The Magic Ingredient To Running A Successful Business
The Magic Ingredient To Running A Successful Business : Using the word “magic” is probably not such a good idea as most people think that some kind of “black hat” technque or “hocus-pocus” is involved and it’s not at all. In this case it refers to knowledge and when you apply this “magic” ingredient it will make a BIG difference to the running of your business
Let’s explain ….
You’ve probably heard people online tell you that the three things you need to build a profitable online business are:
The formula is usually presented like this: Traffic + Conversion = Sales
Now, the first thing people do when they follow this formula is find a hot market. Then they find a product to sell to that market. Then they drive traffic to that offer to get sales. The problem is that there is a 4th ingredient (the magic one) called ECONOMICS
This triangle, created by Perry Marshall and Jack Born, shows Economics as “E” and without it, the process realy doesn’t work that well.
You see, you have to make a PROFIT on what you sell (after taking into account what you spend to generate leads aka traffic).
If you don’t make a profit on what you sell, then you don’t have a business. You will end up losing money and unable to buy more traffic.
You can only re-invest in your business and buy more traffic IF you make a profit.
The Triangle says: In order to sell something, you have to get Traffic; then you have to Convert the traffic; and Economics means you have to make some money on what you sell – which is why you went into business in the first place.!When you make a profit, you re-invest it by getting more Traffic, and Converting the traffic, and further improving your Economics. And so it goes, clockwise in a circle. It’s a spiral of never ending traffic, conversion, and economics.
Now you see where the magic ingredient – “Economics” – comes into play
This is a really important concept to grasp because if you are not making profit then you don’t have a business. Economics is important because that’s the whole reason you started your business in the first place after all!
That being said, it’s important to invest in paid marketing aka traffic/leads because without them you don’t have a business anyway. Too many people fail to invest in paid marketing and their business grows far too slowly and eventually they just give up. Economics is everything
It’s why we are passionate about online business education and making sure that anyone venturing into this world really understands it because it’s very easy to get carried along with seeing the incomes possible without knowing the basics and whether in fact those people even have a profitable business.
Because we’re accountants we totally get this and we balance our spend on traffic knowing our numbers and what each lead is worth to us. All successful business owners do this and create an economic formula that works for them.
We go into this concept in more detail inside our 21 step training and we also talk about how you will master the same economics with high ticket as well.
We will also cover the “80/20” part of the triangle graphic, and explain why it is the ultimate leverage in life and in business. It’s what makes any online business truly successful after all (it’s called the pareto principle).
You will also see how conversion and sales are taken care of for you so that in fact all you need to do is drive traffic (and we teach you how to do that too)
Recommended Reading :
80/20 Sales & Marketing by Perry Marshall
Tactical Triangle by Perry Marshall (Blog)
This article is #3 in a series and you can read the other two parts here
Part 1 : How To Start An Online Business
We hope that from reading this article “The Magic Ingredient To Running A Successful Business” you will have to courage to make that decision to get started for yourself.
Who Are We
We’re former accountants of a certain age (60+) with 5 great kids and 4 grandchildren. We love skiing and traveling the world and have achieved a fabulous life helping others to start and build a successful business online and now speak on international stages following that passion. Our worldwide educational business is centered on online marketing business education, financial literacy and wealth creation and a desire to help you create financial freedom online through entrepreneurship whatever your age or experience.
Authors : The Mindset Shift
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