An Easy Way to Make Your Online Business Profitable
Posted 20th July 2016 at 09:27 AM by visimedia
It's just simply
cost VS profit!
cost VS profit!
How do you think to make your online business profitable?
It's nothing than to compare your cost vs your profit.
If you already run an online business for a while then you must know, understand, & agree with what I say here.
You'll relate to it.
But if you're brand new into online business, this is what you need to pay attention to very closely. Unless you wanna learn it the hard way to master online business, you must pay attention to this.
It's still a business
Some people still don't realize that it's a business, they just do online business the way they run a bad business.
Regardless of the problems people are facing like capital, etc, we have to realize that in business it will all lead to marketing & selling.
Marketing & selling is the way to go, they don't do it the right way in this field.
Low capital can be covered with good selling & marketing skills.
That's how we get our revenues from.
On the other hand we have to cover our costs as a result of running a business.
Operational costs like salary if you run a company (even a small one), other thing is like autoresponder cost, web hosting cost (I will tell you how to save by a lot in web hosting), and other subscription like training or online tools you have.
Some people still don't realize that it's a business, they just do online business the way they run a bad business.
Regardless of the problems people are facing like capital, etc, we have to realize that in business it will all lead to marketing & selling.
Marketing & selling is the way to go, they don't do it the right way in this field.
Low capital can be covered with good selling & marketing skills.
That's how we get our revenues from.
On the other hand we have to cover our costs as a result of running a business.
Operational costs like salary if you run a company (even a small one), other thing is like autoresponder cost, web hosting cost (I will tell you how to save by a lot in web hosting), and other subscription like training or online tools you have.
CALCULATE HOW
MUCH IS YOUR
COST
MUCH IS YOUR
COST
You have to know how much is your basic costs in total to run your business without compromising the quality of your work & the result (revenue & profit).
For example
web hosting: $10/ month x 36 (generally paid upfront in total of # months) = $360
autoresponder: $25/ month
In short it's $35/mo in average in total for just this 2 basic subscription. It's enough for an affiliate marketer to get into affiliate marketing business.
Every month you have to at least meet that $35 expense by doing something productive.
Don't stuck just to learn something new, watch new training videos, read new ebooks, etc.
Productive activity is like:
We take risks as a business owner.
That's normal. It's not easy to see something that's not working as planned, but not everything won't work, something will work.
If you don't succeed and other people succeed, you'll literally have something they know and you don't know.
The key is to know your basic expenses & cover that by getting enough revenue.
Not just covering the cost, but also to make profit!
$1,000 in gross sales, 30% profit means = $300, and the fix cost is $100 in total, COGS is 70% ($700).
Nett profit is $200.
If you want to make the profit to be $250, there's 2 ways to achieve it:
1. by increasing the sales by 25%, it means you have to sell $250 more that will make it to be $1,250.
The other option is
2. by cut the cost by just $50 with the same $1,000 in sales, which means just 5%!
Which one is easier & faster, to sell more by adding more customer or offer more products to your remaining customers...
Or
Cut down your expenses?
I think #2 is the way to go in the first place.
Doing both 2 is the best thing to do, but first step cutting down your cost is the way to go, of course, without compromising your end result.
SO ... Now you have to know what are your costs, you need to find ways to cut your expenses, pick alternatives that's better, eliminate features you don't need.
If you're still lucky, you'll still be able to see a web hosting offer I put together with my favorite vendor to get a lifetime super cool lightening fast web hosting deal.
Since this hasn't been around, and this backdoor will be just open in few days, so I can just share the link but not sure if the time runs out. You can get even 4x back of your investment, I think it's insane.
Next about the autoresponder, I think on autoresponder you can't really get the one time fee autoresponder, since the provider on this area is limited, and I don't see any of the providers will provide you a lifetime deal like the previous one, because not much supply & competition.
I hope this will help you to scan your cost, cut your cost, & make your business more profitable!
For example
web hosting: $10/ month x 36 (generally paid upfront in total of # months) = $360
autoresponder: $25/ month
In short it's $35/mo in average in total for just this 2 basic subscription. It's enough for an affiliate marketer to get into affiliate marketing business.
Every month you have to at least meet that $35 expense by doing something productive.
DO SOMETHING
PRODUCTIVE TO
COVER COSTS
PRODUCTIVE TO
COVER COSTS
Don't stuck just to learn something new, watch new training videos, read new ebooks, etc.
Productive activity is like:
- talk to a potential prospects/ customer
- networking with JV
- making a landing page that you'll promote
- do research on fb audience to run your ad for
- wait & see of that fb ad results for few days, while blogging to wait for it
- looking for new niches to tap into
- looking at your google analytics to see if there's something you can tweak on your business to match the audience behaviour
- link building & tracking your serps
- etc
We take risks as a business owner.
That's normal. It's not easy to see something that's not working as planned, but not everything won't work, something will work.
If you don't succeed and other people succeed, you'll literally have something they know and you don't know.
The key is to know your basic expenses & cover that by getting enough revenue.
Not just covering the cost, but also to make profit!
INCREASING
PROFIT BY
CUTTING YOUR COSTS!
Have you calculated it before, that it's easier & faster to increase our profit by not increasing our gross sales by but cutting our cost first!PROFIT BY
CUTTING YOUR COSTS!
$1,000 in gross sales, 30% profit means = $300, and the fix cost is $100 in total, COGS is 70% ($700).
Nett profit is $200.
If you want to make the profit to be $250, there's 2 ways to achieve it:
1. by increasing the sales by 25%, it means you have to sell $250 more that will make it to be $1,250.
The other option is
2. by cut the cost by just $50 with the same $1,000 in sales, which means just 5%!
Which one is easier & faster, to sell more by adding more customer or offer more products to your remaining customers...
Or
Cut down your expenses?
I think #2 is the way to go in the first place.
Doing both 2 is the best thing to do, but first step cutting down your cost is the way to go, of course, without compromising your end result.
SO ... Now you have to know what are your costs, you need to find ways to cut your expenses, pick alternatives that's better, eliminate features you don't need.
If you're still lucky, you'll still be able to see a web hosting offer I put together with my favorite vendor to get a lifetime super cool lightening fast web hosting deal.
Since this hasn't been around, and this backdoor will be just open in few days, so I can just share the link but not sure if the time runs out. You can get even 4x back of your investment, I think it's insane.
Next about the autoresponder, I think on autoresponder you can't really get the one time fee autoresponder, since the provider on this area is limited, and I don't see any of the providers will provide you a lifetime deal like the previous one, because not much supply & competition.
I hope this will help you to scan your cost, cut your cost, & make your business more profitable!
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