Article by Janet Giacoma
There are a number of factors that determine how successful a person will be in an online enterprise. But here are three steps to consider as you think about operating an online Internet marketing business.
Your first consideration is sales. The term sales refers to the dollars that actually come in the door. In an Internet marketing enterprise, sales are a function of the conversion rate that translates site visitors into paying customers. Of course this opens up several completely different areas of consideration. Site traffic is the first and arguably the most important, but then you also need to convert a healthy percentage of those visitors into paying customers. At the end of the day, the measure of your success in this area will be the number of dollars that you bring in the door.
The next consideration is profit. Many online entrepreneurs evaluate their business based on the dollars that flow the door, and pay little attention to the dollars left after all the expenses are paid. This is a tremendous mistake. The profitability of the business is based on what is left over after the business expenses have been met.
An online enterprise has the benefit of reduced cost structures when compared to a bricks and mortar business. Expenses such as office rent, employees, payroll taxes, inventory, and any one of a multitude of other expenses are almost completely eliminated online. Nevertheless however, an Internet marketer still has business expenses. One of the largest areas is in marketing and advertising, but there are other bills to be paid as well. For this reason, the true metric of success of an online enterprise are profits-the dollars left over after the bills have been paid.
The third component of wealth is just that — wealth. Wealth is entirely different from the sales an online enterprise generates, and even from the profits that it makes. An online enterprise that is very profitable and that is producing tremendous cash for the owner, does not necessarily guarantee wealth.
If the business owner’s lifestyle is such that the majority of the dollars that are generated as profit by the business are then spent on lifestyle luxuries such as expensive cars, huge homes, lavish dinners, and all of the other accoutrements of a successful person, wealth is not created. The entrepreneur certainly enjoys a lavish lifestyle, but is not creating wealth for the future. Similar to prophets, wealth is what’s left over after money has been spent. On the other hand, a person who chooses to invest the profits of the business in other businesses, or in money making opportunities is now creating wealth for the future.
About the Author
Janet Giacoma is a business coach and marketer who assists serious entrepreneurs in building a profitable online business with multiple income streams. To contact Janet visit: http://www.BabyBoomersBlueprint.com
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