There’s a market for everything right? I mean, there’s even a market for a social network where sneaker lovers (yes, people who love sneakers) can congregate and talk about… sneakers, I guess. Or is there?

TechCrunch reports that Sneakerplay, the online community for sneaker fans, is looking for a buyer. Apparently it’s not formally shutting down… but it has no plans to grow. (I’m not sure that’s actually better than shutting down… but maybe that’s just me…)

The founders of Sneakerplay say that part of the reason for the site’s demise is that the founders lost their focus and were diverted by other projects. Sounds familiar…

That doesn’t mean Sneakerplay never made money. In fact, the site was started with just $1,500, never got outside funding, and was actually profitable. It received sponsorships from major sports brands, Adidas, Nike, EA Sports and Microsoft.

But making some money isn’t the same thing as making ENOUGH money, and it seems that Sneakerplay never achieved enough momentum to become either lucrative or sustainable.

And there’s the lesson for Internet marketers.

Focusing on a niche or ‘niche marketing’ is all very well… but you really need to ask yourself: is this niche ever going to make ENOUGH money? Do I have enough interest in this niche to do everything it takes to grow it into a SUFFICIENT money maker? Do I have the resources to make it REALLY successful?

If the answer is ‘no’ to any of these… it’s probably time to look for another niche.

Source: Robin Wauters, “Sneakerplay, Social Network For Sneaker Heads, Shuts Down,” TechCrunch, December 2, 2008

To all those Internet entrepreneurs whose hopes of raising venture capital for their business have just been dashed, here’s how to grow your business regardless of the economic crisis (and a real business at that). And to all those Internet entrepreneurs who have other money concerns… this applies to you too!

Quick background: we started our first Internet company in 1997 (an IT security company) and survived and thrived through the dot com crash. We later sold the company in 2002.

Because we started our business with no money (we were young and didn’t have any) except for a paltry $45,000 loan from family that quickly ran out since we used it to pay rent, buy furniture and live on… and because our tentative approaches to VCs never got anywhere… we had no choice but to work out how to make money fast.

And funnily enough, we managed to do so. So here are five (5) tips for bringing in the money when times are tough, based on what we did just a few years ago:

1. Work out what you can develop and sell to customers ASAP. All those big, long-term projects that rely on huge wads of cash you don’t have? Either put ‘em on the back burner while you focus on getting customers (not VCs) to pay you, or break ‘em into components so you can start selling at least one of those components within the next 6 months.
2. Focus more on marketing, less on product development. When the going gets tough, the tough start selling.
3. Focus on getting products out, rather than getting them perfect. Don’t compromise on quality of course, but you can incorporate all the ‘bells and whistles’ into later releases.
4. Cut down on all the nice-to-have-but-not-essential expenses. If it means bringing the business back into your house or garage, so be it.
5. (Optional) Keep in touch with your current or potential VCs. Funnily enough, taking all the above steps will not only help you build a real (profitable) business, but will help you prove to VCs that you have a real business and that you can get through the tough times. It’s resilient businesses like yours that VCs will prefer to invest in going forward.

Maybe the rumors aren’t true. Maybe eBay is NOT planning to sell StumbleUpon after all. Or maybe it’s making a last-ditch effort to turn the ’social discovery’ engine into a money maker before it decides whether to keep or sell it.

Whatever the case, eBay plans to revamp the service with new revenue generating features.

To date, StumbleUpon has made money by delivering a paid webpage for every 20 or 30 webpages delivered to its approximately 6 million users. Now eBay plans to extend those ads to more people by enabling them to use StumbleUpon without the tool bar. The company is also introducing a partner program to allow individual websites to offer StumbleUpon on their properties. The four initial partners are HowStuffWorks.com, HuffingtonPost.com, National Geographic.com, and Rolling Stone.com.

StumbleUpon’s advertisers - ranging from big names such as Condé Nast, Scientific American, and Forbes to small Internet marketers - currently pay a flat five cents per impression ($50 CPM), and the minimum bid is in the $20 range.

Source: Zachary Rodgers, “StumbleUpon Ads: Changes Coming to Unique Revenue Scheme”, The ClickZ Network, October 1, 2008

eMarketer reports that online marketers will spend $40 million on developing, distributing and promoting widgets in 2008, a huge jump over the $15 million they invested last year. But unless they’ve done their math, they may actually be losing money on this form of marketing.

A widget is a small software application or “applet” that can be installed on and integrated with a social media site, a web browser or your desk top. As a marketing tool, a widget is generally intended to provide some kind of nifty service whilst also facilitating viral marketing.

All well and good, but eMarketer points out that marketers paying widget developers to create their widgets on a fee-per-install basis are often paying between $1 and $5 each time a user installs the marketer’s widget onto their social networking page or elsewhere. This may be significantly more than the value they derive from the average user (depending on the time frame in which they measure value)!

So while a widget may be exceptionally popular… the cost of having it widely installed may cancel out or significantly outweigh the revenues derived from those widget users. eMarketer also notes that installation is no guarantee of use - just because someone downloads and installs a widget, it doesn’t mean they actually use it… let alone buy the marketer’s products or services. Moreover, because some widget advertising is sold on a fee-per-install basis, it may be tempting for some widget makers to use deceptive tactics to get people to install widgets they’re unlikely to use.

My strong recommendation to Internet marketers: do your math. Consider your alternatives in terms of paying widget developers on a fee-per-install basis or hiring software developers on a regular software development fee basis. Then consider whether you’re likely to break even or profit from your widget, based on the potential value of your average customer over the relevant timeframe (e.g. a year or perhaps their lifetime).

Source: eMarketer, “Widgets vs. Budgets?”, eMarketer, July 15, 2008

Many people seem to come into Internet marketing with the goal of achieving financial freedom.

Nothing wrong with that, and being committed to that goal will take you far.

But ironically enough, wanting financial freedom as your only - or even primary - motivation probably won’t lead you to achieving financial freedom.

Put it this way, I doubt that any Hollywood superstar, or top-earning athlete, or even billionaire got to where they are because they were chiefly motivated by financial freedom.

They got to where they are because (whether or not they also wanted financial wealth) they were fueled by an enormous desire to be EXCELLENT in their respective fields. To be the BEST at what they do.

So… do you have the desire to best possible marketer you can be? To deliver more value to your customers than anyone else? To “wow” them with your customer service?

Does that desire drive you as much as, if not more than, your personal desire to attain financial freedom?

If so, I think you’re much more likely to succeed long term. Simply because your desire for marketing excellence gives you more VISION over what needs to be done and greater DESIRE to do it. You’ll be more likely to seek a deeper understanding of your prospects and customers… to deliver top quality products and services to them… to provide exceptional customer service… and to go the extra mile in every other aspect of your business. And, as a result, you will reap the rewards.

If, on the other hand, Internet marketing is just a “money maker” and you have no real desire to be excellent, let alone be the best, I think you’ll find it tough. As many have said, Internet marketing is NOT an easy path to riches. It requires effort. Effort to learn… effort to implement… effort to overcome doubts… effort to stick to a plan without being swayed by the latest and greatest new thing!

Those who are just motivated by financial freedom, are less likely to keep putting in that effort when things get tough… whereas those who are motivated by a “higher calling” are on a mission that is likely to carry them forward no matter what.

If you don’t feel this way about your current business - if you don’t feel inspired to be the best - I would encourage you to rethink what you’re doing. There are all sorts of opportunities in Internet marketing, and I truly believe that when you find your “calling” you will become unstoppable. Not only will you be more likely to achieve financial freedom… but you’ll likely have much more fun along the way.