Why Being A TIGHT WAD is Hurting Your Business
This post is inspired by a skype conversation I had today with someone
I've been talking with on and off about internet marketing.
This
particular guy is making about $800 a month mostly with article
marketing. This guys is nearly there. He bought the IM t-shirt and is
wearing it. He asked me what he could do to expand his earnings.
I said why not take most of what your making now and reinvest it into your business.
I mentioned outsourcing articles. That way he can get more content out, more backlinks, get more traffic and sales.
Purchase
a particular script I recommend for tracking affiliate sales. This way
he would find out exactly which articles are generating the most
converting traffic so he could heavily build back links to those
articles to make more money
Putting asides a couple hundred of
his monthly earnings to invest in some paid advertisement. This could
lead to boat loads of cash once mastered.
3 thing that would benefit his business that cost money.
He thanks me for the tips but was like I only want to expand my business using methods that don't cost.
I tried to explain getting this stuff doesn't actually cost because he's making $800 a month and when using these tools right can really help expand his earnings.
He still wouldn't have it.
I mean wtf.
Invest into your businesses people. I say that with love.
It's not like this guy is broke. By day he is an insurance claims rep. His house is paid for, car is paid for. He is single. He just doesn't spend money.
He's tight. Very.
I was talking on the phone with a marketer that helped Jermain Griggs get started. Jermain Griggs is the founder of hearandplay.com.
Well we got to talking about how Jermain got started.
He jumped into IM with $20,000 to spend.
This is huge. Lots of money.
But
for the entire next year, anything he made he reinvested 100% of what
he made back into his business. Now he makes something like 12million a
year but for that first year he sacrificed everything he made.
That's someone who knows where he wants to go with his business and isn't afraid to invest into his business.
Why
are people so afraid to invest into their business. Throwing a little
of what you make back into your businesses can go a log way and can take
months even years off how long it will take to establish substantial
success.
Recent Comments
16
Look, whether we like it or not, It takes all kinds to make a World. The lens in his glasses won't allow him to see the World as you see it. I have been preaching to blind folk all my life, with very little success. The only consultation we have is to every once in a blue moon, actually reach someone. Just keep on pushing!!!
I dissent and posted on your forum message why. I just get concerned when people spend and don't know why other than to say they're "investing". Just a different opinion.
Judy
Great post, Matthew. Good nudge for me. Reminded me of something from The Millionaire Next Door where the authors mentioned that the wealth mindset thinks in terms of investing as opposed to consuming/spending. You are talking about strategic investing here, and you're dead-on. I also agree with Joan that if you don't know what you're doing, you can really mess up bigtime. In the IM world, it is really, really hard for a beginner to discern what is scam and what is investment. I only got burned a little--but my experience led me to set limits. I must prove x amount of success before spending more than x. I must form relationships with x number of experienced people before increasing my expenditure. I must learn how to do x before I outsource--because I want to be a knowledgeable outsourcer. I do believe in the importance and necessity of investing in my IM business. However, I think that happens on a continuum and within a series of goal-setting and goal-reaching.
Once you know what you're doing, investing is a no brainer. You can lose money if you don't know what you're doing. I know, cause I have.
Great post Mathew! That's one of the biggest hurdles for many IM. They don't really believe in their business to invest back, or are too afraid to lose their money.
Great post as always Matthew! Ever since I started I've always wanted to reinvest. Now I'll be more inspired to do that thanks to your post. Keep them coming! Thanks!
Nice post Matthew.
I think the biggest hurdle that many affiliates face is treating affiliate marketing like a traditional business.
You need to spend money to make it.
Great post, so true and straight to the point. This is exactly how I will do it, as soon as I make some money ha.
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In your above example it would make sense for the guy to reinvest however for someone who is living entirely on their internet marketing income, it is a lot harder to do so. I, for one, set aside 30% of my income and reinvest that into expanding my business and my knowledge base and for me, that method works very well. : ) It wouldn't work if I invested everything because then I couldn't cover the bills or take care of other obligations like groceries. LOL!