Important Financial Advice for Every Aspiring Internet Business Owner
I’ll say it as plain as can be, Don’t quit your day job.
Work your internet business around your day job. Be sure that your internet business produces a full time income (or replaces your present full time income from your day job) for at least three months. And have a three month (at least) cushion of savings for emergency and the unexpected. Budget for everything to cost 20% over what you thought it would cost.
I’ve learned all this the hard way. I’ve barely paid the bills. I’ve laid awake at night concerned about money. I’ve brought the calculator to the grocery store. I’ve wanted to make expenditures which I couldn’t afford, and had to deny myself. And the reason is because I have relied solely on my internet business income.
Here is the big take-away that I want you to get from this post
You, like me, have chosen to create a better life for yourself. You have a vision for yourself and loved ones. That doesn’t mean life has to be miserable during the process of change. In fact, it shouldn’t be. If you don’t have a solid financial plan for daily living while you’re implementing what you learn, life is going to be harder than necessary. It’s that making it “harder than necessary” which often leads to failure.
Now on the other hand, if I would have taken the advice I have given in this post, I’d be sitting pretty. Well…not sure about “sitting pretty” but I’d not be in a situation where I was “worried” about money.
Here’s the thing, if you’re concerned about money and trying to grow a business (whether internet business or otherwise) and being relied upon as the provider for a family (like I am) then you’re putting a lot of pressure on yourself. That kind of pressure isn’t good for a lot of reasons. You want to be free and easy as opposed to up tight and concerned, as this creates attraction.
Here’s my story, and a big mistake that I made
Two years ago I resigned from my middle school English teaching position that had full benefits, summers off and earned me a decent living. But I was burned out, wanted something entirely different and way to over-confident (or maybe it was naiveté). I got two part time jobs and made it work — barely. It wasn’t pretty and all to often I was stressed out.
I don’t know anyone who “wears” stressed out that well. I was short with my significant other. I skipped out on family events to work my internet business and for a period of about a year and a half, I let my physical health slump.
Even when I was contracted by Marketing Merge Inc and was paid a consistent salary, I had to move across the country with a six month old; had to live in a teeny tiny double studio and didn’t fully consider the rise in daily living costs that came with a major metropolitan city.
So now… as I am more clear and focused as ever; now as my earning potential has never been greater and now that I understand what it takes and what has to be done to operate a successful internet business, I’m getting a full time job.
Here’s the logic:
The monthly expenses for my internet business are about $450 (that includes internet). And I want to outsource a writer or two as I scale. There are always one time expenses, upgrades and design work that come up. Every cent counts.
You can’t simply take every cent that your internet business earns and put it in your personal pocket. At least that’s not my approach. The money that my internet business earns, I want to reinvest or save for my internet business. This savings will be needed for ambitious growth and future projects i.e. paid advertising like Pay Per Click and Facebook Ads.
This means that I need to (and recommend) keeping my internet business income separate from my “living” income. But without a daily j.o.b. where is that “living” income coming from? This is where I see people getting into trouble. This is where I have stressed and learned the hard way for the previous two years. And since I’m committed for the long run to my internet business, the smartest move I can make is to get a daily j.o.b.
What Does this Mean for My Internet Business Now?
It could mean things move slower. In fact, they probably will, but I’ll be happier. It could mean that I fall off the radar of for some people. That’s okay, I’ll be back and have a completed internet business model for them to enter.
At the end of the day, you have to put your family first, your well being first. Generally this means that you’re also putting internet business first and operating under best practices financially. That’s certainly the case for me. Getting a daily j.o.b. for me will separate my internet business from daily living costs. It means that I will be able to save money again. It means that I won’t feel a “need” to make money via my internet business because if I don’t the amount of money I spend on groceries is affected. That’s a terrible way to live and altogether not necessary. Finally, that lack of financial stress means I will “feel” more “free and easy” to operate my internet business in an attractive manner.
How many of you agree? Have you experienced this?
Stay tuned over the coming weeks as I write more in-depth about financial matters as it pertains to an internet business. I see way to many people out of work and relying on their internet business hopes to change their financial predicament. I see way to many people (like me) who resigned from their career prematurely, and facing financial stress at the long end of the tomorrow. This can be avoided with patience and planning.
Eric,
I worked full time online for over a year and came back to a full time job. I enjoy my internet business so much more now and am free to make decisions based on wisdom and not desperation. Thanks for sharing this article and what you’ve been through.
Jeremy
@Jeremy Henderson,
Hey Jeremy, thanks for commenting. I remember when you went back to a full time job, and I also recall how much of a relief it was for you. It’s because we love our families so gosh darn much! I have thought about you through this decision making process. Like I say in the post, this was an early lesson I ignored. We were working together pretty closely when you went back to work. I should have followed suit. Anyway, upward and onward. This is a good move all the way around for me, and as usual, I’m trying to tell it how it is here at this blog.
Hi Eric,
Solid advice indeed!
I have a full time job while building the cornerstone of my internet business empire
Sometimes it’s frustrating when a boss’claims’too much of your time which you would rather spend elsewhere.
It is then also very likely that you neglect important areas in life such as family and health.
I have made a decision to get of my chair more;Always active and sporty,the last while my laptop and the accompanying chairs have seen way to much of me!
Proper balance is very important so,thanks for your advice and I look forward to the next’episodes’of your wisdom!
Have a fantabulous day,
Jan
@Jan,
Yes, I have that routine down now. For over three months now, I have been in the practice of weight training and running and biking. Every week, five days a week, I get a good sweat or a good pump. And it feels so good. Balance and time away from the computer is so essential. Here’s another one: reading books. Not necessarily ebooks either. I’m talking about “in the recliner” books from 9pm til 10 books that make for a good night’s sleep. Thanks for commenting.
Eric I can totally relate. The fact is you have the knowledge,experience and a detailed plan so when you decide to forge ahead you will have the funds to crank it up quickly. We all know that all the big time dudes outsource to some point or another. Having another source of income will help fund that marketing funnel and business dream of yours. I applaud you for sharing this with us.
Ed
@Ed,
It’s weird but believe it or not, I consider getting a day j.o.b. as “forging ahead” with my internet business. Sort of a parallel move, but an essential move nonetheless. Thanks Ed. Great to hear from you.
Eric, I believe you are doing the right thing by seeking work. It takes the pressure off of you that you need to get your internet business up and running as soon as you wake up in the morning. Then there is more pressure in the back of your mind when you’ve spent hours on the internet, but not enough income coming in. It stays in the back of your mind all day long and puts undue stress on you. At least when you land a job, you will have a sense of accomplishment and well being. You will be much happier and like you’ve said, you will be more focused on your internet business without the stress.
Let us all know what kind of job you land! Good luck my friend.
@George,
I appreciate that George. No one wants to be in the pressure cooker. Not a good way to live, and isn’t that why we choose to do this in the first place (so we can raise our quality of life). I tell you honestly… it’s more attractive to me to work three or four hours a day on my internet business and go to a daily j.o.b. for 8 hours without pressure than it is to work 12-14 hours straight on my internet business with pressure. Here’s the kicker, after observing how I work for over a year or so, I’ve learned that I am just as productive in 4 hours as I am in 12. As always, I appreciate your comments.
Very sound advice indeed if I may say so myself! Nicely written Eric!
@Barb,
You did so say yourself
Thanks Barb. Love ya.
Eric,
I’ve known you several years now through MM and you have always been a forthright and upstanding guy. I watched from a distance as you went through the same growing pains as all of us and I have admired your honesty and integrity when you failed (as we all have). I have been working my internet business for 2 years while working full time. You find the time to carve out to work it because now you have a purpose and every day you get up and go to work is just a reminder to you of how you DON’T want to be doing that the rest of your life. So in a way, a job helps you realize how much you want to succeed in your business. Being financially stressed is not fun and I have been there so I know. In order to concentrate on your business and truly build it the way you want, you cannot have the distractions of trying to “make ends meet” at the same time. Desperation is obvious and people will immediately grasp onto that. I am happy for you and your decision Eric. I look forward to watching your business grow and your success. Someday we can look back at all of this (maybe with drinks in hand) and say “I remember when”. Good Luck to you Eric.
@Anita,
Yep. I agree. Another aspect of having a job is, for me personally, it helps with structure. I may spend 10 hours in front of the computer, but only 4 of them are truly productive hours. With a job, I know that those 4 hours have to count, and the there is the priority list to achieve before heading to work. It’s a different mindset.
Hi Eric,
Great advice! Most tend to rush and quit their job right away. If their foundation is not that strong they may easily get frustrated and quit. They should consider having multiple streams of income instead of just relying on their internet business. It takes time to build an empire.
More power to your job and business.
Be well and be wealthy.
Rich
@Rich,
Thanks Rich. Well said. You’re correct about the power of multiple streams of income. It’s funny because you always hear people talking about multiple streams of income, but no one ever mentions that a daily j.o.b. counts too. Here’s a cheers to another source of income.
Eric,
Excellent advice. Melana and I have applied that exact same wisdom ourselves as we built our businesses … a couple of times.
Stay healthy, stay focused, and keep the vision alive. It’s just tough to do that when financial stress is overpowering.
Not only have I done it myself, but I share it with my coaching clients. So many people need to hear that advice (and the really serious ones often come to the same conclusion).
It’s one of the reasons that I created the “Quick Start No-Fail Business Plan for Entrepreneurs”, my free ebook and guide. It makes people think about the importance of funding the business they are building.
I love reading about your Journey to Success!
Michael Wilson
@Michael,
I just opted-in for your “Quick Start No-Fail Business Plan for Entrepreneurs” ebook and guide. Looking forward to reading it. It’s ironic because the more money my internet business makes the more I’ve realized the need to get a daily j.o.b. I appreciate your comment Michael. I have found that as my business consistently makes money, at this point in time, it’s not enough. But it’d feel so much better if I was simply working and that internet business income was a healthy supplement that I could reinvest into the business to scale and grow. Yes, I’m serious and that seems like a mature conclusion to come to.
Thank you for your honesty Eric. The same reasoning can be applied to starting out in Network Marketing too. I have a friend who was very successful at selling real estate but gave that up before he had a steady income from NWM. As a result, he became needy and his NWM biz failed. He lost a lot of confidence and self-esteem in the process – and he is a single man without dependents! Yes, I do agree, don’t give up your job until you have another steady stream of income.
@Helen,
Oh yes, I’ve seen many a network marketer quit their job too early. It’s tough because as you say a person loses their confidence. When confidence is lost, a lot more is lost inside of a person. It takes stability and time to regain that mojo. Stability can always be found in a daily, consistent and supportive (predictable) check from a daily j.o.b. I’m in this for the long term, and at 34, I’m just realizing how long I have in front of me. Call it patience or maturity, I feel good about this.
Totally with you on your very transparent blog post, Eric.
My family juggled all our resources as a three some. Yes, that being between me, my son and husband. And you want to know the honest truth? My son’s best friend included. We learned to act as a mini economy of sorts to work this thing out managing our finances in the most creative ways possible. If you only knew. It was an amazing set up of trust and valued relationships to pull off what we did.
All woven in between this was a do-or-die make-it or break-it attitude. And you know what? Between the four of us — we did it!
That’s really the story behind The Renegade. I didn’t do it alone.
Heck no! Are you kidding??!! I worked my behind off making HUGE sacrifices (time spent weeping because of lost time with my youngest son) and all with this ridiculous over the top drive to make a difference from my efforts. Can I say it’s all about money? While I definitely wanted to make money it became way more than that. It would be difficult to even explain the mission behind all that I do.
I suppose in a way I’m a crazy woman for it. Honestly I think you have to be half way obsessed to get to this level. It’s not something I lightly encourage. You practically have to give up your life to do this level of activity.
So there’s definitely a drive and ambition that goes way, way beyond money. Because, quite frankly, there’s got to be more sane ways to make money than doing it “this” way.
This becomes a way of life that is hard and difficult to explain.
There’s like some weird sense of responsibility that takes over. Like answering the Kayako tickets that truly are left better to another member of my team (while my support manager takes a much needed vacation) but yet I take over and answer them compelled to maintain my companies reputation and good name. “Let-it-never-be-said” kind of thing.
So thanks for your transparency, Eric. Because it’s easy to spout out more “attractive” and “glamorous” messages. When the reality is this is a lot of hard, hard work no matter how you slice and dice it.
Be proud of holding down a J-O-B while you get this internet marketing “thing” figured out. The last my job my dear hubby held down prior to coming to work with me at 80/20 was fueling jets out at the airport for roughly the wages of a McDonald’s hamburger flipper. My husband was not too proud to do what he could to “make ends meet”. He was also holding down a job on the weekends taking care of brain injured men. He put in 40 hours between Friday morning and Sunday evening.
I’ll never forget as he left one evening to put in a sixteen hour shift. As he was ready to head out the door I told him, “Brian, I am going to bring you home.” (Eric, you know me. I am literally sobbing as I write this. The remembrance of that goes deep. Very deep.)
But you know what? I did bring him home. But ONLY because we worked as a team.
Never forget. It is always about the team.
Ann Sieg
“The” Renegade Network Marketer
Eric, you have always been very straight up with telling your story, and that is probably more help to those you’re trying to help than if you ‘prettified’ everything & hid the hard parts, so thanks. There are way too many wrong expectations out there for those who hear ‘you can make easy money on the internet.’ Take out the easy…and it’s true!
I wanted to make two comments:
1. To everybody, don’t forget that you’re learning stuff that you can use to make money when you do it for other people. Get paid to learn. I run a transcription service for internet marketers, scaled that to provide work for 8 other women, and get paid to learn from the best. I’m also now expanding to web consulting for local businesses, which also is wide open. Don’t forget how valuable your hard-won experience is. This can help provide funds for your growing business, all the way to a six-figure full-time income.
If you know how to build blogs, write articles, do simple design stuff, build links, make & post videos, help offline businesses put an optin on their site & write autoresponders,do SEO, build simple Adsense or affiliate sites & sell for a profit — any or all — consider adding this to your mix. You can outsource it and still make a very decent profit.
2. I had to respond to Ann’s comment about her husband. In their case obviously there was a powerful joint purpose to bring him home and make it a family business.
I had that purpose for a long time too, till I found out…he didn’t want to come home! He likes what he does and is not entrepreneurial! So be sure you’re on the same page with those you love – ha! Now my financial goals are around helping 3 kids thru college with minimal debt & setting up several hands-off income streams so our time is more our own when he ‘rewires’ (who wants to retire?)
Becki
@Becky,
Well said! Right now, that’s in large part how Eric Walker Marketing LLC(this blog) earns its keep — via freelance writing, coaching and consulting, SEO services and WordPress blog set up. There’s so much more to come. The vision is clear — from marketing to design. It really makes sense for me to work at a daily j.o.b. I never went into business to work 12-14 (or even 10) in front of my computer. My vision has always been and still is to work 4-6 hours a day. No more. I know for a fact that getting a day j.o.b. will help me keep that goal. Great to have your comments here. Many praises for your successful business.
@Ann,
Thank you for an equally transparent comment. Yes, I do know the level and depth of your sentiments. You, more so than anyone I know, sacrificed a great deal to reach the level of success you’ve attained. You know… you have to work with what you have. What I have at this moment is a loving partner who has a growing and thriving business presence in and of itself. What I have is a growing and thriving daughter who has mom staying home to raise her. I wouldn’t trade this in for the world even if it means I have to take on 35-40 hours a week at a j.o.b. It would be different if I was single, but I’m not and love them more than myself. For they make me who I am. To a degree, I have figured out the internet business thing in so much that for a business to scale one needs to reinvest into it. At this point, I can’t reinvest into my internet business if I’m taking the money it earns to pay the cost of living (and sweating it). I hold a certain amount of pride for becoming financially mature with this decision. In the detailed map of how I want my business to grow, my current economic reality is that I will simply run out of money if I don’t get a j.o.b. to fund life. Doing so will let my internet business breathe and blossom in the process. This isn’t forever, but it’s a necessity now. Thank you for comment Ann.
This is an awesome topic and very freeing information Eric, for so mastny people. Too often this land of internet and network marketing entices people to think that if they just jump in with both feet and COMMIT, the money will come. And too often people who really want it with their entire heart and soul, do just that…and end up frustrated, angry, worried and in debt.
I had to reply in this part of the thread in order to respond to Ann Sieg and Becki Maxson…
Becki–I love your “outside the box” mind set about our ability to use what we know to create income, even if it’s not the main place we are heading. A senior citizen teammate of mine offers low priced consulting services to other seniors who are confused with things as basic as copying and pasting…a much needed service, an income stream, and a benefit to others!!
Ann–the TEAM/Family approach can be a lifesaver for many. In our family I feel overwhelmingly blessed to have a spouse who takes care of the J.O.B., while I build our entrepreneurial foundation and ultimately our fortune. In the meantime, we have consistently eaten, paid our bills and enjoyed life even at the lowest points in my business, because of his efforts and our shared goals.
Peace and Abundance My Friends,
Deborah
It takes a lot of courage to admit that we might have made a wrong decision. But it takes even more courage to go on in a positive and committed manner knowing that our goals will still be reached albeit a little slower than anticipated.
Kudos, Eric!
Eric,
Sometime it is about just doing. I know that you have been through a lot recently – and are going to come out even stronger on the other end of this.
I think there is a lot be said about sweat equity in life.
Samantha
Eric,
You don’t know how much better you made me feel. I thought it was me not working hard or long enough although I feel like I’ve been glued to this darn computer for the last 18 months. All the hype out there tells you that you can start generating an income in 90 days well it just isn’t true. It’s a lot of time and effort. I’m beginning to see some small results but thank goodness I don’t have to live off it. I don’t have the option to get a job as I’m already retired but I want to live a little while I continue on the internet journey. It’s all about quality of life and getting the right balance. I’ve started taking some time out to just relax and enjoy myself and not get so wound up about it.
Thanks for being so honest. I wish you every success in everything you do. You will achieve your dream because because you have the drive.
Pat
Hi Eric,
One question.
Was it really a big mistake to quit before you were ready financially?
Think about all the good that decision has brought you. Heck, nobody would even be commenting on this topic if you had kept your job.
Would you have had the opportunity to work with great people at Marketing Merge? and would you have learned all that you have?
One thing I’ve learned is that what may appear as a mistake, never really is. We simply allow the choice we made to educate us and elevate us to greater heights.
Appreciation from the Heart,
Richard.
P.S. Looking forward to our coaching next week!
@Richard,
Now you’re coaching me! I think that’s a great point, Richard. Thanks.
Eric – I have always admired your professionalism and forthrightness. You have the quality of being honest and straightforward in attitude and speech. Your post will be an inspiration to so many that are probably thinking that to take their home business to the next level they must give up their JOB. Thank you for keeping it real!
Rose
Ah Eric,
So glad to have found this post, your openness and insights are always refreshing!!
I agree, a smooth comfortable transition for ALL concerned is better than the hard road…in my opinion at least (as great as the rags to riches stories found on many sales pages are).
For a while I let my internet marketing endeavors influence the quality of my other JOB and that too is a something to be wary off (for me at least). Recently I’ve been able to get the balance of focus where I am able to give the people in front of me what they need and as you have described in your post, this gives me abundant cash-flow to build my internet business comfortably.
I’ve always loved your transparency and forthrightness and judging by all the comments here I’m not the only one.
I think there is a brainstorming/trout mission written somewhere in the ashakic records for us, just a matter of time I reckon
Best to you and family,
Steve
Eric,
I appreciate this post so much — and all of the replies everyone else has left. I’m the at-home mom working on the entrepreneurial freedom while my husband sells knives to keep us afloat. I’m just barely getting started and have so much to learn, and I really appreciate this glimpse of what it will take.
Thanks again,
Amber
Hi Eric,
As I was reading through your comments, it struck how almost everyone thanked you for telling it like it is and being honest about the hard work and not quitting the day job too soon.
I came to these conclusions myself the hard way, but the positive reinforcement from knowing it’s not just me is invaluable. I have learned so much getting to this point and, like you, want to share it with anyone who will listen.
Thanks for writing.
All the best,
Alan
Hi Eric,
When I read this post, I felt as if you were right here in the same room as me talking to me directly. I have struggled with the decision of going back to work for awhile now. While I have continued to look for a J.O.B and the rejections kept coming, I didn’t think to just look for a job, not a career. Because my new business is my new career but the money flow is not easy in the beginning. Thanks for sharing your thoughts and ideas. I wish you the best.
Cindy,
[...] Many of you who read this blog regularly know that I decided to go back to work. You can read about the important decision to go back to work here –> Good Advice for Your Internet Business. [...]