Can you predict your income?

Neil Morgan · 10-07-2008, 06:27 AM

There are many people on here who desire to leave behind the daily grind of a J-O-B and work their online business full-time. Many will never do it because they don't get to the point where they feel secure about doing it.

They like the security of knowing that they'll get a salary payment once a month whatever happens. If the roof falls off their house, then they'll have a salary to help them. If they suddenly find out that their house is built on an old mine and it's going to cost $X,XXX,XXX to fix, then at least they've got their salary to help them through.

For many people on the planet, they're happy to live this way.

When I left my J-O-B in 2004 and went full-time with my online business, i had already been running the business part-time for 4 years.

And during those part-time years, I had the same fears.

But as time went on, I had also come to realise that the roof wasn't going to fall off my house and I wasn't going to discover that my house was built on a mine right after I handed in my notice to my employer.

Believe it or not, when you've left your job, life carries on the same as it did before you left. When you wake up in the morning, the sun still shines (well, not in Scotland much) and the world keeps turning.

Now, I'm not saying here that you should be reckless. No way. Common sense applies big-time - and I'll leave you to decide what that means in your life.

For me, one of the most important parts of my work as a full-time business owner is carefully monitoring my numbers. If you do this, you can really reduce the stress of working for yourself. You lose that 'out of control' feeling that you sometimes get when money's coming in, but you don't really understand how much, or where it's coming from.

Sure, you can put up a site and make money out of it, but if you don't know how well it's REALLY doing, how can you...

1. Improve it to convert better?

1. Forecast future earnings?

2. Grow it incrementally?

If you know how much each of your site visitors is worth to your bottom line and you monitor this for a while, eventiually you'll find you can predict your income with a fair degree of accuracy. The same applies to your list.

So take from this whatever you want - these are just some musings from a wet and windy Scotland, having forecast what my PayPal balance will be on October 31st.

Cheers,

Neil

TLTheLiberator · 10-09-2008, 04:47 PM

Neil, you head the nail right on the head.

Online income is predictable but you must know your numbers and what it takes to generate your numbers.

TL

Anna Thomas · 10-09-2008, 04:56 PM

Hi Neil,

You are absolutely right. What I found to work for me is that I run everything through my company, and I pay myself a salary just like I was an employee.

This is the number one advice I give my friends, and I hope that it is helpful to someone here!

Neil Morgan · 10-09-2008, 05:01 PM

Hi Anna

Yes, I agree with that too.

It's much, much easier if you separate your income from your household outgoings.

If you don't, you just feel like you're living from hand to mouth every day, and you get to the end of a good month of sales wondering where it has all gone.

Cheers,

Neil

Anna Thomas · 10-09-2008, 05:34 PM

That's exactly right. I know it can seem overwhelming to people, but I just tell them to do what I did. I found a wonderful accountant, and he helped me get all of that stuff set up.

It cost a little bit, but it was worth it, so that I can focus on marketing, instead of how my business is set up!

10-07-2008, 06:27 AM	#1
Neil Morgan Senior Warrior Member War Room Member Join Date: Jun 2007 Location: Lanarkshire UK Posts: 2,487 Thanks: 98 Thanked 314 Times in 223 Posts Social Networking	Can you predict your income? There are many people on here who desire to leave behind the daily grind of a J-O-B and work their online business full-time. Many will never do it because they don't get to the point where they feel secure about doing it. They like the security of knowing that they'll get a salary payment once a month whatever happens. If the roof falls off their house, then they'll have a salary to help them. If they suddenly find out that their house is built on an old mine and it's going to cost $X,XXX,XXX to fix, then at least they've got their salary to help them through. For many people on the planet, they're happy to live this way. When I left my J-O-B in 2004 and went full-time with my online business, i had already been running the business part-time for 4 years. And during those part-time years, I had the same fears. But as time went on, I had also come to realise that the roof wasn't going to fall off my house and I wasn't going to discover that my house was built on a mine right after I handed in my notice to my employer. Believe it or not, when you've left your job, life carries on the same as it did before you left. When you wake up in the morning, the sun still shines (well, not in Scotland much) and the world keeps turning. Now, I'm not saying here that you should be reckless. No way. Common sense applies big-time - and I'll leave you to decide what that means in your life. For me, one of the most important parts of my work as a full-time business owner is carefully monitoring my numbers. If you do this, you can really reduce the stress of working for yourself. You lose that 'out of control' feeling that you sometimes get when money's coming in, but you don't really understand how much, or where it's coming from. Sure, you can put up a site and make money out of it, but if you don't know how well it's REALLY doing, how can you... 1. Improve it to convert better? 1. Forecast future earnings? 2. Grow it incrementally? If you know how much each of your site visitors is worth to your bottom line and you monitor this for a while, eventiually you'll find you can predict your income with a fair degree of accuracy. The same applies to your list. So take from this whatever you want - these are just some musings from a wet and windy Scotland, having forecast what my PayPal balance will be on October 31st. Cheers, Neil
	AutoResponse Plus ~ June early-bird special @ProjectARP4 ~ all-new AutoResponse Plus ~ delivering deliverability

10-09-2008, 04:47 PM	#2
TLTheLiberator Please get a net biz plan War Room Member Join Date: Apr 2008 Location: , , USA. Posts: 1,428 Blog Entries: 3 Thanks: 1,106 Thanked 559 Times in 427 Posts	Re: Can you predict your income? Neil, you head the nail right on the head. Online income is predictable but you must know your numbers and what it takes to generate your numbers. TL

10-09-2008, 04:56 PM	#3
Anna Thomas Senior Warrior Member Join Date: Oct 2008 Location: Huntsville, Alabama Posts: 54 Thanks: 1 Thanked 2 Times in 2 Posts	Re: Can you predict your income? Hi Neil, You are absolutely right. What I found to work for me is that I run everything through my company, and I pay myself a salary just like I was an employee. This is the number one advice I give my friends, and I hope that it is helpful to someone here!

10-09-2008, 05:01 PM	#4
Neil Morgan Senior Warrior Member War Room Member Join Date: Jun 2007 Location: Lanarkshire UK Posts: 2,487 Thanks: 98 Thanked 314 Times in 223 Posts Social Networking	Re: Can you predict your income? Hi Anna Yes, I agree with that too. It's much, much easier if you separate your income from your household outgoings. If you don't, you just feel like you're living from hand to mouth every day, and you get to the end of a good month of sales wondering where it has all gone. Cheers, Neil
	AutoResponse Plus ~ June early-bird special @ProjectARP4 ~ all-new AutoResponse Plus ~ delivering deliverability

10-09-2008, 05:34 PM	#5
Anna Thomas Senior Warrior Member Join Date: Oct 2008 Location: Huntsville, Alabama Posts: 54 Thanks: 1 Thanked 2 Times in 2 Posts	Re: Can you predict your income? That's exactly right. I know it can seem overwhelming to people, but I just tell them to do what I did. I found a wonderful accountant, and he helped me get all of that stuff set up. It cost a little bit, but it was worth it, so that I can focus on marketing, instead of how my business is set up!