Thursday, January 17, 2008

On-Line Profitability - Learn How On-Line Profitability Can Affect Your Business Growth

What do you think is most popular online business topic ? Money or profits?
Google search says:
Online money = 1,090,000,000 results Online profits = 47,900,000 results
Obviously it is much more popular to discuss making online money rather than creating online profitability , Google says 2175.57% times more popular at the time of writing this.
What is wrong with this picture ..maybe lots of people talk about making money online, but don t talk much about making profit online because they don t.
If you were looking to buy an ABC Company franchise and one made $1,090,000,000 in sales, and one that made $ 47,900,000 profit which one would you look at first?
The next time you look at any offer online, ask the seller what their online profitability is? Bet you will surprised if they can even answer the question.
Even any on-line business that generates lots of sales and money will die eventually if their lack of on-line profitability prevents them from re-investing in their business in order to grow.
Here is a simple example to consider:
You find a product that retails for $47.00, and you hope to sell 60 next month for a total of $2820 sales.
You would get 50% commission paid within 30 days of each sale = $1410 You estimate that 2% of the sales page visitors will actually buy your product. Your past experience shows that Google PPC Ad may send 2% of the ad views to your capture page or sales page .
Question: How much can you pay Google PPC for each click and still break even? Answer: .17 ,47, or .77 cents per click
Question: How many ad views do you need to generate per month for 60 sales? Answer : 50, 000 , 75,000, or 150,000 Question : How many sales page visitors did you need to break even? Answer : 1000, 2000, or 3000
So now can you why it is easier to talk about making $1410 in sales, rather than making profit of say 10, 15 , 20 or even 50% .
There are numerous variables that can make this campaign profitable or not for you.
Ask yourself :
1) What if you sell only 40 units or maybe 70 units? 2) What if 1.5% or 3 % of sales page visitors actually buy? 3) What if I generate only 75, 000 or 150,000 ad views? 4) What if I pay Google .37 cents per click or .57 cents per click.? Oh, and one other thing where did you get the $1410 to pay for the Google PPC ads in the first place, assuming that you break even on this campaign?
But even more importantly where will you get $1410 to pay for next month if you just break even this month?
This simple example is meant to show you how critical it is to create online profitability fast, if you want any possibility of actually staying in business , never mind making progress and growing your business and income.
Do you want to learn more about how you can improve your online profitability chances? Click here: On-Line Profitability
Leo Hanes is an experienced full time internet marketer, that writes extensively on the topic of online profitability .

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