Internet marketing is what we call in business school, an easy-entry business. Anybody can do it, with less than 100 dollars.
The problem with easy-entry businesses is that because everyone can get it, most people fail.
People don’t think before they make decisions. In their head somewhere, they feel that just because they have only invested 100, that the returns on the business are low. And they somehow manage to match their expectations.
If they do make a few hundred dollars, they manage to take it all and buy a few nice dinners, to compensate themselves for their time.
The serious internet marketer, on the other hand, will think himself grateful to be able to go into business for himself for less than 100 dollars, and reinvest every dollar that comes in.
The most expensive part of getting started online is traffic generation.
Traffic generation is either expensive in time, or expensive in money. But it has to be spent.
So how do you make the campaign profitable? There is only one way: measure everything.
Just like running a science or economics experiment, every input must be measured, every output must be measured.
The outputs on every campaign must be greater than the inputs on those very campaigns. There is no other way about it. Anything else is gamble. You must remember, you are building a business, not managing a night out in Vegas.
You must measure every dollar you spend in terms of the visitor, subscriber or sale made, and you must do the same thing for revenue. In every match, in every campaign, the revenues must exceed the costs. You cannot cheat here.
Measure everything.
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Saturday, May 19, 2007
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