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www.cdmoneymachine.com The Amazing CD Money Machine
The Amazing CD Money Machine Make Money With Your Home Computer
By
Tim W. Knox
CDMoneyMachine.com
Copyright © Tim W. Knox, All Rights Reserved
Copyright © Tim W. Knox Page 1 of 43
www.cdmoneymachine.com The Amazing CD Money Machine
LEGAL NOTICES
You do not have resell or giveaway rights to this book. Only customers that
have purchased this material are authorized to view it. If you think you may be in
possession of an illegally distributed copy of this book, please contact us:
Please email the author at [email protected] to report illegal
distribution.
The author makes no guarantees or promises regarding the amount of money one
will make or the success one may have as a result of the business described in this book.
Individual results may vary and depend solely on the actions of the reader, not the author.
COPYRIGHT NOTICE
All content contained within “The Amazing CD Money Machine” is Copyright ©
2006 by Tim Knox. All rights reserved. Unauthorized distribution, resale, or copying of
this material is unlawful. No portion of this book may be reproduced, copied or resold
without the written permission of the author. The author reserves the right to use the full
force of the law in the protection of his intellectual property, including: the contents,
ideas and expressions contained herein.
VISIT US ONLINE
Related Websites: http://www.cdmoneymachine.com
http://www.dropshipwholesale.net
Contact: [email protected]
SUBSCRIBE TO OUR NEWSLETTER
If you would like to learn more about doing business on the internet please subscribe to
our newsletter. To subscribe visit:
http://www.dropshipwholesale.net .
Copyright © Tim W. Knox Page 2 of 43
www.cdmoneymachine.com The Amazing CD Money Machine
TABLE OF CONTENTS
• About The Author 4
• A Personal Message From The Author To You 5
• Terms and Definitions 10
• From Small Seeds Great Things Grow 11
• Create Your Own Amazing CD Money Machine 14
• Decide What Products To Sell On Your CD 16
• How To Create Your Own CDs 24
• Advertising and Marketing 28
• Where To Sell Your CDs 31
• Getting Paid 33
• What To Do After The Sale 34
• So What Are You Waiting For 37
• Make Money With Our Affiliate Program 40
• Resources To Help Your Business Grow 44
Copyright © Tim W. Knox Page 3 of 43
www.cdmoneymachine.com The Amazing CD Money Machine
About The Author
Tim Knox is a self-made entrepreneur who is well qualified to write a book like The Amazing CD Money Machine. Tim started with nothing and within five years built a small business empire that grossed almost one million dollars in 2002.
Tim is the founder, president and CEO of two successful technology companies:
• Digital Graphiti Inc., a software development company whose client list includes Time Warner, Mercedes Benz, BooksAMillion, NASA, and over one hundred others.
• B2Secure Inc., a Web-based hiring management software company with numerous clients in the high tech and healthcare industries.
Tim is the “Inspirations & Ideas” and “Ebusiness Startup Expert” for Entrepreneur.com, the website of the national publication Entrepreneur Magazine.
Tim is also the founder of DropshipWholesale.net, an online organization
dedicated to helping entrepreneurs start and prosper from online businesses. As a private business consultant, he has led the e-business initiatives for
companies like Advance Internet, Mercedes-Benz, Time Warner and a number of city, county and state government agencies.
Tim is an accomplished instructor and writer, having written numerous articles for
online and print publications, and is co-author of the book Web Programming in IE 5.0 . He has also worked with many e-business, technology and Internet start-up companies as an investor and advisor.
Tim has led numerous seminars and has lectured extensively on the subject of
small business, technology and e-business for commercial and educational clients. In previous lives Tim worked as a janitor, a factory worker, a bug man, a standup
comedian, a radio morning show host, an underground newspaper publisher, an award-winning humor columnist, and an almost-syndicated cartoonist.
That series of misadventures is chronicled online at timknox.com. Tim lives in Huntsville, Alabama, and is married with two daughters.
Copyright © Tim W. Knox Page 4 of 43
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Foreword
A Personal Message From The Author To You
Welcome, friends, to The Amazing CD Money Machine. In this book I will
reveal to you exactly how I built the online business that is generating over $2,000 a
week in sales in less than one year. I will then show how you can do the same simply by
duplicating the process that I have created.
Before we begin our journey together, please take the time to read the next few
pages as they contain a deeply personal message from me to you.
You see, the most important thing that you will learn in this book is NOT how to
start and profit from your own home based business.
The most important thing you will learn is this:
If I can do this, so can you!
Before we dive into the specifics of the Amazing CD Money Machine, let me tell
you a little about myself. I think it is important that you understand that I am a real
person and not some fictional character created by slick marketers to help coax you out of
your hard earned money.
My name is Tim Knox. I live in Huntsville, Alabama with my wife, Melissa; our
daughters, Sierra and Chelsea; and four dogs: Reese, Biscuit, Sugar, and Shadow. I am
the only male in a house full of females. God help me.
Since 1996, I have been making a very good living from my own business
ventures. Last year my combined companies grossed almost a million dollars in revenue.
These companies are Digital Graphiti, Inc. and B2Secure, Inc. You can learn more about
these companies online. The URLs are listed in the Resources section at the back of this
book.
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For several years now I’ve spent much of my time writing and lecturing about
small business and consulting with first time entrepreneurs, helping them launch their
own successful small businesses and online ventures.
Along the way I've come to be known as The Small Business Expert. I even write
a syndicated newspaper column on small business called "Small Business Q&A with Tim
Knox. "
I also the write the monthly "Business Inspirations & Ideas" and "Ebusiness
Startup" columns for Entrepreneur.com, the website of the national publication,
Entrepreneur Magazine.
If you'd like to read my Small Business Q&A or Entrepreneur.com columns visit
SmallBusinessQA.com or Entrepreneur.com. I receive a lot of wonderful feedback from
people who read and benefit from the advice I give. Through my columns I have helped
hundreds of folks start and succeed in their own small businesses.
But good fortune has not always smiled on me. I came from a very poor family,
literally raised in the backwoods of Alabama. My father was alcoholic who wasn’t
around much. My mother worked hard to keep the family together and food on the table.
My older sister quit high school in the tenth grade to go to work. I struggled through
high school because I had to work full time at night at a grocery store to help make ends
meet. I was lucky, though. I was smart, ambitious, and not afraid of hard work. I
graduated with honors, but missed my graduation ceremony because I couldn’t get off
work. I wasn’t happy about it, of course, but I knew the money I was earning would be
put to good use at home.
College was never really an option for me. It was hard enough getting through
high school while working fulltime. I was just too tired to try to keep up the pace while
going to college.
I landed a factory job a few months out of high school and for a long time I
thought it was probably the best job someone like me would ever be able to get. It was
mind numbing work, the same thing day in and day out. It required no skills and no
intelligence, just the ability to stay awake for eight hours from midnight till eight AM
while watching parts go by on a conveyer belt.
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It was unchallenging, boring, miserable work. And I couldn’t wait to find
something better. But not having a college degree proved to be an obstacle for me.
Huntsville is a very high tech town and it seemed every job I applied for required a
degree. It didn’t matter how smart I was or how many books I read or how many tapes I
listened to. I did great in interviews, but I never got a job offer. The only thing that
mattered to prospective employers was that I did not have a degree.
So for years I worked at menial, low paying jobs just to support my family. I was
eventually laid off at the factory and took a job as a pest control technician (that’s the
fancy term for bug man). I took a second job working the midnight shift at a radio station
owned by a friend of mine. I landed a third job editing copy for a small newspaper. I
even did stand up comedy for a time because I discovered that I could make people laugh
with stories about my misery. Anything for a buck, that was my motto.
Somewhere along the way I married a wonderful woman and we started a family.
I'm not going to lie to you. Those were difficult times. It was a struggle and there were
months when we had to pay our power bill with a borrowed credit card. I was working
three jobs and getting by on four hours sleep a night. Looking back now I’m amazed I
made it through.
I remember working those jobs and all the while, dreaming about starting my own
business. Not having a degree proved one thing to me: If I was going to be successful, it
was going to have to be from my own initiatives. Deep inside I knew that I had the
ingredients for success. I had always been smart and ambitious. I was an avid reader, so
I devoured every business book I could find. I decided to become the best self-educated,
non-college graduate anyone would ever see.
I might not have a degree, but I could have the knowledge. So began my journey
as a budding entrepreneur.
I went to yard sales, looking for business books and tapes that would teach me
what I needed to know to be successful. I ran up my credit cards ordering business
opportunities I saw on late night TV (talk about a waste of money). I went to Amway
meetings (talk about a waste of time). I tried to sell telephone cards through multilevel
marketing (talk about a waste of time and money). And on and on. If there was even the
slightest chance to start my own business I would jump at the idea.
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Looking back now I can see how much time, money and brain cells I wasted
through those years. But I knew deep in my heart that if I could succeed in business if
given the opportunity. I kept reading and learning, hoping one day to apply the
knowledge I was absorbing like a sponge.
I finally moved into a supervisory position at work. I had a mind for business
and a knack for managing people. I was a born leader and wasn’t afraid to take risks,
especially when the chance of reward was great. And my biggest asset was that I was
not afraid of hard work. I was willing to work 24 hours a day if that’s what it took to
achieve my dreams. And many days I did just that.
Then along came the Internet and my life slowly began to change for the better.
The entrepreneurial playing field was suddenly leveled. You didn’t have to have an
MBA or a ton of money to start a business.
All you needed was an idea and the energy, drive, and ability to execute it
effectively.
This was the time called “The Dawn Of The Internet Age” and there were endless
opportunities for sharp men and women who didn't mind working hard to achieve the
American Dream. I jumped in with both feet and never looked back.
My first part time business was a website design company that I started with a
partner while still working two other jobs. This company would grow to become Digital
Graphiti, Inc. In less than a year I was able to quit all of the other jobs and devote myself
fulltime to the business.
Soon after I started a second business: an internet software company called
B2Secure, Inc. This company has grown to be as successful as the first. Both of these
businesses are still thriving today. The combined gross revenue was almost a million
dollars last year. It turns out that all that reading finally did come in handy. Who knew?
I did!
These days I spend very little time at the office. I hired a professional manager to
help run things so I could devote more time to consulting and writing. My latest project
is a book on the effects the Internet has had on the traditional small business model. It
sounds boring, but is actually quite interesting, at least to me.
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It was while performing research for this book that I stumbled across a business
concept so simple, yet so powerful, that I literally put my book plans on hold so I could
investigate this business idea further.
The one thing that I did not like about my first two businesses was that they
required my constant attention. I sometimes worked 18 hours a day and still didn’t get
everything done. Granted, the financial rewards were great, but so were the demands. I
was making great money, but I had no time to enjoy it.
What intrigued me about this new business concept was that once everything was
in place, the business would almost run itself. This business would require no huge
investment of time or capital, no physical location, no rent, no utilities, no phone, no
overhead, no employees, no investors, and no partners.
Best of all, this business would require very little time, but had the potential to
return huge profits. It is this businesses that I will reveal to you in this book.
Why am I telling you all this? Because I am living proof that you don't need a
college degree or a huge business with lots of employees to earn in excess of $100,000 a
year in your own business.
I have proved that anyone with enough heart and knowledge can succeed in a
business of their own. Remember, I am not doing anything that you can't do.
The only difference between you and I is that I have discovered the key to making
big money with minimal effort and time.
All you need is an idea, a plan, and the knowledge you will gain from this book.
Let our journey together begin.
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Terms and Definitions
Before we begin, there are a number of terms that will be used throughout this
book that you should be familiar with.
• Content: Refers to the digital products that you will record on a CD-R. For
example, if you record ebooks or software on your CD, this is called the content
(think contents without the “s”).
• CD-R: Refers to a blank, recordable compact disc.
• CD: Refers to a CD that has been recorded and ready for sale.
• Burn a CD: Slang; meaning to record data on a blank CD-R.
• CD Burner: Refers to the CD drive in a personal or laptop computer that has the
ability to record content on a blank CD-R.
• CD Burn Software: Refers to the special software used to record content on a
blank CD-R.
• CD Labels: Printable labels that adhere to the CD.
• Jewel Case: The plastic case that holds the finished CD.
• CD Mailer: The envelope used to mail the CD.
• Ebook: Refers to a digital or electronic book designed to be viewed on a
computer, PDA, or other electronic device. An ebook may be an executable file
created by an ebook software or a PDF file created by a postscript file generating
software.
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Chapter One
From Small Seeds Great Things Grow
As mentioned in the previous chapter, the idea for The Amazing CD Money
Machine was born as I was doing research for a book I was writing on the Internet and
small business. The chapter I was researching was about eBay and how it is changing the
way many small businesses market their goods and services. I was no stranger to eBay. I
had bought and sold a few things on eBay over the years. I had consulted with several
clients who enlisted my help in establishing eBay stores to go along with their brick and
mortar establishments. I have even bought six very expensive cars on eBay, but that’s a
story for another time.
As I was clicking around I came across an auction for a CD-ROM that contained
cellphone ring tones. I have no use for such bells and whistles, but my teenage daughter
had mentioned the day before that she wished she had different ring tones on her phone.
Being the dutiful spoiler of children that I am, I clicked over to read more about the
auction. Then I clicked on the seller’s other auctions and what I found fascinated me.
This eBay seller was peddling an assortment of homemade CDs containing not
only ring tones, but also recipes, Palm Pilot programs, games, screensavers, fonts,
software, coloring books, sheet music, song lyrics, and more. He was charging $12.95 to
$24.95 for the various CDs.
Who buys this stuff, I wondered. Then I saw that the seller had a feedback rating
in the hundreds. Who buys this stuff? Obviously, a lot of people.
I dug deeper. I found several other eBay sellers who were successfully selling
their own lines of homemade CDs. One such seller even offered a “how to sell your own
CDs” report. I’m always wary of the word “report” because it’s usually just another
word for “useless information,” but I ordered this report anyway. I figured I could afford
to gamble $2.95 to see if this report contained anything worth knowing. I also ordered
several CDs from different sellers so I could get an idea of the quality of the products
being sold.
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As expected, the CDs were homemade jobs that lacked professionalism and didn’t
contain much useful content. They left me feeling unfulfilled and more than a little
ripped off. They did make great coasters, though. I also keep them around as reminders
of what NOT to do.
Also as expected, the report was just two double-spaced pages long and contained
more fluff than substance, but it did end with the following sentence, which literally
jumped off the page at me:
“If you create a CD that contains products everyone wants or needs, people will
line up at your door to give you money.”
Now I’m no fool. I’ve been in business long enough to know that even if you can
get people to line up at your door, if you don’t give them something of real value for
their money, they will return to your door and break it down.
All of the CDs I purchased on eBay were of such inferior quality that they held
very little value at all. While the CDs sold in the hundreds and I could have easily
duplicated their product and process, I refused to compromise my standards by putting
out an inferior product.
The concept was a good one, but I knew the key to real success was to create
professional quality CDs that contained information of real value. I would not compete
with the eBay CD sellers by offering similarly inferior products. If I was going to do
this, I was going to do it first class, which meant that I needed quality products to sell.
It then occurred to me that I had the perfect products right under my nose. It was
as if a light bulb had clicked on above my head. The seeds of the business concept that
would eventually grow to generate $2,000 a week were planted that day.
I had recently launched another business venture that was inspired by work I had
done for a client who sold his own line of ebooks from a website that my company had
built for him. I was so impressed with the success he was having selling ebooks from his
site, that I decided to develop a line of informational products myself and launch a
website from which to sell them from.
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That website, DropshipWholesale.net, was an immediate success. The products
I created to sell on the site were digital directories and business startup kits designed to
help people start their own dropship or eBay business.
The products were selling well as downloadable items (the buyer was sent an
email containing a link from which they could download their purchase), but it dawned
on me that if I offered delivery on a professional-quality CD, the products might sell even
better. And I was right. I changed my marketing materials and started offering the
products on CD for an additional $3.95 shipping and handling. The great part was that
out of the $3.95 I collected for shipping and handling, it actually cost just $1.25 to fulfill
the order on CD, which put an extra $2.70 in my pocket! More on that later.
Within a week I was selling more products on CD than through any other delivery
method and now nearly 90% of the products sold from DropshipWholesale.net are
delivered on CD.
The feedback I received from customers was that they perceived the value of the
product to be higher when offered on a professional looking CD.
They liked getting something tangible for their money, something they could
actually hold. It was a feeling of comfort they did not get from a downloadable product
or ebook.
Getting their purchase delivered on a CD made them feel as if they got more for
their money than if they just ordered the download version of the exact same product.
Who was I to argue?
The Amazing CD Money Machine was just getting started.
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Chapter Two
Create Your Own Amazing CD Money Machine
Are you getting a little excited about creating your own Amazing CD Money
Machine? You should be, because the only difference between where I am today and
where you could be tomorrow is the knowledge to put it all together. That knowledge
you will find waiting for you in the pages ahead.
I’m a firm believer in the value of a good plan. Take any task, no matter how
large or small, break it down into a series of logical steps, and it’s suddenly easier to
achieve.
You wouldn’t take a road trip without a map to guide your way (unless you were
a man, of course). You wouldn’t build a house without a blueprint. This chapter, then,
will serve as your map and blueprint for success.
We can break down the process of creating your own Amazing CD Money
Machine into seven steps, which I call “The Seven Steps To Success.”
The Seven Steps To Success are:
1. Create Or Find A Product To Sell On CD
2. Decide Where To Sell Your CD
3. Advertise Your CD
4. Make The Sale
5. Get Paid
6. Create The CD
7. Ship The CD
Sound simple? Guess what: it really is. This is not rocket science. This requires
no business degree, no need for inventory, no large out of pocket costs.
There is no other business that I know of that is easier to start or that offers such
high profits from such minimal efforts.
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So, let’s get started. As you prepare to take the first step toward success with
your own Amazing CD Money Machine remember the words from the earlier chapter:
“If you can create a CD that contains products everyone wants or needs, people
will line up at your door to give you money.”
A simple concept, but one that can make you a lot of money.
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Chapter Three
Decide What Products To Sell On Your CD
The first and most difficult step in creating your own Amazing CD Money
Machine is to decide what products to sell on your CD. Remember, people are willing
to pay good money for CDs that contain products of real value, i.e., products that give
them their money’s worth. Resist the temptation to create junk CDs that contain products
of little value. You might make a little money at first, but you will not build a lasting
business with truly satisfied customers.
I have proven that concept time and time again. Give the customer a quality product
at a reasonable price and your business will grow. I offer a no-questions-asked, full-
money-back guarantee with every CD I sell. Out of the hundreds of CDs I have sold, I
have received only two requests for refunds. That is quite a testament to the quality of
the products I sell and the satisfaction of those who purchase them. We’ll talk more
about guarantees and handling returns later.
Finding Products To Sell
So how do you find products to sell on your CD? It’s easier than you think. There
are thousands of products that you can sell on CD. It just might take a little research to
determine which products will work best for you.
For starters, visit eBay and take a look at the large variety of CDs other people are
selling. Don’t go with the mindset that you are there to copy exactly what others are
doing. You are just fact finding, at this point, looking for ideas, seeking inspiration. In
business terms: you are doing market research; assessing the supply and demand;
surveying the competition; investigating the products that they sell.
One great thing about eBay is you can click on a seller’s Feedback Rating to get an
idea of how many CDs they are selling and gauge their customers’ level of satisfaction.
It’s important to note that not all buyers leave feedback, so the seller might actually be
selling 25% to 50% more CDs than his feedback statistics actually show.
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If a seller has sold a hundred copies of a particular CD and his Feedback Rating
indicates that his customers were primarily happy with their purchases, that means that
there is a market for CDs containing this kind of content. Ebay contains a gold mine of
information that you can use in your business ventures.
Remember, I started the Amazing CD Money Machine after seeing what others were
selling on eBay and figuring out that I could do it better. You can do the same.
The screenshot on the next page shows that there were 357 CD-related items for
sale on eBay at the time this shot was taken. Most of these were homemade CDs with
prices ranging from $4.99 to $39.95.
Here is a partial list of products on CD that are currently for sale on eBay:
• Ebooks
• Software
• Song lyrics
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• Guitar tabs
• Money making reports
• “How To” reports
• Technical manuals
• Photographs
• PDA programs
• Palm Pilot programs
• Cellphone ring tones and software
• Games
• Business applications
• Educational materials
• Clipart
• Fonts
• Video clips
• Audio clips
• Thematic (9/11, sports teams, NASCAR)
• Recipes
• Cartoons
• Jokes
• Stories
• Dozens more
This list barely scratches the surface. There is virtually no end to the kinds of
products you can burn onto a CD and sell for large profits. And many of the items listed
above can be found on the World Wide Web for free.
For example, if you wanted to compile a CD containing ebooks on the subject of
Internet marketing, you can literally find thousands of such ebooks available for free on
the Internet. For those that are not free, you can usually purchase resale rights from the
copyright holder at a very reasonable price.
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Since most ebooks are used as promotional pieces that the authors give away as
loss leader products (they give away the ebooks and make their money selling items
featured in the ebook or through another back end system), most authors would love for
you to give their ebooks away.
As another example, let’s assume that you decided to sell software on your CD.
There are many websites that offer downloadable software applications that are
considered freeware, which means that they can be distributed by you on a compilation
CD (a CD containing many pieces of software).
Most freeware is created by programmers who’s main objective is to get people
using their software. They will usually welcome the fact that you are getting their
software into the hands of eager users.
A few of the most popular software download sites include:
• Download.com
• Tucows.com
• Freewarehome.com
• Webattack.com
• Topqualityfreeware.com
• Freewarearena.org
• Winsite.com
• Freewarefiles.com
• Pricelessware.org
• Itsfree4u.com
Copyrights and Trademarks
There is one very important thing to note when looking for content for your CD.
You must never violate anyone’s trademark or copyright. The trademark or copyright is
typically owned by the author of the ebook or developer of the software. You can not
legally profit from someone else’s work without their permission to do so. Many times
you can contact the copyright holder and they will grant you permission for free or for a
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reasonable fee. If you think you can earn thousands selling someone else’s copyrighted
products, it is worth investing a few hundred dollars to obtain those rights.
For more information on copyrights, trademarks, and patents, you should refer to
an article I wrote on the subject for my weekly Small Business Q&A With Tim Knox
newspaper column. You will find the article at:
http://www.dropshipwholesale.net/columns/
What Is The Best Product To Sell
The best way to come up with products to sell is to create them yourself. I hear
you. You’re saying, “But I don’t know how to create a product!” I say, “Sure you can!”
All it takes is a little imagination, a little know-how, and the knowledge to pull it all
together.
Without a doubt, the best product you can sell on CD is information. I love
selling information. Selling information requires no huge investment in inventory, you
don’t have to fill your garage with products you’ll never sell, and you never have to pack
and ship boxes that end up getting smashed in transit.
When you sell information your profit margins can be as much as 500% or more.
Think about this: I wrote an ebook on selling dropship merchandise on eBay. I sell this
ebook on CD for $25.90. Once I have put in the time to write the book, my only costs for
fulfillment is about $1.25 per CD. That means that every $25.90 CD I sell puts $24.65 in
my pocket! Not too shabby.
Of course that doesn’t take into account the cost of advertising and marketing,
but even with those costs figured in my Amazing CD Money Machine business still
generates profit margins as high as 70%. Now can you see why I like selling
information?
Always Offer A Money Back Guarantee
I highly recommend that you always offer a money back guarantee with every CD
sold. Offering a guarantee tells the buyer that yours is a quality product that you stand
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behind. In other words, you are not going to take their money and disappear. If they
don’t like the product, you will be there to make it right with them.
Even if a customer is dissatisfied, most will not take the time required to
repackage the CD and return it to you, so it’s pretty safe to offer the guarantee.
And even if you do get an occasional return, refund their money immediately and move
on.
Offering a guarantee in your advertisements gives buyers the assurance they need
to do business with you.
Create Your Own Informational Product
Creating your own info product is easier than you think. Here are a few ideas to
get you started:
• If you like to write fiction put together an ebook containing a collection of your
poems or short stories.
• If you like to write nonfiction, write an ebook on a topic you’re knowledgeable
about. Or research a subject that interests you and write an ebook about that.
• Perhaps you’re a Civil War buff. Research and write an ebook about that.
• Maybe you’re an expert fly fisherman. Write a book about that.
• Maybe you’re a great cook. Write a book about that.
And if you are not a writer yourself, I’ll bet that you know someone who is.
Form a partnership where in they write the material and you sell it on CD, then split the
profits. For more information on creating your own informational product see the
Resources section at the back of this book.
How-To Information Is A Top Seller
“How-to” ebooks are one of the top sellers on CD. The buying public is thirsty for
knowledge that can help make accomplish a task, make more money, make them thinner,
make them more attractive, make their life easier and more productive. Consider writing
a how-to book based on your hobby, job skills or life experiences. If you don’t think
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people buy how-to books, consider this: the book you are reading at this very moment is
a how-to book.
Here are just a few how-to topics that are proven sellers:
• How to start a business
• How to sell on eBay
• How to write a great resume
• How to buy and real estate for no money down
• How to make wooden toy trains
• How to lose weight
• How to stop smoking
• How to win at slots
• How to be a better parent
• How to start a cleaning business
• How to write a how to book (couldn’t resist :o)
You get the idea. Give this concept some thought and you’ll probably come up
with several things that you are qualified to write how-to books about.
And don’t think that writing your own ebook is the only way to self-produce
content for your CD. Consider these ideas:
• If you are a musician, create a CD containing some of your songs.
• If you are a graphic artist create a CD that contains your digital artwork that can
be used as computer wallpaper or screensavers.
• If you’re a photographer create a CD containing a collection of your work.
The Benefits of Selling Information
Aside from offering the greatest potential for profit, I prefer to sell my own
informational products on CD because I never have to worry if I am violating anyone’s
copyright, nor do I have to worry about the quality of the product. I produce the
products, therefore I own the copyright and know for certain that they are of the highest
quality available.
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For more information on creating your own info product visit:
http://www.dropshipwholesale.net/ebooksecrets.php
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Chapter Four
How To Create Your Own CDs
Once you have the content for your CD, it’s time to create the CD using your
computer’s CD burner. Thanks to the advancement of computer technology, most
modern computers come with a CD burner built in. If your computer does not, don’t
worry, you can purchase a CD-R drive for around $100 or less and install it yourself or
have the store do it for you.
If you purchase an external CD burner simply plug it in to your computer, load
the software and you’re ready to go.
You will find more information on CD burners in the Resources section at the
back of this book.
CD Burner Software
You will also need CD burner software. Again, if your computer came with a CD
burner, it should have also come with the CD burner software already installed. When
you buy a CD burner you should also get the software to burn CDs. If your computer
does have CD burner software installed, you can find free or inexpensive CD burner
software on the Web. Visit Download.com and do a search for “CD Burner” to find a list
of available software.
Most CD burner software works the same. You pop in a blank CD-R and the
software provides you with a wizard to format the disc for recording (some blank CD-Rs
come preformatted). Once the CD is formatted you can drag and drop files to it just as
you would any computer drive. Once all your files are on the CD, you use the software
to save the CD so that it can be read on any standard CD drive.
I use a CD burner software by Roxio called Easy CD Creator. A screenshot of
the Roxio interface is shown on the next page. There are dozens of other CD burner
software packages on the market. This is just one of the least expensive that adequately
does the job.
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You will find more information on CD burner software in the Resources section
at the back of this book.
Roxio Easy CD Creator Wizard Screen
Blank CD-Rs
There are a variety of blank CD-Rs on the market, but they are all pretty much the
same. For the sake of professionalism, you should use CDs that do not have the
manufacturers name (or any other writing) printed on the face of the CD-R in dark ink.
Staples, for example, sells their own line of very inexpensive blank CD-Rs, but they print
their name on them in dark ink, which shows through a white label. The price difference
between CD-Rs is nominal. Spend the extra pennies to get CD-Rs that do not have
printing on them.
As for where to buy blank CD-Rs, I recommend that you buy them on eBay or at
one of the buyer’s clubs like Costco or Sam’s. You can save as much as 50% per CD-R
over purchasing from the office supply or electronic chain stores.
The CDs that I use cost about .17 cents each and are high quality. I buy them in
100 count packs and just replenish my supply as needed.
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CD Labels
You will need labels for your CDs. I recommend that you buy good quality,
white labels that you can print through a laser or inkjet printer. I buy Memorex Universal
Label Refills from Wal-Mart that come in 100 count packs and cost about a nickel a
piece. Again, you can find labels on eBay or Sam’s at comparable costs.
When you purchase labels you will also get label making software. I’ve tried
several of these products and they are all pretty much the same. To create a label you
just type in the text for your label, position it on the provided template, and print it out.
You can also add a photograph or background image to the label, but I prefer not
to. Keep it simple. Design your label to have a professional look and feel. Avoid cutesy
graphics, clip art, and hard to read fonts. They reek of amateurism.
Here is a sample of what one of my old CD labels looked like.
Be careful the first few times you try to stick a label on a CD. CD labels are
extremely sticky and if you don’t get the label positioned just right the first time, you will
not get a second chance.
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Some higher priced labels come with guides that help you position the label
before pressing it to the CD. If you’re a fumble fingers like me, it’s worth the extra cost
to buy the good labels.
CD Jewel Cases
The last item you’ll need is a jewel case for the CD. This is the plastic case that
holds the CD for shipping and storage. You can use paper sleeves, which are less
expensive than jewel cases, but I highly advise against it unless you are going to use a
padded or thick cardboard mailing envelope that will protect the CD from damage. The
paper sleeves offer no protection, which means the CD can get easily damaged in the
mail and your rate of returns and requests for replacement CDs will be high.
I use the least expensive plastic slim jewel cases. They are thin and lightweight,
but offer more than enough protection for shipping the CD. Jewel cases are available on
eBay or in office supply stores. The cases I use typically cost .15 cents per case. A
jewel case is shown below.
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Chapter Five
Advertising and Marketing
A wise man once said, “Only a fool buys a billboard along a deserted highway.”
You can have the greatest product in the world, but without a well-directed
advertising and marketing campaign, no one will ever know it.
That’s why it is important that you market your Amazing CD Money Machine so
that those who would be interested in what you have to offer can easily find you.
Advertising and marketing will be your greatest expense in starting your new
business, so it is important that you spend your precious ad dollars wisely. That’s why
it’s important that you target your advertising and marketing efforts so that your message
reaches that portion of the population that might be interested in what you have to sell.
There are several excellent books on advertising and marketing that I have found
very helpful and recommend. You’ll find them listed in the Resources section at the back
of this book.
A Case Study
Let’s use one of my CDs as an actual case study. I sell a product called The
Ultimate eBay Dropship Power Pak CD. The information contained on this CD is
targeted at people looking to start their own online or eBay business selling dropship and
wholesale merchandise. By identifying these folks as my target customer, it makes it
easier for me to determine how and where to best spend my ad dollars to best reach them.
So where do people who want to start a dropship or wholesale business look for
such information? On search engines, of course. And since most search traffic comes
through Google and Overture, that’s where I will advertise this CD.
Google’s search engine is not only used on the Google.com website, but also
provides search technology for AOL, Ask Jeeves, Earthlink, and many others. Overture’s
search technology is used by Yahoo, MSN, Lycos and others.
When it comes to using search engines to attract customers there are two
approaches you can take. You can try for months to get your product listed on the search
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engine’s free search results pages or you can use the search engine’s pay-per-click (PPC)
advertising system in an attempt to see more immediate results.
Since I’m not very patient, I decide to invest a portion of my ad budget in a pay-
per-click campaign. I decide to use Google’s Adwords program so that whenever
someone searches on the terms “dropship” or “wholesale” they will find links to my
website which displays the CDs I have for sale.
Pay-per-click advertising means that you advertise your product on search engines
and you pay only when someone clicks on your ad. It sounds simple, but in reality pay-
per-click advertising is a complicated process that must be approached slowly or you can
blow your entire advertising budget in one day.
Pay-per-click advertising is too broad a subject to be covered effectively in this
book, but I encourage you to research the topic for yourself and consider the idea of using
PPC advertising to drive sales (if your budget allows). You will find more information
on pay-per-click search engine marketing in the Resources section at the back of this
book.
Another place I advertised the Ultimate eBay Dropship Power Pak CD is on
websites that contain content relevant to the dropship and wholesale business. I know
that some of these websites attract a large audience, many of which might be interested in
the products I have for sale. For example, I might buy a banner or text ad on a website
like Wholesale.com or one of the other wholesale related websites. A couple of sample
banners are shown below.
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I also do a considerable amount of email marketing, primarily to people who have
visited DropshipWholesale.net and opted in to my newsletter. I have many repeat
customers since I send out offers a couple times a month to my ever growing list. It’s
important that as your business grows you build your own opt-in email list.
Once again, email marketing is a subject that can fill a book of its own. You can
learn more about email marketing in the Resources section at the back of this book.
Please don’t be overwhelmed or put off by all this talk of Internet marketing. All
you need to become an expert at Internet marketing is a little knowledge and experience,
both of which you can obtain from this book and others like it that I recommend in the
Resources section at the back of this book.
You don’t have to rely solely on Internet marketing to sell your CDs. There are
people who market their CDs through newspaper classified ads, by direct mail, and even
at yard sales and flea markets.
Just remember this: the key to smart advertising and marketing is to first
determine who your target customer is, then direct your efforts accordingly.
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Chapter Six
Where To Sell Your CDs
When it comes to selling your CDs your options are endless. The world is a huge
marketplace, and thanks to the Internet, you can set up your Amazing CD Money
Machine today and sell products to a worldwide audience tomorrow.
Always be on the lookout for new places to sell your CDs. The more sales
channels you have, the more money you will make.
Here are a few ideas to get you started:
Auction Sites:
• Ebay
• Yahoo Auctions
• Bidz.com
• Hotbids.com
Search Engines (free and pay-per-click advertising):
• Yahoo
• Overture
• Kanoodle
• Dozens of others
Websites:
• Your own website
• Classified ad websites
• Forum board websites
• Enthusiast sites
• Industry related sites
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• Joint ventures with other website owners
Email:
• Your own opt-in email list
• Rented email lists
• Ezines (electronic magazines)
• Email advertising
Offline:
• Mail order
• Newspaper classifieds
• Magazine ads
• Garage sales
• Flea markets
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Chapter Seven
Getting Paid
This is the best part of the Amazing CD Money Machine business: getting paid!
One of the things that makes the Amazing CD Money Machine so profitable is
that you will usually be paid the moment someone places an order for a CD. Unlike
traditional businesses you don’t have to send an invoice to the buyer, wait a week to get
paid, then worry about getting stuck with a bad check.
Whether you are selling on eBay or from your own website or from an email
campaign, as soon as the customer clicks to order your CD it’s as good as money in the
bank. To maximize your profitability you must allow your customers to pay online with
a credit card. You can do this one of two ways.
First, you can set up a formal merchant account (a special bank account where the
credit card processor deposits payments made to you by credit card customers) with an
online provider like iBill or Authorize.net. This can cost several hundred dollars to set up
and additional fees every month for processing.
The second option is to use an online payment service like Paypal, which lets you
sign up for free and charges a percentage of each transaction. When customers click to
order your CD they are directed to Paypal.com and can complete the transaction with a
credit card or an echeck (electronic bank draft of their checking account). The money is
immediately credited to your Paypal account and available for withdrawal. You simply
transfer the funds to your own bank account whenever you like.
For many online merchants (especially those just starting out) Paypal is the way
to go simply because it is the easiest to set up and the least expensive to maintain. Paypal
has its fans and detractors. I have used it for years and have had no problem, but this is a
decision you should make after weighing all the facts for yourself. For more information
about online credit card processors see the Resources section at the back of this book.
Once in a while you may have customers that either do not have a credit card or
would prefer to not pay online. For these customers I recommend that you have them
mail you a money order or cash. Never accept a personal check.
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Chapter Eight
What To Do After The Sale
You have created your CD, launched an effective advertising and marketing
campaign, attracted customers to your website or other point of sale, and even made a
few sales! Congratulations! Your Amazing CD Money Machine is just getting started!
If you are using Paypal as your online payment processor, you can set your
Paypal account preferences to have the Paypal system notify you by email whenever a
sales is made. When you receive an order, you should respond immediately to the
customer by sending an email confirmation of the order. Let them know that you
received their order and tell what happens next.
Hopefully you will receive lots of orders. To make this part of the process easier
for you, you should compose a standard reply and save it as a text file, then when you get
an order you can simply cut and paste the reply into an email and send it on.
Here is a sample reply that I use for one of my products:
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Greetings Friend,
Thank you for your purchase of THE ULTIMATE DROPSHIP & WHOLESALE
COMPANY DIRECTORY!, which lists over 700 websites and 400 dropship and
wholesale companies that sell all kinds of products at below retail, discount and
wholesale prices.
Your CD (including bonuses) will be shipped out on the next business day.
I have other exciting information for you, so please read this entire email.
Sincerely,
Tim Knox, Founder
DropshipWholesale.net
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
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You’ll notice the last sentence refers to “other exciting information.” I always
include a brief explanation and website link for the other products I sell. My hope is that
the customer’s interest may be piqued by the explanation for one of my other products,
causing them to click the link to visit my website for more information (and perhaps to
make another purchase).
Once your business starts to grow you may decide to automate this part of the
process by using what’s called an “autoresponder service.” This is a web-based software
program that will automatically respond to customer emails for you. You’ll find more
information on autoresponder services in the Resources section at the back of this book.
I can not stress how important it is that you respond as quickly as possible when
you make a sale, get an email inquiry, or especially a complaint. I make it a rule to reply
to emails the moment they come in (if possible) and you would be amazed at how much
people appreciate that. I have had countless customers tell me that they never get
responses from other sellers and that my fast response raised my stature in their eyes. I
have turned several complainers into happy customers just by replying to them quickly
and politely.
I also make a point of shipping out CDs no more than one day after they are
ordered (or on Monday if the order came in over the weekend). We live in a microwave
society. When someone orders a CD they want it NOW! Get it to them as quickly as you
can to help ensure maximum customer satisfaction.
The Fulfillment Process
Here’s what to do when you get an order:
1. Burn the CD.
2. Put a label on the CD.
3. Put the CD in a jewel case.
4. Print out a thank you letter (or include the letter on the CD)
5. Put the CD and letter in a mailer.
6. Take it to the post office.
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Of course you can also burn, label, and package CDs in advance of selling them.
That way when a sale is made you just address the mailer, slip in the CD and send the
order on its way.
Packaging and Shipping
When I began this business I used very expensive padded bubble mailers to send
out CDs. They added about .50 cents to my cost. After experimenting with various types
of mailers I found that I could just use standard 6” by 9” clasp envelopes with the
gummed flap. Since the jewel case protects the CD, the envelope just needs to act as a
container. I buy the clasp envelopes in boxes of 100 for a cost of about .5 cents per
envelope.
Here is what each CD order I receive costs to fulfill:
• Blank CD-R .17
• Label .05
• Jewel case .15
• Clasp envelope .05
• Postage .83
• Total Cost 1.25
Since I charge $3.95 per CD for shipping and handling, you can see that the cost of
goods is well under the actual cost of fulfillment, leaving a nice $2.70 pad to cover my
time and trouble.
I have had a few folks question the $3.95 shipping fee, after all, when they receive the
CD they can see the postmark amount of .83 cents.
I very politely explain that while it’s true that postage for shipping the CD is only .83
cents, they must also take into account the cost of the blank CD-R, the label, the wear and
tear on my CD burner and printer, the envelope, and the time it takes to pull it all
together.
After offering that explanation most folks were happy to pay the $3.95 to receive the
CD.
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Chapter Nine
So What Are You Waiting For?
I hope you have come to appreciate the potential for profits the Amazing CD
Money Machine holds for you. I know of no other business that is easier to start or that
holds such potential to quickly be built into a fulltime venture.
A final word of advice: It's very important that you think of your Amazing CD
Money Machine as a real business. If you think of this as a hobby or a sideline, you will
not put forth the effort required to succeed.
To help jumpstart your Amazing CD Money Machine, please see the important
offers on the following pages.
Now that you have the benefit of my experience and knowledge, you have the
tools to possibly duplicate my success.
I have given you the roadmap and the blueprint you need to succeed.
The rest is up to you.
Who knows, perhaps you will even do better than I have.
That is my sincerest hope for you.
Copyright © Tim W. Knox Page 37 of 43
www.cdmoneymachine.com The Amazing CD Money Machine
How To Make Money With
The Amazing CD Money Machine
Without Burning A Single CD
By now you’re probably busting with excitement at the thought of starting your
own Amazing CD Money Machine. Trust me, I know the feeling well. Even an old
entrepreneur like me still gets excited at the prospect of making a ton of money with very
little effort. In fact, I am excited for you. I know you are about to embark on an
incredible journey that holds many rewards.
Work smart, not hard: that’s the key to success.
Speaking of working smart, how would you like to stick $16.61 in your pocket
every time someone buys a copy of The Amazing CD Money Machine ebook? Believe it
or not, that’s exactly what you can do when you sign up as an Amazing CD Money
Machine affiliate reseller!
If you’re unfamiliar with affiliate programs, here’s a quick overview of how they
work. I have a product, in this case, The Amazing CD Money Machine ebook. You
would like to resell the ebook on your website, through email advertising, or some other
venue. You sign up as my affiliate and obtain the right to market my ebook. Each time
you make a sale, you earn a whopping 50% commission. Pretty cool, huh. You can
make money with The Amazing CD Money Machine and never burn a single CD.
I use Clickbank to manage my affiliate program. Clickbank is the largest
manager of affiliate programs on the Web. They also provide affiliates with real time
reporting of commissions earned, so it’s very easy for you to track your sales and profit.
To join my affiliate program all you have to do is become a member of Clickbank
(it’s quick and free). Click to go to Clickbank now.
When you sign on with Clickbank you will establish an affiliate ID for yourself.
You can use your affiliate ID to promote any of the products that Clickbank has to offer,
including this one.
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Clickbank will show you how to embed your affiliate ID in a line of HTML code
that you can use to promote this book. For example, if your Clickbank affiliate ID is
john123, the line of HTML that you will use to promote The Amazing CD Money
Machine ebook would look like this:
http://hop.clickbank.net/?john123/cdmoney
When a customer clicks your affiliate link they are redirected to my website:
www.cdmoneymachine.com .
As they are being redirected they pass through the Clickbank system and your
affiliate ID is listed as the referral source. When the customer buys The Amazing CD
Money Machine ebook, you receive $33 in Clickbank commissions! How cool is that?
You can get complete details on The Amazing CD Money Machine affiliate
program at my website at:
http://www.cdmoneymachine.com/affiliates.asp
You can sign up for all of my Clickbank affiliate programs at:
http://www.myclickpages.com
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Recommended Money Making Opportunities The resources listed in this section have been helpful in building hundreds of online businesses.
Perhaps they can be as helpful to you. For complete details on all offers visit:
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
"My Amazing Little Website Cranked Out An Incredible $11,424.61 In ONE WEEK!"
It's now generating $40,000 a month and I spend less than an hour a day
tending to it! I can show you how it can do the same for you.
http://www.dropshipwholesale.net/amazing.php
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“The Official Powerseller's Online Auction Tool Kit”
It doesn't matter if you're an eBay beginner or an experienced Powerseller, the information in this huge 10 volume set will make your profits soar!
Written by REAL eBay Powersellers and Experts.
http://www.dropshipwholesale.net/powerseller-toolkit.php
Copyright © Tim W. Knox Page 41 of 43
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“The eBay Powerseller's #1 Product Resource”
The Ultimate eBay Dropship Power Pak contains everything you need to start your own profitable online business, including access to our private
database of over 3,000 dropship and wholesale companies!
http://www.dropshipwholesale.net/powerpak.php
Copyright © Tim W. Knox Page 42 of 43
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“No Experience, No Money? No Problem”
We asked 58 of the Internet's Top Money Makers: "If you lost it all tomorrow and had to start over with nothing but the brain in your head and the experience of your years, how would you get back on top in less than 30 days?" Their answers could make you rich...
http://www.dropshipwholesale.net/30day.php
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