Table of Contents
Introduction
About This Book
What You Need Not Read
Foolish Assumptions
How This Book Is Organized
Book I: Online Business Basics
Book II: Legal and Accounting
Book III: Web Site Design
Book IV: Online and Operating
Book V: Internet Security
Book VI: Boosting Sales
Book VII: Retail to E-Tail
Book VIII: Storefront Selling
Book IX: Fundraising Sites
Book X: Niche E-Commerce
Book XI: E-Commerce Advanced
Icons Used in This Book
Book I: Online Business Basics
Book I: Chapter 1: Starting from Scratch
What Are You Waiting For? Start Your Business Now!
Choosing Just the Right Business
Creating online businesses for today and tomorrow
Finding a business that’s your type
Getting Started
Book I: Chapter 2: Turning Internet Dreams into Reality
Thinking Like a Netrepreneur
Putting Your Business Idea under the Microscope
Using informal research to verify your idea
Applying a SWOT analysis to your idea
Creating a feasibility study to validate an idea
Identifying Your Market and Target Customer
Classifying your customer
Going to the source
Competing to Win: Analyzing Your Competition
Book I: Chapter 3: Getting Real: Creating a Usable Business Plan
Understanding the Value of a Plan
Recognizing That the Parts of the Plan Make a Whole
Getting Help to Write the Plan
Determining when to hire a professional
Knowing what to expect from a business plan consultant
Using a Business Plan Today, Tomorrow, and Always
Book I: Chapter 4: Finding Money to Fund Your Online Start-Up
Bootstrapping the Low-Cost, No-Cost Site
Making the leap to the bootstrapping lifestyle
Saving money to make money
Getting resourceful
Looking at the pros and cons of bootstrapping
Finding the Perfect Investor
Turning to your friends and family network
Finding angels
Venturing into the world of venture capital
Checking Out Alternative Financing
Taking a Shortcut: Purchasing an Existing Site
Book I: Chapter 5: Creating Policies to Protect Your Web Site
Taking Care of Customers
I pledge to you
Put it in writing
Putting Policies in Place
Privacy policy
User agreement or terms and conditions
Shipping policy
Return policy
Safety for young users
Other online policies
Delivering On Your Promises
Book I: Chapter 6: Setting Up Shop: Everything You Need for Online Efficiency
A Floor Plan for Success
Must-Have Equipment
Make form follow function
Revving up with a powerful PC
Let somebody else do the hard stuff
Tools for Your Desktop
Searching for a Web browser
Sending and receiving messages with e-mail
Using document-viewing software and other useful applications
Your Essential Software Toolkit
Connectivity: Today’s Internet Options and More
Book II: Legal and Accounting
Book II: Chapter 1: Minding the Law
Keeping Your Business Legal
Federal tax identification number
Resale certificate
Business bank account
Employee forms
Zoning for Business (at Home)
Obtaining Business Licenses
Book II: Chapter 2: Choosing the Right Foundation: From Partnerships to Corporations
Strategizing for the Best Organization
Operating Alone as a Sole Proprietor
Fictitious name registration
Husband/wife sole proprietorship
Sharing the Load with a Partnership
Limited Liability Company (LLC)
Making It Official with Incorporation
Different flavors of corporations
The choice to incorporate
Changing Your Organization as It Grows
Book II: Chapter 3: The Trademark-and-Copyright Two-Step
Understanding Why Trademarks and Copyrights Matter
Making Your (Trade)Mark
Protecting Your Investment with Copyrights
Establishing Registration Yourself
Getting your trademark
Filing for copyright
Retaining Professional Assistance
Book II: Chapter 4: Accounting for Taxes (And Then Some)
The Tax Man Cometh — Again and Again
Income tax
Employment tax
Sales tax
By the Numbers: Accounting Basics
Determining periods and methods
And now, your balance sheet
A quick glimpse: The P&L
Choosing Software to Make Your Tasks Easy
Going online?
What size are you?
How much do you want to pay?
Do you need support?
Hiring a Professional
Recognizing that it takes all types
Knowing what to expect from your tax professional
Finding likely candidates
Choosing the best person for you
Following the Rules of Recordkeeping
Dealing with all the paper
Storing records: How long is long enough?
Book III: Web Site Design
Book III: Chapter 1: What’s in a (Domain) Name?
Picking Your Online Identity
Approaching your domain name carefully
Understanding what a domain name should be
Registering the Perfect Name
Who you gonna call?
Let’s make it official
Finding Out What to Do When Somebody Gets There First
Exploring your domain name options
Getting what you want — at a price
All the Good Ones Are (Not!) Taken
Varying the extension
Getting creative
Book III: Chapter 2: Designing Customer-Friendly Sites
Maximizing Performance for Profitability
Looking Your Best
Following basic design principles
Making design choices
Choosing Substance Over Style
Counting on Function to Win Customers
Understanding the customer experience
Building function into your site
Book III: Chapter 3: Building a Site without Spending a Fortune
Mapping Your Route to a Successful Site
Setting reasonable expectations
Avoiding common holdups in developing a site
You Can Do It! Make a Build-It-Yourself Site
Using HTML: The old-fashioned way to build a page
Going modern with Adobe Dreamweaver and more
The pros and cons of using automated site builders
Creating Your Site with the Pros
Seeking experience: Choosing the right Web site designer
Comparing apples to apples
Speeding up the process
Keeping an eye on your business interests
Book III: Chapter 4: Finding the Host with the Most
Differentiating between an ISP and a Host
Determining What Makes the Difference for High-Performance Hosting
Sorting Out Your Web Site Host Options
Putting the Long-Term Contract in the Past
Serving Yourself: Don’t Overlook Other Server Options
Book III: Chapter 5: Writing Content that Search Engines Want to See
Words Are Words — Right? Wrong!
Getting Ready to Write for the Web
Understanding who and why
Understanding that packaging is everything
Getting organized
Making a list and checking it twice
Moved to Purchase: Turning Words into Action
Choosing Words that Search Engines Notice
Book III: Chapter 6: Lights, Camera, Action! Taking Your Site Live
Some Things to Know Before You Start Uploading
Taking the Compatibility Test: Testing Screen Resolutions, Browsers, and Platforms
Checking it out
Testing on Mac, Windows, or whatever
Keeping people in mind
Taking a Trial Run
Three, Two, One — Take Off!
Book IV: Online and Operating
Book IV: Chapter 1: Determining Your Revenue Model
Selling Tangible Products
Projecting how you’ll make a profit
Manufacturing and selling your own goods
Buying tangible goods and selling them online
Selling Your Professional Services
Understanding the pros and cons
Building credibility
Selling Information
Placing Ads for Profit
Looking at sites that sell
Analyzing traffic patterns
Choosing ad formats
Estimating your revenue potential
Getting it from Google
Managing ad space inventory
Selling the space
Establishing an Affiliate Advertising Program
Putting It All Together: Multiple Revenue Streams
Book IV: Chapter 2: Making Money with Affiliate Programs
Looking at How Affiliate Programs Work
Understanding some affiliate terms
Finding an affiliate program
Signing Up for an Affiliate Network
Avoiding Scams and Questionable Content
Illegal affiliations
Questionable affiliations
Book IV: Chapter 3: Turning Information into Profit, from e-Books to Webinars
Creating Your Own Information Product
Finding hot topics
Researching the information
Organizing your thoughts
Providing E-Books
Creating the document
Distributing your e-book on e-shelves
Putting Together a Webinar
Your recording session
Finding your audience
Book IV: Chapter 4: Paying Up with the Right Payment Options
Accepting Credit Card Payments
Securing a merchant account
Choosing a payment gateway
Reading the fine print: Fees
Offering Alternative Payment Options
Managing the Payment Process to Protect Your Income
Book IV: Chapter 5: Putting the (Shopping) Cart before the Horse
Not All Carts Are Created Equal
Back-end management
Customer-centric
Integration and maintenance
Promotion and marketing
Shopping Around for the Best Hosted Solution
1ShoppingCart
GoECart
Finding Off-the-Shelf Software
Designing a Cart for You
Book IV: Chapter 6: Taking Inventory
Finding Out What’s Popular By Using eBay
Putting Together All Your Research
Pricing Your Products
Building Your Inventory
Stocking up as a low-price leader
Becoming all things to all people with trial-and-error inventory
Specializing with limited inventory
Book IV: Chapter 7: Fulfilling Expectations and Orders
Figuring Out the Logistics of Shipping
Developing an In-House Fulfillment Model
Deciding to Outsource Fulfillment
Finding an outsourcing partner
Establishing your outsourcing relationship
Operating with an outsourced fulfillment house
Assessing the quality of the fulfillment work
Shaping Up and Shipping Out
Giving shipping options to your customers
Setting up accounts with carriers
Creating online postage and labels
Having items picked up for delivery
Shipping international orders
Maintaining the Back End
Deciding on a database
Using handheld scanners and bar codes
Developing a shelving inventory system
Feeding orders into the shipping department
Book V: Internet Security
Book V: Chapter 1: Understanding Security and Your Risks
Legal Responsibility: The Merchant and the Customer
Avoiding charge-backs
Keeping your customer information secure
Defining Your Privacy Policy
Keeping Your Web Site Secure
Displaying Seals of Approval
Book V: Chapter 2: Developing a Security Plan
Making a Plan
Policies and procedures
Inventory and skills assessments
Risk analysis
Existing security measures
Action plan
Resources and follow up
Creating a Budget for Your Plan
Finding Security Resources
Book V: Chapter 3: Attacked! What to Expect from the Net-Thief
Fending Off Denial-of-Service Attacks
Deterring Hackers
Avoiding Viruses and Other Malware
Keeping Your Domain Name Safe
Staying Away from E-Mail Scams
Phishing
Pharming
Book V: Chapter 4: Securing Your Site and Your Business
Protecting against Credit Card Fraud
Minimizing your own financial losses
Protecting customers’ privacy and financial data
Backing Up Your Data
Adding Firewalls
Book V: Chapter 5: Overcoming Security Concerns in the Wireless World
Understanding How a Wireless LAN Works
Establishing Barriers
Following your common sense
Setting up a virtual private network
Keeping an eye on your connection
Book VI: Boosting Sales
Book VI: Chapter 1: Driving Traffic, Driving Sales
Calculating Your Site’s Conversion Rate
Figuring Out When You Get the Most Traffic
Getting Customers to Notice Your Web Site
Book VI: Chapter 2: Special-Edition Public Relations for the Web
Writing Reviews
Finding the best places to post reviews
Writing the review, section by section
Becoming a Community Leader
Speaking out with Webinars
Billing yourself as an expert
Writing Articles
Tailoring your article topics
Putting together your article
Handing out your articles
Book VI: Chapter 3: Web Marketing at Work
Developing a Marketing Strategy
Devising your brand
Working the brand
Reeling In Customers with Newsletters
Decide who will write your newsletter
Decide what your newsletter will cover
Decide when to issue your newsletter
Decide on a format for your newsletter
Decide how to distribute your newsletter
Automating Your Routine Tasks
Searching for Traffic with Search Engine Advertising
Signing up for Google AdWords
Deciding when to use pay-per-click
Marketing Your Company Offline
Book VI: Chapter 4: Converting Browsers to Buyers
Giving Customers a Reason to Stay on Your Site
Providing your own content on your site
Getting other people to provide your content
Anticipating Customer Needs
Watching customer logs
Predicting future purchases
Organizing a Buyer-Friendly Site
Streamlining the shopping process
Toning down the bells and whistles
Keeping Your Shopping Cart Simple
Avoiding Assumptions about Your Customers
Asking customers for feedback
Remembering your customers
Encouraging Viewers to Buy
Offering deals and promotions
Sending one last reminder
Book VI: Chapter 5: Analyzing and Monitoring Your Customers
Tracking Trends
Measuring Web Site Traffic
Defining the terms of traffic analysis
Looking at your log file
Referring to your referrer file
Examining error logs
Checking abandoned shopping-cart logs
Scrutinizing the most common entry- or exit-page logs
Measuring Traffic against Activity
Jam Packed: Traffic-Analysis Software
Basic analysis software
Detailed analysis software
Enterprise or big business
Collecting the Correct Information
Storing data using cookies
Adding information to your links
Studying the path analysis
Getting to Know Your Customer Really Well
Using Your Data to Understand Your Business
Watching trends to find out average behavior
Identifying areas of improvement
Deciding on a change
Following up
Book VI: Chapter 6: Mastering Search Engines, Optimization, and Rankings
Navigating the Ins and Outs of Major Search Engines
Getting Your Web Site Noticed by Search Engines
Submitting Your Site to Search Engines
Signing up with Google
Signing up with Yahoo!
Submitting to other search engines
Placing Keywords in Key Spots on Your Web Site
Keywords that are invisible
Keywords that are visible
Arranging Your Pages Strategically
Watching Your Rankings
Moving Up in the Rankings
Knowing where you stand
Seeing what your competition is doing
Creating your own referrals
Discovering Editorial Opportunities with Engines
Book VII: Retail to E-Tail
Book VII: Chapter 1: Knowing When to Put Your Store Online
Making the Decision to Move Your Store Online
Finding the Right Time
Taking into account seasonal latitude
Timing your launch around an event
Dedicating manpower
Bridging Your Offline Store with Your Online Store
Finding your identity
Creating an image
Integrating your shopping cart
Making a Flawless Transition
Stage 1: Orientation
Stage 2: Implementation
Stage 3: Evaluation
Building an Inventory
Book VII: Chapter 2: Understanding the Differences between Real and Virtual Customers
Comparing Online and Offline Customers
What Your Online Customers Expect from You
Round-the-clock hours
A variety of payment methods
Everything a customer could want, plus the kitchen sink
Details, details, details
Methods for coping with the holiday rush
Flexibility
Superior customer service
Establishing Patterns
Book VII: Chapter 3: Window Dressing for the Online Display
Creating the Right Look for Your Online Store
Creating the Perfect Shopping Experience
Organizing your products in categories
Offering a search function
Beyond Window Shopping: Designs that Lure Traffic
Book VII: Chapter 4: Making In-Store Customers Loyal Online Shoppers
Benefiting Customers (And Your Business) with In-Store and Online Synergy
Enticing Customers to Your Online Offering
Publicizing your Web presence
Displaying your online goods in-store
Showing shoppers the money
Providing a Positive Shopping Experience
Keeping friendly, flexible policies
Offering impeccable customer support
Enlightening your shoppers
Making Your Customer the Star
Book VII: Chapter 5: Staying Local, Getting Mobile with M-Commerce
Distinguishing Between Different Types of Mobile Commerce
Sending SMS alerts
Advertising with text-to-buy
Distributing mobile coupons
Localizing with Ads
Google AdWords
Yahoo! Search Marketing
Book VII: Chapter 6: Troubleshooting the Transition to E-Tail
Handling Returns in the Store from Online Sales
Merging Existing Back-End Systems with Online Requirements
Managing inventory
Fulfilling and shipping your orders
Tracking your orders
Maintaining site performance
Deciding How to Handle Integration
Extending Payment Options to Virtual Customers
Buy now, pay later
Check alternatives
Book VIII: Storefront Selling
Book VIII: Chapter 1: Instant E-Commerce with Storefronts
Knowing What You Want: Features
Performance
Product merchandizing and marketing
Administration features
Realizing What You Can Have: Cost
Shopping for Storefronts
Book VIII: Chapter 2: Mastering the Amazon
Joining the Marketplace
Achieving Pro Merchant Status
Taking Advantage of Other Selling Opportunities with Amazon Web Stores
Book VIII: Chapter 3: Let’s Hear It for Yahoo!
Why Open a Yahoo! Store?
Setting Up Shop
Managing Your Yahoo! Services
Opening Your Yahoo! Store for Business
Constructing your catalog
Opening the doors
Selecting a Yahoo! Plan
Starter package: Starting out
Standard package: Moving up
Professional package: Building on solid ground
Breaking Down the Fees
Growing with Your New Business Partner
Marketing programs
Customer relationship management
Report results
Book VIII: Chapter 4: Making eBay THE Way
Understanding How eBay Works
Getting Started on eBay
Setting Up an Auction
Maintaining your auctions
Leaving feedback for your buyer
Opening an eBay Store
Setting up shop
Managing your store
Becoming a PowerSeller
Joining the Reseller Marketplace
Book VIII: Chapter 5: New Storefronts, New Opportunities
Highest Bidder Takes All with Auction Sites
Localizing Storefronts with LiveDeal
Creating Instant Products with CafePress
Discovering the benefits
Registering with CafePress
Setting up your store
Adding images and products
Comparing Features to Find the Best Deal in Storefronts
Spreadshirt
Zazzle
Book IX: Fundraising Sites
Book IX: Chapter 1: Raining Donations: Why Not-for-Profit Is Big Business Online
Determining How Your Organization Can Benefit
Convincing Your Board of Directors
Tying the Internet strategy into your mission
Developing an online strategy
Providing a budget-friendly proposal
Offering case studies
Recruiting an expert
Garnering positive peer pressure
Getting specific
Book IX: Chapter 2: Adding Online Moneymakers to an Existing Site
Determining Which Features Your Site Can Support
Testing your backbone (connections)
Deciding on your computer needs
Locating your server
Processing payments
Tracking back-end modules
Mapping your site structure
Determining staffing capabilities
Paying the piper: Your budget
Adding an Auction to Your Site
Third-party auctions
Direct auctions without the middleman — almost
Soliciting Donations on Your Site
Connecting with online giving sites
Adding Donate Now buttons
Shopping for a good cause
Book IX: Chapter 3: Getting the Donor Base to Come to You
Building an Online Donor Base from Scratch
Get your site noticed
Engage passersby
Establish a relationship
Putting Together a Plan to Reach Donors
Converting the Faithful
Reaching Out to People Surfing for Charities
Book IX: Chapter 4: More Online Marketing Strategies for Nonprofits
Asking for Donations
Multiplying donation buttons on your site
Passing the hat (pass-alongs)
Building personalized pages
Circulating donation links offline
Cross-promoting
Making Donating Easy
Book IX: Chapter 5: Legal Considerations for Nonprofit Organizations
Designating Responsibility
Creating Online Policies
Registering Your Charity
Gaining Seals of Approval
Better Business Bureau
Charity Navigator
Book X: Niche E-Commerce
Book X: Chapter 1: Discovering Niche Markets
Deciding to Sell a Niche Product
Finding Your Niche
Book X: Chapter 2: Discovering Niche Trends That Pay: Children and Boomers
Marketing to Children
Attracting a fickle customer
Keeping ’em coming back for more
Reeling in the parents
Reading the small print: Important policies to consider
Understanding the Baby Boomer Market
Designing your site to attract aging customers
Keeping baby boomers buying from you
Finding a niche within the baby boomer market
Book X: Chapter 3: Blogging for Profit
Creating Value
Finding your voice
Content, content, content
Earning Money with Google AdSense
Choosing a Blog Platform
Signing up with Blogger.com
Getting started with WordPress
Book X: Chapter 4: Socializing (And Profiting) in Second Life
Introducing Other Worlds
Social networks
Massively Multiplayer Online Role-Playing Games (MMORPG)
Virtual communities
Navigating the Basics of Second Life
Signing up with Second Life
Modifying your avatar
Getting your hands on Linden Dollars
Earning a Living in Second Life
Unskilled labor
Skilled labor
Entrepreneurs
Selling your wares in the Marketplace
Other income opportunities
Book XI: E-Commerce Advanced
Book XI: Chapter 1: Overhauling the Business
Paying Attention to the Signs
Qualifying for a Makeover from Lagging Sales
Increasing the number of visitors to your site
Converting more visitors to buyers
Knowing Where to Start
Book XI: Chapter 2: Redesigning to Win New Customers
Updating an Outdated Look
Giving your designs a purpose
Changing for the sake of change
Telling customers about the change
Deciding what to update
Increasing Appeal
Giving your customers search capability
Adding content
Creating a user community
Running a poll
Making Your Web Site Functional
Updating your Web site in a timely manner
Building smart navigation tools
Building your customer history
Book XI: Chapter 3: Expanding Products to Increase Stagnant Sales
Figuring Out When to Expand Your Product Line
Limited-appeal products
Limited-use products
Technology-based products
Product marketing
Product positioning
Price points
Conversion rates
Replacement or Expansion: The Art of Culling Your Inventory
Replacing one product with another
Expanding your product line
Finding New Products
Book XI: Chapter 4: Bringing Former Customers (Back) Home
Figuring Out Why a Customer Left
Instituting countermeasures
Asking for reasons that customers leave
Offering Customers Incentives to Return
A tailor-made offer
A targeted offer
Enticing Customers to Stay
Giving them blow-your-socks-off service!
Rewarding loyalty
Saying “Thank You”
Book XI: Chapter 5: Revisiting Marketing Strategies
Reviewing the Progress Report: An Annual Tradition
Getting the right reports
Sharing your progress report with your team
Figuring Out What Worked and What Didn’t
Analyzing a failure
Examining a success
Changing Plans for a Growing Company
Focusing on specific elements of your strategy
Testing your ideas
Automating your campaign
Finding Your Place in the Market
Focusing on your strengths
Emphasizing quality, not quantity
Increasing your profit, not buzz
Borrowing Strategies from Others
Stealing a page from your competitor’s playbook
Updating your strategy for survival
Partnering with other companies
Book XI: Chapter 6: Hiring Experts to Get Business Rolling Again
Bringing In the Pros
Looking at the age of your business
Looking at the severity of the problem and attempts to solve it
Looking at your skill level
Looking at the timing
Matching the Right Advisors to Your Business Needs
Choosing the Right Consultant
Defining the Relationship
Overcoming Great Expectations and Still Getting Results
Book XI: Chapter 7: Transitioning a Small Site into Big Business
Seeking Out the Next Level of Your Business
Expanding the business
Acquiring other sites
Becoming an affiliate or a partner
Going international
Bringing in financial partners
Going public
Passing on your company and retiring
Selling your site
Selling your domain
Dealing with Accidental Success
Purposefully Making the Next Move
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After earning his MBA from the University of California–Irvine with an emphasis on entrepreneurship and information technology, Joel co-authored five bestselling books focusing on online activities, including Web Stores Do-It-Yourself For Dummies and LinkedIn For Dummies (both from Wiley Publishing). He’s now a consultant to e-commerce companies, a trainer to thousands of eager students at seminars and workshops, and a guide for helping people attain the freedom of growing their sales and establishing their own online presence.
That said, my sincere thanks to the entire team at Wiley Publishing that made this book a reality, not once, but twice. This includes Rebecca Whitney, Jim Kelly, Rebecca Senninger, Kyle Looper, and my co-author, Joel Elad. I am convinced that this is one of, if not the, most talented and caring group of people I could ever have the privilege of working with, or knowing. A special thanks to Rebecca Senninger and Kyle Looper for their continued guidance.
Thanks also to all of those who choose to read this book and who are inspired to become entrepreneurs. It is your ingenuity, creativity, and passion to follow a dream that not only makes this world go ’round but also inspires the rest of us to follow in your footsteps.
Of course, I can’t leave out another important group of people. Thanks to my in-laws, Jim and Freida Belew, for their support and love. Most importantly, thanks to my parents, Ron and Janice Sanders, for inspiring me. You have always encouraged me to stay on track with my dreams, even through the many ups and downs of this crazy life. Every entrepreneur should be so lucky to have parents like you in her corner.
A special acknowledgement goes to my usual co-conspirator, Michael Bellomo, who put me on the path of being an author and keeps me going with a bizarre sense of humor mixed with a powerful dose of inspiration.
Most of all, I have to thank the Wiley team, which has been truly inspirational: Kyle Looper and especially Rebecca Senninger, whose patience and guidance helped make this book possible.
We’re proud of this book; please send us your comments through our online registration form located at www.dummies.com/register/.