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MJ DeMarco
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So I was reading a great entrepreneur thread over at Reddit that @JasonR provided and the topic got downvoted pretty bad because he wasn't very forthcoming with his website address and his product. Of course, the "Redditors" called it a calamity, and even some started to say he was in some type of MLM.
Years ago when I owned my business, I used to frequent another forum. Back then, the business was routinely generating 6-figures monthly in profit. (PROFIT, not revenue). As I participated in the forum more and more, the more and more I was queried for my website's address.
I refused each and every time and here's why:
As you know, any executed idea thrown out on the internet is ripe to be taken, copied, or borrowed. It's not unusual. The spirit of entrepreneurship is to take an idea, and make it better. Improve it. Efficiency. Convenience. Whatever that is.
However, what usually IS NOT KNOWN, is how much $$$$ that idea is making. If someone discloses "I'm making $200k/mo doing this and here's the website!" - then immediately that idea has placed a target on it's back.
The result is new competitors that enter the space, most of which, cannot execute on the idea.
So what's the problem with that? Competition is good, right?
While these competitors aren't a threat in the long term, they threaten the short term in the form of:
IMO, the danger isn't disclosing the idea, but disclosing how much $ the idea is generating. This gives wantrepreneurs an insight into what's possible WITHOUT exposing them to the process of making it happen. In other words, they see "EVENTS"! (Wow, that site is making how much??)
Of course, the above isn't true for products/services that have strong entry barriers, or for concepts/ideas that aren't easily replicable -- those barriers usually are enough to keep the idea-hoppers away.
The point of this post is to explain WHY some people are a little wary about disclosing specifics about their company, their website, and their profits.
In the end, I always thought publicly disclosing my business and attaching profit figures to it was like letting a bunch of mosquitoes into my bedroom -- yea, they won't kill me, but they will bite me here and there, and ultimately, annoy the f*ck out of me.
Years ago when I owned my business, I used to frequent another forum. Back then, the business was routinely generating 6-figures monthly in profit. (PROFIT, not revenue). As I participated in the forum more and more, the more and more I was queried for my website's address.
What is it?
What do you do?
Please tell me!
Can you link to your site?
I refused each and every time and here's why:
As you know, any executed idea thrown out on the internet is ripe to be taken, copied, or borrowed. It's not unusual. The spirit of entrepreneurship is to take an idea, and make it better. Improve it. Efficiency. Convenience. Whatever that is.
However, what usually IS NOT KNOWN, is how much $$$$ that idea is making. If someone discloses "I'm making $200k/mo doing this and here's the website!" - then immediately that idea has placed a target on it's back.
The result is new competitors that enter the space, most of which, cannot execute on the idea.
So what's the problem with that? Competition is good, right?
While these competitors aren't a threat in the long term, they threaten the short term in the form of:
- Increased PPC / ad costs (they flood the same ad space you're in, driving costs up.)
- Increased customer service (Hey, did you see xxxxyyyy.com? Is that you guys?)
- Business model damage (After they poorly execute the same business model you're doing, it can impact your business model -- "Eh, we tried that shit, it don't work.")
Of course, the above isn't true for products/services that have strong entry barriers, or for concepts/ideas that aren't easily replicable -- those barriers usually are enough to keep the idea-hoppers away.
The point of this post is to explain WHY some people are a little wary about disclosing specifics about their company, their website, and their profits.
In the end, I always thought publicly disclosing my business and attaching profit figures to it was like letting a bunch of mosquitoes into my bedroom -- yea, they won't kill me, but they will bite me here and there, and ultimately, annoy the f*ck out of me.
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