Online Investment Services keeps newsletter subscribers up to date

At a time with other Internet-based companies were flailing, Online Investment Services had a model that helped it not only survive, but continue to increase business at the same time, says Eric J. Aafedt.

"Fortunately, we set up a business that looked at both sides of the equation. We were profitable basically since the first month we were in business," he says. "We have always kept that philosophy.

"Watch both sides of the question," he advises other entrepreneurs. "Watch the income side and the expense side and learn from those mistakes ... The equations people were doing a few years ago when they were doing all that advertising, it's hard to think that was going to work. We stayed away from that. We were subscription-based from Day 1."

Through its Web site, InvestmentHouse.com, Online Investment Services publishes stock market newsletters. Three are free and four are subscription-based services. The electronic newsletters are e-mailed to subscribers.

"InvestmentHouse.com is the sales pitch for the subscription reports, but there's other information given free on the Web site," Aafedt says. "We try to get them to sign up for the free newsletter so that we're constantly keeping in contact with them."

Those newsletter include investment topics such as daily reports, trading, stock splits or trading using technical analysis. Currently, Aafedt also offers subscribers a covered call service.

It seems to be a hot area. Online Investment Services has grown over 2,100 percent in the two-year period between 1998 and 2000, increasing sales from about $83,000 in 1998 to $1.9 million by 2000. But Aafedt has plans to additional free and subscription-based services.

"We don't want to overdo it. We want to set it up right and make sure we're not competing with existing products. Because if you're just swapping dollars, the increase will only be incremental," he cautions.

Online Investment Services was founded in 1997. While the stock market may be Greek to some, to Aafedt it's a hobby.

"I've always liked the stock market and I've always likes gadgets. The Internet and the computer are the gadgets combined with investing and the stock market," he says.

"The best part of an Internet-based business is that you can do it from any place in the world. I can be on a goose hunt in North Dakota in a city that has 18 people and one phone line and still get my work done," he adds.

Aafedt didn't go full-time with the venture until 1999, after 15 years as an attorney, practicing largely in energy and natural gas regulation. But, it's a business decision he wouldn't change, he's quick to add.

"There was a lack of time to do things I needed. And I wanted to balance between my family and work," he says.

"Fifteen years of practicing law and running a small business is different," Aafedt adds. "It's been a heck of an experience."

To keep the company growing, Aafedt continues to market InvestmentHouse.com in order to draw in more potential customers. Advertising solely online, Aafedt has found a way to make the advertising dollars worth it. But he won't reveal his secrets.

"We have found things that get people to our site. We have earmarks. If we spend a certain amount of money (on advertising), we know how many people we have to get to the site for that amount of money," he says. "It's hard economically, but we have found a few things that work and we stick with them."

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