Jaime writes:

I’ve interviewed over 50 millionaires in the past year, and three big mistakes keep coming up. Here’s how successful millionaires found out how to get through them:

Mistake #1: “But I don’t have any time!”

“Time is a created thing. To say ‘I don’t have time’ is like saying ‘I don’t want to.” — Lao Tzu

I was talking with a millionaire the other day about how entrepreneurs want the newest tips and tricks to give them more time. In reality, though, it’s the fundamental elements that matter. The word focus has come up over one hundred times in the 50 interviews. We all have the same amount of time. Imagine if you removed everything from of your schedule tomorrow. No work, no driving, no eating, no Facebook, no TV. Just sitting. How long would tomorrow feel? In business, we dilute our efforts by adding so much to our plate. Len Schwartz, founder of Pro2Pro Network, said:

“It became incredibly obvious to me that I was diluting myself and my efforts and my focus and my energy so much so that I was just spinning plates and getting nowhere. So, for all of you listening that are like that and/or have experienced that, please embrace the value of extreme focus.”

Many successful businesses were built in just a few hours a week. Take David Heinemeier Hansson from 37Signals. He said, “So on the programming side of things, for about six calendar months that we worked on BaseCamp, I spent ten hours per week. That’s it.”

In a job, it’s about how many hours you work. But for an entrepreneur that’s not it at all. It doesn’t matter how many hours you work. It matters what you produce in those hours. Michael Burcham, serial entrepreneur who runs the Nashville Entrepreneur Center, said:

“Entrepreneurs aren’t rewarded necessarily by effort or hours. We’re rewarded when the outcome, the product or service we’re producing, actually does something that people care about. I see all the time individuals who are totally putting in crazy hours.

The things they are spending their time on are so unimportant. They’re refining Page 21 of a business plan describing an operating model in an area form that no one is ever going to read. That’s a complete waste of energy. So I would submit to you that it’s much more about what constructively you are doing every day and less about how long you are doing it for.

My own personal philosophy is I give everything a really good six to ten hours in a day.”

Action Item: Are the items you have on your to-do list today driving forward your business? Are you making an active effort every day to both 1) acquire new customers and 2) serve your existing customers better? To really grow your business, you have to do the tough work of prospecting for leads and closing sales.

Mistake #2 – “I Don’t Have Enough Money!”

“You can make excuses or you can make money but you can’t do both.” — Pat Mesiti

Money is always an issue for a newer entrepreneur, whether you have some or you don’t. This is one of the most common excuses I hear from prospects and clients. Money is not your issue. Your creativity and pushing through boundaries is the issue. Don’t get me wrong–it might be true that you have very little money to spend. But many of the millionaires have had the same issues. MJ Demarco, author of the Millionaire Fastlane, said:

“For someone to say ‘Oh, I don’t have any money. How am I going to start a business?’ That’s an excuse. It really is. I started my business with $900. All the capital that came into my business was human capital. Hard work, sweat, and the other thing I want to mention is that it was all self taught. I took the time to learn. Everything I learned insofar as my company, I had to teach myself. I was on the Internet, learning and buying books; I was at the library all the time.”

Joy Gendusa from PostcardMania.com said:

“When I started doing postcard marketing for my company I had no money. So it was literally my paycheck that was going into postage and I started out sending 1,000 pieces every single week.”

They find a way. I’ve heard stories of going to SCORE, figuring out how to get people to work for you for free or for trades, or learning how to do things yourself. In fact the time we live in now is probably the cheapest to start a business. We no longer have to have a brick and morter store. We no longer have to pay for expensive printed brochures, or yellow page advertisements. Now we have WordPress, social media sites like Fiverr.com. Instead of thinking how little you have, start to think about how much you have. You are so lucky. David Heinemeier Hansson also said:

“It has never been easier to create something in software with no capital on hand as it is today. If you can do it self-funded, you can do it on your schedule, on your own time and with you being in control of the entire process the entire way.”

And a side note about funding: You don’t need to get funding. In fact most of the millionaires I asked discouraged it. Most of them didn’t even take loans, especially in online businesses. They started small, and just kept working and reinvesting.

Action Item: Is there a way you can barter your services and trade your expertise for someone else’s? Can you learn how to create a website, program the software you want to create, etc.?

Erica’s note: When I first started my hosting company, I traded my HTML and CSS skills to a web design company in exchange for my first Cisco switch. I dug servers out of Dumpsters and fixed the hardware myself. I bought parts on eBay. One of my employees, later in my business, said, “Wow, this entire business was built on eBay.” Yeah, pretty much!

I built my own website, and figured out PHP to learn how to accept credit cards online. (These days it’s a lot easier!) Stop telling yourself you can’t do this stuff. Instead, buy the books, sit down and learn what you need to learn, and ask questions. I had no schooling in this area, and I had no “mentors” who taught me everything. I learned via IRC channels and people at work who knew this stuff.

Don’t know anyone who knows what you want to learn? Look up local meetups in your area. They may be even worth driving a few hours each way to, or camping out in your car for a day or two. Do what you have to do to make your business succeed. The worst thing you can do is sit around waiting for someone to finish your website.

Do you know–I knew a guy personally who had a hosting business that pulled in over $350,000 a year, and he had no website. He had a domain name, with a page on it that said “Sorry, we are still building our website, but email us if you need help.” followed by an email address. He signed up some huge customers. If he can build a 6-figure business that way, you really don’t have any excuses.

(end Erica’s note)

Mistake #3 – “I don’t know how!”

You may not know, but other people have been there before and succeeded. Just because you don’t know how right now, does not mean you can’t learn. Sometimes you even paralyze yourself because you don’t want to make a wrong move, or you think we need to learn the “right” way (of course there isn’t a “right” way, so you keep looking continously). This excuse is usually based in fear: fear of the unknown and fear of failure. Fear is normal though — for you and for millionaires. They feel the fear and do it anyway.

Amos Winbush III started a company called CyberSynchs. He was a songwriter and wanted to start a tech company.

“There was nothing on the marketplace to fix my issue and I thought that if I had this same problem there had to be millions of other people who had this exact same issue, so I said, “Let’s start a company.” I called my business manager and said, “How do I start this company?” He said you need to find some software engineers, so I did a lot of research to find out what software engineers actually were and what their function was.”

When he was starting a tech company, he didn’t know what software engineers actually were, let alone how to start a business! He started the business with only $250, too. (He found a CTO on Craigslist for free!) He had a million dollar company in only 18 months. Amos leaned on his mentor and just kept taking action. He didn’t let his excuses get to him. He didn’t have a plan or money, but that didn’t matter.

Frank McKinney didn’t know how to do real estate before he started, just like Craig Wolfe didn’t know how to make rubber ducks that look like celebrities (Celebriducks). If we already knew how to do every step it probably wouldn’t even be that interesting to us. The only thing you need to know is the next step. Figure out what that next step is. If you don’t know, ask someone who does.

Action Item: The real truth is that most of us, even those who have made a lot of money, don’t feel like we know what we are doing. Millionaires aren’t necessarily smarter than you–or more talented than you are. They do know, however, how to push through their fears and make the tough decisions. Today, work on one thing you previously feared. It probably won’t hurt as badly as you think it will, even if you fail. Just give it a shot!

Bio: Jaime is a business coach and speaker who has been featured on CNN Newsroom, MSN Money, Success Magazine, Fortune, Yahoo’s homepage and more. She interviews millionaires every week to get advice from them on how you can become a self made millionaire.

If you are in the beginning stages or just starting business in 2012 and have thought to yourself, “I don’t know how to even start!” or “I don’t know what to do!”–register for Jaime’s free webinar series now. Hurry–the webinar is on Tuesday!

Erica’s note: I’m now accepting guest posts on erica.biz again–check out my contact page if you’re interested in guest posting on erica.biz.

Scott McNealy, former Sun Microsystems CEO, and
Larry Ellison of Oracle announce a closer partnership
in 2006, which led to Oracle acquiring Sun in 2009.

Back in 2000, the company that I worked for, Cobalt Networks, was acquired by Sun Microsystems. I interviewed, and was accepted for, a position in Sun’s marketing department, working on Sun.com. As part of Sun’s marketing department, I got to see some of the advertisements Sun created to sell products to potential customers.

Sun’s potential customers were mainly large government agencies and giant corporations. These government agencies and corporations were used to buying products from IBM, Oracle, and the like. (Imagine a customer so large that your billion-dollar company is still considered a “startup”!)

The Tactic

Sun’s main tactic was to go negative in its advertising. One ad I remember them being so proud of (they actually photographed it in the San Francisco office I worked out of) was a shot of a man in a suit. He had dollar bills in his pockets, and the ad made it appear as if they were being “vacuumed” out of his pockets. The tagline was, essentially, “This is what IBM does to your company.”

The request for a negative campaign like this came straight from the top–from Scott McNealy, who was CEO at the time. Sun was negative toward everyone else in the industry. IBM? Hated ‘em. Microsoft? The devil! Apple? A joke! Oracle? Pfft!

At the same time I was working there, I was studying sales psychology. The books verified something I had already suspected: When you go negative in your advertising, the net effect is that the potential customer thinks more about the thing you’re being so negative about. (That explains why the “War on Drugs” actually increased usage of many drugs during its lifespan.)

I also made a friend in the sales department. Over lunch at In-N-Out Burger one day, he told me something interesting. He said, “I hear this over and over again–a large organization requests Sun, IBM, and others to make a presentation about their products. IBM is first. They show a great presentation about their product line. Then comes another vendor. They show up and do another fantastic presentation about how amazing their products are. Then it’s Sun’s turn. Sun does a presentation–about how awful everyone else’s products are!”

He continued, “The net effect is this. Most of these people have bought products from the company Sun’s presentation is bashing. So they get to thinking, ‘Well, IBM’s product isn’t as bad as Sun makes it out to be.’ And then, they go buy from IBM. We lose the sale, again and again and again.”

I was stunned. “Haven’t you taken this up with Sun’s management?” I asked. (Scott McNealy in particular practiced an “open door strategy” where he appeared to be responsive to suggestions.)

“Oh, yes,” he said. “But they don’t care. They like this sales strategy.”

Leading from the Ego

It was then that I realized two things: One, Sun was leading from an egotistical perspective of “we’re better than everyone else, and we’re going to prove it by bashing everyone else.” And it wasn’t making them many sales. Two, if they didn’t change, they weren’t going to survive as a company. Not only was the sales culture bad, but it created rot within the company as well. The company culture was oppressively negative, and it attracted people who enjoyed complaining and bashing others.

More importantly, though, I realized I had to take this to heart. When I ran my hosting company, I remembered this clearly. People loved to ask me, “Why are you better than [a competitor's name]?”

In response, I would always ask who they were hosting with now. If it was the same competitor they just named, I was careful to not bash the competitor–because that would be bashing the choice that they made. Instead of indulging my ego, I said, “I completely understand why you’ve made the choice you have. You wanted a good deal.”

Then I would find out what had happened that made them want to change hosting providers. If they were just shopping around for a better deal, I’d tell them honestly that we probably weren’t the best fit. But if something had happened–they’d had an outage recently, or they needed room to grow–that’s when I’d be able to go into my preferred sales strategy, which was showing them why we were a much better choice for them. I’d point out our redundant power, have them meet our employees, and do a datacenter tour. By the end of the tour, 90% of the time, they were ready to sign up with us. Then I wouldn’t hesitate to collect their credit card information and get them set up!

Despite its questionable company culture, working at Sun taught me a valuable lesson. You can’t serve your customers effectively when you’re busy bashing your competitors. And you can’t survive as a business (or as an ideal) if your main issue is “We’re not this other thing.”

What are you saying to your customers? Are you presenting your business in the best possible light–or inadvertently turning your customers toward a potential competitor?

Recommended Reading:

• One Million Dollars, The Hard Way. Ever wonder how I sold a business for $1.1 million? This post gives all the details.
• Are You Making This Common Mistake (That Could Ruin Your Business)? Here’s another big mistake (and a true story) that could really kill your business.
• How Writing a Story Could Strangle Your Business. What is “writing the story”? Are you doing it? If so, you could be leaving a lot of money on the table…

Let’s talk about current events. There’s a lot going on in the news right now. The 99% (aka Occupy Wall Street) movement. A backlash against big corporations, government bailouts, politicians who promise to change things and then don’t do anything, and a lack of jobs in our country.

Listen to the protests, and you will be instantly sucked in. It seems everyone has a side; a story to tell. Now, you must make choices. Are you a “liberal” or a “conservative”? A 99%er, a 53%er, or a 1%er? (No one will own up to the latter.)

I’m here to tell you: Not only does this stuff not matter, but it’s a distraction preventing you from changing the world.

In the rush to label ourselves and prove that we are “different” (or the same as!) others, we’ve forgotten one thing: We all stand here together. And if there are problems with this world–our society–then it’s up to us to go out and fix them.

Oh yes, there were things the government did wrong. And big corporations. I’m not saying to ignore it–I’m saying stop getting caught up in it.

What would happen if, instead of engaging in a debate where no one’s mind gets changed and enemy lines get drawn between your friends and you, you simply opted out?

What if, instead of watching TV and getting furious about those damn liberals or those hopeless conservatives, you spent an hour working on your business?

Jobs

Let’s talk about the lack of jobs–since that seems to be a sticking point. There are 50,000 monthly readers of this blog. What if half of you went out and said, “Today I am going to make a difference in the world by hiring someone who needs money.” And then you went out and hired someone to mow your lawn. Once. Or clean your house. Just once!

“But Erica, I don’t have the money to do that.” Then I suggest you start by ending your cable TV subscription and selling your TV. That will get you the money to hire someone. And it’s a thousand times better than a handout.

Together, just from you and others reading this post, we could create 25,000 jobs. Oh sure, they’d be temporary jobs. But instead of taking your money and handing it to a big corporation like a cable company, you’d be handing it to a real, live person–your neighbor, or someone who lives in your city. And that person would be eternally grateful for a hand up, instead of a handout.

And who knows how many of those jobs will stick around? Hey, it’d be nice to have a few extra hours a week to work on your business. So hire a babysitter for the kids and do it. Hire a house cleaner. Do you understand how grateful your babysitter or house cleaner will be for that job? Marilyn, our housekeeper, looked at me recently with almost-tears in her eyes, and told Brian and I that she loved us. That she was so grateful to be saved from a terrible desk job where she had a boss who constantly yelled at her.

You and I…we’re better bosses than that. We’re the entrepreneurs. We’re the job creators. And if there are no jobs, we’re the ones who need to step up and make those jobs happen.

So ignore the news. Ignore people posting protest photos on Facebook. Instead of getting sucked in to endless drama, and debating back and forth, go out there and figure out how to create a job instead. Get that fire in your belly. You deserve better. You need to learn how to start that business, not just for you, but for your family and your community.

The world is counting on you. And right now, we need you. We need your help to make America what we want it to be. We need your help to lower the unemployment rate, to help good, deserving people get jobs, and to make this world a better place.

Turn off the noise and start creating.

Recommended Reading:

• How To Hire An Employee. My epic step-by-step guide to finding an amazing person to help you. No more excuses.
• Find the Path Toward Your Perfect Day. What do you really want to do with your life? Follow these steps to help get clear…
• What Money Can’t Fix. It’s really eye-opening what problems money makes go away…and what problems remain, or get worse…

When I started the trial, I felt completely overwhelmed by email, and I just wanted a way out. I was waking up every morning to an incessant barrage of PR people, sales letters, chain emails, people wanting me to write about their product, companies wanting me to promote them without compensation, and–generally–a bunch of junk. Not “spam”, really, because it was sent by real people (sadly.) But a ridiculous pile of useless crap that wasn’t easily filtered.

Since my email address is public, and my blog is popular, it seemed like every day I’d end up on some list that I didn’t ask to be on. People would sign my email address up for everything from political updates to PR posts about seemingly random companies sent from a “do not reply” address.

In short, my email inbox was a micro-Hell waiting for me every morning.

The First Seven Days: Transition

I woke up the day after I wrote my “I’m done with email for 30 days!” blog post, and realized I needed to have systems to handle my inbox. Email filters weren’t cutting it–I needed a real person’s help.

In Google Apps (Google’s Gmail solution when you have your own domain name), you can “delegate” access to your email account to another person. So I set Susan, my virtual assistant, up with an @erica.biz email account so I could delegate my inbox to her.

Now came the tricky part: Actually distancing myself from email.

Getting Rid of the Crap

I set up a brand-new email account that only Susan, Parnell (my co-founder), and Brian (my boyfriend) had access to. I disconnected my erica.biz email from my phone and set it up so that my phone only had my private email account on it.

Whew! What a relief! Finally, I had disconnected from what seemed like an endless stream of email. I set up a mind map so that Susan, with her new access to my email, could do routine tasks like automatically deleting PR junk and unsubscribing me from lists. She also sends me a summary email every morning. Here’s one summary email she sent me (names and sensitive data have been blurred out):

You can see how much time this saves me every day. Instead of having to go into my inbox and wade through a pile of junk, filtering messages one by one, Susan does it for me. Based on her daily emails, I tailor my mind map and give Susan further instructions on how to reply and/or filter specific types of email I receive.

The Next Step: An Autoresponder

I then implemented an email autoresponder that would respond to anyone who emailed me. If you’ve emailed me since June, this will look familiar. Here’s what it said:

Hello, and thank you for emailing me! Please read this carefully…what I’m about to say is important.

I’ve made a radical change in my life, and I’m taking a sabbatical from email. (Note: I’m still around and working–just not replying to email!) This means that the email you just sent to me will likely NOT be read.

Please read this blog post for more details about why I am doing this:
http://www.erica.biz/2011/30-day-trial/

What should you do now?

1) If you are a Whoosh Traffic customer, please email [redacted] for assistance with your account, and our staff will get back to you quickly. (Always email [redacted] instead of me directly in the future.)

Please note that [redacted] is for Whoosh Traffic customers only. Any non-Whoosh Traffic-related email that is sent there will not only not get read by me, but will likely get you permanently banned from emailing that address again.

2) If you and I have corresponded in the past and you need to get in touch again, feel free to call me or find me on Skype ([redacted]). (Note: If you are a Whoosh Traffic customer and need help with your account, please email [redacted] instead.)

2) If neither of the above situations apply, please find me on Twitter at http://twitter.com/ericabiz and send me an @ reply there. (I will be checking once a day.) Alternatively, you can find me on Facebook at http://facebook.com/ericadotbiz . I will also be checking this once a day.

Thank you for your understanding.

-Erica

I wondered if putting our Whoosh Traffic support email address would cause people to email us with all kinds of junk, but during the entire 30+ days, I only received one out-of-context email there (and promptly banned the sender, as promised in the email.)

As I implemented these solutions, the noise died down. I get just 2-3 pitches a day now (and I quickly reply asking them to remove me from their email lists.) Susan handles my inbox with aplomb.

In short, my 30-day trial was successful. The only drawbacks were few compared to the hours I gained back. The biggest negative was a few Whoosh Traffic potential customers who weren’t sure whether it was okay to email our support email address. I fixed that by updating my autoresponder. This is what I use currently:

Hello, and thank you for emailing me! Please read this carefully.

I am not currently accepting guest posts on erica.biz.

If you are a PR company emailing me about your product or service, I ask that you please remove me from your list.

I read all emails, but I may not have time to respond to you. My assistant, Susan, also reads my emails and may respond where appropriate. If she responds, you will see her name in the From field and also in her signature. If it says it’s from me, it’s from me.

If I do respond, it may take a week or more. For Whoosh Traffic-related issues (sales *or* support), please email support@whooshtraffic.com, use the live chat feature on http://whooshtraffic.com, or use the contact form on our site. Please do not send Whoosh Traffic-related issues directly to me, as I can’t respond as quickly as our support team can.

Thank you for understanding and for helping to keep my inbox clean.

-Erica

(Note: This was different than the autoresponder I had previously…you may notice a few comments on this post referring to my old one.)

This cleared up those issues, and that’s what I plan to stick with in the future.

How Much Time Did It Save/How Much Did It Cost?

Susan spends about an hour a week on my email, so that’s a bit over $60/month in direct costs to me.

I use RescueTime to show me exactly how much time I spent on email then and now. RescueTime measures how much time you spend on each website and in each application on the computer you’re running it on, and is now my “gold standard” to see where I’m wasting time. If you want to know where all that time goes when you’re on the computer, RescueTime is your solution.

I went from spending 1-2 hours a day on email to 3-5 hours a week. That’s a savings of approximately 5 hours a week. At my consulting rate of $500/hour, that’s a $10,000/month savings.

Of course, not every hour I saved could be billed out at $500. But even if every hour I save is worth $50 (and I think that’s a fair assumption), I saved $1,000/month.

In other words, unchaining myself from email massively benefited me in terms of both having more time and having a better emotional state (which is, frankly, priceless.) I don’t hate waking up and getting on the computer any more. That’s huge.

Apply This to Your Business

As business owners, there are a lot of little things we do that are total time-sinks. I don’t even think we’re aware of them.

If you claim you don’t have time to do something, it’s time for you to get better delegation skills. If outsourcing your email scares the bejeezus out of you (like it did me until I reached my breaking point), that’s reason enough to try it. You may be pleasantly surprised with the extra time you receive back in return for having the courage to make a tough choice.

Recommended Reading:

• RescueTime. Sign up for a free account and start seeing where you’re wasting your time. I am a huge fan.
• How to Hire an Employee. My complete step-by-step guide to hiring an amazing employee.
• How to Make Money on the Internet. There are three things you need in order to make money on the Internet…

In 2009, after living in the Bay Area for nearly 10 years, I decided I wanted a change of pace. San Diego called my name, and I’ve been here since. But now I’m ready to move on…and I’m sad to say the reason why.

You see, I love it here in San Diego. The weather is amazing, the beaches are beautiful, and the people are friendly and generally entrepreneurial. It’s a refreshing change from the Bay Area, where everyone seemed like they were always “too busy” to hang out. Here, life is more laid-back, and I’ve grown to appreciate it.

But one thing I’ve struggled with about California for years is the government. (Yes, I’m going to break my own unspoken rule and wax political on my blog.) The government is notoriously business-unfriendly–with everything from high taxes on business earnings to badgering businesses into more work.)

Examples of the Crap California’s Government has Put Me Through

Okay, you want examples. Here are a few things I’ve had to deal with:

1. The State of California arbitrarily decided that all businesses that gross over $100,000/year should have an account where you have to report quarterly on the sales tax your customers pay you for goods sold. The only problem? My company only sold services–not products–which aren’t taxed in California. When I closed the account (by going into a local office and spending nearly an hour explaining my situation), they forced it open again and sent me a nastygram explaining that I would owe fines for not filing the quarterly report. You have to file it 4 times a year, and it takes time to fill out, even if you haven’t sold any products and owe the state nothing.
2. The state charges an income tax of 10% on all income over $47,055. This is in addition to the Federal income tax of 25% on income over $34,001. This is also in addition to an 8.25-9.25% sales tax (depending on where you buy products.) I paid enough in income tax for 2010 to the state of California alone to hire another new worker for my business. I’d bet a lot of money that I’m far more efficient at creating jobs as a small business owner than the state is given the same amount of money. I’d rather have that money to hire someone.
3. And a really dumb law for small business owners, which Meg Whitman promised to repeal: An annual fee of $800 just to have a corporation in the state of California. (Most states don’t charge you, or only charge you a few dollars, as an annual fee to set up a business. California’s is exorbitant, and it applies as long as you, the primary officer of the corporation, live in California…no matter where you incorporate.)

The Final Straw

But the final straw came recently. I had an inkling that if California voters elected Jerry Brown that I’d end up leaving the state. I campaigned hard for Meg Whitman, as she is extremely supportive of small businesses like mine. Alas, she didn’t win, and California elected a governor for another term who was a ridiculously weak governor in his first term.

And he managed to royally screw things up for small businesses again. Here’s what happened: I have a side income selling products on Amazon. Recently, I’ve invested far more time and money in building niche sites to help bolster my Amazon side income. It’s steadily gone up, from a few hundred dollars a year to what will amount to a few thousand dollars this year. Sure, it’s not a ton of money, but I get the payments in Amazon credit and use them to buy many everyday items.

And then Jerry Brown, our idiot governor, signed a budget that included what many have come to call an “Amazon tax”. Basically, the law says that if Amazon has affiliates (people like me who drive traffic to Amazon in exchange for a cut of sales made from people who click through our links), that Amazon has a “presence” in the state of California–and therefore must collect sales tax here. (Kind of like forcing small businesses to file ridiculous quarterly paperwork based solely on our earnings, not on whether we actually sell taxable goods…)

Amazon made the right decision: Instead of kowtowing to California, they immediately cut off all affiliates here in the state.

And that day, I decided to move. It was a “straw that broke the camel’s back” sort of thing.

Jerry Brown Makes an Idiot Move

Here’s the deal: Amazon sends me a 1099 every year. For those of you not in the United States, it means they send the state government, the Federal government, and me a “receipt” every year showing how much I’ve earned in affiliate commissions. I am then required to pay income tax on that money. And I was dutifully paying income tax on all money earned from Amazon for years.

The state of California just cost itself a bunch of money with that deal. Now, not only do they make less money from affiliates like me who paid income tax on income received from Amazon, but they don’t make any more money from Amazon, because Amazon still doesn’t have to pay sales tax to California.

This is, in effect, one of the dumbest laws ever passed. And it’s pretty much par for the course for someone like Jerry Brown.

I could get around the law by setting up a corporation in some other state and then setting up my Amazon payments to go through that corporation. But then I’d still have to go through the hassle of registering that corporation in California and paying the $800 annual fee (because I live here.) And, of course, I’d still have to pay all those bloody state income taxes. Why bother–when I can just move somewhere else and use that money to help my business and create jobs instead?

But Where to Move…?

The obvious states to move to were states with no state income tax, so that I can move there and immediately create a new job in that state instead of just paying state income tax with that money. The states with no personal income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

In addition, it would be nice to not pay business income tax, either. From the list above, only Nevada, South Dakota, Texas, and Wyoming have no corporate income tax. (See the full list of states with no income tax on Wikipedia.)

Of those four states, Texas is by far the most palatable. I already spend a few weeks a year in Austin thanks to various speaking gigs. In fact, Austin and Las Vegas are the two cities I travel to most. I didn’t want to live in Las Vegas…so Austin it is.

Brian and I are moving to Austin before the end of the year. At this point, I’m not sure exactly when we’ll move, but it will be in November at the latest. And to California, I say: Love your weather–but good riddance!

About the Weather…

The beauty of running an Internet business is that we can truly live anywhere. Yes, Austin gets hot in the summer. But I don’t care, because I will have the income flexibility (thanks to both lower taxes and a lower cost of living) to spend a few months out of the year anywhere I like, as long as it has Internet access. That means I definitely see more long-term, international travel in my future–something I’ve wanted to do for a while. Austin will be a great “home base”, and with its thriving tech and Internet marketing communities, I feel confident we will pick up some great Whoosh Traffic customers there too.

California just isn’t worth it. My priorities have changed. I value income freedom and flexibility more than I value living near the beach. I value having a paid-off house I can call “home” more than I value having a half-million-dollar noose around my neck that declines in value by the day.

Republican vs. Democrat

And lest you think I’m “Republican”, let’s set the record straight on that, too: I believe in small government, dramatically lower spending, and the right for everyone to smoke marijuana and marry whomever they want (as long as both people are consenting adults.) I refused to vote Republican or Democrat in the last presidential election because both candidates believed we should spend our way out of a spending problem. And I abhor the Republicans’ current stance of cutting spending on everything but the military. I love Ron Paul as a politician, but I don’t understand how someone so obviously brilliant doesn’t believe in evolution, and it’s for that reason that I don’t want to see him run as President. If forced to define myself, I tell people I’m a Libertarian.

There, I should have pretty much pissed everyone off with that last paragraph. Now wage your wars in the comments. I’ll go run my business, create jobs, and continue to advocate for less government, fewer laws, and the freedom for us all to create more small businesses…from my new home in Austin, Texas!

What’s Wrong With Us?

The young people’s discontent starts off early. Their parents and grandparents push this mantra: “Go to college, get a stable job, and then be happy.”

But they don’t see it the same way. The younger generation, by and large, doesn’t want to work for big companies. They want to travel, make their own way in life, etc. They’ve watched the Baby Boomers splurge relentlessly on consumer goods and bigger houses, and realized that it doesn’t make the boomers any happier.

Oh, sure, the kids are trend-aware and brand-conscious–perhaps the most brand-conscious of any generation we’ve seen. But they would rather have one $200 pair of jeans that they love and wear every day than 10 pairs of $20 jeans that don’t fit and look bad. That’s one of the differences between the younger generation and Baby Boomers.

Warning: Generation Y Is “Opting Out”

Brand-conscious though they may be, many of Generation Y are starting to “opt out” of the traditional life their parents envisioned for them. Embracing minimalism, they keep all their things in one backpack and go “couchsurfing”.

Many of Generation Y/Z have gone to college and have college degrees. They have also usually had one of those “stable jobs” that their parents so raved about–working for some big company or government organization where they were a meaningless cog in the wheel. And they gave it up after a short time.

The younger generation has embraced cell phones and laptops as two of their most prized possessions. Their goal? To make enough money to live on while they explore their dreams.

The problem, then, is the giant gulf between what these kids want and what employers have to offer.

What Generation Y Values

The employees of Generation Y and Z value freedom and mobility, and want to have a job that is meaningful. They are willing to work for very little–if that job is for a company whose goals and values they believe in, and their job will make a significant impact on that company.

The employers (Baby Boomers and Generation X), who themselves value stability and security, want to put Generation Y and Z into cubicles and have them do rote work.

And then we wonder why Generation Y and Z are dropping out of the workforce, and choosing to live on a couch for a year or work at a coffee shop instead of doing what we (employers) want them to do.

Both sides need to have a realistic sit-down and come to grips with this reality. If we don’t, we’re going to be faced with an entire generation that abhors “work”, and we employers will have to rely on an ever-shrinking (and more expensive!) pool of older workers.

What Can Both Employers and Employees Do?

As employers, here is what we need to do:

• Figure out how to satisfy the largely mobile workforce that is Generation Y.
• Rewrite our job descriptions to show that we care, that we as a company have a mission to change the world in some way, and that we value employees’ freedom.
• Strongly showcase our mission on our websites and in corporate branding.

And as employees, here’s what Generation Y/Z need to do:

• Wake up and realize that a job at Starbucks is working for a large corporation, and that you might be far better off going out on your own, starting a startup, or working for a smaller company.
• For graduates: Don’t shun your field entirely. Find a job that helps you utilize your degree, or start your own business in your field.
• For Computer Science graduates specifically: Programming is fun! Find a company that values your contribution, and don’t write the whole computer industry off because you had a bad experience working for a huge company or government organization.

The Struggle Between Making a Difference and Making Money

I was born in 1981, and I straddle Generation X and Generation Y. I find I fit in more with the Generation Y way of doing things. I grew up in a large house with parents who weren’t always happy, and I have far less of an attachment to material things than my parents do. I would definitely rather have less stuff and love every item I own.

I’m content starting my own business, but also feel strongly that Generation Y needs to accept that revenue is directly correlated with the value that you give to the world. If you are a “life coach” with no clients who lets your spouse, parents, or other people pay your bills, are you really helping the world in any meaningful way?

If you refuse to get a job because you want to do something more amazing with your life, but then you move back in with your parents, are you really making a contribution to the world? The answer, in my mind, is a firm no.

Changing the world and making a profit don’t have to be at odds with each other. In fact, some of the people changing the world in the biggest way now are the ones who made huge profits and then used those profits to make a massive impact. (Look at the Gates foundation, and Warren Buffett.) Personally, I would rather become a billionaire and start a foundation that helps millions than become a life coach, struggle to find 2 clients, and barely be able to feed myself. I wish more people had this perspective on life. Sadly, many of us just don’t think big enough…

What Changes Can We Make?

Ultimately, I believe it is up to those of us who hire younger people to sculpt our job opportunities to their wishes–to allow more part-time employment; to open up our job positions and allow people to work from anywhere; and to make it clear that we are on a mission to improve the world in a significant way.

But it’s also up to younger people: to not give up on an entire industry because the big company they worked for previously was clueless; to be more open-minded about the types of jobs they accept; and to understand that it’s perfectly acceptable to make a huge profit and change the world–that, in fact, making a huge profit may enable them to change the world in even more significant ways.

We have the opportunity to close this gulf now and get some younger people back into the workforce and helping us to change the world. We just have to sculpt our message to clearly resonate with them. Let’s take a page out of our own marketing playbook and apply it to engaging Generation Y and Z.

Recommended Reading:

• This Simple Saying May Kill Your Next Business Idea. Most products aren’t anything completely new or unique–they’re just a different take on a product that is already out there.
• Are You Ready? One of the most powerful posts I’ve ever written–that you probably haven’t read.
• Are You Making This Common Mistake–That Could Ruin Your Business? I pinpoint one mistake I’ve seen over and over and share a true story of how it nearly killed a business.

How to hire an employee.

With this post, I’ll take hiring an employee step-by-step and show you exactly how I hired someone to help me out at home.

The situation: Brian, my current boyfriend, moved in with me about 7 weeks ago. He’s a freelance graphic designer who builds custom WordPress websites. He works part-time on Whoosh Traffic and takes other client contracts part-time.

He also loves to cook, and we now eat most meals at home. Neither of us enjoy cleaning, and between our businesses, we barely have time to work on the house. If you’ve been reading erica.biz for a while, you know I’m a big fan of hiring out for housekeeping, yard maintenance, etc. We already have a gardener (it’s included in the rent for our house), but we needed someone to clean the house.

I hired a housekeeper when I moved to my current house in December, and she was great. Unfortunately, sometime in February, she flaked out on me (and on one of my friends) completely. It was time to find someone new.

Most housekeepers come every couple weeks and work for 4-5 hours at a time. That may work fine for others, but it wasn’t a perfect fit for our needs. With both of us working from home, and four animals in the house (a dog and three cats), we needed cleaning more often.

First, Envision What You Want…

The first key to grasp is that you don’t necessarily have to conform to what’s out there. Especially in times where the economy is not booming, you can post what you’re looking for and get it, instead of just calling a housekeeping service and hoping for the best.

I started by envisioning what would be my perfect fit in terms of a housekeeper. First, I wanted someone who would do laundry. I don’t mind doing laundry, but I find it’s one of those things I keep forgetting about until I suddenly have no clean clothes and have to do several loads in a day to catch up. I don’t want to live that way, so I noted that my housekeeper should handle that.

I also wanted someone who could work on some organizing in the house. I like my house clean, but I’m not particularly good at cleaning it. Like laundry, I tend to let it go until I can’t ignore it any more, then spend 2-3 hours in a frenzy cleaning everything. With the amount of time we spend in this house, plus the animals, an every-other-week arrangement would have had me (or Brian) doing a cleaning frenzy every 3-4 days. It’s not a workable situation.

Realizing these two things enabled me to figure out that I wanted someone at least a few times a week.

Then, Post An Ad…

The next thing I did was to post an ad on craigslist. This is different than what I’ve done in the past. In the past, I’ve asked for referrals from my friends on Facebook and Twitter. In my experience, asking on social networks may be a good fit if you need a high-end programmer, designer, or other techie, but it’s not a good fit for a housekeeper need. People do send me referrals, but I often only get 1 or 2 leads, and then I have to follow up. I want plenty of leads, so that isn’t the right fit.

So craigslist it was. I headed toward the “gigs” section, where you can post odds-and-ends type of jobs at no charge. I posted in the “domestic” category, and this is what I wrote:

Looking for house cleaner/organizer 3x a week near SDSU (Near San Diego State)

I’m looking for a housekeeper/organizer 2 hours a day, 3 times a week, in the afternoon. I live with my boyfriend, and we are both busy entrepreneurs, so we are looking for someone to help out around the house every day.

I live very close to San Diego State and ideally, you’ll live close too (so the commute is easy.) You are:
* Detail-oriented
*Organized
*Extremely responsible
*Looking for a part-time gig (This is 6 hours a week [2 hours a day 3x a week] afternoon/early evening vastly preferred)
*Willing to clean, do laundry and various household chores (no lawn work needed–all indoor work–cleaning dishes, vacuuming etc.) Also taking items to the post office, organizing, etc.
*On time every day…no excuses
*Good at setting up a schedule and communicating with me when you need time off

Perfect gig for a close-by stay-at-home mom or perhaps a responsible college student.

I’m happy to pay $400-$500/month for the right person. Pay is 1099, based on how many days you work. I can pay weekly by check. The 3x a week/2 hours each time part is non-negotiable, which is why I recommend you live close to SDSU/my house.

Send me your resume, 3 references, your phone number, and your email address to be considered.

Follow Up with Serious Candidates

I received 21 responses back in the next 2 days. From those 21, I filtered it down to 4 people. First, I looked for anyone who had followed the directions in my post. (Some people just sent me their phone number with “CALL ME”…uh, no!)

Most people who had responded sent me resumes. I looked for someone who wrote decent English (it didn’t need to be perfect, but it did need to be readable), and who lived close by (or who explained that they came to San Diego State on a daily basis).

To the final four people, I sent the following email:

Hi [their first name],

I had a lot of responses to my craigslist post, and I had to pick my
top 4 people. Congratulations–you are one of them!

I’d love to have you come over and work for a couple hours. Consider
this a “paid interview”–I will happily pay you as long as you show up
and get the work done. I’m sending this to 4 people, so from those
paid interviews, I’ll pick whoever seems like he/she will work out the
best.

I can do this afternoon (Friday), Monday, Tuesday, or Wednesday. Let
me know which of these days you are available. I’ll then send you my
address and confirm date/time. I’ll definitely hire someone by the end
of next week.

Thank you, and I look forward to hearing back from you!

-Erica

Interestingly, all four of the people picked different days, so that made it easy. I paid each of them $35 cash for the two-hour job “interview”–a reasonable rate for my local area. (The rates people want in your area may be larger or smaller…this is where it pays to check with other employers in your local area to see what they are paying for similar services.)

Finally, Pick the Right Person

All four showed up on time (or early!) and did a great job. I think the reason they showed up on time was at least partly due to the psychology of my letter. They knew this was an interview and that three other people were competing for the job. They knew I had a lot of applicants. And there aren’t a lot of jobs out there like this, where they can work flexible hours and get paid.

From those four, it was pretty straightforward. I talked a bit to each of the four when they were out here. Honestly, any of them would have done a great job, but Brian and both gravitated toward one in particular. We plan to award her the job, so by the time you read this, we will have 6 hours a week of our lives back!

I couldn’t be happier with how this turned out, and I don’t feel like I’m chained to someone who is not a good fit. That’s the beauty of the interviewing process vs. getting recommendations–you can pick who really works for you. By the way, had I tried to hire based solely on the emails I sent back and forth with each interviewee, I would have not have picked the woman we hired. That’s why it’s great to do the paid interviews…you can see how each person who wants to work for you really fits in.

Once You’ve Hired

Great–so you’ve found the right person! Don’t forget to have the person you hire sign an employment contract. You can find templates online easily. If you are in the United States, get proof that they are eligible to work here. You can do this by following the instructions at IRS Form I-9. Also have them fill out a 1099 form, so you can send them a 1099 at the end of the year–since you will probably be paying them more than $600/year. Check with your accountant or bookkeeper to see if you can write this off as a business expense–you may be able to.

No Excuses! (Your Questions and Answers)

I always get questions when I post a blog about how to hire an employee. Here are some of the most common questions I get, and my answers:

Question: Aren’t you worried about strangers in your home–that they will steal your stuff?
Answer: No, not particularly. I tend to judge a person by the energy he or she brings to the place. I find that most people are genuinely nice. Besides, I don’t think most people, especially in a down economy, are interested in stealing. They’d really rather have the job.

If you’re really concerned about this, there are organizations out there that will do a background check for you before you hire someone.

By the way, if you plan to hire people, change your door lock to something like this: Schlage keypad. This is the front door lock I have and it’s great. Even if you’ve never installed a new door lock before, it’s pretty easy. Having never installed a front door lock, I followed the instructions and had it up and running in about 20 minutes. You can give yourself one key combination and your housekeeper, babysitter, etc. others–and then delete those key combinations when you no longer employ them. This is far, far better than duplicating keys and it’s well worth the money. Plus you never have to use a key to open your house again. Worth every penny.

Question: Is this really worth it? It doesn’t take me that long to clean my house.
Answer: The answer to this is pretty straightforward. Do you have plenty of time to work on your business, and do you enjoy cleaning your house? If so, then by all means keep on doing it.

If you don’t have time to work on your business, though, you need to seriously consider this, especially if you’ve already cut out most of your TV-watching. If you hate coming home to a dirty house, then do something like this and come home to a clean house most days. I find my mood vastly improves–and I do better, more focused work–when my house is clean. If you find yourself nodding in agreement to this, then hire someone. It’s worth it.

The Biggest Question and Answer

Question: I don’t make that much money. Should I still consider this?
Answer: If you feel you can “arbitrage” those hours into making more money, then yes, do it. I don’t recommend going into debt for this, but I do recommend it if you’re making a bit of money with your business.

Let me be clear on one thing: Look at this as an investment. It’s an investment in yourself and in your business. This is not “spending money” or “wasting money.” This is freeing up your time, which should be more valuable when spent on your business. And it’s enabling you to bring far bigger value to the world. If hiring someone else enables you to serve the world in a bigger, better way, then hire someone else!

This is also a huge investment in your community. It’s arguably one of the best services you can provide to your community–giving someone else in need of money some work. I know in America in particular we tend to want to do everything ourselves, and we take a large amount of pride in doing so. But we also tend to work ourselves into the ground, get less sleep than we need, and get sick more often than people in other cultures.

In other cultures (particularly in African cultures), it’s considered rude to not hire others in your community when you have the money. Take that perspective and stop feeling guilty. You are giving a deserving neighbor/community member some work while allowing yourself the time you need to contribute more value to the world. Realize that your guilt is manufactured due to the culture that we live in, and embrace employing others in your community.

No more excuses. Remember all those politicians who wring their hands about “job creation”? Small business growth is what drives job creation. Let’s go out there and create some jobs–and keep climbing the ladder of bigger and bigger value creation!

Recommended Reading:

• Five Steps to Freedom: How to Outsource Your Repetitive Tasks. An earlier post on how I hired a personal chef. (I don’t have a personal chef any more, but this was super fun!)
• Finding the Path Toward Your Perfect Day. If you’ve never done the “perfect day” exercise, read this post. This could be a life changer for you.
• You Are Worth More Than You Think: Overcoming The Key Reason Entrepreneurs Fail.If you have ever said, “I just don’t have enough time to do [an activity I love]“, read this post.
• Schlage keypad. Get this when you decide to hire someone. Perfect for babysitters, too. I can’t recommend this highly enough (and Amazon has the best price I’ve seen.)

Now, you may be inclined to jump head-first into creating a business. Lured by dreams of freedom and setting your own hours, you spend all of your free time researching a name and hammering out the details of getting people to your door.

But there’s a common problem that may trip you up and cause you to work long hours for low pay (not the most exciting prospect!) Here’s a good example of how that can happen, and what you can do to avoid this situation.

Recently, I had a chance to speak with Stephen Ou via email. He’s an up-and-coming entrepreneur who’s quite good at identifying problems others are having. He sent me an email asking whether I would use a new product he’s developing.

Stephen later posted an excellent blog post on his market research called “How I Got 38 Willing-to-Pay Customers Before Writing a Line of Code.” I love Stephen’s entrepreneurial spirit (especially considering he is only 16 years old!) But I noticed he has a thought process that is common with many talented first-time entrepreneurs: He’s not thinking big enough.

How many people can you serve, and how much will they pay? I see far too many entrepreneurs go after tiny markets and then charge too little to really make a difference. Follow this path, and you may end up working your buns off for a few hundred dollars a month in revenue…not a great place to be!

After reading Stephen’s blog post, I wrote him back and said:

“Cool, Stephen! I really like this. I just have one recommendation for you: Think bigger next time! You can use this same process to validate larger ideas. For instance, 10 people saying they are willing to pay for my new service, Whoosh Traffic, means a minimum of $1970/month in additional revenue for my business (and probably more.) So, how can you use this process for a product that will generate you thousands of dollars in revenue for each additional customer you bring to the table?”

Stephen wrote back with, “Great advice. It’s only my second time charging for a product–sometimes I always fear that when I charge too much, people will not see the value at the beginning. Therefore, it’s hard for it to go anywhere. Mind to share your thoughts on this?”

The Key to Your New Business: Breaking Down the Numbers

Let’s say you want to have a business that does a million dollars a year in revenue (a reasonable target–at this point, you will have employees, some work still on your hands, maybe a small office, and a pretty good salary.) Assuming you are charging $10 one-time, you need 100,000 customers a year–every year–to make that happen. That means you better be going after a market that a huge number of people are buying products in (office supplies, maybe, or cheap technology, or food.)

The problem is that many of those markets are commodity markets, where thousands of businesses are competing. The markets are crowded–you will need to find a real way to stand apart from the other companies selling similar goods. Plus you may need to support customers, and you won’t have much of a margin for that. What if other people want to sell your product as salespeople, affiliates, or distributors? You won’t have much room to pay them, and without incentives, they won’t be as motivated to sell for you. Most salespeople are not interested in selling a product for a $1 commission per product sold!

I’ve spoken about this to many entrepreneurs I see going down this path. And many will say, “But I don’t want a $1 million a year business.” If that’s you, that’s fine–but I do take a hard stance against going for a small market anyway. It’s not worth burning yourself out for less than minimum wage–an unfortunate position that many business owners are stuck in because they picked a market that just wasn’t that big.

My Criteria for Starting a Business

I have three major criteria that I look for when I start any new business:

1) The business must be something that I don’t have to explain to people–something that people easily understand. The value proposition for Whoosh Traffic, for instance, is compelling: Get more traffic to your website. That’s something that a huge proportion of businesses with websites need. It’s better to start off with a big market and then narrow it down than to start off with a small market filled with only a handful of people.

2) It’s something I can charge a lot of money for and have a relatively small customer base to be successful. When I sold my hosting company for $1.1 million, we only had 161 customers. But they were paying us an average of $425/month. That’s over $800,000/year in revenue from a small customer base. I didn’t need 80,000 customers to make that work (or 6,667 shared hosting customers paying us $10/month in revenue…can you imagine the support nightmare for that customer base?)

3) It’s scalable and systematizable. I don’t want to get into a situation where my expertise is the only “glue” holding my business together. I want any business I create to be sellable, and that means I have to create systems that other people I employ can follow, and gradually pull myself out of the business.

With Whoosh Traffic, our minimum service level is $197/month, and 55% of our customers opt for a more expensive package. Our average monthly revenue per customer (since we changed our pricing plans) is $365.73/month. That means we only need 228 customers to hit the $1 million mark. And our projections show us hitting 7 figures of annual revenue in under 2 years of being open.

Infographic by Brian Fryer.

Here’s an example of a known 7-figure business in Stephen’s niche: Premium WordPress themes. WooThemes, one of the most popular premium theme providers, now makes over $2 million/year–and their business meets the criteria I outlined above. (Note: The percentages in the above infographic are not accurate, as I couldn’t find real data on how many bloggers choose to opt for a premium WordPress theme. However, it does show the relative size of the markets in the WordPress arena.)

How Big is Your Market?

When picking out what type of business to start, seriously consider how big your market is. And instead of trying to create a market out of thin air, why not take a huge market, go for the high end of it, and pull a nice chunk out of it for yourself? Go where the money is, and sell something where there is clear, proven demand.

Also–I cannot recommend highly enough to sell a premium product and then deliver with amazing customer service. It is so much easier to support 10 customers than 10,000. And if 10 customers pays all your bills and allows you the freedom you desired when you started your business, do that. Find customers who do see the value in what you offer, and charge them appropriately. There are very few entrepreneurs who started out charging a lot and then regretted it–however, there are a lot of business owners who charge too little and now feel stuck with their businesses.

Charge more, find a way to take your business into the monthly sphere, and then overdeliver with amazing customer support, and you’ll hit your revenue and profit goals much more quickly!

Recommended Reading:

• Artsy Editor. Stephen has been a great sport at letting me use him as an example for this blog post. If you’re tired of WordPress’s default editor and its cluttered feature set, check out his awesome new product, Artsy Editor.
• How to Choose a Business. The story of how (and why) I chose web hosting as my first big business, and more criteria I look for when starting a business.
• How To Start A Business With No Money. How to get started even if you’re not sitting on piles of cash.

Tyler Tervooren and I were walking along the street toward my rental car to head out and grab the best chicken wings in town for lunch at South by Southwest.

Tyler decided to stay in a hostel directly across the river from the Austin Convention Center. And although he took the bus from the hostel to the convention center every day, he told me he envisioned renting a kayak and simply kayaking across the river. “It’s a straight shot,” he said.

While Tyler saw kayaking across the river as an interesting story, I saw it as an example of something else: something I’ve recently been completely fascinated by. I call it the 100% verbal opt-in, and I’ve lately become obsessed with documenting this phenomenon.

While “opting in” in web lingo means having a person give you their email address to subscribe to your list, I consider a verbal opt-in to be when you pique someone’s interest enough with just one or two sentences that you get them to ask, “What do you mean?” or “Tell me more.” That acknowledgement is their way of “opting in” to your story.

Not only did I become fascinated by the introductions that made people verbally opt-in 100% of the time, I started noting them when I came across them. As we walked down the street, I explained verbal opt-ins to Tyler, and mentioned that his kayak story was a shining example of a 100% verbal opt-in. After hearing that he came to South by Southwest in a kayak, it would be hard to resist saying “A kayak?” or “What do you mean?”

Pattern Interrupts: The Key to Being Memorable

If you have studied NLP (neuro-linguistic programming), you will recognize this as an example of a pattern interrupt. That is, when people meet you, they expect you to say certain things. “Hi, I’m Tyler, and I’m a blogger,” is what they’d expect–it’s all about who you are and what you’re doing. (At least in America, we’re obsessed with the “What do you do?” question–and defining ourselves by our work.) But you can pattern interrupt easily by coming up with a creative story instead.

“Hi, I’m Tyler, and I came to South by Southwest in a kayak,” will not only pique their curiosity enough to get you the verbal opt-in, but it will make you instantly memorable. Here, in a room full of web designers, real estate agents, and social media douchebags, er, “experts”, you are unique. Different. Interesting.

If you hone your pitch to the point where you can get 100% verbal opt-in, you will find yourself quickly becoming, well, famous.

You see, however, there is a catch to all of this, and it’s why many of those other people who read this article will not attempt such a feat. Going for the 100% verbal opt-in means being different. It means having unique stories to tell, and it means living your life in a way that’s slightly off from the norm.

The Courage to Be Different

If you live your life as an insurance agent, for instance, it may require not only taking a vacation to a country most people would never visit, but actually re-crafting your story, so that when you introduce yourself, you’re no longer Bob the insurance agent, but Bob the guy who went to India and climbed the Himalayas in search of a mythical healer who lived in the mountains. (If you leave the story there, you’ve opened a loop that most people will find irresistible to ask you to close. “Well, did you find the healer? What happened?” 100% verbal opt-in. Like magic.)

If you go for the 100% verbal opt-in, it doesn’t matter what you sell or who you are in your day job. You will find that people naturally gravitate toward you, that people are constantly coming up to you and saying “Have we met before?” or “You look familiar.” In a sea of sameness, you will stand out. And, not surprisingly, you will have less effort selling whatever it is that you hawk in your business–even if it’s in a commodity market.

Creating a 7-Figure Business in Mere Months

I have consulted for so many people who are scared of commodity markets. When I started Whoosh Traffic, for instance, people seemed surprised that I was starting an SEO company. “Isn’t SEO dead?” they asked me. Au contraire…SEO is a thriving market with businesses willing to spend a lot of money on it.

Before I started Whoosh Traffic, I engaged other SEO services to see what gaps the market had. I found two major gaps. One, the market was full of individuals, often from other countries, who built links to your site and then sent you a list of the links they had built. These services were generally effective, but unwieldy. You had to pay the people via Paypal, usually weekly. You had to double-check all their work and ensure they weren’t building links on the same site over and over again, and confirm that all the links they built actually were linking to your site. They were inexpensive, but exasperating–managing them required a lot of work on your part.

The second gap was more interesting. We found quickly when we launched Whoosh Traffic that many of our customers didn’t know exactly which keywords to optimize for. We quickly adjusted and started offering a free 30-minute “keyword consult” to all of our new customers. In this consult, I personally walk through keyword analysis, showing our customers how to do their own analysis, what keywords they should go for, breaking down how their competition is doing SEO, and even how to redo their website to rank better in the search engines.

This analysis has proven immensely popular, and it’s also helped us gain feedback about the Whoosh Traffic website and user interface. We’re now working with a designer to redo our website to better address popular customer questions.

What Your Competition Can’t Do

This high-touch method is one thing most of our cheaper competition will never do, and it’s why I’ve been so insistent and vocal about doing these consultations myself, even though they can take up to 10 hours a week of my time. Yes, they could be easily outsourced, but I gain so much valuable insight into how our customers work that I’ve been happy and grateful to perform them.

There’s nothing more valuable for a business owner than talking to customers and understanding why they chose you (and why they almost didn’t choose you!) It’s that high-touch difference that allows you to grow a company quickly in any market. It’s exactly what I brought to the hosting industry. And it is why I am pleased to announce that after being open for only 5 months, Whoosh Traffic will hit 5 figures of revenue this month, and will be well into 6 figures of revenue in its first year. That’s with no outside investors and very little capital invested.

Whoosh Traffic could very well be a 7-figure business within 2 years of its opening. It has the potential to be a far larger company than my hosting company. (My hosting company didn’t hit 6 figures of annual revenue until the end of its third year!)

We’ve grown Whoosh Traffic so fast with no marketing so far…all that growth is from people who read this blog. I am extraordinarily grateful for my amazing community and how so many of you have chosen to engage our services…and I am amazed when I look back and realized that it all started with one story that made so many of you ask, “How did you do that?” or “Tell me more.”

That’s the power of being memorable.

Want to get started making money online? On Monday night, I’m co-hosting an online workshop with Chris Guthrie. Chris has generated over $1,000,000 in Amazon product sales, netting him about $90,000 a year, all from websites that you can set up too (no geekery required!) The online workshop is 100% free, and will show you exactly how to get started. You must sign up to attend: Sign up here now! Don’t miss this free workshop.

Recommended Reading:

• The One Thing Successful Entrepreneurs Do Differently. One huge mistake that many beginning entrepreneurs make could mean the difference between success and failure…
• How to Read People’s Minds (And Then Create the Product They Most Desire) Two methods by which you can (almost) read your potential customers’ minds.
• How Do All Those “Idiots” Make So Much Money? Does it drive you nuts that some idiot with a terrible product seems to be constantly making sales, when you know your product is better? What’s the difference between you and that “idiot”?

My new RV!

In case you haven’t heard of minimalism, it’s a movement whereby you live with fewer material possessions in favor of spending your income on experiences. I’ve Tweeted often lately about downsizing the house that I live in and getting rid of much of my stuff, and I’ve been asked several times if I consider myself a minimalist. This blog post is where I answer that question once and for all.

Here’s what has been going on in my life lately. In November, Richard and I broke up. He moved out, and I didn’t want a 2400 square-foot house (and its correspondingly huge rent payment) all to myself, so I decided to move. I picked a 1550 square-foot house with a rent payment that’s affordable to me. It’s a three-bedroom house over near San Diego State, and I love it.

A few days ago, for instance, I went out and chatted with a neighbor, then walked to the grocery store, bought some food, walked to the bank, withdrew some cash, and walked home. I love the freedom of being able to easily walk to the places I need, and I’m putting a lot fewer miles on my car. Many of my neighbors have lived here for years, and though this neighborhood is within easy walking distance of stores, restaurants, bars, and even a used bookstore, it’s a quiet, peaceful community.

I live on a street that gets far more foot traffic than car traffic, and my office overlooks the street. People walk around and casually chat with each other right outside my window.

This is, honestly, the neighborhood I’ve always dreamed of living in–somewhat urban, middle class, conservative, with friendly neighbors who know each other and little car traffic.

On Giving Up Stuff

To downsize from 2400 square feet to 1550 square feet required me to make some tough decisions. I got rid of two whole rooms of stuff. Most of it I simply gave away on craigslist for free, and though I’d had some of it for years, for the most part I gave it up easily.

I find the biggest “sting” with giving up stuff is in the first 24 hours, when you see the empty hole where your stuff once lived. That’s why moving (especially if you’re downsizing) is a great time to get rid of all your stuff–because you’ll be so busy rearranging the stuff you have left that you won’t notice the holes, and by the time you do think about it, the emotional sting will be gone.

I’m frugal when it comes to purchases, but when I do purchase something, I typically go for the nice variety of whatever it is and haggle the price down. My most recent big purchase was a huge decision that had been years in the making–a Class A RV!

My “new” RV–a 2002 Hurricane class A (by Four Winds.)

This is the second RV I’ve owned, and it’s much nicer than my first one. My first RV was a 1978 class C that I bought a few years ago for Burning Man. Richard and I fixed it up pretty nicely; unfortunately, the engine blew on the way home from Burning Man, and that was that–almost $5,000 down the drain.

This time, I wanted to do it right. Since my last RV died, I’d had numerous conversations with RV techs and other RV owners, and I’d come to the conclusion that I never wanted a class C RV again. (Here’s a primer to the three classes of RVs.) Class C’s are the most common, but their engines are woefully underpowered.

I had originally decided I wanted a class B (van style); however, the class B’s I was looking at ran $40,000 or more. That was a problem; at $40,000, I wasn’t comfortable paying all cash, so I would have to finance. I preferred to pay cash.

I went to a local RV center and looked at the RVs there. The owner of the RV center took on RVs on consignment–in other words, he sold RVs for the owners and took a percentage of the sale. They had quite a selection.

As was to be expected, they had mostly class Cs. I inquired about the class B that I had originally looked at, but was told it had been sold the day before. I decided to look around the lot, and when I saw the 2002 Hurricane class A, I assumed it would be at least $30,000, as well.

My RV’s interior (facing front).

My RV’s interior (facing back).

Imagine my surprise when the owner of the lot told me it was under $20,000! My first thought was, “I can pay cash for this one!”

I test-drove it and realized it would be perfect. It’s in excellent condition. The class A style and V10 engine mean it will hold up better over the years than most class Cs. It’s 31 feet long, which is a lot longer than I really needed, but the price sealed the deal for me.

I’m now in Las Vegas in my RV, on my first trip out with it, and I love it. I brought my desktop computer on the trip so I could use my big monitor…which was definitely the right choice. I am using my Mifi for Internet access. I’m parked in an RV park in Las Vegas at night ($16/night!)

There are a couple things I don’t like about the RV. The major one: it only gets 6.3 miles per gallon. I filled up here in Las Vegas and it was $131! And I still had a quarter tank left when I filled it up.

There are some upgrades I need to do (I am in desperate need of a new mattress) and some that would be nice to have (subwoofer; solar panels.) But all in all, I definitely see myself traveling in it a lot.

Living in an RV, even for a short time period, really helps you understand what you need and what you don’t need. What I’ve discovered is that, through my move and my subsequent house purging, I’m comfortable with my level of Stuff right now. Being in the RV, I don’t miss the Stuff at my house, but nor do I dread coming back and facing the Stuff that is there. Your house shouldn’t make you feel overwhelmed or stressed–but I don’t feel my house does.

So, I’m definitely not a minimalist. I do own two couches, a pinball machine, a big screen TV, and an RV. But I do tend to spend more of my disposable income on experiences, and I am a conscious spender…I don’t buy things that won’t add to my overall happiness.

Now, let’s talk about the RV! I’ll be going on a cross-country trip later this year around the U.S. I’ve tentatively set it for August. I will be announcing here on this blog when and where I’ll be. Once I announce it, I’ll post some meetup times and dates so you can come out and meet me as well as other erica.biz readers! (Please don’t email me with meetup requests for my cross-country trip until then–I won’t be able to keep track of them all.)

I’m really excited about my upcoming trip. Stay tuned to this blog and you’ll be the first to know where I’m going and when!

Recommended Reading:

• Welcoming the Maximalist Movement. by Tyler Tervooren. I have a giant blog crush on Tyler. He writes great posts. This one is his take on minimalism. He doesn’t see himself as a minimalist, either. Read this one!
• True Visionaries Think Backwards. I wrote this post after my last RV died in 2007. Definitely a must-read if you haven’t dug that far back in my archives.