How the Information Marketing Business is Like ANY Other Business
When you are selling info products, some things are the SAME as any other business. Whenever I used to teach continuing education classes, I would always put up a formula on the blackboard before starting ANY business class. The formula read: S-E=P.
Sales minus Expenses equals Profit.
It’s the basic formula of ANY business. Brick and mortar. Internet. Information marketing. For any business, this formula applies.
From my experience working and consulting with a variety of businesses both on and offline, most business owners tend to spend the vast majority of their time concentrating on ways to increase sales. It makes sense. This is the “fun” part of business. The “rain-making”. The sales and marketing part of the equation.
No one seems to want to think or consider the expense side of the equation. It’s not as much fun. It’s not sexy. It’s like being an accountant.
I happen to ENJOY looking for ways and places to cut expenses and reduce the “E” in my information marketing business. There always seems to be places to cut the fat in any business and selling info products is really no different.
First, you need to list EVERY expense in your business. All of them. After you do this, ask yourself if any of the expenses don’t contribute to making a sale. If they don’t do anything to make this happen, eliminate the expense.
I did this not too long ago with my Google Adwords account. I was doing it because I SHOULD. After looking at the numbers, it clearly made NO sense to continue advertising with Google. I dropped ALL Google advertising.
I have found VERY few places in my info marketing business where advertising seems to make sense.
Take a look at your hosting account. It’s possible that you can cut your expenses by look at CoolHostingTool.com.
I won’t go through every line item in my business, BUT, I want YOU to go through EVERY line item in YOUR business. It will amaze you what you can find. One other quick example. I looked at my cell phone bill and realized that the plan I had was for far too many minutes. I reduced the plan and saved myself thirty dollars each month.
It doesn’t sound like a lot, but every little bit helps. I don’t care HOW MUCH money you are making, decreasing your expenses will help you keep MORE of it in your pocket.
Do me a favor and look at your numbers. Please tell me what you find and share it with everyone right here.