« Side Hustle School

#706 - Hedge Fund Manager Rocks On with Diamond Algorithm

2018-12-07

“Have algorithm, will side hustle”: These financial traders applied their career know-how to a completely different industry. They’re now earning $5,000/month in affiliate commissions. 

Side Hustle School features a new story EVERY DAY of someone who started a hustle without quitting their job. You’ll learn how they got the idea, how they overcame challenges along the way, and what the results are.  Share: #SideHustleSchoolShow notes: SideHustleSchool.comTwitter: @chrisguillebeau

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Have algorithm will side hustle these financial traders apply their career know how to a completely different industry there. Now earnings thousand dollars a month in affiliate commissions, hey, what's up its critical about recital school, going to tell you today about this hedge fund manager, rocks on with diamond algorithm, this is somewhat reminiscent of an episode that we did long ago episode. One fifty software engineer an engagement ring hunt into sight us all. If you're interested in this Well, if you like the story, Mona go back and listen to that. One is well before I tell you the story, let me just set it up for you. Why are diamonds, a good thing to be an affiliate for now when you're an affiliate, you're and earn a commission for referring assail to accompany a merchant? Not diamonds are getting to be a failure for because they are expensive. They have a high price. A lot of budget dime
if there is a budget diamond still pretty expensive, so the commission you can earn, is relatively low percentage wise to slay three, a five percent, but because diamonds are so expensive that can still be lucrative these days. Amazon is just paying something like a five percent commission referring sales to them. So if you're interested in this industry of this model of affiliates, don't ask yourself, would you rather earn a five percent commission on an Amazon book purchase or on a diamond after just a few months? The guys in today, story, following a hundred thousand dollars and sales each month, which means that their earning about five thousand dollars a month at last
at least before we get to the story. Just remember. The point of these stories is not to say you should go and do exactly this right, so if you're not interested in being an affiliate result for diamonds. Until I understand that you might also think, though, what else could someone earn commissions like this from? How can I take this example that I'm hearing about now in this warm with this model and apply it to something else? A lot of our listers have done exactly that. They listen to one story in the cotton applied it in their own way to a different industry or different field too. Yourself, if there could be something like this, that you could do, or maybe somebody that you know could do every day. I say thank you to our sponsor. I really appreciate them. They allow the show to be free to you. So let's do that now not tell you all about this rock solid money maker. Durban Jones, Hedge God manager per Michigan by day, was a secret algorithm
enthusiast by night. You might think of you I think, be more enthused about four patterns of numbers were the love of his life while besides, he is now why, of course, Luckily, he was able to combine two of his favorite. Things is to loves let safe into one stone, cold side us off shopping for the perfect diamond ring to propose to his girlfriend than fiance than wife proved to be a big chief some were outrageously prized somewhere the wrong cut others is not the one, and only for his one, and only frustrated. He turned to his daytime business partner to help him out. Two heads are better than one may put: there's together to download data on diamond inventory from top online Jorce. They were looking for whence Goldilocks diamond something not too big, not too small and prized just right.
Together, they use their training experience to price each time and like it, was a value stock and figured out how to get the biggest highest quality diamond within deference budget. They made a model that found a sweet spy between cut quality, carrots and price. And according to their algorithm, the diamond Devon, eventually selected was underpriced by nearly thirty percent. After a successful proposal, Devon told his wife about their search and her first response was: Of course, you guys would build an ugly than for this, as their other friends got word of his project and asked for help. They realize they were onto something it against me, all their free time, teaching themselves how to code, build a website and aggregate diamond data from online Jorce. They do that, if they had done at once before, they could do it again to help others find the best cut diamonds and determine which diamonds offered the best blamed for their back. They built up Site called stone alcohol and once it was ready, they needed traffic, they purchased tutor in fifty dollars in Facebook and Google apps and, unfortunately, that traffic wasn't very effective. The acquisition
cost was too high to be viable in the long term, they ve been shifted their focus to rely non search engine, optimization s YO and came up with a strategy that focused more on blog content. Two months after their official launch in July, twenty eighteen, their patients paid off something shifted in stone. I'll go saw a significant increase in referred sales totalling about fifty thousand dollars for that month. Not remember this isn't affiliate bottle. So when I said I had fifty thousand dollars in referred sales, that means they have referred. Customers to merchants who have been purchased. Fifty, dollars worth of diamonds. They receive a commission on those referred sales of about five percent, so that would be roughly twenty five hundred dollars in profit. Consumers don't anything to use the stone Argo site at the cost of a diamond for them is the same as it would be at the retail, the affiliates it is paid by the online store and those companies considerate part of their marketing budget Devon has made it Stone Argos mission to not look to sales. He instead,
was to base the model on a concept riven by aggregate sites like kayak that come in so far as paid off with just a twelve hour investment in their domain devenant his partner and now making a monthly profit of over five thousand dollars, based on referred sales of over a hundred I was in dollars and diamonds again. This is a new project at the time of recording it, it is less than six months old, a key differentiate or to their growth has been showing product videos of their diamonds to their customers, actually know what they're about to spend money on. A second key factor has been travelling to separate communities. Devon stumbled upon the separate it diamonds so that we just our slash diamonds on red it dot com, which was full of people looking for advice on their big diamond purchase turn it regularly posting in response to the questions, because they were essentially asked the exact same questions he had asked when he was developing the algorithm for his own personal use. This approach has helped him drive a lot of traffic and referred. The US is now working on adding new features to the site like a comparison report that allows users to input any diamonds they want. They compare them based
our algorithms interpretation of cut quality and value. Its awry solid side, hustle devenant his partner started a project with the small go. Finding the perfect engagement ring, their goals have now ran up and their determined to not crack under pressure. Here are a couple of additional tips and we got from Devon and are not through the episode speaking of his community building approach, to read it. He said we accelerated our growth process by putting a lot of attention to read it again, specifically, that is the Red it Sub forum, or they called a separate it, which is our slash diamonds, link that up in the shocks me said finding it? in it. First members who are looking for the type of advice we offer has helped us quickly get the word out and also figure, One aspect of the product need work and what could be added to improve our user experience? One other thing I thought was interesting: is they built their wives
themselves, and they had never done anything like that before that enough programming. Your coating background coating background about the algorithms, but that's quite different in building a website and to him he said, really wanted to learn how to do this ourselves, because if we have a problem, You won't be able to fix it ourselves instead of paying a third party to help out in something he says really illustrates this well, he said the best advice I can give is to learn to be solved At the very worst, you learn new skills and at best you understand, your business far better than you would have without the technical knowledge. I thought that's interesting, because it can often be a good thing to get somebody else to handle some stuff for it: right, there's a lot of power in that they can save you a lot of time. You'll be more efficient, but self sufficiency is buried The value of Cyprus will spill is very much a value all the work and I've done for the past decade, even apart from this part cast. So I do love this philosophy You know the worst thing that can happen if you go out to study. Something is that you learn a new skill bright and the best thing that could happen is it ends up helping. You attend
in your side, us or whatever. The goal is that you're trying to achieve so. I will leave you with that today. As always, inspiration is good, but inspiration with action is better today. Show notes, including links to this project, and everything else I mentioned that read it supports cetera. Are at sight of school dot com, slash, seven zero and six. Much more is unaware, do come back tomorrow and be sure your subscribed. Once again, my name is critical about this. His side also school.
Transcript generated on 2020-04-27.