First, read this story from Forbes:
Back in 1994, at the ripe old age of 9, Johnson launched his first business out of his home in Virginia–making invitations for his parents’ holiday party. Word of his skills spread, and by the seasoned age of 11, Johnson had saved up several thousand dollars selling greeting cards. He called his company Cheers and Tears.
But the little guy didn’t stop there. At age 12, Johnson offered his younger sister $100 for her collection of 30 Ty Beanie Babies, all the rage at the time. The young entrepreneur quickly earned 10 times that amount by selling the dolls on eBay Smelling potential, he contacted Ty and began purchasing the dolls at wholesale with the aim of selling them on eBay and on his Cheers and Tears Web site.
In less than a year, Johnson banked $50,000–seed money for his next venture, My EZ Mail, a service that forwards e-mails to a particular account without revealing the recipient’s personal information. He hired a programmer to flesh out his idea, and within two years My EZ Mail was generating up to $3,000 per month in advertising revenue.
Johnson still wasn’t done. In 1997, he joined forces with two other teen entrepreneurs to create an online advertising company called Surfingprizes.com, which provided scrolling advertisements across the top of users’ Web browsers. Those who downloaded the software received 20 cents per hour (a tiny fraction of the value to the advertiser) for the inconvenience of having ads splay across their computer screens.
The boys employed a classic pyramid strategy to spread the service: Users who managed to refer Surfingprizes.com to a new customer would nab 10% of that new person’s hourly revenue.
But Johnson and company didn’t just want to sell software–they wanted a piece of that juicy ad revenue too. Their solution: partnering with such companies as DoubleClick, L90 and Advertising.com, which could sell the ads for them. Under the agreements, these middlemen would collect 30% of any ad revenue sold, while the three boys split the remaining 70% (less those referral fees).
“I was 15 years old and receiving checks between $300,000 and $400,000 per month,” says Johnson. At 19, he sold the company name and software (but not the customer database) to an undisclosed buyer. Says Johnson, “Before my high school graduation, my combined assets were worth more than $1 million.”
After spending less than one semester as a freshman at Virginia Polytechnic Institute, Johnson caught the business bug again. With a pile of unwanted gift certificates, he and friend Nat Turner launched a business called Certificateswap.com. Their strategy: lower prices. While gift certificates routinely changed hands on eBay, the auctioneer charged a healthy fee–“up to 13% of the cards’ value,” says Johnson. “We took only 7.5%.” Johnson and Turner sold CertificateSwap.com in 2004, when Johnson was just 19, for an undisclosed “six-figure” amount.
Now just 24, Johnson spends his time lecturing on entrepreneurship and making television appearances as a finalist on ABC’s Oprah’s Big Give and as the host of BBC’sBeat The Boss. He’ll also be serving as a business expert on a new Animal Planet series beginning in May. “Put yourself out there,” he advises. “Don’t be afraid of rejection. Don’t be afraid to ask anything.”
Here’s the problem.
If you’re like me, you read an article like this and go “Uhhh okay, fantastic, so where did he get all these ideas from?”
You’re excited at the possibility, and inspired, might even have the work ethic or the connections, but have no freaking clue how you come up with business ideas.
I mean come on, he went from Beanie Babies to $400,000 checks from owning an advertising company.
In the ultimate guide to starting a biz to fund your freedom I talked about the biggest stumbling block for most people who want a start a business: having no bloody idea what kind of business to start.
I mean, you’ve got people in four categories of businesses usually:
#1 People with skills from a previous job
The guy who used to work at a business firm and used the skills he learned to branch off and be a consultant.
Bloggers who end up consulting SEO or Social Media strategy, etc.
#2 People with generic skills they learned in life that they turned into a profession
Life coaches, diet & fitness people, etc.
#3 People who set out to deliberately learn skills and then capitalize on them
“My journey” type businesses or blogs. “How I cured my < insert chronic illness > “, “My journey to trophy wife status” “My weight loss journey,” or people who entered a field of study because it helped a problem they had.
#4 People who solve a need for themselves or society
Cameron talked about how he had tons of unused gift cards, so he created a swapping service.
User entrepreneurs, in fact, make up about 50% of the successful startups that survive beyond 5 years.
This is a remarkably consistent theme among some successful entrepreneurs — ideas don’t even need to be crazy out of this world ideas. They just needs to be useful.
In any case, you’re probably like me – you want to go in business for yourself, you’ve read and heard success stories, you probably read The Four Hour Work Week 385 times… however you know exactly no one currently doing it and living it.
If it’s apparently so easy and so possible and there are so many successful people (There aren’t, by the way, we just hear the success stories), why can no one read a story or book and when they get successful say: “Yep, I just followed xxx book or xxx person’s advice and I made it.”
I often question the value of continually reading success stories. Beyond inspiration, are they actually useful?
So here are my questions to you: Do you think that following successful people’s advice can help make you successful?
Do you think that maybe the advice they would give while they’re struggling to succeed is different from the advice they might give when they’ve already succeeded?
Are there underlying principles behind most successes, beyond just the generic “Work hard” and “persevere” ?
Are some just magically gifted with business sense and an early predisposition towards entrepreneurship?
Beyond the basics and first time advice, how much value is there in reading about other people’s success?
Leave a comment below and let me know what you think —