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Was your profit margin a gradual or exponential increase?

by BlackReef
4 replies
I have gone from about .50 - $2.00 / day to around $10-15/day in 4 months or so.

My goal is hit $3,500 a day.

My question is this, did you guys notice as your traffic started going up that it started multiplying - or was it always just a slow, gradual increase until you got to where you wanted to be? Im sure alot depends on the niche, etc.

Thanks in advance!
#exponential #gradual #increase #margin #profit
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by BlackReef View Post

    Was your profit margin a gradual or exponential increase?
    Originally Posted by BlackReef View Post

    My question is this, did you guys notice as your traffic started going up that it started multiplying
    These are two very different questions, from the title and the OP, aren't they?

    (Unless you assume a constant, linear proportion between traffic and income? But who's found that??? Well, a few, perhaps, but it's certainly the exception rather than the rule, isn't it?).

    I'd venture to suggest that for many marketers (with various different business models) what has accompanied the "exponential leaps" in income was very often different traffic quality, rather than different traffic quantity.

    In terms of profitability/income, for example, for me there's (roughly) a tenfold difference between traffic from search engines and traffic from other sources, so a sudden flood of search engine traffic (which I do sometimes get) makes comparatively little difference to my income, while a sudden influx of article marketing traffic (which I also sometimes get, when an article's suddenly syndicated somewhere unusually helpful) can actually make a huge income difference very quickly.

    "Just saying" ...

    Originally Posted by BlackReef View Post

    Im sure alot depends on the niche, etc.
    Funnily enough, I haven't found that, myself. It's been broadly very similar across a range of 9 different, unrelated niches, for me.

    I strongly suspect that these relative variances are typically determined far more by the traffic demographics than by the niche itself.


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    • Profile picture of the author kilgore
      It sounds like you're asking about your total profit and not your profit margin, right?

      Business growth (which for the sake of expediency we'll use as a proxy for total profit) is often modeled using a sigmoid function or S-curve. This, of course, is an "average of averages" and may bear little resemblance with the experience of any one particular business -- which is why Alexa's comments are so helpful. So far, this model seems to be holding true for my business, though we're still too young to really say for sure how accurate it is. That said, I think it still provides a useful framework as you think about your business strategy.

      Out of curiosity, how did you arrive at your $3,500/day goal? Is that based on market research you've done or is that just a number you pulled out of the air?
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  • Profile picture of the author yakim1
    There is something you need to know...

    Your business should not be about how much money you make but how you make the money. Everything should be about multiplying growth and NOT just adding growth.

    A real business runs off of Systems, which accelerates results, consolidates time to increase results.

    I use 8 advanced points of leverage to drive traffic to my sites.

    What is Leverage? It's what helps you get bigger and better results with the least amount of effort in the shortest amount of time.

    If you use leverage to grow your business, it will grow exponentially.

    Best regards,
    Steve Yakim
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  • Profile picture of the author DaleRodge
    I remember when I first started out, it went pretty much like this....

    nothing....nothing....$5.....nothing.....nothing.. ..$7......

    wakes up...

    ..... $1,185

    I couldn't believe it... I swear I nearly fainted... Been in love with IM ever since!
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