Is internet marketing a hobby or a business to you?
This question has been prompted by 2 different experiences I had this week. The first was going through the excellent Commission Blueprint that was released last week. (You can see my review on CB Income)I only wish that other products could be half as good as this. The content is excellent and contains absolutley no fluff but that’s not what impressed me, it was how the guys involved treat their Marketing as a business.
The are not afraid to loose money in the short term as they know that it will lead to profits in the long term, they take in to account cash flow and they know exactly how profitable a keyword or a product is. Treating IM as a business allows them to earn $30,000 – $50,000 per month.
The second was a conversation I had with a marketer who sells supplements 6 months ago he had a blog selling supplements through CJ he was happily making $6 -$9 a sale on average. One day about 6 months ago he decided to research the supplements business. He looked at suppliers and fullfilmant houses, how to collect payments. What people were buying. He spoke to people in the business and came up with a plan.
Step one was to replace the affiliate products on his site with his own products which he bought from a supplier with his own labels on them. The minimum quantity he needed to buy was 60 so he spent $500 and bought 60 bottles of the best selling supplement. Inside a month he had sold them all and was best friends with the local shipping company, plus he had made a $2000 profit.
Next he invested $1500 in more supplements and $500 in advertising that was 3 months ago, his income in august was in the region of $70,000. He uses a fulfillment house to send out the products and has drastically reduced the purchase costs as he buys in bulk.
The point I am trying to make is that it’s easy to think of your online marketing as a business but do you know the ROI on your articles or adverts? Can you identify which niches are profitable and should be expanded or which should be dumped? Do you know if you should set up a LLC? What happens if one of your sites earns you $20,000 next month?
I hope that gives you something to think about over the next few days!