
photo by Mike Schmid
As we close out 2009 and look at ways to have a rocking 2010 I have been looking at what provides true value into my life and into my business. This includes the things I pay for and the things I spend my time on.
Money and Value
My mindset is that we spend money on the things that are going to improve our state. For me that includes buying music to improve my mood or get my blood flowing. This can be in the form of food that cures a feeling of hunger. This includes education, where I buy things to compliment what I already know and what I think can enhance my business.
Chris Brogan wrote a great post today (that I felt was unnecessary, but it turned out to be a great conversation) on value vs. cost. There is a new eBook by a blogging buddy of mine Nathan Hangen (I wrote about Social Media and Product Launches for him a few weeks back) entitled Beyond Blogging in which Chris (along with myself and a ton of awesome bloggers and marketers) are affiliates.
The complain came from purist commenters who do not place value in an eBook that has a cost of $47. The logic is that either:
- information is supposed to be free, or
- eBooks are written on Microsoft Word, have no distribution cost and thus should be much more inexpensive.
Ah. This is killer to me. The comments on this post were handled very supportive of the cost vs. value proposition. If you are a blogger and want to use this book to make money then it is an investment into your business and education. If you buy it as a book that you are going to read for leisure, than yea, its probably too expensive.
This is the same stuff I deal with when pricing my own products. I want to make them affordable that people will give them a shot and put some of the stuff I talk about into action. Then I also want to price it high enough to where the people that would never take action and are leisure customers/subscribers/fans don’t buy. And that’s okay.
There was an awesome comment by Michael at Remarkablogger that summed it up best:
Here is something to consider: the people with an “investment mindset” instead of a “cost mindset” are the ones perfectly willing to shell out hundreds and even thousands of dollars on training they know will help them succeed in their pursuits.
And those are the people who DO succeed. I don’t know a single successful person who is also a cheap-ass miser that can’t even invest in his own success. All the people whining about the cost of this (or any) info product can basically put themselves in the “failure” camp until they make that leap of faith and invest in themselves. Strong words, I know, but I don’t see anything to indicate otherwise.
The value to me in anything I buy does need to be justified and I think you should justify the cost in your head as well, you just need to do it in what Michael calls an “investment mindset.”
Creating an Investment Mindset
This investment mindset can be applied to nearly all purchases. When grabbing lunch out today I made a purchasing decision. I chose to invest in my health and mindset by ordering the salad and soup. A cost mindset would have seen the burger and fries on special for $5 and made the decision to save a few dollars while sacrificing nutrients, calories and a mid-afternoon bathroom run.
When I look at investments into my education I look at long-term value over short term cost. It may not be an exact science but the thinking goes something like this:
- What is the item?
- What is the item supposed to do for me?
- Can I apply this to my life or my business now?
- Is this something that I can use in the future as I grow or need new ideas/revenue/etc?
- Do I have the time, energy and resources to use it? Will I?
- Does this align with the way I am doing things now?
- Will this item give me a return equal to or greater than the price tag?
- The price?
- Yes or no?
Again this isn’t a perfect science and isn’t meant to be. Most purchases are based on emotions and wants versus real life needs.
Remember all we really need is some water, some nuts, Nike B-Ball shorts, a white Hanes T-Shirt, a tepee and a warm shower now and then.
Applying the Investment Mindset to a Real Buying Decision
This year Stompernet was the biggest investment that I made in my personal development. At $200 / mo it is steep for continued online marketing information, of which I think I am pretty well versed. Here is the process I see looking back with some analysis on my buying decisions.

What is the item?
Stompernet is like the Harvard of online marketing. With instructors that have been there and done that, resources and connections, live events and a suite of tools to make my life/business tasks easier.
What is the item supposed to do for me?
There are a few key things that I wanted to get out of the product. A support team. People to answer questions. A mastermind group of internet marketers. The tools - specifically Market Samauri, the Article Spinner and Submitter and the free 800 number. All these combined would save time, give me confidence and accountability.
Can I Apply This To My Business or Life Now? What about the future?
Yes. The second I got my username and password I was in, had access to the tools and started digging into their archives. On my recent Rock Star Business Series launch I got feedback on affiliate software, payment terms, salesletter help and some great things to look at on the backend. As I am gearing up for some new products in 2010, there are some awesome things that I have been picking up to improve conversion, boost sales numbers and increase transaction size.
I have also applied some of the lifestyle videos into my daily habits. So much of working online is mental and they have some great teachers for mindset.
Do I have the time, energy and resources to use it? Will I?
This is the biggest “iffy” part I had with Stompernet. Could I justify $200 /mo if I never watched a video or used a few of the tools. To this day I still haven’t touched a few of the tools and am still trying to find the best way to use the 800 number.
The forums can be a time suck and there is more videos than someone could watch in a lifetime. For me, the answer here was a maybe. The best thing they teach is that you use what you need and the rest will be there when you need it. That was a huge selling point.
Does this align with my current business / lifestyle?
Yea. I really want to indulge fully in online marketing and they are the Harvard. There is no tomorrow. I knew that if I wanted to make something happen, it had to happen now. The average perfect day for me includes working on my laptop from home. I needed that accountability now.
Will this item give me a return equal to or greater than the price tag?
That is the plan. If you look at $200 / mo as the investment, I would spend $2,400 a year on the product. Since joining I have increased my revenues (not profits, yet) to almost that much per month. I plan on surpassing double that amount per month in the 1st quarter of 2010. So yea, it has produced a very nice ROI.
Yes or No.
Honestly I pulled the trigger at 11:55pm of the last night of their pre-launch. I can’t say this was the easiest decision I ever made. When I thought about the value it brings in, the decision now looks easy.
The decision was still based on emotion, but it was an investment decision. It was not a cost decision. Deep down I knew I would make more than I ever invested in the training.
Other Investment Minded Buying Opportunities

photo by Anke van Lenteren
Your food. Every time you eat, whether you are cooking or eating out, you have made an investment in your health. Are you making this based on cost, or as an investment towards a long, healthy living.
Your time. You will never get time back, no matter how hard we try. Are you investing your time to create a better lifestyle for yourself or are you choosing a cost based lifestyle. This can be mental cost as well. Staying home on the couch, or reading blogs instead of working, etc.
Your work. The economy is tough. Not everyone wants to be an entrepreneur or an Internet Marketer or musician. Some choose to work and that’s cool. No matter what career path you choose, make the decision based on an investment mindset versus a cost mindset if you want peace of mind.
Taking a job for the money is a cost mindset. Selling acai berry because it has the highest affiliate payout is a cost mindset. If you choose to sell the acai stuff, be sure you are doing it from an investment standpoint - maybe learning to drive affiliate traffic, looking at conversions or outsourcing and automation. Use that investment to fuel something more powerful and valuable in your life.
The Last Penny Story
I always love the seminar speakers who come up on stage and they start with their story of what they did to make it. It generally breaks down like this. Crappy job. Wanted to make a change. Bought a course. Invested a bunch of time. Stuff started to happen. Boom - success.
I remember one story where they said they had paid something like $2,000 to go to a conference and didn’t have enough money to book a room so they slept in their car for the weekend. That weekend he worked his ass off at the conference and met everyone from the people in the seats to the multi-million dollar speakers. Something like 6 weeks later he made $10,000. Then $100,000. Then the $1,000,000. He said most of that came from the relationships he made in that room. It may have been his last $2,000 - but was that investment worth it?
The Choice is Yours
We all have the mental capacity to make whatever decisions we want to make. The person in control of our thoughts, beliefs and emotions is us. The value we see in products comes from our own perception and reality. The next time you see a long sales letter, or an offer to learn something or are faced with putting crap in your body versus something that will help keep you healthy so you can surf at 60 - think from an investment mindset.
Happy New Year and please let me know your thoughts on this. I think it’s huge for those looking to make a huge impact on their future.
-Greg Rollett
P.S. If you are serious about wanting to make income and a living from your blog in 2010, I highly recommend Beyond Blogging by Nathan Hangen and Mike Cliffe Jones. He worked really hard to break into everything you need to do, do NOT need to do and brought along some powerful friends like Chris Brogan, David Risely, Chris Guillebeau, iJustine, Penelope Trunk, Pete Cashmore and more.
If blogging is not your thing no worries. Enjoy your holiday and leave a comment below on what you want to invest in to make your life better in 2010.