Magic
from a Hat-
Robert Christopher Hall,
President and CEO, Momentous.ca Corporation
"Making Money on the Internet"
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Internic.ca Corporation is a domain name registrar. Their "pixie dust" is their name-- anyone who knows anything about the net knows to look up the name 'internic' (internet nickname). Also they keep their web sites very simple to use and understand and they are much focused on doing one thing really well. If they want to add a second function, they start another site. Rob Hall. |
1. Robert has been involved with the net since 1984.
2. The difference between having a J.O.B. and being an entrepreneur is the ability to create value independent of the founder.
3. Computers can do just about anything; it just depends on how much time you have to invest in it. The key to a successful internet business is making sure that the time invested in creating the service or product is justified by the return.
4. The net at its most basic level is just a bunch of people agreeing to allow their networks to talk to each other using a common protocol. No one person or corporation 'owns' the net.
5. The internet changes on an announcement.
6. You need to be able to adapt to change overnight.
7. When you sell a net business, sell for cash. Know who you are selling to- make sure they are real.
8. Partners- you only want a silent partner or investor. Don't have any partners who actually make any business decisions. (It'll only slow you down.)
9. Echelon started 1 year after the sale to Hook-up. A 1 year non-compete agreement is long enough.
10. Rob used guerrilla marketing to get Echelon started- a booth at a local shopping centre, Home Show, etc.
11. Monthly billing is key. That way, you don't need to hit a home run every month. Recurring (monthly or annual) revenue (like the cable companies and telcos) is a requirement.
12. Once you get a client, sell them more services.
13. Get on as many web sites as possible (but don't pay for it). It isn't how many sites you link to, but how many link to you.
14. Alta Vista will show you this number and who they are.
15. Don't compete on price. Compete on services. Create your own sales channels. Create multiple entities- be your own competitor.
16. Putting your competitors out of business is a good thing.
17. Most people buy on perception.
18. Listen to your customer service people because they are closest to your customers.
19. They will tell you how to automate what they are doing. (Reverse
out the work: "Your customer becomes your sales rep," Federico M.
Carmosino, Eric Sprott
20. We sell net utilities- domain names, hosting, banking, credit card services.
21. We have 120,000 clients all reachable by email overnight- for free! You can contact your own clients- no privacy or spamming issues here.
22. We contact our clients once per month- not more because it could become a nuisance.
23. You can often find the resources you need to start a business by networking.
24. Give all employees an employment contract.
25. Hire a good lawyer.
26. Do a shareholders' agreement: "I never want to be shareholders with your wife."
27. Use NDAs.
28. Don't go 50/50 then no one controls the business or has ultimate responsibility for it. Try 50.5/49.5 or 40/15/35.
29. Trademarks and patents can be effective in protecting your IP. If you catch someone taking your protected IP, you get their entire profit.
30. "Banks are not your friends." "They only lend money to people who have money." "People can be courageous. Money is timid."
31. Guerrilla marketing for the net- use Press Releases and Stunts.
32. Momentous registered jeanchretien.ca to hold for the use of the Prime
Minister. Every newspaper in
33. A company who wanted to hire some Nortel engineers printed their ads on sugar packages that were used in NT cafeterias.
34. Don't sell people once and then they go away. Find something they need every month or annually.
35. The music industry should just charge everyone $10 a month for all the music they want. They would get a huge return instead of trying to run after every Napster.
36. Put your servers where, for example, you don't have to charge your clients local taxes-- the net is a global market.
37. The key to the web is to automate everything. You can not touch each person individually.
38. Automate and do it in RT (Real Time).
39. Solve a client problem. Sell up. "Do you want fries with that?" is a classic up sell. "Do you want to know what other people who bought this book also bought?" Amazon.com.
40. Managing growth is the No. 1 problem. Plan ahead for space, phones, etc.
41. Hiring people is one of the most difficult challenges. Don't be afraid to replace the original people with better ones as you grow. (Move up the food chain.) Don't fill top positions until you can afford the best.
42. Don't be afraid of layoffs. Lay people off and then be quiet.
43. Manage your time. "The only thing I would buy more of is time," Bill Gates.
44. Be realistic about how long things will take. Everything takes time.
45. Manage your cashflow-- listen to your CFO.
46.CFOs are a good balance for the entrepreneur-- they keep you in check.
47. Live on what you make.
48. Hire young people and train them yourself.
49. The internet is all about making money when you are not there.
50. Don't be afraid of someone who says it can't be done-- think: "One less competitor for me."
51. Jack Welch said: "People laid off should thank me-- they were not going to cut it here. They can go elsewhere and do better. The ones who stayed should also thank me-- I protected their jobs" One analyst said it is wrong to make those types of layoffs. Welch said: "I guess that is why she is an analysts and I'm the CEO of the largest industrial company in the world."
52. There is only one rule in the internet business-- there are no rules.
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