Web sales generate small fortune
USA Today - 04/20/98- Updated 09:37 AM ET
Ken West of Arlington, Texas, wasn't driven to the Web by poverty.
As head of a 100-agent health insurance business, the 35-year-old was
earning more than $200,000 a year. But West was burned out and beaten
down by new laws that spelled higher rates and narrower profits.
West, a ''gadget nut'' who used 3Com's PalmPilot, began moderating
Internet news groups, or chat sessions, on the popular hand-held
computer. He realized no Web site or store sold a full line of PalmPilot
accessories.
So last May, West and a minority partner hired a Web page designer for
$1,200 and launched a site (http://www.pilotgear.com/) ''just to make a couple
of hundred dollars a month.''
He contacted five suppliers and jammed his insurance office with $4,000
worth of PalmPilots, cases, modems and software. He had 30 days to
pay for the stuff and could return what didn't sell.
West put notices about his one-stop shop on hand-held computer news
groups - an effective way to reach computer-savvy buyers. He also
established reciprocal links with hundreds of PalmPilot-related sites.
Between insurance chores, he and his secretary updated the site, handled
orders via e-mail and boxed products for United Parcel Service pickup.
Sales totaled $40,000 the first month.
With revenue soaring, West ditched the insurance business last August
and enlisted the help of his wife and a college student. Monthly sales
recently passed $400,000, and West has exceeded his former income by
50%.
He recently invested about $85,000 in a new office and Web site, hired a
six-person staff and plans to go public in a year.
''I like this better (than insurance) because you have more control over
the products,'' he says. He dislikes the 14-hour days but expects to have
enough money to retire in two years. ''I'll go live on a beach
somewhere.''
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