It takes a lot of determination, patience, and time to create a profitable internet marketing business. That is why many online marketers get “too excited” when they finally start making some money. By this I mean that they are too eager to spend all the money as quickly as they get it.
Sometimes it is even hard for them to realize if their internet business is profitable. Let’s talk about some ideas that hopefully help you to avoid that trap.
1. Having an internet business makes no difference compared to traditional business model. It is a real business and must be treated as such. You should set up a PayPal account and conduct as much of your business there as you possibly can. This makes it very easy to keep track of money coming in and going out on a daily basis.
It is also wise to open a separate business checking account to keep your personal and business funds apart from each other. If you do any type of affiliate marketing you will receive some of your payments in checks and you want those going into your business checking account and not your personal account.
2. Monitor all paid advertising you are doing at all times. You need to know exactly how much money you are spending for every visitor you are receiving.
It is also wise to follow your conversion rate from every ad. It is a good thing to get as much visitors as possible, but that is not enough. You have to convert some of them into paying customers.
It’s pretty difficult to make money online doing strictly free advertising. Therefore you want to develop some paid advertising that works well for you. This could include pay per click advertising, automating your business to generate backlinks, and so on.
3. View your time as money. Do you know what your hourly rate is that you earn with your internet business?
If you don’t you may not be as profitable as you think you are. Some people are embarrassed to admit that they do not even earn five dollars an hour in their internet business.
One benefit to keeping track of your time is you will become more effective in how you spend it online. It certainly is easy to get caught up in the trap of checking e-mail, surfing the net, looking at other people’s websites, and so on. In this way you are not going to make any good for your business. It is totally waste of time and energy.
Understanding if you have a profitable internet marketing business is a key to long term success. Just making money is not always enough.