Without further ado, our first guest blog post! Say hello to Kelly Kilpatrick, and her post about…

The Business of Success

Sometimes, all it takes to achieve great success is the seed of an idea; when you plant it in the soil of determination and water it with hard work, and with luck as a catalyst, you’ve got a readymade beanstalk that leads to riches beyond your wildest dreams. Even if you’re a new entrepreneur armed with just a small amount of money, a viable idea for a business, and the determination to succeed, you can make it in the big bad world of business as long as you follow certain rules of the game:

· Identify a need: Any product or service should cater to a need of the customer for them to want to purchase it. Even if the need does not exist, use your creativity and marketing skills to create one. For example, chewing gum is now being marketed as something that’s good for your dental health rather than as just a mouth freshener.

· Remember basic mathematics: It’s all about profits in the long run, and you’re making a profit only as long as your income exceeds your outflow. So concentrate on reducing expenses, especially the recurring overheads that eat into your reserves and any minimal profits that you make when you begin.

· Any business needs money to stay in business: It’s all well and good to work just because you’re passionate about the job, but if you’re not making money, it’s time to close the shutters and wind up shop. The truth may be hard to digest, but staying on with a losing proposition is the worse thing to do. It’s best to be savvy and cut your losses by calling it quits at the right time.

· Marketing is the key: A good marketing campaign succeeds in making your customers think they cannot do without your product. Even if it’s not a basic necessity or an essential, you have to appeal to them in some way so that they’re tempted to buy. Some customers go for freebies while others place discounts above all else. Do your market research, identify the segment of customers you wish to target, and the plan your marketing campaign accordingly.

· Think innovative: Do something innovative at first to lure customers away from the competition, and then make them stay with the quality of your product. No matter what the initial attraction is, it’s always the consistency in the quality of a product or service that makes them come back for more.

· Don’t think of making a quick buck: Not unless you’re a fly-by-night operator, that is. If you’re in business just to make some fast money, you have to be prepared to cut corners here and there and compromise on your ethics and morals. But that kind of life leads to being on the run most of the time, so get your priorities straight and concentrate on doing things the right way even though it takes a lot longer to make money.

This post was contributed by Kelly Kilpatrick, who writes on the subject of teaching. She invites your feedback at kellykilpatrick24 at gmail dot com.

In my previous article about Aeroponic farming, I put forward a concept for indoor-grown tomaotes for sale at local farmers markets.  The project seemed pretty interesting so, as we often do here at TG with these concepts, we decided to set up a proof of concept experiment.  We figured that if it worked out, we’d have tons of tasty tomatoes and would also be able to document the farmers market selling process.  Was it a success?  Well, we harvested lots of tomatoes and there were no great surprises, but we also learned some very important lessons that we were otherwise missing.

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Making Money through Garage or Estate Sales

We got some feedback about the article I wrote regarding how to attend live auctions to make money, so I decided to expand on the series and write an article about how to make money by purchasing items at garage or estate sales and later reselling those items on places like eBay.

There are several similarities between garage/estate sales and live auctions:

1. Research is key – You want to find out as much as possible before hand and make decisions about which sales to attend and what to look for when you arrive.

2. You don’t want to overpay – Believe it or not, you can overpay at an estate sale or garage sale. Most people have a much higher opinion of their stuff than the average person, and their job is to get as much as possible when they sell it at something like this.

3. You won’t always walk out with merchandise – It can be frustrating, especially in the beginning, when you take the time to go to a garage sale or estate sale and get there, look around, and find nothing worthwhile to purchase. In some places, all the good deals are gone (or were never there to begin with) but in other places, you’ll be loading up your car. The key is volume and steadiness. Once you spend some regular time doing this, you should have some success when spread out over multiple sales.

GARAGE VS ESTATE SALE

The basic difference between a garage sale and an estate sale is this: In an estate sale, typically, *everything* in the house is for sale, from the furniture to the knick-knacks to the items on the mantle. In a garage sale, the owners choose what to put on sale by taking it to the garage or driveway. What should you aim for? It depends on what you’re buying. Obviously, you have more variety with an estate sale, mainly because the expensive items will probably be available for sale, whereas a lot of garage sales may only put out their less expensive items. Then again, some garage sales will have pricey or expensive items for sale, or have low-priced items that are high value items unbeknownst to the owner. When you do your research, you will figure out where to go, regardless of whether it’s a garage sale or estate sale.

DO YOUR RESEARCH

So, first, do your research. It helps to know what areas you plan to specialize in, like furniture, electronics, collectibles, books, china/silverware, and so on. Most people still advertise their sale in one of the following places:

• Your local newspaper
• Craigslist
• Pennysaver/Recycler/local free magazine with classified ads

When you look at ads, pay attention to these things:

1. Location – As clichéd as it sounds, the more expensive the neighborhood, *odds are* the stuff for sale will be nicer. Is it a guarantee? No. But when you attend a number of sales to find items for resale, you have to start playing the odds. Can you find hidden treasures in not-so-nice neighborhoods? Absolutely. I’ve been amazed at the stuff worth hundreds or even thousands of dollars that are stored in places not so nice. However, houses in nicer neighborhoods typically have nicer things for resale.
2. Keywords – When reading through the ads, look at the items they chose to put in their ad. If you specialize in crystal for example, you should first circle any ads that have the word crystal. Then look for similar items, like china, dinnerware, glassware, etc. Sites like Craigslist allow for unlimited word usage, but most people will want to mention the highlights or the biggest ticket items for sale to attract people to their sale. If most of the keywords don’t appeal to you, that sale should be lower on the list.
3. Days and hours – There are some sales, especially the estate sales, that run Friday, Saturday, and Sunday. Most garage sales are either Saturday and Sunday, or one of those days. Pick the sales where you can be there on the 1^st (or only) day of the sale, where everything is still available. If they say “No early birds,” do not show up before the time listed.
4. Proximity to other sales – You should plan to hit multiple sales in one morning or day, since you may not find worthy purchases on your first or second visit. You should plan a route, by starting at the most promising sale (based on the 1^st three criteria above) and then hitting other sales in those neighborhoods.

Tip: Google Maps allows you to plan multiple points of interest, so you can map out 10 different addresses for example, and then plan your route of attack. Plan this out the night before you go, so you can print it out and have it ready when you wake up and go!

Beyond mapping out your plan of attack, here’s a couple of other things to prepare:

• Cash. Cash is king at these sales, and the best way to get a deal is to be ready to pay cash for everything. Unless a professional company is running an estate sale, you will not be able to use a credit card, and most people don’t want to accept a check.
• Space in your vehicle. If you find a great load of stuff, you’ll need to transport it home. Better to clear out the car BEFOREHAND so you’re not struggling or making multiple trips. If you can borrow a friend’s mini-van or truck, even better!

HITTING THE SALES

Ok, you’ve mapped out your plan of attack, you’ve got the cash and the space, and you arrive at one of your sales. Here’s the five most “profitable” areas of the house I like to aim for at any generic sale:

1. Kitchen/china cabinet: China and flatware are pretty easy to resell, and good brand names are always in style (Wedgwood, Noritake, Royal Daulton, etc.) A great website for research on potential values is Replacements.com. When you are at the sale, ask for their nicest set of china or dishes, which will usually have one price for the whole set. People are always buying small quantities of nice china to complete their sets when one of their items gets broken, so you can easily buy a nice set of china, and sell it place serving by place serving. The most expensive items are the bigger items (serving dishes, tureens, platters, etc) When it comes to flatware, you are looking for sterling silver flatware, or at least, stainless steel with a familiar brand name. If you don’t see it, ask the owners if any china or flatware is for sale.
2. Hall Closets: You’re looking for things like sports equipment (golf clubs, tennis racquets, skis, etc), musical instruments (guitars, amplifiers, brass pieces, etc) and other large items with good resale values that the owners don’t want or use much anymore. Why buy tons of $1 knick-knacks when you can buy a set of Callaway golf clubs for $100 and resell each driver to make $300 for the set?
3. Garage: Tools have an excellent resale value, especially if they are in good or working condition. I look for brand names like Craftsman, Snap-On, DeWalt, and Black and Decker. Ask to plug in any power tools and turn them on, just to make sure they function. Power drills, workbenches, tool sets, and other expensive or complicated tools can have a great resale value on eBay, Craigslist, or other websites. Once again, as clichéd or sexist as this may sound, if you want a great deal on tools, ask the Missus of the household for a final price, as she is probably less attached to the items.
4. Office/Den: Books can be a great find, but you have to be careful not to overpay on something with no resale value. A lot of the old bound books, like encyclopedias or reprints of classic stories, may look impressive, and you may get a great deal “per book” when you buy a big set, but you may be stuck with a lot of pounds of paper. Textbooks, big expensive coffee table books, and old first editions of popular authors do have some resale value. The latest John Grisham novel, even in hardcover, does not have a lot of resale value. Also, anything old, vintage or antique in the office, like a 1970’s HP scientific calculator, vintage electronics items, or a used computer could have some value.
5. Bedroom closets – Designer label clothing can be resold on eBay for a decent margin, since most clothing at these sales are sold for next to nothing. I recently purchased a Tommy Bahama silk shirt for $3 that was already dry-cleaned and looks to be in “Like New” condition. This could sell for $25-50 on eBay.

BY THE NUMBERS

So, how does this break down in terms of dollars and cents? Unfortunately, your experience will vary, so let me detail several recent buys I found at estate or garage sales:

a. Swarovski crystal – I waited until the last day of the estate sale, inspected the pieces, went home to do research, stopped at the ATM, and went back to buy 4 pieces for a total of $600 (originally marked $1200, many estate sales cut the price in half on the last day) and resold ALL four pieces in 1 week’s time for a total of $1,050.

Profit = (1050-600)/600 or $450, 75% return on my money in 1 week

b. China set: I bought a full 8 piece set of Noritake china for $400 at a garage sale months ago. I sold a few place settings (1 dinner plate, 1 salad plate, 1 cup and saucer) for $160 each, several dinner plates at $49.99 each, several salad plates at $19.99 each, and several cups and saucers at $24.99 each.

Total revenue so far: $160*3 + $50*2 + $20*4 + $25*4 = $760

Profit = (760-400)/400 = $360 or 90% return in 2 months, *PLUS* I have the potential to get an extra $200 if the other pieces sell, which would take the profit up to 140%.

c. Simpsons t-shirts: I bought 2 themed Simpsons t-shirts (Pin Pals bowling shirt and Duff beer shirt) for $3 each. One sold for $41, the other sold for $24.50.

Profit = ($65.50-6)/6 = $59.50 or almost 1000% return on my money in 2 weeks.

FINAL WORDS

The key to pursuing this line of income is persistence. Plan to spend 2-3 hours each weekend to visit the different sales, plus several hours a week to put the items up for sale. You can add to this by visiting various thrift stores, but that might turn into another post. When you do this, always ask the owners if they have additional merchandise not out for display. Usually, the items “held back” are among the most valuable of the group, and because most people don’t ask, you could be the first or only person to see it even if you’re not the first person to their house. Good luck and happy hunting!

How do you turn $240 worth of compressed saw dust into $6000? Easy, cut it up and put it back together in the shape of a closet. Huh? I’m talking about custom closet construction and installation. This low-tech construction business is booming with enormous profits and the best part about it is that anyone with some carpentry skills and basic woodworking tools can do it. Custom closets are classy, easy to build, and most importantly, have huge margins. There are only a few major players so that leaves plenty of room for some competition. While it’s true people may not be buying houses, that doesn’t mean they won’t be fixing up the ones they already own.

Overview

Ok, so everyone is talking about how bad the real estate market is and how bad anything that has to do with housing is. This is all great if you’re trying to make dramatic headlines and appeal to the general public but if you look at the numbers, expenditures on residential improvements actually hit an all time HIGH in the fourth quarter of 2007. People are still spending money fixing up their old houses. My parents are a perfect example. Two weeks ago I went over to their house and I noticed that the guest bedroom had a new custom built-in closet installed. I’ll admit it, it’s nice. It’s definitely nicer then the 80’s style big heavy sliding door closet that it replaced. Being curious, I asked how much it was. $6000! I started examining the closet a little closer and I realized that it wasn’t even made out of real wood. It was made out of medium density fiberboard (MDF) which then had a thin layer of wood laminate over it. I couldn’t believe it. I thought to myself “what an amazing business, there couldn’t be more than $200 worth of wood in the entire closet”.

The Market

So who’s buying these closets anyway? Other than my parents it appears as though closets are becoming increasingly popular in general. According to the U.S Census Bureau, spending on residential improvements alone was $180,300,000 in the fourth quarter of 2007. That’s an all time record high. While I’m sure a lot of that was granite counter-tops and vessel sinks you can be sure there were a bunch of custom closets in there as well. As a matter of fact, I was able to do some digging and found out that California Closets, one of the largest players in the industry, is owned by a public company called FirstService. In looking through their annual report I found the following blurb about their California Closets division:

“The Property Services operations reported revenues of $150.8 million, an increase of 12% versus the prior year. Of the increase, 9% was attributable to internal growth, 2% to acquisitions and 1% to foreign exchange. Internal growth was led by increases in royalty revenues at our major franchise systems. EBITDA for the year was $30.6 million, 19% higher than the prior year, and the EBITDA margin increased 110 basis points to 20.3%. The margin increase was attributable to California Closets and Paul Davis Restoration, where revenue growth was coupled with reduced expenses, including the recovery of bad debts and the deferral of a franchisees’ conference.”

Basically they’re saying that the California Closets and Paul Davis Restoration businesses are operating quite well as they’re responsible for a 1.1% growth in EBITDA margin.

The Numbers

Startup Costs

These items here are just the basics. I’m sure as you progress you’ll come across more tools that you’ll need but the following should get you going. What’s interesting about this business is that it’s one of the few industries where you can collect a fairly substantial deposit up front. According to my calculations you could actually fund your entire startup with the deposit from your first job.

• Table saw - $500
• Circular Saw - $100
• Router - $150
• Air Compressor - $300
• Staple Gun - $100
• Cordless Drill - $100

We’ll use my parent’s closet as an example and make some assumptions based on retail pricing for the material to see just how much we can make on a single job.

Total Revenue - $6000

Expenses:

• MDF- $240 (6 – 8’x4’ sheets)
• Hardware - $200
• Laminate - $300
• Building Supplies - $100

Total Expenses including startup costs - $2090

Net Profit - $3910

As an alternative, you may want to consider using REAL wood such as Birch or Oak for your custom closets.  Real wood is more expensive then MDF but it’s typically considered a more luxurious item and commands a higher price.  Furthermore, in my opinion, real wood is easier to work with as it will not require laminating; you can simply stain it.  The cost of real wood is about 30% higher then MDF but stain is quite a bit cheaper then laminate and you’ll be able to charge more for the closet in the end.

My Take

If you like playing with wood I would take a close look at the custom closet industry. Input costs are minimal and the barrier to entry is fairly low requiring only a few thousand dollars worth of tools to get started. It’s true, the housing market is in a depression but the home renovation market is still in full swing and closets are becoming increasingly popular as homeowners struggle with storage. While it’s a low-tech business without a lot of glamour, the margins are huge. Besides, who really cares how glamorous it is as long as you’re driving around in a Gallardo; WITH your tool belt on and saw dust in your hair of course.

Comic Books as… an Investment?

When you say “comic books,” most people get an image of ten-year-olds reading a worn copy of a Superman comic book they just bought at the drugstore, that they probably roll up and stick in their back pocket after reading, and eventually abandon comic books when they grow up some more and discover girls. The true market of comic books is anything but this, as the majority of comic book readers and collectors are adults, many of whom do NOT live in their parents’ basements. The last 10-20 years have brought comic book characters into the mainstream, primarily through successful movies like Spider-Man, X-Men, Sin City, and now Iron Man and Batman: The Dark Knight. Additionally, video games, action figures, and tons of licensed material have brought the comic book characters into everyone’s home in some form or another. Comic Con International in San Diego attracts upwards of 125,000 attendees per year and climbing.

But what about the items that started it all? What about those paper “magazines”, those 32-48 page comic books that used to cost a dime or 12 cents at the newsstand? Believe it or not, those comic books can be seen and managed as an investment, like a stock or commodity. There have been recent adoptions and advancements to make it easier and more reliable to “manage” your comic book portfolio. Want an idea of how big a collection can be? Nicholas Cage auctioned off his personal comic collection in 2002 for over $1.6 million, including ONE comic book that sold individually for over $130,000!

Why are comics collectible?

When people hear that individual comic books have sold at auctions for over $100,000 or even $200,000, they wonder, “Why is a comic book worth so much?” Simple – supply and demand. Most comic books were read and abused by kids, so the supply of comic books that are in excellent, pristine, “near mint” condition is very low, making the books that are in great shape a rare commodity. In addition, most mothers tossed out their kids’ comic books after a certain age because no one saw them as a collectible item. Finally, comic books are made of paper, which means they age, degrade, and can fall apart if not well maintained.

Take that low supply and add in the demand from adults who used to read comics as a kid. As those kids get older, gain disposable income, and want to recapture a part of their youth, items from their childhood (that are in short supply) go up in value because of demand. Add in the demand from millions of kids and adults seeing their favorite characters, like Superman, Batman, Spider-Man, and the X-Men, in TV shows, cartoons, and big-screen movies, and you have a growing number of people who want to own those older comics and see the origins of their favorite character.

Beyond the issues of supply and demand, a rare comic book is only worth something if there’s a collector out there willing to pay for it. Beyond the supply and demand issues, there are several key factors that make a comic book less or more valuable, which is something you should be aware of if you want to go into this arena:

1. First issues. Collectors love to get the 1st of something, whether it’s the first stamp, a rookie baseball card, the first striking of a new coin, and the first issue of a comic book is no exception. Today, comic book companies love to put out a #1 issue of some new comic title, and the numbers show that they get an automatic bump because the title is numbered #1. Usually, if the comic has any heat, the #1 issue will be among the most valuable of that series. For example, Action Comics #1 is the most valuable comic in that series, but that is also because it’s the first appearance of Superman. (see next point)
2. First appearance of a character. The main reason a comic that is not numbered #1 could be the most valuable is if a popular character made their very first appearance in that comic book. The two most notable examples are Detective Comics #27 from 1938, which had the first appearance of Batman, and Amazing Fantasy #15 from 1962, which had the first appearance of Spider-Man.
3. Origin story of a character. While a character may be introduced in a specific comic book, we may not get the full story of that character until later on, or perhaps the origin story is repeated in another comic years later, to give new readers an idea of how the character got started. Origin issues are highly sought after by collectors, because the origin is rarely discussed in detail and hard to find, usually. While Detective Comics #27 introduced the Batman, Detective Comics #33 discusses his origin, making that comic more valuable than others near issue #33.
4. First issue written or drawn by a particular writer or artist. While the characters are typically the most important part of a comic book, the fans have paid more and more attention to the writers and artists that make that comic book. The first time a writer or artist contributes to a particular comic book, the fans may hold that comic in more regard or desire, which drives up the price. When legendary writer and film director Frank Miller started in comic books in the late 70’s, he took over drawing the Daredevil comic book with issue #158. That issue has a much higher value than other issues before or after it because of Miller’s contribution to the comic.
5. Death of a character. Comic collectors love the first appearance of a character, but they also treasure a comic that has the death or demise of a popular character or villain for that matter. Before Spider-Man and Mary Jane Watson were a serious couple, he was dating Gwen Stacy (seen in the Spider-Man 3 movie) until she was killed by his arch-nemesis the Green Goblin in Amazing Spider-Man #121. The next issue, #122, featured Spider-Man dueling the Green Goblin, and the Goblin dying by his own glider. Both of those comics are worth hundreds of dollars in pristine condition, more than any surrounding issue of that comic series.

Books that contain a important character introduction or death, or a new writer or artist to the comic team, are called “key books” by comic collectors, and are often the blue chip standard when it comes to comic investments. These are books that will only get more rare as time goes by and shouldn’t drop off value too much.

Comic Book Terminology 101 – The Basics

In order to invest in comic books, you don’t need to know necessarily who could bench press more or win in a fight. But you should know some of the basic terminology, especially when you start searching for items to buy.
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Autographed memorabilia is a multi-billion dollar industry around the world, that exists in several categories. Signed entertainment memorabilia, historical memorabilia, sports memorabilia, collectibles memorabilia, and author-signed books are just a few of the biggest genres of autographed memorabilia. So, the question becomes, how do I turn this desire for people to own a “piece” of their favorite celebrity/athlete/author into my own business? Here is a way to turn your business idea into a profitable enterprise.

Overview

Startup costs are basically zero on this, but if you want to think big, you should have a good capital reserve ($5,000-10,000 or more, depending) if you want to invest in some inventory or to pay for a large number of autographs from a high-profile individual. Obviously, the first thing you should do in this area is pick your niche. While you could provide any type of autograph or signature, depending on the client, your customers will gravitate towards you if you have a specialty, or main focus.

Once you identify your main niche, start investigating that area. In several of these industries, there are companies and forces at work to “clean up” their industry and capture more of the profit for the celebrity doing the autograph. Sports memorabilia is probably the biggest and well-known category for autographed items, and therefore, the biggest target for fraudsters. Some surveys acknowledge that up to 90% of signed sports memorabilia is fake, which leads to the need for authentication, which I’ll get to in a minute.

Because of fraud (and in my opinion, to capture more profit) certain manufacturers are offering signed items directly to the public. Upper Deck, for instance, offers their own line of signed sports memorabilia. There are a network of dealers in the Universal Autograph Collector’s Club that certify their signed entertainment merchandise. Most of the time, you will be competing with local stores and online merchants, but finding a manufacturer like Upper Deck gives you an idea of the types of upper limit prices you can charge for certain items.

The manufacturers aren’t the only ones getting into the game, if you will. Many celebrities or talents are participating in or coordinating their own signings, where they collect a fixed price per autograph. Many times, especially in areas like sports or comic books, these signings are associated with conventions in their specialty. In fact, there are now conventions specifically designed just for fans to buy autographs from their favorite TV or movie celebrities from today and yesteryear. Some examples include:

• Hollywood Collector & Celebrity Show
• Creation Entertainment, which runs all sorts of sci-fi convention/autograph event
• UACC Autograph Events Calendar
• Signingshotline.com Athlete Signing Lists

Authentication

If you are getting a celebrity or talent to autograph merchandise directly in front of you, well, then, you know it’s real, right? Unfortunately, your customers aren’t so sure. Because of the immense amount of fraud in this industry, having your signatures authenticated can be almost as important, or even MORE important, than the signature itself, especially for items that have already been signed.

FYI, for historical memorabilia, you will probably hear the word “provenance” more than authentication, but the two are similar. Provenance means you can prove or demonstrate that the item is as old as you say it is and that it was owned or signed by the person in question. Typically, this means that you have a signed statement, copies of records or logs, or some sort of written evidence (perhaps a letter from the estate of this person) that the signed item is genuine.

Nowadays, if you attend a public signing for a celebrity or athlete, the organizer will provide some sort of Certificate of Authenticity, hologram, or other certification. Otherwise, you will need to pay an authentication company per signature to certify whether it is real or not.

For Sports items, the company to contact is called PSA/DNA. You will pay a fee per item, and if there are multiple signatures on the item, you pay an extra fee for each additional signature. The prices vary by person, with a current mid-range ballplayer averaging $20 a signature for authentication, while legends such as Mickey Mantle, Ted Williams, or Joe DiMaggio are $75 or higher. You can submit your items through a sports convention, a sports dealer who is an authorized dealer for PSA/DNA, or in limited cases, directly to the company itself. They will provide you with a Letter of Authenticity, and a hologram label (with matching serial number to the letter) to affix to the item or outer casing of the item.

For comic books, the company to contact is called CGC. They have a program called the Signature Series label. If one of their witnesses is present when the items are signed, and you then get the item appraised by CGC, the label will have a special color indicating that the signature on the item was witnessed and authentic. You cannot bring pre-signed items to a CGC witness to be graded/appraised. The witness will take care of presenting the item to the celebrity (or watch you as you speak to the celebrity), submitting the items for grading/appraisal, receiving the items back from appraisal, and sending the item back to you. The fees are negotiable, as it depends on which signatures you want, which comic books you want to get signed, and how many books you plan to submit.

For entertainment celebrity autographs, you can contact a dealer associated with the Professional Autograph Dealers Association to examine and provide authentication for you. In addition, PSA/DNA has branched out to accept both entertainment and historical autographs for authentication as well.

Tips

1. Do your research – You will need to know what items will get you the highest return for your signature, or have a client list of exactly what requests will pay you the most. For example, if you are getting a signature by Michael Jordan, you would want to invest in an authentic jersey, and if that wasn’t possible, try for something like a basketball or rookie basketball card. Use sites like eBay to see what items sell the most often and for the highest price.
2. Find out where the talent will be – Yes, there are autograph dealers that send people to every movie screening and awards show, with 8×10 glossy photos and sharpie markers in hand, hoping for that quick autograph as a celebrity walks by. More and more, however, certain celebrities agree to do specific signings at different locations, either for free (to promote themselves or a product) or for money. Use the Internet, check sites like fan forums for that celebrity’s current TV or movie project, or events guides, to know where they will be.
3. Get to know the star’s management team. This is probably, by far, the biggest tip for success, especially if you want to scale your business. Waiting in line and having access to a star for 1 or 2 signatures helps you get started and maybe generate a few bucks. Getting to know their assistants, agents, and managers, and arranging a private session to get 100 autographs for a fixed price allows you to have instant, salable merchandise to many customers. (One avenue is celebrities who work with a system like IPA Network, www.ipanetwork.com, that coordinate everything for a private signing)
4. For pre-signed items, invest in authentication services. If you pick up a collection of items that are already signed, it usually pays to invest in getting the signatures authenticated or to find someone to provide you the Certificate of Authenticity. If you’re unsure of whether to invest, take the average item, go to eBay, and check the average price AS IS and with a COA. If the difference is more than the cost of authentication, you know what to do. If there is no difference in price, don’t waste your money. Typically speaking, the bigger the star, the more it’s worth authenticating.
5. Timing is everything. While some of you may find this obvious, selling signed baseball memorabilia does better during baseball season, than in the off-season. For celebrities, selling an item right before or on the opening of their new movie or TV show season will yield a higher price. Beyond that, however, current events in these people’s lives will affect the pricing. I represented a client who had signed Barry Bonds items and wanted to sell them right away. This was about 2-3 months before Bonds broke the home run record, and while I pleaded with my client to wait a while, she said no, and I sold the merchandise. After Bonds hit his 73rd homer in one season, I checked the prices again, and they saw a rise anywhere from 50-100% and beyond. If a celebrity may win their first Oscar, hold off. And yes, any time a celebrity passes away, the value of signed merchandise shoots up. If they have an enduring legacy, you can sell at any time. If the celebrity is more of a fad or shooting star, sell your stuff immediately!

The Bottom Line

Once you pick your niche, make your connections, and build up your inventory, you need to start finding your customers and reselling this merchandise. While there is a lot of competition on eBay, selling some of your items on the world’s largest auction site will help you get started. Having your own web site, setting up at targeted conventions, and making alliances with other organizations can help you grow your business. (For example, if you can get signed items from the cast of Lost, set up an agreement to resell these items through Lost fan clubs or fan blogs.) As you build up contacts and experience, you will hopefully see new opportunities and stay up to date on the wants and desires of your customers. LiveAutographs.com, for instance, offers personalized video greetings from your favorite celebrity. Who knows, maybe you’ll change the industry like LiveAutographs.com!

Do you have a certain passion for something? Are you always explaining to other people how to get a certain thing done, or relaying your experience in an area lots of people want to learn? If so, and you don’t have a fear of public speaking, you may want to consider the business of running your own seminars. You can go as large or small as you want, renting out hotel ballrooms to teach thousands of people the newest tricks in real estate, stock buying, Internet wealth creation, or getting in touch with your inner strength. Most big speakers, however, started by hosting their own small seminars and building an audience, while perfecting their message and developing their own products to sell.

The Ultimate Goal

If you’ve got a hot topic, you can make money simply by hosting seminars every month or every other month. Most speaker’s ultimate goal is to use the seminars to sell products. What do I mean by products? I mean items that your students would want to buy that are for sale in the back of the room. Believe it or not, some of these items can be made with a low budget and quick time frame.

Common products sold at seminars include:

• Books (Regular print books, or eBooks sold on CD-ROM. You can get 5 free eBooks from Fred Gleeck to see a great example of what solid eBooks look like. )
• Audio courses (Remember the binder of tape cassettes? Today, speakers sell audio programs on CD-ROM as MP3 or WAV files, and some people are selling them now on Flash drives. Rounds Miller put out a great audio course called Professional Speaking for the Clueless, that discusses how to set up your classes to make money.)
• Video courses on DVD-ROM (Check out the eBay Explained DVD I made from a 3 hour course on How to Buy, Sell, and Profit on eBay)
• “Systems” or multimedia packages of different items designed to teach a full course of some skill or money-making system.
• Personal kits (for example, Franklin Covey sells organizers, binders, and calendars to their students)

The last main revenue stream for teachers putting together their own seminars is the hopes of getting speaking or consulting engagements from their students, which can be hundreds or even thousands of dollars in revenue. Nothing screams expert quite like the person who teaches the subject on a regular basis in your area.

Therefore, you need to decide on your ultimate goal. Is it:

a) Revenue from ongoing classes through admission and some products
b) Revenue from selling a variety of products in classes and online
c) Revenue from becoming a speaker or consultant in your area

Keep in mind, there are many speakers who make money in all three areas. However, your ultimate goal will help guide you on whether to focus on promoting your classes (a), building up a set of products (b), or using your classes to advertise your experience as a speaker or consultant(c) as you go forward.

Startup Costs

$600-1000: A decent laptop to develop your curriculum (Look for a laptop with Microsoft Office, so you can use Microsoft PowerPoint for slides, if you like Powerpoint)

$500-1000: An LCD projector to show your slides to your students (if you rent this, you will have paid this amount after 2-4 rentals. Buy it and it’s yours forever, or until it breaks, whichever comes first)

$100-150: Flip or Aiptek hand-held camcorder to record classes and for rehearsals. Trust me, this will come in handy down the road if you don’t see the value already.

Total: $1200-2150
50-100 hours: Development time needed to create your first class

Getting Up and Running

So, if you’ve chosen a topic and are ready to put on a class, you will want to get started right away. These five steps will prepare you to stand in front of a room of people sharing your expertise, and getting paid for it.

Step 1: Research the Competition

Get out there, do Google searches, look around your city, and see what classes for your chosen topic already exist. I would check with community colleges, vocational institutions, community centers, and any other adult education company, like a computer school, to see if your topic is being taught. If so, find out what is covered in those classes, see if there’s a missing area not being covered, or even consider attending the competition to see what you are up against.

Step 2: Develop Your Course

Put together your outline and estimate your class length. Come up with your main points to cover in the class, and decide what content you will cover.

• Is your class going to be a Basics course for people completely unfamiliar with the topic? (one or a series of 1-2 hour classes might be best)
• Are you going to create an Intensive course for people at different skill levels? (A half-day (3-4 hr) or full day class might be best)
• Or are you going to create an Intermediate or Expert course for people who are yearning to reach that next level? (At least one day, perhaps a multi-day seminar; Yes, you are limiting your potential students, but that focused targeting and expert knowledge is something pay a lot more for than the basic information)

Some people dive into making slides on PowerPoint, and estimate their class length by the number of slides or topics covered.

As an example, you can download my eBay Class PowerPoint slides I developed when I taught for the Learning Annex. A rule of thumb I learned is that, on average, you will spend 1 minute talking per slide. So, for my 3 hour eBay course, I had over 150 slides, and I was always scrambling to finish in 3 hours, especially when I had a lot of questions. (Some of my slides are jam packed with information.)

Do the research and fill in the gaps. While you may have an outline or something close to an outline in your head, you may have some gaps as you start to map out your course. Lay out your entire course, then go back and do research on the areas you are not as clear on, until your course curriculum is complete. Feel free to hit up your local library, bookstore, or the grand ol’ Internet to get the most accurate and up-to-date information.

Step 3: Test Everything

If you can get a few friends to sit still and listen, great. There’s nothing like the “rehearsal” as you get up there and talk through your material. If you have to, get in front of a mirror (or in front of a camera) and run through your course yourself. Videotaping your course is a GREAT way, as a tip, to have a product available to sell. You may only want to tape yourself after you’ve done at least 1 or 2 “test runs” of your course, so you can work out most of your issues before the cameras roll.

Step 4: Create a Product

You should have something for sale for your students, so that should be prepared before your 1st class. Options here include:

a) A workbook or handout packet, which can include your PowerPoint slides, notes pages for them to take notes, questionnaires, practice exercises, etc.

When I taught my eBay classes, I would prepare a 30 page handout of my PowerPoint slides. I would find a cheap local copy shop and pay $1.20 per set, and sell them at the class for $5.00 a set, with 90% sellthrough of my students.

So, let’s say you teach 100 students per month. (25 students per week) One handout set could net:

100 students * 90% sellthrough * 12 months * $3.80 profit = $4,104/yr

I then started adding more content to my handouts, like pages of URL web addresses and case studies, and would double my rates!

b) An audio interview of you discussing your subject area, with some content that won’t be covered in your class. Here, come up with the top 10 questions in your area, have a friend interview you, and talk for an hour or more. You can buy an audio recorder from a company like Sony, that can plug into your computer via USB, for $50-100, or you can use a service like FreeConferenceCall.com to record your interview and get the MP3 version of your interview. You can have your friend ask you questions like:

• “What is (insert your topic here)?”
• “Why should I pay attention to this topic?”
• “Who does this effect the most?”
• “How should I get started?”
• “What mistakes should I avoid making?”
• “What costs will I incur?”
• “How do I move to the next step?”

Let’s say that after you record your interview, you put the MP3 for sale at your classes, on your website, and on other sites like Clickbank, for a $47 profit. Between your classes and your website, this is what you could make if you just sold ONE copy of this interview:

• Every month: $564/yr
• Every week: $2,444/yr
• Every day: $17,155/yr

c) Related books in your topic area. Do a Google search for “remaindered books” to find companies that will sell recent books for a big discount off retail price, which you can charge more than your cost in your class. For example, if you are teaching a class on How to Play the Guitar, if you can find a book about Guitar Playing that is slightly out of date, but still a great book, that has been discounted from its’ $25 retail price to $5, you can buy it for $5, resell it for $15-20, and your students are still saving off the retail price. If you have your own books to sell, you can pick other books that don’t compete with yours to cover related areas. For example, if you have written books about Texas Hold ‘Em poker, you could sell other people’s books on blackjack or craps, since some of your poker students may want to learn about those games too.

Let’s go back to my eBay class example. Beyond the books I wrote, I would also sell eBay for Dummies for $20 when I paid $5 for it from these sites. Let’s say I had a 6% sell-through rate on this extra book:

100 students/mo * 6% sellthrough * 12 mos * $15 profit/book = $1080/yr from 1 extra product

Imagine if you carried several extra books beyond your own books!

Step 5: Find a Classroom

You will want a place that’s easy to find, has parking for you and your students, and has suitable accommodations to host your class (chairs, tables, etc) Options here include your local hotels, learning centers, and maybe even a community college who could rent you a room in the evenings. See where other instructors are hosting their classes to get ideas of where you can hold your class.

Now Taking Students

You’ve got your class, you’ve got your products, now you need some students (or, as some people put it, “behinds” in those chairs). Your revenue will depend on the length of your class, so here are some revenue projections for what I see as the two most popular options:

The 2-3 hour seminar:

Per-class Costs

$100-250: Room rental for 10-15 people
$50-100: Materials cost (photocopying, binding, office supplies)
TOTAL: $150-350

Revenue

$50 * 10 = $500 ($50 admission cost w/10 students)
$5-20 * 10 = $50-200 (handout or workbook charge per student)
$200 * 3 = $600 (Sell a product or all-day seminar to 30% of your crowd for $200 a pop)
TOTAL REVENUE: $1150-1300 per class (Double your attendance, double your revenue; 20 people could earn you as much as $2500 in 1 night)
TOTAL PROFIT: $800-1150 per class

The all-day seminar:

Per-class Costs

$300-500: Room rental for 10-15 people
$50-100: Materials cost
TOTAL: $350-600

Revenue

$200 * 10 = $2000 ($200 admission cost w/10 students)
$25-50 * 10 = $250-500 ($25 materials charge for workbook, etc.)
$1000 * 1 = $1000 (Sell an advanced product or 1 on 1 coaching to 10% of your audience)
TOTAL REVENUE: $3250-3500
TOTAL PROFIT: $2650-3150 per day
Of course, what’s hard to factor in here (in terms of extra profit) is the acquisition cost of gaining new customers to your mailing list, and that will depend on what you may sell them down the road.

Tip: Build an affiliates page for your students that references all the web URL’s you discuss in class. For example, check out my Learning Annex Student Resource Page. This page gives you all the links you would need to get set up on eBay, PayPal, Yahoo, drop-shippers, price research, and more, and as the instructor, you can earn money referring your students to different websites.

Spread the Word

The main expense not covered in the above section is marketing costs. If you want to increase your class size, you can spend money to grow your base through avenues like:

• Newspaper ads
• Radio ads
• Flyers
• Search engine advertisements on Google or Yahoo

Your marketing budget is up to you, but should be tied into your revenue goals. If you want big classes every month, you will probably need to invest in lots of marketing expenses up front to get a big crowd. On the other hand, you can start with a low marketing budget and spend more money as you build your audience and teach more classes.

There are lots of free ways you can advertise your class, which take some time but will help spread your message regardless:

1. Set up your own website that allows people to read about your class and enroll, either through an e-mail, a form, or calling a phone number. (This is actually a necessary expense. You need some sort of website to act as your hub of information. You can always use Microsoft Office Live Small Business to build a free website for now)
2. Post free notices on community websites like Craigslist about your class, topic, benefits, and costs, and point people to your website to enroll.
3. Contact your newspaper and alternative newspapers to add your class to their Calendar or Events section, if applicable. (Of course, if you can convince a local paper to cover your class in terms of a news or lifestyle article, that’s a lot of free publicity.)
4. Build your own profile page on sites like MySpace and Facebook, and advertise your class (or your class website) through those pages as well.
5. Make short videos describing what you are going to teach and post them on your website, on sites like YouTube, and other adult education sites like OneMinuteU to advertise your class.
6. Set up affiliate deals with other adult education companies, if there is a complementary nature. For example, if you are teaching an eBay class, and there is a local computer education company that doesn’t offer an eBay class, offer them a cut of your admission cost if they refer one of their students. I have an agreement with Computers Etc in San Diego where they advertise my eBay class and earn a referral fee for each student I get from them. You don’t pay unless you get a student, and they can get extra revenue and fill a need they don’t cover. (Yes, this isn’t necessarily a ‘free’ method, but it only costs money if you get students, so it’s free in terms of upfront costs)

Wrap-up

You could teach the occasional class to make $1,000-3,000 a month, or add more topics (or products) to make even more per month and potentially even more than your regular job. I do not take into account any money you could make every day through your website selling products, as well as any potential “affiliate” deals you could make with other teachers who want to reach your new mailing list of customers, and other money making opportunities. You should definitely follow up with your students after each class, see what they liked, disliked, and perhaps get them to suggest other areas you could teach if you want to expand your education empire.