Digital Marketer Tanks A 10,000 Customer Online Business - The DM Clips

Vince Reed built NetDivvy to 10,000 users but only converted 150 to paid accounts because he gave away all the training for free and didn't know how to build a sales funnel. He learned the hard way that a big audience means nothing without a monetization strategy.
Questions this video answers
NetDivvy
About 10,000 users (mostly free users).
Approximately 150 paying users.
Paid level options mentioned were about $27 or $50 per month.
It stood for Internet share ("Internet and Divi/Divi Up Share").
Chapters
So when I left this event, I remember going home and I had a few things on my mind. Number one, I remember thinking how a lot of times people will try to protect you out of their own insecurities and fears. Because when I was going to the event, I remember telling some people that I knew and they like, were like, oh, you're going to one of those things. They're going to try to sell you some stuff and it's a scam and this and that. And they did try to sell you some stuff, which they should, because those things are there to make you better. But I think people that do that end up hurting a lot of people and preventing people from having moments like I had. And those are moments of inspiration and moments of clarity. And the clarity that I had was the fact that I needed my own product. You know, when I was promoting, you know, the MLM company, you know, I escaped disaster, they did their deal, and who knows if I would have kept going down that path, you know, I could have been caught up in all of that. And I had seen some success selling affiliate products for my very first commission to obviously selling my mentor's system. That was great. But I'm only getting a percentage of a percentage. And then when I'm in that VIP party and I see, you know, another top producer talking about a system and, you know, something that he's creating his own product and how he feels it's gonna make millions of dollars, I'm like, I gotta go create my own product. And I remember thinking to myself, man, I wanna teach people what I'm learning. I feel like what I'm learning is a skillset that can pay me for the rest of my life. I knew everybody at that moment. As long as there were businesses in the world, there was always going to be a need for lead generation and marketing. I believed that I was developing and mastering a skill set that was going to pay me forever. And so far in my life that's held up to be true. So I was like, okay, what can I call it and what will this product be and how am I going to create it? Back then, there weren't all these tools that there are today where you can create products and you can create software and, and do all these things like you can today. You know, back then it was extremely difficult. So I remember I went on Google and I did some research to try to find someone to help me create my own system, like the system that my mentor was essentially selling and what I was offering as a top affiliate. But I wanted it to be a little bit different. I took some of the ideas from that social network that pays you and then I talked about from that MLM company. I was like, well, if I can have this kind of social network that pays you, also like to have some Internet marketing training in there and kind of combine some of all those things that I liked into one. And I came up with this crazy name that stood for Internet share and the name of the company was Netdivi, right, the Internet and Divi Divi Up Share is how I came up with the name. So I came up with this product called NetDivvy. It was this social kind of community with digital marketing training. And it was a disaster. It was a disaster. So I found some developers to help me. It took way too long. It was extremely buggy. I had no idea of how to create, you know, structure and a process and a funnel. You know, one of the things that was great about, you know, my mentor's funnel and why he made so much money was it was a $49 a month system. In terms of, you know, all of the training that I was getting, I was only paying, you know, 50 bucks a month. But there was like one on one coaching that you could purchase. There was a group mastermind. There was all these other things that I couldn't afford, so, so I never purchased them. I just really was just focused on the training and I would promote that and I didn't really buy the other stuff, so I wasn't aware of them. So when I created my company NetDivvy, I had training and it took off like crazy. They had a free trial and then you could get to like the paid level which was like 27 bucks or 50 bucks a month. And what was crazy about it was immediately we got like 10,000 users. The problem was most of them were free users, right? So they were joining another free account. And I had a lot of training, as much training as I was getting in my mentor system, in fact more that people could get for free. So everyone got it for free and very few people were upgrading to the next level. And I didn't have any back end. So even though I had this awesome community that loved me and I kept seeing these cha ching emails because the way the system would work is I would get a cha ching email even when people would join for free. And I didn't have the knowledge or the skill set to understand process it and understand a funnel and back in to actually make it profitable. If I would have known what I know today, those 10,000 real customers that had to put a credit card in to even get their free account, I could have easily had different upsells and offered other stuff and probably made millions and millions of dollars a lot faster. But it was a learning lesson, and hopefully by you hearing that story, you'll have your process in place and understand that you have to have a backend when it comes to systems. So, you know, netdivi was great. I was able to, you know, start making some money, bring in a lot of people, but I wasn't making a lot of money from the system at all. I think we at one point, I think the highest we had was like 150 paying users, but they would be in and out. I think they quickly realized that they could just get as much information for free versus the paid account. So that was a great learning lesson.









