|Navigation: | Home | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 ||
The Magic of Float
If you've ever received a service today and paid for it in 30 days you've experienced the concept of "float" - the time difference between when you receive a service and when you paid for it. In most cases this time period is a convenience to you as a customer, but in the world of business marketing it can absolutely transform your business. In the last 18 months we've grown our marketing budget at Swapalease.com (the company that owns me) by more than 1000% by simply leveraging the concept of float.
The reason we can grow our marketing budget so actively is because of a whole new breed of on-line marketing tools that allow us to actually make money faster than we spend it. And we're not the only ones. Thousands of companies are taking advantage of new on-line advertising models that are driving millions of qualified buyers to their respective sites on a shoestring budget. Let me explain the models and then we'll get back to leveraging the float.
Yes, they have a $50 billion market cap, but that's not why Google rocks. It's how they got there. Google helped pioneer a concept called "cost per click" (CPC) advertising. Google displays a handful of ads on each of its search results pages. Advertisers only pay for those ads when someone actually clicks on their ad (hence cost per click, get it?). Companies of all sizes have jumped on this incredibly targeted and efficient ad model to drive millions of visitors to their sites, and turn those visitors into cash.
The beauty of cost per click is that you can start small (a Google campaign can start at only $5) and grow your budget over time. More importantly, you can use your credit card to pay for the service. At Swapalease we get thousands of qualified visitors per month that we turn into cash. Then we get a bill at the end of the month which we have 30 days to pay. The time period between when we got a paying customer (and collected our fees) and when we actually paid to acquire the customer is our float, and it makes all the difference.
Google isn't the only company that provides such a great opportunity. Overture, Kanoodle, and FindWhat have nearly identical services that can drive even more traffic to your site and employ the same model. I would recommend that you leverage all of them. Collectively they can drive a massive amount of business to your Web site virtually overnight.
Cost per click is just one example of the "buy now, pay later" model. An even better example is "cost per acquisition" (CPA). CPA is the panacea of marketing. Instead of paying publishers for the click, you get the click for free. Only when someone actually makes a purchase do you pay the publisher a commission for that sale. Smart marketers will sign up for this business every day of the week.
Companies like Commission Junction and Dark Blue serve as proxies to connect interested advertisers to publishers looking to make commission revenues. Once again you have the ability to pay your fees by credit card and create a small float between the time you earn cash and the time you write a check.
Your mileage may vary
Each of these models, while wonderful, will only work if you have a business model that can turn site traffic into customers in short order. At Swapalease.com we collect fees immediately when customers visit our site and sign up for our service. This allows us to put money into our bank account faster than we pay it out. Ultimately we have the ability to roll the increased profits into each additional month to aggressively grow our marketing budget. Every business model is different and your mileage may vary.
Grow baby, Grow
You can profitably sustain your business by leveraging these and other on-line models to make money. But just sustaining your business is boring. To really grow your business you'll need to continuously re-invest a portion of the profits each month into your next month's marketing budget. The process works best when you allocate the additional cash into your next month incrementally, reserving a portion of the additional profits for potential mistakes.
Beware, though, there is some risk in doing this. Spending too aggressively before you truly understand what works and what doesn't can absolutely sink you. The best approach is to start small, understand what works, and scale accordingly. The good news is there is enough traffic out there to keep you busy for a long time to come. Now just sit back and watch the checks roll in (boy that would be nice, wouldn't it?)
Wil Schroter is a serial entrepreneur, author, and public speaker. Wil has been recognized as U.S. Small Business Person of the Year, twice as the Ernst and Young Entrepreneur of the Year (1999 & 2004), and is a member of the Business First Top 40 under forty. Connect directly with Wil at firstname.lastname@example.org. Visit http://www.goBIGnetwork.com.
Identify the Growth Factors
In "The Incredible Hulk", mild-mannered scientist Bruce Banner discovered that when he was exposed to "gamma rays" he was transformed into a massive beast that could ferociously muscle his way to victory in any situation. Other than being disfigured, green, and in nothing but his boxer shorts, the Hulk discovered that a single growth factor could drastically change his ability to handle his problems.
Identifying the Right Venture Capital Firm Partner
Venture capital firms are comprised of individual partners. These partners make investment decisions and typically take a seat on each portfolio company's Board.
5 TIPS for Home-Based Business Entrepreneurs
Have you ever heard that only a small part (5%) of 'all' Home-Based Business entrepreneurs achieve success?Do an online research on your favorite Search Engineand you will understand what I mean.In this article I'm going to show you the KEY to Home-Based Business entrepreneurs success; you'll find out what makes an entrepreneur succesful in the home-based business field.
Street Smarts Vs Book Smarts, What Does It Takes To Be An Entrepreneur
The latest series in "The Apprentice" features 2 distinct groupof candidates. One group, who are only high school graduates aretermed as "Street Smarts" by Donald Trump whereas, the othergroup are all college educated with some having MBAs and advanceddegrees.
Franchises - Success and You
Many people believe owning a franchise will make them rich, financially secure, and provide the life of their dreams. True, franchises have an extremely high success rate, and a very high satisfaction rate among their owners.
Securing Second and Third-round Venture Capital Financing
Widget sales are booming - the competition is scrambling, demand is up, and the books are finally treading water. Your core management team has big ideas for the future of Widget Inc.
Creativity & Entrepreneurship - Key Questions From My Students
Hello Creative Entrepreneurs!Thought for the day:"It is not easy being an entrepreneur, but it is always rewarding. It takes great discipline, self-motivation, hard work and perseverance to achieve your dream.
Chairman Greenspan and the FED, learn more you will be glad you did
So many people work their whole life to make money, but they know so little about out monetary system. They know so little about the Federal Reserve Bank and so very little about the brilliant minds, which make it all work.
Playing Hookey Can Help! A Surprising Secret To Small Business Success!
Would you like to increase your chances of business success by 350%? The good news is that you can! Before you start working harder or learning the latest business theories so you can work smarter, try something different. You can increase your chances of success by as much as 350% by being more innovative and uncovering dramatically different ways to look at your business and develop your product or service.
Entrepreneurship Story; Over Regulation in Franchising Final Chapter
Sally and Jim have launched their automotive franchise business and are now selling franchises; problems arise as lawyers and over regulation threaten to ruin their life's work, see how it ends; tragedy or success. A realistic story of modern day franchising.
The 7 Major Reasons Businesses Fail and How to Overcome Them
This year, over 800,000 of the approximately 2,000,000 start up businesses will fail!Nearly 1,000,000 of those remaining will fail within 3 years. Why do so many businesses fail? Many studies show that approximately 98% of all failures occur because of the owners.
Health Insurance for Solo Entrepreneurs
One of the most important benefits employed people enjoy is health insurance coverage. It is also the single most costly expense for self-employed entrepreneurs.
Needs Versus Wants For Entrepreneurs
How often do the words "I need" come out of your mouth, as it relates to your business? When you run your own company, it's easy to think that the only way to succeed is to be moving forward with your expenses -- the newest technology, a broader circle of professionals providing you services, involvement in more and more costly marketing efforts, etc. And it's particularly difficult to resist the urge when you know you can generally take a tax DEDUCTION for any business expenses.
Site location analysis of regional service areas and planning for mobile businesses is just as important as choosing a fixed site for any business. The region must be scouted out whether you are simply adding another service unit or deciding to open an entire new marketing area.
Confidence = Preparation + Courage
It always amazes me when I see someone on television holding a press conference - a lawyer outside a courtroom, a businessperson at the launch of a new product. Reporters ask hardball questions.
What Kind of Business Should I Start?
It's not uncommon to reach your 30s, 40s or even 50s and still wonder, "What do I want to be when I grow up?" Few people are fortunate enough to be certain of their destinies early on and the rest of us are forced to do some soul searching.The desire to own a business is becoming more common as workers grow more frustrated with the economy and working in corporate America.
Strategies for Overcoming Obstacles to Discovering Your Gifts
What are the unique gifts that differentiate you from other solo entrepreneurs? The path to discovering your gifts may take a lifetime, but you can use the exploration process to begin to use your gifts NOW! Unfortunately, for many different reasons people get sidetracked or never even get started taking the actions that would help them discover their uniqueness. Here are some suggested strategies to help move forward and stay on the path of discovering your gifts.
10 Essential Tips for Starting Entrepreneurs - Ignore these at your Peril!
1. Do What You LOVE: If you've chosen your business because you read that this niche was the next hot one, or because your favorite uncle (or your best friend) thinks you'd be well-suited for this business, you may as well pack up now and save yourself some time and money.
Judging Entrepreneurial Ideas
Most entrepreneurs constantly come up with new ideas. Whether they are working on another project, driving, or lying in bed, their minds are constantly churning out new products, services and ways of doing things.
Goals and New Venture Creation
More and more corporate workers are leaving their jobs to start new ventures. When taking this leap, it is important that the goals of these entrepreneurs are solid, as these goals may ultimately determine the success of the new venture.
|home | site map ||