Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

Friday, September 09, 2011

Monetizing a Site

As some of you know, I teach courses that involve Web 2.0 technologies such as blogs, social networking, and other such material. For me, it is critical to be involved with some of these because it keeps me up to date on the stuff I am teaching. After all, if I am not staying involved with these things, how can I speak to their effectiveness, ease of implementation, and details?

I'll definitely talk about this in my Internet course this semester, but I felt like it might be a good idea to put some information out about how people make money off of Web sites, even if they are not selling products or services online. Here are three ways a Web site can make money with no risk, and links to sites I have personal experience with.

Advertising: Google has a program called AdSense, which allows a Web site owner to sign up and set up an account to display ads. Through a pretty straightforward step-by-step process, they are given the option to choose how invasive they want the ads to be. For example, you will notice I have a few small ads on this site. Through Google's Blogger service (which hosts my blog for free), it is even simpler. For other sites, Google will give you some HTML code that you embed in your Web site. If you don't know what that means, your Web developer will.
From my own experience, I've been running this blog since 2006. Google will send you a check after you make $100, and I haven't received a check yet. If I were being paid by the blog post, I'd probably be making about 20 cents a post. If my goal was to try to make money, I could choose to display more ads, or make the ads more prominent. I am also displaying blog entries in my Facebook account, so I assume many of my students are viewing this through Facebook and don't even see the ads, which also cuts down on possible ad revenue. In terms of keeping myself fresh with the technology, I will usually hop on and change the format a little bit before I talk about it in class. This way, I can speak about the latest version of Google AdSense from my own personal experience.
Is Google the only site that allows you to advertise? No. However, Google is pretty trustworthy. There are other, less ethical sites that allow users to display ads and may pay more. However, some of them use some shady business principles.
In general, if you are a small Web site, Google AdSense allows you to easily connect with advertisers without having to worry about doing much work.

Affiliate Marketing: Sites such as Amazon and Walmart offer affiliate marketing. Affiliate marketing basically allows me as a Web site owner to provide links to Walmart or Amazon. If anyone clicks on those links and buys something, I get a small percentage of that sale. Amazon Associates is among the most popular. Users can log in and get a personalized link.
Users can link directly to a product, or just to the main site. Amazon requires a minimum payment of $100 before they will pay you. Again, I may reference it once in a while, but I've never received a check from them because I really don't push for clicks. I have a small link on the right hand side of my blog, and will once in a while go and build a link to stay on top of things.
Sites that really want to monetize may even ask their users to click on the Amazon link they have provided if they are going to buy something anyway, as it will help support them. The more a user sells, the larger a percentage of fees they get.
As a member I see (sometimes on a weekly basis) how they are changing the program. Amazon and some states are in court because of Amazon Associates. The short form is that states are suing them because states feel this program should compel Amazon to charge sales tax. Looooong story there.

On-Demand Publishing: Sites like CafePress allow users to upload a logo. Once the logo has been uploaded, you can decide what you want it to be on. Do you want it to be on t-shirts? mugs? underwear? You then choose how much markup you want to ad and provide your users with a link to the site. This is a great option for a company that does not want to risk buying t-shirts and then having them not sell. As a matter of fact, one of my students last semester mentioned he set up a site like this for one of his high school organizations. I've got a small site on there I haven't played with in a few years, but it's kind of a neat way for Web site owners to create shirts with no overhead, or for artists to make logo shirts, mugs, and other items.

If you have a Web site or are an artist of sorts, these are some options available to you.

Wednesday, June 22, 2011

Dining on a Budget

I enjoy saving money, and I also like food. A good intersection of these two interests is the Web site restaurant.com. I've been using this site for a number of years, and it's a pretty good site if you want to save money and try new restaurants. I know people see things like this and think "scam", but I've been using restaurant.com for years.

For example, my girlfriend and I went down to Baltimore in January. Rather than break the budget, we decided to see what restaurants were close to the hotel we were staying in were on the restaurant.com Web site. We purchased some gift certificates, and saved somewhere around $150 on food.

Here's how the site works. As a consumer, you go on their site, you purchase a gift certificate to a restaurant, and you use it. Different restaurants offer different types of certificates, but the ones I see most commonly are $25 off any purchase of $35 or more, or $10 off any purchase of $25 or more. A $10 gift certificate costs $5, and a $25 gift certificate costs $10. By that math, if I went to a restaurant and got $35 worth of food, it would cost me $20 ($10 for the gift certificate, and $10 for the difference between the gift certificate and the bill). Even that would be a pretty good deal, but restaurant.com also does one other thing that makes it a great deal. Generally, they have some code or another you can use to save even more. For example, right now they have a deal where you can take 70% off any order. So, going back to our previous example, that $20 gift certificate would cost me $3 instead of $10, and the $10 one would cost $1.50 instead of $5. Therefore, that $35 bill I mentioned before would cost me $13.

Now, restaurants can do things a little differently. Just a quick look at the site shows some restaurants do a deal where you can get a $100 off a $200 purchase for $50 (and, if you used one of the common 70% off coupons, a $200 order would cost you $115). Some restaurants charge a little more for their gift certificates, which make it less good of a deal, and others don't let you use them on weekends. However, it is a nice idea if you are looking to try a new place, or travel. They will apparently make it right if a restaurant you go to stops accepting them (I've never had that experience). Gift certificates don't expire, so you can use them or trade them in if a restaurant stops accepting them.

If anyone owns a restaurant, you can sign up with the site as well and offer the gift certificates to your site, though I can't speak to that experience, it seems like a nice way to get people to come in and try your restaurant.

You can generally find the discount codes if you sign up for their e-mail list, or if you visit their Facebook page.

Tuesday, March 15, 2011

The battle for online sales tax

Funny, we were just discussing this in one of my classes, and now it jumps in to the news.

There are a number of ways to make money online. Advertising is an obvious one, along with having a Web catalog. There are always sites that do on-demand publishing like CafePress where someone can design shirts and link to their store there, and CafePress handles the printing and shipping.

One of the other ways has traditionally been affiliate marketing. This is the type of thing where I can link to someone else's site, and they give me a percentage of any sales generated by you clicking on the link. Many companies, such as Overstock and Amazon have these types of programs.

For example, I have one that I don't push through Amazon Associates here. That link takes you to Amazon, but if you bought something, Amazon would give me a small percentage of it. This is a great program, with very little risk to either side. Amazon makes money, so do I, and my users may buy something they were going to buy anyway through the link.

However, this has also been at the center of a big war. This is not a new war. However, online retailers do not need to charge sales tax to residents of a state in which they do not have a physical presence. So, take NewEgg. They are located in California, so they are required to collect sales tax for anything sold to California residents. However, they do not have a physical location in Alaska, so residents of Alaska do not have to pay sales tax on NewEgg purchases. Of course, companies like WalMart and Best Buy have been fighting this for years, because they feel like it puts them at a disadvantage. State governments don't like this either, but a Supreme Court decision (Quill v. North Dakota) from 1992 said companies without physical locations in a state do not have to charge state sales tax (this ruling was for mail order catalogs).

With many states in dire financial situations, this has become even more of an issue. Some states have made the argument that if a site has affiliates in a state, they now have a physical location in that state. Since I live in New Jersey, this would mean Amazon now has a physical location in New Jersey and must charge sales tax.

To me, this is a very loose interpretation of the law, but a number of states have passed laws to require any companies with affiliates in their state to collect sales tax. Amazon's response has been to just end the program in the states that pass this type of legislation. Amazon terminated the program in Rhode Island, North Carolina, and Colorado, so anyone who lives in those states can not be affiliates. Amazon has been doing battle with New York over this issue, and (to summarize the legal blah blah blah) the state basically now has to prove that having an affiliate in a state is really the same as having a sales representative in a state.

This is now even more newsworthy because Minnesota has a bill in the Senate that would try to collect Internet sales tax. The article linked also states that Minnesota made $20 million in income tax from Amazon Associates, so they are on the brink of losing the program.

In addition, the governor of Illinois today signed into law a bill that did the same thing as other states, and Amazon predictably cut ties with affiliates in those states. I am not sure if the Illinois government really expected anything different, but now Amazon Associates is no longer available in Illinois. Walmart, as a company that already charges sales tax to everyone, is pushing their affiliates program, since this is the only option some people have.

If the government really wants to do this right, maybe the original law needs to be revisited, because it has become a big staring contest.

Thursday, October 07, 2010

Charging for Web design work

One of my former students emailed me to ask about freelance Web design work, and how much to charge. This is always a very difficult question, and I don't know many people who are comfortable setting rates coming out of college.

Keep in mind that companies will pay what sounds like a really high hourly rate because they are not subject to the overhead that their regular employees have, such as health benefits, office supplies, and other such items.

The difficult part in freelancing early on is figuring out how long things will take. I found as a programmer I had no sense for how long projects would take me to do. People would ask me how long things would take, and I would think it should be a 2 hour project, and I would spend 25 hours on it. I developed that sense over time. Classes like Systems Analysis and Design were great in theory, but when it came to applying the lessons, I fell a little short.

Customers don't really want to pay based on how good you are, so generally, customers should not see your hourly rate. I would suggest creating some base packages. For example, a 5 page Web site should cost X, a 10 page Web site costs Y, etc. You want to be clear with a customer what they are paying for. I found a company that does something like that here, for reference.

You can see they have a base package for $600. For a basic 5-page site, $500-$750 seems to be the going rate. This would generally include the basics of meeting with them, gathering content, designing it, having the user test it, fixing the errors they find, and making the site live. In reality, the technical end of the work will probably take less time than the other components of the project.

Other stuff that is extra, and this is where I would run in to issues. If the customer wants e-commerce stuff, or they want Flash animations, that would be stuff that would cost extra. When they describe the requirements, that is when you have to determine the cost of it. If they describe a Flash animation, keep in mind that is rarely a two-hour gig. Flash animations, Web programming, and e-Commerce projects should include testing and bug fixing time. There have been times where I wrote a program in an hour and then spent 5 hours trying to hunt down a bug. Flash programmers can charge rates of $50-$75 an hour, so a site that is heavy on customization like that will be more costly.

What is very clever is that there is a maintenance package is $50 a month for two hours worth of work, and additional hours are extra. You may want to offer options like "10 hours of updates over the next year for $250, or updates at an hourly rate of $40" rather than constraining someone to a number of hours in a month. By offering a package deal, you may have someone pay for the 10 hours even if they don't need them, just because it looks like a better deal. Also figure most updates will be small changes, so a lower hourly rate is fine.

You can of course work with people on price. There are people I've been eager to work with, and made allowances for them.

You also have to decide if you are going in to the hosting business, or if you are going to arrange for the customers to host things elsewhere. I generally would not want to get in the middle of a transaction between a customer and a Web hosting service. If this is the case, make sure you provide them the username and password for the site. Even if they don't use it, it's professional to make sure they have access to this. I've dealt with people who have no clue about this, and if they ever need to change hosting sites, it's a pain for them. Same idea goes for the domain name purchase. You can direct them, but you probably don't want to be the person in the middle since domain names do need to be renewed.

If you are not doing the hosting yourself, you have to assume some customers may have a URL purchased and a hosting agreement, and others will not. If the customer does not have the infrastructure in place, there is some startup work you have to do to get them up and running, and that may be something you want to charge for. This may be something you want to charge $100 for.

I would recommend the customer set up a billing arrangement directly with the hosting service (like godaddy). If you end up in the middle, your credit card is the one the hosting service has on file. If, however, you are planning on hosting sites yourself, that is something different.

You should always have some sort of portfolio available. For my PCCC students, your capstone project can be a start, but you may want to expand on it and upload it to a server somewhere.

The main problem I think most customers have is that they don't understand that you don't provide content. When they pay for a site, you are taking their existing information and turning it in to a Web site. You will need to meet with someone in their organization, and they should be providing you electronic copies of the information they want on the site. Some customers think you are going to actually write the text for the site, and (unless you want to do this) it needs to be made clear that this is their responsibility, and that you don't provide proofreading services.

As you get better at doing basic Web sites, you can probably get things done quicker and therefore make your business more profitable. You can also change prices as you go along. Notice the site I linked above also includes a year (2010 rate card). You can always change rates yearly (or project to project).

Monday, October 12, 2009

Amazon Associates Program and interstate commerce

In my CIS 152 course, we recently discussed some of the ways a Web site can make money. We discussed "affiliate marketing", where one site can advertise products on another person's site. The example we discussed was Amazon Associates.

Amazon's program is relatively successful, as far as these things go. For example, I as a person with a Web site, can advertise their products like this:



...and if you were to click on that link and buy something I'd get a (small) percentage of the proceeds.

We also talked about the oddities of interstate commerce, such as the legal mess that is wine.com's shipping policies. There are many different laws in different states, and it's tough to keep track of. When New York changed laws to require all residents to pay sales tax, though traditionally you only had to pay sales tax to companies that had a presence in your state. I knew other states would follow suit. North Carolina decided to do something similar, and it's affected the Amazon Associates program.

Any people living in North Carolina are not eligible for this program now, as of June 2009. The laws read that you couldn't tax any company that doesn't have a physical presence in your state. North Carolina decided that if there are Amazon Associates in North Carolina, that qualifies as a "physical presence", so they wanted Amazon to start collecting sales tax on all purchases.

Amazon was not interested in collecting sales tax on all purchases in North Carolina, so they decided not even to bother with North Carolina. Now, since there are no Amazon Associates in North Carolina, there is no physical presence, so there is no reason to collect sales tax on purchases made in North Carolina.

Obviously, Amazon hopes people are outraged enough to run to their Congressmen and have the law changed...but at the moment, North Carolina is out.

Following this, Amazon also made this program unavailable to residents of Rhode Island, also in June 2009, for the same reasons.

I think eventually laws will be amended to tax all Internet sales, but as we've discussed in my course, the laws are almost always behind the technology. The interstate commerce law was first passed in the 1960's, and this is what happens when you try to apply a law written 50 years ago to technology.

Wednesday, July 15, 2009

L Millz and Corporate America

Lastings Milledge is a baseball player who is currently a member of the Pittsburgh Pirates. He also is someone who can teach people a valuable lesson.

Milledge was drafted in the first round of the major league baseball draft a few years ago - twelveth overall This basically means he was judged as one of the top 12 amateur players in the country in 2003. That is talent!

I remember when he was a top prospect with the Mets ... Someone they envisioned being a superstar.

Milledge made it to the major leagues quickly, and was the youngest player in Major League Baseball for a while in 2006. Just for reference, some players drafted in the same year as him haven't made the majors yet. He played decently for the Mets, but despite that, they traded him to the Washington Nationals, in exchange for two decent but not as talented players.

The Nationals are the worst team in baseball today. One would safely assume they would be doing everything in their power to acquire talented players. However, they just traded him to the Pittsburgh Pirates for a less talented player.


Welcome to baseball purgatory, Lastings!

Basically, despite being super-talented, two organizations have given up on him - one of them being the worst team in the league. Why does that happen?

Here are Milledge's comments, as told to the Pittsburgh Post Gazette:
"Maybe I get too comfortable sometimes around veterans, and I think that maybe might rub some people the wrong way," Milledge said. "I'm just not the typical rookie guy who comes in the clubhouse and sits there quietly. I joke around. If you've been in the game 15 years or one year, I'll mess around and joke with you. That's just the kind of person I am. I like to communicate with everybody, Latins or whites or blacks, whatever. [...]
I think that rubbed people in New York the wrong way. I know I rubbed Billy Wagner the wrong way. But that's who I am."

Now, it's entirely possible that he was stuck with a bunch of jerks on both teams...though unlikely. For two teams to give up on a talented player, it's likely that he rubbed a lot of people the wrong way, to the point where both teams gave up on him and got rid of him, and got less talent in exchange for him in the trades.

This is in stark contrast to guys like Derek Jeter, Jose Reyes, Albert Pujols...they are extremely talented ballplayers as well, but the difference is, they have never been traded. Why not? Because they not only are talented, but they also have gone out of their way to adapt to the culture around them. It's very egocentric to expect a company, or a team, to adapt to you. Companies won't waste their time.

There is a lesson in corporate America here. I see a lot of students who are really good (both in the IT major and outside of it), and some of them are almost arrogant about it. If multi-million/billion dollar corporations are dumping talented baseball players over concerns they have with attitude, what makes you think a company won't get rid of a talented network administrator (for example) because they are annoying...or late...or rude?

With all the things we teach in our classes, this is one thing you can't teach. Be nice. Smile. Avoid "yeah, but...". Take a little crap at first, even if it means staying late or doing something a little outside your job description. Hold your criticism, or give it out in small bits, spun in a positive fashion. If you are going to be at a company for a while, remember, you can't change anything overnight. If all you do is complain that things can be done better, remember that by doing so you are saying that the job everyone else is doing at the company is not as good as your idea. People think that's presumptuous. Eventually, you can start to make changes, but if you come in the door as a pain in the ass, you'll be out the door pretty quickly. It's a delicate balance, to be sure.

I was one of 13 full-time faculty members hired by PCCC in 2003. I was one of 4 that didn't leave or get let go in the first five years. Did I do things I didn't want to do? Yes. Did I do things I wasn't hired for? Yes. Did I teach two nights? Yes. Did I go out and pick up dessert for meetings? Yeah, a few times. If I had given "no" answers a lot, I'd be back at my old company, making a lot more money, but enjoying it a lot less.

Self-righteous is easy. Putting ego aside is hard, and if you can do that, you can help yourself keep a job. Sometimes, when you rub other people the wrong way, and you know why, it's an opportunity. "Hey, maybe I should work on that character defect" is much better than simply saying that "corporate America sucks".

Monday, March 09, 2009

Resumes...resumes...resumes

The best way to get your foot in the door is of course ... to know someone.

But, barring that, a resume is nearly a requirement for many jobs, and having a good one certainly would give you a leg up.

If you are a student at PCCC, one of the first things I would do is contact the Career Services office. They can provide some of the initial guidance that you would need to set up a resume.

Larger companies will typically use a resume parser to automatically cut down on the amount of resumes they review. That's right - a human might not even see your resume! These software packages rank candidates based on the job criteria. This is why it is important to get your resume checked out by someone with some expertise, because they know what keywords to put in there.

It's also important to make small changes to the resume to emphasize the skills they are looking for (this also can be done using a separate "cover letter").

People majoring in the Information Technology program, for example, may see an ad that says "Security+ certification required". Why do they put that? Because they are getting a lot of resumes and someone told them "get me someone with Security+". If this keyword does not show up on your resume, guess what? You're not getting past the parser software.

One way around this, especially if you have other certifications, is to throw the keywords in the resume. Let's say you have a SSCP certification - this is similar in content to the Security+ exam. If you read an advertisement and it says "Security+ required" - don't just assume that the person will figure out that your certification is similar. You're trying to get in the door!

If the ad asks for something specific, I'd change my resume a little to make sure those keywords show up. For example, if you formerly listed SSCP, change it to say SSCP (similar to Security+ certification). This way, the resume parser doesn't ignore your resume.

Likewise, even if you don't have the certification, you can say that you are studying for it - for example, you could put under your education that you are "Currently pursuing Security+ certification". Of course, if it says "required", a human might still parse you out. However, if it said "Security+ preferred", that might be enough to get you in the door, if your resume fits the other qualifications.

All of the tips I really have are for tweaking and changing resumes - your first start should be to get your resume looked at by someone - like I said before, Career Services does good work, and the woman in charge (Adrienne Wolff) seems very good at what she does. If you're not a student or have graduated, you can always pay for this service (Google "Resume Consultants"). You may say "$200 is a lot of money!!". However, if this gets you a job paying $5 an hour more than you make now...or if it gets you a job when you are unemployed...it may be an investment worth making.

Thanks to David Csuha for getting me thinking about this.

Saturday, December 13, 2008

Netflix and data mining

In a few of my classes, the topic of data mining came up.

Basically, it comes down to taking existing data and drawing conclusions from it. This can be seen, for example, if you have an amazon.com account. Amazon shows you suggestions of other items that you might be interested based off of what you are viewing. The way that is done is through a process called data mining.

Basically, it doesn't take a genius to say if someone buys season 1 of a TV show (say, House, M.D.), they may be interested in season 2 of that same TV show. However, if you like House, M.D., you might also be interested in something that may seen completely different - let's say, a Sherlock Holmes mystery. Amazon can tell that by taking everyone's past purchases and analyzing what people who bought a certain DVD liked, and comparing that to your past.

There are many other places where this happens - for example, credit card companies use data mining to guess if a transaction is fraudulent or not - based on your purchasing habits. For example, my credit card was rejected when I tried to go skydiving, because based on what I've charged, they thought that it was so out of character for me that they blocked the transaction, and I had to call in and verify that it was indeed me.

Another place that this happens is on sites like Netflix and Blockbuster Online. Of course, they want you to enjoy movies, but the underlying reason is so that you come back and stay a subscriber. Therefore, it is best for them to have a good data mining algorithm in place to show you movies (and therefore keep you subscribing).

As a matter of fact, if you can provide them a better algorithm than they have, you can be eligible for prize money - up to a million dollars, if your data matching algorithm is substantially better than theirs.

Web Link:
Thanks to Brian E. for the heads up!

Friday, October 17, 2008

Fat Fingers

When people post to Ebay, there are often times when they make a spelling mistake in the title. This is a way to find yourself some bargains. For example, if you search for Nitendo (instead of Nintendo) on Ebay, you will find a ton of results currently for people who misspelled these item titles. If I were looking for Nintedo DS games, for example, I'd find things at a much better price if there were less bidders, and if there is a typo, there will be less bidders.

There is a Web site called Fat Fingers (typos can sometimes be called "fat finger problems") that will search Ebay for typos and return a set of results with typos in the same. The net result should be a set of bargain auctions. If you're looking for something, it can't hurt to try!

Web Link:

Wednesday, October 15, 2008

Blog Action Day 2008: Poverty

Today is Blog Action Day 2008. It's basically a coordinated effort by 10,000 blogs around the world to all discuss an issue and raise awareness of it. This year, the blogs are uniting to put a spotlight on world poverty. At first, I thought that this is a little outside of the scope of things I usually discuss.



However, I thought about it a little bit and I realize that it really is within my scope in many ways. I am blogging from the "have" side of the digital divide. The digital divide is basically the idea that the world is divided in to two groups - those who have technology and the ability to use it, and those who do not. My students and anyone reading are reading from the "have" side as well. Even if you don't have technology like computers in your home, you have access in other places - school, libraries, even while visiting friends.

We're incredibly fortunate. Many of us have cell phones (and most of my students remember to switch them off during class, so thank you all for that!). Some of us have iPods or other portable media player devices. Some of you have global positioning systems (GPS), so you don't even have to worry about getting lost when you're on the road. Even if you don't have that, we now have Google Maps or Mapquest or any of the other mapping Web sites that make this available.

I think we take these things for granted when there are places all over the world where people don't have these things.

Poverty, hunger, the digital divide...all sorts of things that most of us are on the good side of at this point. We've got roofs over our heads, food in our stomachs, and Internet available all over.

Speaking of hunger - there is a site sponsored by many different companies - if you visit the site and simply click on a button, well, at the end of the day, the number of clicks leads to food being given to the hungry and poor in the world. This site is 100% legitimate, and if you want to do more, any purchases you make through the site lead to more food being given to the hungry.

I guess the purpose of Blog Action Day was for not only the readers of the 10,000+ blogs who signed up, but also the authors.

Web Link:

Monday, September 01, 2008

Freelance Computer Repair - How to Get Started

I was reading a post over on The Simple Dollar, and the site founder answered a question about how to start doing freelance computer repair. I figured this might be something worth posting here, since I assume some of my long term readers are former Information Technology majors.

First things first: Remember, you have an advantage over places like Best Buy's "Geek Squad", or Staples. Why? First of all, price. For the Geek Squad to visit you at home or in the office and repair the computer, they are charging $75 to $125 an hour. I don't know about you, but I can't see myself paying $400 to repair my home computer. You have a HUGE advantage in terms of price.

Secondly, many of you speak multiple languages. Staples or Best Buy may or may not offer that advantage. If you are bilingual (or trilingual, etc), that can only work to your advantage.

Thirdly, you have the advantage that, since you are in effect working for yourself, you care how the customer responds to you. If you help them, word of mouth can be very powerful for you. If you can fix their problem and help them out a little bit, they will tell their friends.

So, how do you get started?

Post Flyers
You can start by downloading a basic Word template with the little tear-offs down bottom (or, if you have Publisher, use the templates in that software). Remember, not everyone has computer experience, so list both a phone number and an email address. Do you speak multiple languages? Make sure you put that on there. Same with transportation - can you drive to them? Also, remember, people are concerned about cost - you may want to quote a price (more on that later) or simply say "why pay more money to Staples or Best Buy?". If you want to set up a basic, cheap Web site on a site like Geocities, do that.

Where should you advertise?
There are 7000 people attending PCCC, for example. If you advertise on campus, you have access to all those students (plus faculty, staff, administrators, and visitors). Remember, you have to get them stamped in A202A first, but they typically are very accommodating. Many local businesses will let you hang flyers as well, if you ask. Think of places people wait - a laundromat, a busy restaurant, train and bus stations, etc.

How much should you charge?
Well, this is entirely up to you. How much is an hour of your time worth to you? There are other factors as well. Are you doing something basic (like running a backup for the user)? Are you doing something more complicated (virus removal)? Remember, you are offering a premium service. I would say BARE MINIMUM ask for $30 an hour, and feel free to go up from there. If the person is nice, you can always cut them a break.

How do you keep people coming back?
First of all, be nice. Secondly, get it done right. Thirdly (is that a word?), go the extra mile. If you've cleaned up a virus because they didn't have a virus scanner installed, install a free virus scanner, and make sure they realize you are saving them $75 that they would have otherwise spent on packaged software. If they call you for something complicated and you fix it, ask them if there is anything else that annoys them, and help with that. Ask them to tell their friends.

How do I really build my business?
Get a Web site. You can do something free and very basic on a site like Geocities.com or one of the other 10,000 free Web hosting sites. If your business starts picking up, you might want to invest in your own domain name. Another way to invest in your business - you can get a free or inexpensive voicemail number, so people aren't calling your cell phone and interrupting you. eVoice.com is free for a basic service or $4.95 a month for the "Plus" service that includes a local phone number. Business cards are also a great idea - you can leave them with your satisfied customers, or hand them out. I've found VistaPrint to have excellent prices.

Hope this helps - I've gone through versions of this discussion in some of my classes, and I've always wanted to put it online here, and now here it is. Do you have questions or suggestions? Something else that worked for you? Please add them in the comments and I can address and/or add them.

Thursday, June 26, 2008

The Economics of Cereal

Kellogg's is dealing with "rising costs" not by raising prices, because we'd all notice that, but by shrinking boxes of cereal. In other words, you will still pay the same amount for a box of cereal, but now you're getting less cereal in the box.

The interesting part is, many people will not notice. This is the reason they do things like this.

Link to article