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Business Breakdown


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Web Site Promotion Articles



Issue #119 - Monday October 21, 2002


Table Of Contents



Featured Article

Business Breakdown

By: John Elder
Market-Tek Enterprises, Inc.


Hello,


No matter what kind of business you own or operate, this simple fact will make or break you.


I don't care what you're selling, in the end it comes down to this one simple business building block. And most people never think of their business in this way!


You are in business to do one thing....buy money.


How cheaply you buy money determines how successful you will be.


I might spend $10 dollars to buy $20 dollars.


I might spend $200 dollars to buy $240 dollars.


I might spend $4,000 dollars to buy $5,000 dollars.


Investors understand this fact easier because it's not abstract to them. They spend $1,000 dollars on stock in a company, they expect to be able to sell that stock for more than $1,000 dollars in the future. They're buying money.


As a business owner you should look at everything you do this same way.


How many orders will I generate if I buy this ad space? If I spend $100 on advertising, will that generate more than $100 in income? If so you have a winner...you can then "buy money".


Let's say you spend $100 on advertising, and it generates $150 in income (for example). You've just bought $150 and it only cost you $100.


Every penny you spend on your business should be spent with one thought in mind...


"How much money/income will spending this penny generate?"


The Internet is great. You can monitor EVERYTHING. I can throw up a web site and buy ad space somewhere. Then I can watch my server logs and see exactly how many site visitors that ad generated, and how many sales those visitors generated.


I can then determine for every X number of people that visit the site, 1 person buys.


I can then determine for every X amount of dollars I spend on advertising, Y number of people will come to my site, resulting in $Z dollars in profit.


At this point I can pretty much buy money! All you do then is focus on spending more and more money on advertising because you know that whatever you spend on advertising, you're going to make more than that amount of money from sales.


That's all for this week. See you next Monday! -John Elder



-----------------------------------------------------------------
A Free Step By Step Guide To Web Riches Part 6
-----------------------------------------------------------------


Welcome to part 6 of the step by step business creation guide. Part 1-5 can be found in our archives at: (http://www.webpromotion-weekly.com)


Well, I have yet another confession to make. I'm bored with this project.


The truth of the matter is that I've taken this project about as far as it can go. The only thing left is to buy advertising and report sales.


And that could be a very long and boring process.


So I've decided to create this off-shoot article where each week I will give an update on the projects advertising and sales, at least for a few weeks until I become completely bored with the project (and you've gotten as much as you can out of it).


Plus I feel that many of your interests have waned in the project as well.


Ok ok, the real truth is that I've been really busy these last two weeks with other things that came up and I havent had the time to properly handle the rest of the project.


So I do apologize for that. But if any of you really want me to get back into the project, email me and if enough of you do I will re-dedicate myself (so to speak) to it.


So, until next week....


-J



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