Reading back through forum conjecture about me, I had to laugh at some of the assumptions guys made about my riches. Several surmised that I owned a “service.” Others thought I was getting paid on a click by click basis. Still more assumed the ad fees on this site were way higher than they actually were or that I got a piece of every guy who walked in the door. Mostly, everybody was off the mark.
First, let me say that this blog was never a big moneymaker. I founded it simply to ventilate on the frustrations of dealing with many difficult people. It was not designed to make me rich. That had already happened from selling advertising. But I wasn’t the only entity doing that. So how come I amassed wealth when people like Somad, the infamous advertising agency which got busted wide open several years ago, was actually in poor financial condition? It was the business model.
While not officially designated as such, I was in effect an advertising agency. Clients came to me to advertise their wares (such as they were), and I organized their campaigns, built their ads, and wrote their copy. Your typical advertising agency – no matter how small – will have an office, copywriter, art guy, sales person, techie and receptionist at the very least. Guess what! I had none of those. I performed all the aforementioned tasks myself – and out of my apartment. In effect, I had zero expenses beyond what I was already paying in living costs. Making 30% on up to infinite commissions (when Craigslist ads were free), you can see how with enough clients, I generated a lot of profit.
The publication of my short-lived though immediately profitable sex tabloid “Escort Consumer Review” held a similarly successful business model. Initially, I had two worthless partners sharing the profits. But as soon as I realized I didn’t need them and/or they weren’t living up to their contractual obligations, I kicked them to the curb.
Printing cost about three grand. And I had a layout guy to whom I paid $1000 per issue. I sold most of the ads (or gave a 30% commission to agencies who did some selling for me) and wrote the entire paper. Piece of cake. Even with letting the distributor take all the money from the sale of the paper, I was banking right from the start. Again…no office and only one employee.
What with the distributors trying to close in on my copious ad revenues, I dumped the paper and went to a blog. Beautiful! No print bill…and no layout guy. I became the webmaster and effectively eliminated virtually all the costs. All monies that came in stayed in. Gotta love that!
There was yet another secret to my success (such as it is or isn’t). I’m a cheapskate who doesn’t spend anything and doesn’t care about material bull shit. And I have no dependents. Talk about a winning combination to achieve financial glory.
A while back, somebody mentioned the term “business model.” I laughed out loud. As in “Business model! I got yer business model right here” (crotch grab)! “Schmuck on a bike. That’s my business model.” It’s only now in retrospect that I’ve come to realize what a magnificent business model I actually had. Funny thing about that!