The Online MBA

Part I:  The Financial Pillars of Internet Success

I’ll assume for a moment that you have the Internet Marketing and Advertising thing down – a viable product – a delivery means – a way to follow-up –  etc, etc ….

Now take a step back – Are you really making a profit??  Strange Question huh?  I’m sure you figured out the perfect price to get your wonderful item to sell and have positioned it marvelously. 

However, did you really make what you thought you did?  Did you factor in all of the costs involved in getting your product to the customer? …. Website fee, listing fee (for auctions), hosting fee, autoresponder costs, power, phone, etc …   Maybe you’ve underpriced your item – maybe not.  Maybe you need to bone up on the 3 Financial Pillars on the internet to know:

The 3 Financial Pillars

a          Profit (or ROI) > Costs

b          Time

c          TVM (Time Value of Money)

            Profit > Costs 

            If you’re not making any profits on your item(s) – you’re

            losing the game.  However, most folks mess-up this step.

            They assume that their profit is only based on the item

            $ price vs what it cost them to acquire it.  They forget

            about all of the other costs associated with selling

            that particular item.  Track your costs (and sales)

            and you’ll instantly be farther along than many folks on the

            web. 

If you don’t know where you are … how do you know  

where you’re going?  

            Time 

            The longer you hold on to your competitive position or

            foothold in your niche – the more money you’ll make.

            On the internet – be prepared.  If you have a good idea,

            a unique product niche, and a substantial profit margin

            your competition will find you.  The internet is basically

            about carving out a niche, taking your profits, and branding

            yourself to withstand the competitive onslaught that may

            force your prices down and cause your customers to stray.

This is where solid research is so important.  On my

website, I list some excellent resources that will help you

research specific niches and find out about your competition.

TVM (Time Value of Money) 

You probably know this instinctively but it’s one of (if not

the most) important financial concepts to your success.

Basically, it means that a dollar today is worth more than

a dollar tomorrow.

Why and How is the true?  It’s the magic of compounding.

If you get a dollar today – you have the ability to earn

Interest on that money … and then interest on interest –

Etc ..

Getting that same dollar next year means you not only

Lose interest for 1 yr and the ability to reinvest that money

But you also miss out on the compounding power ….

Why is this important to your success?

Because on the internet you have the ability (and should)

collect your payments instantly.  If you’re not

accepting credit cards (or utilizing affiliate marketing,

Adsense/Adwords with Google, etc …) – you’re leaving

money on the table (not to mention losing customers).

People expect to pay instantly for things they buy via

the internet.  Don’t disappoint them (and your all-

important cash flow).

Ok to sum this up ….

Your 3 Financial Pillars: 

Profit > Costs (all costs)

Time

Time Value of Money

ie ….. Get Paid Today, Make Sure You are Making a Profit, and Do

Whatever it Takes to Maintain Your Competitive Advantage (or niche) …..

Master these techniques and turn flextime or part time jobs into a full time income stream. 

Here’s to Your Success.

Spencer

Spencer White

www.neighbortize.com – The Advertising and Marketing Post

www.flextimeincome.com – Your Source for Flextime Jobs