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
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A Free Step By Step Guide To Web Riches Part 6
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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
