have no interest?

I know identifying your know-how, the thing you can turn into a digital product, is a bit daunting, but it’s so worth the effort.

What are your thoughts on these gimmicky-style digital businesses?

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