The Official Internet Marketing Sweetie Blog

Friday, January 6, 2006

Stop Complaining and Make a Change

I am going to write something that may not be popular, but if it offends you in anyway, it probably means that I’m writing this for you. I’m writing this to help you…not to criticize or belittle you. I want every entrepreneur to continue to grow throughout his online career and sometimes when we don’t accept change…we stop growing. I don’t want that to happen to you.

Lately, I’ve seen a lot of online service-based business complain that cheaper alternatives are driving them out of business. I’ve seen virtual assistants angry that anyone would work for US $10 per hour. I’m surprised by that anger because $10 is above the minimum wage in every single state in the U.S. and province in Canada . Yes, I know running a VA business carries expenses, but many people working online just want enough to be able to stay home, instead of trudging to a crappy job. Good for them for being resourceful.

I’ve seen article writers and article distribution services annoyed that new software and automated process are cutting into their bottom line and causing them to lose clients. It seems the hay days of getting paid $100 plus per article are gone…or are they?

If you’re letting your business die because lower cost services are coming in – it’s time for a wake up call. Complaining isn’t going to get you anywhere, except possibly bankruptcy. As more and more people come to work online, there’s going to be a lot of people working for what you think is chump change. As programmers get more creative with technology, more processes will become automated.

A smart business person will make competition irrelevant…or as irrelevant as is humanly possible. If you are trying to get your typical “Internet marketer on a budget” to hire you for $25 per hour to answer his emails…you probably will lose out to the moms who just want to earn an hourly wage to stay home with their kids. But if you set yourself apart and target a market that doesn’t want to nickel and dime and perceives more expensive services as more professional --- your client list will grow. If you have satisfied clients paying $25 per hour, they can always refer more clients who will pay $25 per hour.

If you’re a writer and you think it’s fair to charge $100 to write an article (and honestly…well written articles ARE that valuable), realize how much money you could be making by writing articles for your own use. Plus, you don’t have the headache of dealing with clients.

This is the realization I had to come to in 2003. I was a copywriter for hire. I didn’t charge top dollar (and a few copywriters complained to me about that)…but I wasn’t at the bottom of the heap, as far as rates went. I thought if somebody would pay me $75 to optimize one website page for them…why was I wasting my time letting them earn the residual income from it? If someone would pay me $150 to write a short page of sales copy…just how much money were they earning from it to make it worth their while?

After thinking about that, I decided to quit taking clients and focus my efforts on using my own writing skills to earn me residual and passive income. Now, I make about 5 times much as I did back then and I work a lot less. Best of all, I have no clients do deal with. You see, when hire yourself out for pay…you have to keep working to earn that pay and it can be a real drain on your time and energy.

If you’ve been complaining about external changes affecting your business, really think about how you can change your own approach to make it work for you. Every business has to evolve to keep up with changing times. After all, McDonald’s did once say they’d never offer a veggie burger. ;-)

14 Comments:

Anonymous Anonymous said...

Alice- As always you bring up some really great points!

12:31 AM  
Blogger Monty Loree said...

Nice article:

Successful/wealthy people have a wealthy mindset. Instead of complaining about not making $100 per article or making $10 per hour, they ask themselves, "how can I write articles that are valued at $100?"

If you take the time to figure out how to write $100 articles, you'll start to make $100 per article. It takes time and hard work to learn.

Thanks Alice.

6:15 AM  
Anonymous Anonymous said...

OH NO!! This is Alice reposting Connie's comment. I accidentally deleted it when I was trying to make changes to my own comment. I'm really SORRY!
---------

Great Subject,Let me be the Devil's advocate here.

Just to preface, I am not a VA, however, living in a major city in Canada, a person with the skill set of lets say a VA (since you used that example) would not be payed minimum wage. More likely, they would be payed at least double. They may be whining out of fear that they have to go back to their crappy job paying $17 + because they can't survive on $10 us.

I'm still trudging to my crappy job because it pays $20 + per hour (still working on getting that out of my online projects - taking a little longer than I had hoped LOL!)It's human nature, no one likes a pay-cut. I am just now beginning to use affiliate programs.If one day I receive an e-mail from any of the merchants telling me they are reducing there payout, I would be lying if I say that I would be okay with making less money - and I may choose to drop them.

Keep in mind Alice, that in CanadaWelfare programs pay nearly as much per month as working a full month on minimum wage - sad but true.

Connie

11:24 AM  
Blogger Alice said...

Great comments, everyone. Derrick, I enjoyed your blog post.

Connie - I absolutely appreciate your point and agree with your overall thoughts. However, many companies pay an individual with a VA's skills minimum wage while other companies appreciate the skill-set and pay much higher. I'm not sure exactly what you do, Connie...but I'm willing to be there are people out there doing what you do for $8 per hour. That's the nature of the workplace market. Some companies pay well and offer great benefits and some don't.

So take that online. Some clients are willing to pay a high rate, while others are not. If people want to get the higher rate, they need to seek out that client-base that is willing to pay. And they are out there for sure. That's what I'm encouraging people to find.

11:25 AM  
Blogger LP Vintage said...

Well said, as usual, Alice! I think the book, "Who Moved my Cheese?" deals with a similar theme to your article.

11:26 AM  
Anonymous Anonymous said...

Hmmm, accidentally erased it eh! LOL

Actually Alice, I work for a large Investment firm, have worked for several companies within this domain, and the receptionist make double $8.00 and hour minimum.

Alice, I believe you live in Vancouver. I have friends living there and I can tell you that they have a higher wage than in Montreal where I live. So, no I will have to respectfully disagree that anyone works for $8.00 an hour even as an entry level worker in office work.

Thanks for the opportunity to voice my opinion.



I have worked my may up to this position, however, and I have worked for my firm for over 10 years.

11:38 AM  
Blogger Alice said...

Yes, I live in Vancouver. ;-) That's why I stated the $8 figure - we have the highest (in my opinion, pathetic) minimum wage in Canada. Plenty of people work at this level doing skilled and stressful jobs - here's some statistics. I didn't see information on clerical or administrative workers, but it's just not the point of what I'm trying to say.

I'm not trying to argue what people get paid or what they should get paid. That was just an example.

I'm saying that you need to decide what you want to earn and make it happen. If you want $25 per hour, you don't apply at McDonald's or a fledgling company that can't afford to pay their clerical workers more than minimum wage. The same on the net - you've got to find the right people to hire you.

Connie - help me about a bit. I'm not sure what you're trying to get across. Are you saying that no Canadian should accept $10 US per hour online? I wouldn't accept that for myself, but I have no control over other people's situations and what wages are acceptable for them to continue in their lifestyle. For some that is $10 per hour and for others it's more and for other's it's less. We don't know what expenses they have; what kind of job they came from or anything. All we can do is find what we need for ourselves.

That's all I'm trying to say here. I will never be able to change what wages other people are willing to work for - but I can change the way I run my business so that I am paid what I deem myself to be worth.

12:07 PM  
Anonymous Anonymous said...

Alice,
That is my point, I used the example of VA's because you mention it in your post.
They are skilled labor and, in my opinion, 10$US hourly is barely covering their expenses. That's about $11.65 Cdn.
I agree wholeheartedly that you should only accept what you feel you are worth.
As to the minimum wage in this country which ranges from low 6's to a high of what $8.50...it is not, again in my opinion, a 'living' wage. Who can survive in our major centers on 7 or 8$ an hour????
My brother lived for many years in Dallas, where he built a beautiful home just outside of the city center for one quarter of what it would cost us in any major Canadian city. Where are the people you know living in Vancouver on $8.00 an hour?
You seem to be making the point that 10$US is more than fair seeing as though our minimum wage is below this figure. That is what I take issue with. If you are offering VA work at 10$US an hour -of which they still I assume are paying taxes, expenses, etc. then no that seems very low to me. Again, just my opinion, and once again I am not a VA, and don't know any VA's.

1:07 PM  
Blogger Alice said...

Okay, I'm getting you a bit better, but no, I'm not saying $10 per hour is fair as a blanket statement. I'm saying that if someone wants to work for that and it is enough for them to cover their expenses and live the lifestyle they wish to, then that's their prerogative. I definitely don't determine what's fair...the person who is looking for work determines what is fair for them.

1:21 PM  
Anonymous Anonymous said...

"Lately, I’ve seen a lot of online service-based business complain that cheaper alternatives are driving them out of business. I’ve seen virtual assistants angry that anyone would work for US $10 per hour. I’m surprised by that anger because $10 is above the minimum wage in every single state in the U.S. and province in Canada . Yes, I know running a VA business carries expenses, but many people working online just want enough to be able to stay home, instead of trudging to a crappy job. Good for them for being resourceful."

Alice,

Perhaps you did not mean it as was written or maybe I am reading the above incorrectly - but your statement

"I’m surprised by that anger because $10 is above the minimum wage in every single state in the U.S. and province in Canada"

seems to go directly to what I responded to - so what if it is barely above what the CDN and US gov't pay for minimum wage, both figures are too low to live on.

Perhaps they are upset because they have left their 'jobs' have built a nice niche for themselves on the net, and now find that there incomes are being cut 50 - 100% because the market will no longer support $20 + an hour for VA's.

Your right in that they can choose to be angry and do nothing but whine or they can move on.

But I read the above quote as - you should be greatful as 10$ is above what minimum wage is in both countries.

I see this 10$ figure all over the net not just in context to VA's it seems to be what the market wants to set itself at. That's great for those of us that use VA's as there is a flood of people willing to work for that low amount. For the VA's that were paying their bills on let's say 15 - 20$ it is no longer a viable business for them to stay in and they either have to look back outside of the home for work or find a more profitable area of the net.

Part of the problem with VA's, Article Writers, Copywriters etc. is that all their 'eggs' seem to be in the one basket therefore when the market 'falls' they are no longer able to support themselves.

Well, LOL! I have nothing more to say on this - I have said more than I ever intended.

Have a good week-end

2:59 PM  
Anonymous Anonymous said...

You have raised great points and I couldn't agree with you more on this topic!

I love how you just say it like you feel! GO GIRL!

3:35 PM  
Blogger Alice said...

Heya Connie. I appreciate the discussion and I'm sorry that I'm coming across as saying that $10 is good enough for anyone. I'm sure there are other silent readers who are feeling exactly the way you are.

My point in saying that it's above the minimum wage (nearly double of some states - and nearly 4 times the minimum in the state of Kansas) is that it is a step-up for some people who were earning less in their every day jobs. I applaud them for being able to improve their lives and supporting their families. Personally, I do think they can even do better for themselves, but I have no control over what people decide to do for a living and how much money they earn doing it.

You said your brother lived in Dallas and needed 1/4 the money to buy a house. Dallas is a fairly big city and the cost of living in different cities varies widely across Canada and the U.S. My friend, who lives in a small town in Tennesse, told me that if you make $2,000 per month you're considered to be "raking it in". My friend in a small town in Michigan owns a house that is valued at about $80,000, while the average house price in Vancouver is nearing a half a million dollars. You see, just because I live in Vancouver and need more money to survive, doesn't mean that I can demand that others require the same.

This is a global marketplace and if we want to survive in it, we have to adapt and make sure we keep moving ahead in our businesses. I think you agree with me on that...especially from your last comment. I hope you don't think I'm saying people should lower their rates to adapt...no...no...no! I wouldn't say that. They need to adapt their business, so it can survive at an income level they're accustomed to.

Ultimately, a VA who charges $10 vs a VA who charges $25 are not competitors...and I think that's where a lot of people get stuck.

3:52 PM  
Anonymous Anonymous said...

Great post and some interesting comments.

Here are my thoughts as someone who works from home in a global marketplace.

1. The intensity of competiton is accelerating online.

If you want a happy long term future as a VA or you offer a service onine you need to accept what "is" happening now and anticipate what will happen next.

Forget minimum wage and what is acceptable to you. Be more concerned with improving your marketing to stay ahead.

2. Competing on price is not a viable long term strategy in a global marketplace.

You are not only competing against others in your town or state. You are competing against individuals worldwide.

There is a reason why white collar jobs have left North America for India.

$20 an hour might be acceptable to you but to someone in a small Indian city it is fantastic. Plus that person may well have a faster internet connection than you have, a better education and a willingness to work harder and longer than you will for that $20.

3. Differentiate your service

When you are perceived as unique you can set your own price. Specialise in your chosen field and you become even more valuable.

4. Go where the money is

Like Alice said, decide how much you want to earn and go find a way to make that happen.

Target industries with high profit margins - they can afford to pay more and they will do so gladly for someone as capable as you.


5. Be positive

There are amazing opportunities online and offline for anyone who is ready and willing to seize them.

To do so you need to become better at selling your service.

Keep investing in yourself and you´ll be the next success story.

3:23 AM  
Blogger PetiteMommy said...

You bring up a good point and I agree that $10.00 an hour to some people is great and to others it is not...it all depends alot on their situation and the cost of living where they live.

Where I live ( small town in KY, USA), minimum wage is $5.45 per hour which is very low and if you get $8.00 for a low-skill job such as a secretary/admin assistant then you are doing good...

When running an online service business you need to be realistic and in my opinion expect to earn less because there is so much competition and some people are much more willing to do the work for less. Maybe it all depends on the quality of the work you want done...

10:43 AM  

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