Burts AIS, osCommerce & More Blog
New URL: www.osworld.biz

Tuesday, January 24, 2006

What Would YOU Have Done?

The scenario You created a site for a challenge. The site sells a new product which saves peoples time and effort. The offer A person (no names mentioned, but quite well known in the Internet Marketing world) sees the site & buys the product. He then gets in touch and offers $7500 for the site and rights to the product. The dilemma Consider that the site has been up for only 40 hours at this point! To accept or not. Do you keep hold of the site and maintain your commitment to your own ideas and AIS success or do you sell out quickly and quietly? Reflection I know full well that this person could promote the site in his circles and because of his reputation sell probably many 1000s of the product. I cannot do that, as I do not mix in those same circles...I believe in myself & in AIS; hence my glass is always half-full. To get a good offer after less than 2 days of the site being live, must mean I am doing something right. The decision Though it would be a tidy profit, I turned the offer down. I believe I can make more (in the long run) by keeping the site and selling 2 or 3 products a week.

What would you have done?

New URL: www.osworld.biz - thanks!

12 Comments:

At 1/24/2006 11:17:00 AM, Anonymous Nathan Waters said...

If you believe you can more money in the long run, then I'd say you made the right decision.

Even though I haven't yet created any successful websites (I'm starting though), I have always said to myself that if the website gets to the point where it's making a nice passive income and I want to move onto something else... then rather selling the website, I would either employ someone to manage the site (or give them a % of profits).

However if I think I've pushed the website to as far as humanly possible in terms of success and profits, and I get a purchase offer of around 5 years worth of revenue, then I would probably sell and use the profits to startup another idea.

cheers
Nathan Waters

 
At 1/24/2006 11:27:00 AM, Blogger Oli said...

Obviously can't say for sure, as things might be a bit different if I had an idea worth someone offering $7500 for ;-)

I'd probably have accepted the offer, but you tend to have just a little bit more confidence in your AISing...

 
At 1/24/2006 11:38:00 AM, Blogger HCG said...

I'm inclined to agree with Oli here. A >$7500 profit in less than 48 hours is not to be scoffed at and based on what you have previously posted about cars/holidays I would have said take the money and don't look back.
You have plenty of other sucessful AIS sites (by the sound of it!) and a pretty steady income.
The $7500 to me (in your shoes) would be a bonus as a few days ago you weren't even positive you were going to launch your site for the challenge?

x

 
At 1/24/2006 01:01:00 PM, Blogger Chris H said...

Partnership!

The more networking, contacts and hooks you can get into those circles is the way to go. A partnership would go some way to set you on an equal footing in the eyes of others and probably lead to more opportunities.

If partnership was an option that is!

 
At 1/24/2006 01:25:00 PM, Blogger Cannuck1964 said...

I agree with Chris H. and look to attain some type of partnership. This will be a win/win senario for yourself and the other person. You will get additional income and be exposed to these other "circles" and he will be able to offer another product/service to these people.

I would even think on an affiliate sales approach as well if this would work for the other person. I understand that it being a new idea, that this maybre something worthwhile keeping, but if you can get a foot into this other circles, it maybe a worthwhile idea to pursue...

Peter M.

 
At 1/24/2006 01:33:00 PM, Anonymous Danny said...

Well, in your prevous post you wanted a car, a holiday and a new laptop - take the cash and run :P

On a serious note - if you think you can make money time and time again and will continue to make more money than was offered you'd be mad to sell.

Just hope the product has a long life span to ensue you can make the offer money back and more!

 
At 1/24/2006 02:36:00 PM, Blogger Gary B. said...

Some great ideas - thanks guys!

I think that I made the right decision, but, you know what? If it crashes and burns then what have I lost? Potentially 7.5k, but as I never had it in the first place, yadda yadda.

I guess if I had sold it, I probably would have won the Burts Challenge ??

 
At 1/24/2006 05:31:00 PM, Anonymous dreamscape said...

You say "He then gets in touch and offers $7500 for the site and rights to the product." By "rights to the product" do you mean that you own the Intellectual Property (IP) and he was offering to buy the IP from you?

If so, you made the right choice. $7.5k to buy IP rights on a product is a bit of a joke. It is a very good price on a new website or IP on a design or something like that, but for IP of a product, you can get better deals than that.

Heck even music publishers, who have some song writers barely scrapping by, cannot get most writers to give up all the IP to their songs. It usually goes a 50/50 ownership. You would have to be dumb (or dumb about IP) to give up all your rights for a one time small sum of money. (many people do just that though, but I think you'll find that they then regret it later on). The only industry I can think of that it is common for people to give up the rights to their work for a one time small sum is graphic design, and that is only because it is expected, and if you don't the client will probably go elsewhere where they will give up the rights. All other industries, it takes a pretty large sum to get someone to give up their rights, if they're smart that is ;)

Now, $7.5k for the site + retain 50% IP ownership... now that might be a deal to consider, but only if the guy had the ability for wide distribution (50% IP is not worth just a little more exposure... that might be worth 10% - 15% IP).

 
At 1/24/2006 11:35:00 PM, Blogger richandzhaoyan said...

Firstly, Congratulations Gary.

I reckon that unless someone has got something seriously stunning up their sleeves, the 7.5k would have blown away the competition!!

Should you have taken the cash - well, without knowing how much you are charging for the product and how much of it you are likely to sell, its impossible to say.

What I would say is that if this project went from idea to fruition within the last month or so, then keep up the good work. If you can dream up another 6 or so similar earners in the course of the year, you should be onto an absolute winner.

With regards to not being fully within the super-affiliate circle - stick with it Gary. I am sure you are moving a step closer with every forum/blog post. I can see by the different posters on this blog that your following is growing and so long as you can keep coming up with valuable advice and sensible aff links, I have no doubt your status will continue to grow rapidly.

Well Done Again,
Cheers,
Rich

 
At 1/25/2006 12:41:00 AM, Anonymous One Dollar A Day said...

Ah, nice one burt...I just saw your sig on KWA ;)

I'm thinking if you're not selling the site, get an affiliate scheme up and running and this guy who made the offer might become a "super affiliate" :)

 
At 1/25/2006 09:33:00 AM, Anonymous Aitch said...

How much time did you spend building the site? How much is your time worth?

With my project, I’ve been playing around with it for just over a year now and if it started to generate an income (at long last!), this would be based on ‘organic growth’ so to speak, so I would stick with it and continue to push it forward.

If I created a site real fast, and it made a few quid within the first 40 hours, it’s not possible to know if those sales were a fluke, or just a bit of good luck. It might be the case that no more products get sold for the weeks or months to come despite the fact that the product or service is great.

So, if I knocked it up in no time at all, and got the offer to sell for $7,500, just days after the launch, I’d most likely take the money and run. I’d probably then continue to punish myself by monitoring the success of my project in the hands of the new owner!

If the site took a long time to create and a lot of though and commitment went into launching this project, I’d be over the moon with the instant successes and treat that as a taster of things to come. Therefore, I’d stick with it.

To summarise: “Oh I don’t’ know!”

Aitch

 
At 1/25/2006 09:48:00 AM, Blogger Gary B. said...

Cheers Guys :)

I am pretty sure I made the right decision, only time will tell :)

I think I have now found someone who can properly market the product in the right circles, for a fee. We're basically discussing things.

The site has started to get a few more hits from other forums now (the "hidden" marketing forums that I am not a member of), so it seems to be spreading by word-of-mouth recommendation...

It's all good!

It remains to be seen if this will win the Burts Challenge though! Obviously more details to be revealed about the site and product when the Challenge is over (February 1st)...

 

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