The House of Rave Confessions

I own a business called House Of Rave.com.

It’s a drop shipping business, which means I don’t physically handle the products myself.

PRO’S:

  • If I stay on top of things, I only have to do a minimum of an hour or less of work per day (except maybe busy seasons).
  • The business makes money when I sleep.
  • I’ve slowly built a “moat” around the business which makes it (just a little) harder for newer competitors to compete with me.
  • I can say “I own a rave company
  • It’s helped me pay for college, supported me even after college.
  • By itself, it pays me enough money to live a pretty cool life, travel whenever I want and still save money.
  • This business allows me to abide by the rules I heard from Joe Sugarman, “Anything you can do to eliminate people or paper, do.”
  • It provides me a FANTASTIC “testing grounds” for trying out marketing techniques.  Like when I read something great in a book, I can easily implement it to HoR with ease since it’s 100% my business.
  • It’s always on top of cash flow, meaning I never have much debt (other than about $10,000 – $15,000 revolving debt on an American Express card).
  • Because of the above, I get crazy amounts of airline points (in fact I just checked I have half a million airline miles I’ve never used until TODAY when I booked a flight to Vancouver….fo FREE).

CON’S:

  • I must do at least SOME work everyday.
  • If I get hit by a bus, the business will cease to exist.
  • It’s unlikely it will ever get HUUUUGGEEE (without a change in the way things are currently run).

House Of Rave is what Tim Ferriss refers to as a “Muse”…a small business that you can run from anywhere which pays for your lifestyle.

However I’m no fool (well, at least not completely).

I am a middle man.  And as technology improves, manufacturers get more sophisticated, and consumers get more educated….I will be phased out with my current model.

I don’t foresee this happening anytime soon, and I do have time, but it will eventually happen.  Fortunately I’ve found ways to overcome that for now, but looking at a 5 or 10 year forecast, it will move in that direction.  If someone else took over, they could make the business BIG and sustainable in the long run, but it’s never really been a passion of mine.  It was one of many side-projects that made enough money not to pull the plug.

I’m really grateful I’ve had House Of Rave all these years.  I’ve started a lot of small businesses here and there, but HoR has been around the longest (first live order was placed in 2001).

But there’s a yearning to branch out even further.

I’m getting hungry.

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    Blog posted on: February 10, 2011

    7 comments on “The House of Rave Confessions

    1. Mike Roberts

      Really great article on your thought process involving this business. It’s cool to hear you say that you believe your business WILL be phased out at some point. that kind of clarity is empowering.

      I went through a similar transition in my own business.

      for 15 years I ran an illegal gambling business in Southern California. about 12 years in, one of the guys that collected money for me was robbed at gunpoint. I figured that was a good time to make some changes

      Over the next few years, i took steps to automate the business and remove myself completely—this was pre-4 hour work week, so I didn’t have a template plus I had zero education. I did it out of an instinct to survive and fear of going to jail or being a victim.

      This gambling business was my house of rave. It became completely automated

      All the bets (sports gambling)were taken by a phone bank in south america or on their 24 hour a day website. guys I trained personally collected all the money for me here. I worked maybe 1 hour a week. the business made on average 5-10k per week sometimes up to 80k.

      Eventually, I walked away completely for a million reasons, one of which, was because I was hungry for more. (plus, of course, it’s illegal and at some point I would have ended up in a cell or worse)

      anyway, the point of all this is that I think you have a skill for experimenting with yourself. Kind of like a scientist that is always testing the limits of his capabilities and then making careful observations. I really enjoyed your homeless experiment.

      Maybe you could do something along those lines?

      ~Mike

      Reply
      1. Neville Post author

        WOW…that sounds awesomely dangerous (yet lucrative).

        I don’t think I’d risk being in something that illegal, but it’s definitely a cool story.

        Reminds me of a real life Boiler Room story :-)

        Reply
    2. Pingback: The House of Rave Confessions | cherylhirk

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