Mechanics have their fingerprints all over the web. They are responsible for the IT that makes everything online work. It’s their systems that allow us to send emails, post information online, purchase products from an online shoppingcart. The entire online advertising industry is run on systems created by mechanics.
Because Mechanics instinctively look to systemize processes, many of them end up creating systems. Some of them become lucrative businesses (Google for example).
So if you have the mechanic profile, you have that potential of creating a system and creating wealth from your systems. You can do that by reaping the benefits of your system or licensing that system out to other companies. The money generating avenues are plentiful. Mechanics that haven’t captured their wealth flow often failed to make money of their systems. They hand over the rights of the system to an employer or let others capitalize on the revenues. If you are going to create a new system, make sure you own the rights to it and protect them. Find a way to market your system. Figure out how you can make money licensing out your system or create a business from the results of your system, or by providing your system to clients and customers.
Creating systems is a different animal compared to fixing/maintaining or improving existing systems. It can be a distinct advantage. Consider the popularity of certain web based services like Gmail. Simple web applications have edged out their desktop heivy weights in part because the creators started from scratch and weren’t bogged down by older versions, compability issues and other dependencies that companies like Microsoft face with products like Microsft Outlook.
The keys to success with creating money of systems is that it needs to really solve a real problem or provide a huge increase in efficiency over existing solutions. The next challenge for the Mechanic is figuring out how to market and sell the system.
Systems don’t have to be purely computer/information technology oriented. Systems can be ways of cooking, losing weight, getting fit, managing people processes, you name it. Most information products online are systems. Systems are designed to be easy to apply because they try and factor out as much human input/skill as possible. That’s why you’ll see so many marketing messages that will say ‘anybody can do it’, or ‘if you can read this text, you can get results with this product’, or ‘if you can copy paste, you can make money with this system’ etc.
Systems are great for consumers because they take the guesswork out of things. They are neutral in their operation and are designed to deliver predictable results. That is just the kind of thing beginning internet enterpreneurs need to start to understand how to make money online.
Systems are loved by internet entrepreneurs because they love automation and leveraging technology to perform otherwise tedious tasks. You can do the work of a 100 people if you have a system that automates the process. The idea of being able to run something without constant manual input is the holy grail of the internetmillionaire.
Scaling
Some of the wealthiest entrepreneurs are those that created a system and then learned to market it in different industries, using the same system over and over again. If you create a system that is very niche, it may be an advantage because you can price it high, depending on the market and competition. But if you got a system that can be applied to various industries and audiences, you can scale very nicely.
For example, if you have created a unique lead generation process, you could license that to the coaching industry, to the consultancy industry, to the therapy industry, the possibilities could be endless.
Getting Paid
As mentioned, the key is in owning the system. Setup a licensing structure in your business. Let your system bring in the money and do the heavy lifting. The great thing about it is, you don’t have to continually put in work to keep your flow of wealth going if you have a great system that is in high demand.
There are also plenty of mechanics online that are quietly raking in profits because they just work their own system. Those people that manage hundreds of small websites typically are Mechanics. They found a system that works for them and it brings in money almost on autopilot.
Bootstrapping
If you are starting out with a low budget, you will need to find a way to secure cash flow quickly. Building a system from scratch might incur heavy development costs, it may require a lot of time, money or other resources you may or may not have. Whether you can quickly create a system is one thing, whether it is going to work commercially is another. That’s why for bootstrappers, you need to navigate that risk wisely. In some cases not trying to reinvent the wheel is the right mantra. For those that are more daring or just confident enough in their system, find a way to get funding and support to make it all work. There are hundreds of start ups online filled with mechanics that are bootstrapping. They are more than often teams of people, they are typically thirsty enough to work 60-80 hours a week and the initial few years they sacrifice a lot of their life to pursue their project. This is not everybody’s internet riches dream.
Then there are a few mechanics that have systems and they make a business out of providing it to a customerbase. They often go alone, which is a liability. They end up as slaves to their product and are distinctly limited by their weaknesses. It is not often that a solo enterpreneur is a great mechanic, as well as a great marketing, pr, support and networking person. And even if they are they don’t have enough time in the day to do anything to the best of their ability. If you do start alone, work to improve your system based on customer experiences and look to outsource all the business activities that aren’t about improving your system. Don’t be a lone wolf.
The last part in the mechanic series, is coming up next.