Internet marketing guru Daegan Smith is an interesting character. A brilliant marketer with a colorful background (ex wrestler, failed internet marketer, now reborn), Daegan recently told the story of how his million dollar a year income went down the gurgler due to problems with payment processors. They stopped paying him when their exposure to his escalating sales gave them the heeby jeebies. So they pulled the plug. Just like that.
That was several years ago and Daegan being Daegan simply brushed himself off and started all over again. After closing down his flagship membership site Maximum Leverage three years ago, he recently announced to the world that it was open for business again.
Has Daegan Smith changed? Maybe, maybe not. His lack of attention to detail is legendary and certainly if his error strewn emails are any indication it appears that nothing much has changed.
But that’s ok. Daegan is a creative guy and when he is at his peak he is hard to beat. He is one of those rare marketers who has great perception. To solve a marketing related problem he knows exactly what the real issues are – he’s very good at peeling away the layers and getting to the heart of the matter. And coming up with a clever solution.
Anyway recently I got an email from Daegan and in his rambling way made a devastating critique about people who seek to make money in a home business, particularly an internet style business. Take a look at some of his points:
“Don’t ever start a business and either not know who your customer is or just look for sales from anywhere – both will crush you.”
He then goes on to talk about purpose or the lack thereof of most marketers………
“Because most people don’t start a business with a purpose. They start a business hoping that they might get lucky. If we want to really get down and dirty to the nitty gritty the truth isn’t even the first cause of failure for most. Most people fail because they violate the first of the four universal laws of marketing. That being, profit demands value. Most do the opposite.”
The last big point he makes is brutal, but so accurate……..
“They move in direct opposition to the first law. They want to buy into someone else’s value then they want the best system that someone else has created for that business and the make sure they’re in the best team. Every one of those choice is moving away from creating value, so don’t do that.”
See how he gets to the heart of the matter? The problem with most marketers is that they go looking for an opportunity when the real opportunity lies with us – we’re the ones who should be creating our own value and projecting it to the world. And we don’t do that by buying into someone else’s value, thereby transferring control from us to them.
Once that happens we’re at the mercy of THEIR decision making abilities, THEIR judgement (a couple of bad calls can bring a business down) and THEIR moral code (are they wolves in sheep’s clothing? What happens when the pressure is on? Do they take ethical or legal shortcuts that will hurt us?)
Does that mean that we shouldn’t join a network marketing business or an affiliate marketing opportunity? No, it does not. What it DOES mean is that it is sheer folly to invest our hopes into a single entity that we cannot control. It means that you must be constantly creating your own value via your own personal brand building activities so that if one day you have to say goodbye to ‘the favored one’, you can do it without too much disruption and pain.
Ultimately the way forward is to develop your own products and market them direct to consumers or via affiliates (with no network marketing aspect.)
Anyway, thank you Daegan Smith for such a perceptive ‘take’ on the home business industry
No doubt about it, Daegan is on the money – he nailed it!
(But why oh why do you force us to watch your Maximum Leverage sales video without giving us the power to at least pause it when we get interrupted? Infuriating, and it treats us like dopes. Not smart, Mr Smith.)
Read my next post in this series here – Investing in Someone Else’s Value Rather Than Your Own
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I've been an online marketer since 2006. During that time I've learned alot and made a full time living from month 1. I established this site to share my knowledge with you. Who knows - maybe you will change your life, just like I have.