I had taken a class in internet marketing and I had just returned from a wealth seminar in Seattle.
I did a few months of research and based on my findings, I built a website. And that was the end of my money - I had no money left to do any advertising. And working at US Airways, (2006) there was barely enough money coming in anyway.
The website was up and almost immediately - with no marketing - sales began to come in. I had dropped a line in a pool of starving fish. Very important.
I began processing sales and cash was coming in so fast that I had trouble establishing the rate of cash flow - well - I was unable actually, it was totally beyond my abilities - there was just too much cash and it was coming in and going out at too rapid a pace.
After a few weeks, I realized that my bank account seemed to be shrinking instead of growing. At first it bothered me and I thought maybe something was wrong, but then I decided that it was just a temporary glitch due to sales and processing of those sales.
Another few weeks passed and as I watched my bank account near zero, I did some rapid recalculation. I was losing money! The charges for processing sales exceeded the income I was receiving from the sales.
After 10 weeks, I suspended operations. I had received over 300 sales and $108,000 - but my expenses were $117,000! Ooops!!!! Not a good thing.
Needless to say, my customers were not happy when I suspended operations, but I honored all sales - even though I had to borrow money.
I also didn't realize until a couple of weeks after suspending operations that one of the processors I was using - Paypal - expressly prohibited what I was doing and as a result, they laid claim to the last sale of $1500.
What was I doing? I was transferring money in Paypal accounts to egold.
No comments:
Post a Comment