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  1. #1
    Full Member RickPlmr's Avatar
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    Question Should I use extra profits for advertising?
    This month I had the fortune of more than doubling the revenue I have made in past months, and it's only half way through the month.

    Should I use some of the extra profits to increase the amount of advertising I'm doing for my sites? Or should I hold the course and bank the extra profits?

  2. #2
    Affiliate Manager Alan Hamilton's Avatar
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    Rick, it comes down to what your objective is. If the products are selling well, it can't hurt to re-invest to drive revenues higher. If sales are growing steadily, and you have known / reliable conversion / ROI stats that support projected sales growth, then reinvestment is obviously a good move.

    But rather than making it a choice of one or the other, you can ease into it by reinvesting a portion of growth profits while conserving some revenue for the future. If aff marketing is your primary income, it's another story. But if you are growing it and have another income source that pays the bills, reinvest in your growth and build your customer base.

    Good luck to you.

    Alan Hamilton
    Join the Spicy Aprons Affiliate program on ShareASale Visit us on Facebook www.facebook.com/spicyaprons Follow us on Twitter @Spicyaprons

  3. #3
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    bank them for eventual downturns that will come or better yet...

    invest in something new to increase the diversity of your income streams!!!

    once you've got diversified income built, you'll find stress levels go way down and your creativity will become more powerful as well - and you'll earn even more - at a more stable rate.

    i am running 11 mature income streams right now and of course have more planned for this year. an income stream to me is:
    +any affiliate site I've built and operated for more than 3 months.
    +any merchant where i've done direct-to-merchant ppc for more than 3 months.
    +any consulting client that i've worked with for more than 3 months
    Sometimes things don't work out and I kill them off, these 11 are the ongoing survivors.

    11 streams and growing.

    i track all net profits daily and most days between 6 and 9 of the streams produce a positive net profit. it is rare for me to have a day that doesn't show a positive net profit across the aggregate 11. when it does happen, it's usually an imbalance caused by spot billing - like I pay $1700 on one day for some tv ads and this posted expense on that one day and forces my day to be net negative. I could spread the costs over the advertising period to avoid this negative spike, but the tracking's just for my own purposes, so there's no need - the trend / effect is visible and known.

    sometimes i have days where it's all firing off -- and 10 or 11 (of my 11) mature streams show a profit. this Monday for instance, was an 11-for-11 day and my net profits were over $4k for the day. This day did include posting of some monthly bonuses of about ~$1850, so it's artificially high. But net out the bonuses and you can still see that 11-of-11 all firing off adds up to some very strong profits for the day.

    once you've reached the point where you sense you're earning "extra", you need to take that money and diversify in my opinion. reinvesting it in the same stream leaves you vulnerable to financial pain that can be caused from completely external events.

    so Rick, break out and do something new. milking the same cows is great, really great -- but go milk a goat and see how that goes.

  4. #4
    ABW Ambassador
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    Goat Milking is a secret niche!

  5. #5
    Affiliate Manager cbsturg's Avatar
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    Quote Originally Posted by Adam Ward
    Goat Milking is a secret niche!
    That must be what's been lacking in my ad campaigns: goat milking.

    But seriously, the advice given is quality. Growth isn't limited to pumping more money into the same couple of projects. Growth comes from expanding your reach, reaching a greater variety of consumers looking for various products / services, adding new emails to your mailing lists, etc. The whole eggs in one basket thing comes to mind, and while it's cliche, I think it's very applicable to affiliate marketing.

    Who knows when markets will turn and profits in one segment will dry up? Better to be established in other markets if / when this happens to you.
    Chris Sturgill
    "All my life I've had one dream, to achieve my many goals." - H. Simpson

  6. #6
    ABW Ambassador MoneyBusiness's Avatar
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    Quote Originally Posted by Donuts
    bank them for eventual downturns that will come or better yet...

    invest in something new to increase the diversity of your income streams!!!

    once you've got diversified income built, you'll find stress levels go way down and your creativity will become more powerful as well - and you'll earn even more - at a more stable rate.

    i am running 11 mature income streams right now and of course have more planned for this year. an income stream to me is:
    +any affiliate site I've built and operated for more than 3 months.
    +any merchant where i've done direct-to-merchant ppc for more than 3 months.
    +any consulting client that i've worked with for more than 3 months
    Sometimes things don't work out and I kill them off, these 11 are the ongoing survivors....
    Thanks, Donuts. You don't see this info very often (from the experienced ones here), and it's something to strive for when you do.

  7. #7
    ABW Ambassador MoneyBusiness's Avatar
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    Quote Originally Posted by Adam Ward
    Goat Milking is a secret niche!
    By the way, I thought Camel Milk was the next big thing...

  8. #8
    Classic Rocker Mack's Avatar
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    From Godaddy:

    GOATMILKING.COM is already taken

    CAMELMILKING.COM is available


    Quick Quick!

  9. #9
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    is WaterBuffaloMilking.com available?
    it's the source of milk for bona fide mozzarella.
    Heheheee.

  10. #10
    Affiliate Manager
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    I would certainly spend a potion to reinvest in your site whether it be for advertising, upgrades etc. It takes money to make money

  11. #11
    Full Member RickPlmr's Avatar
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    It turned out that my very best month was followed immediately by a very slow month for me (March 2007). I'm glad now that I didn't do anything crazy with last month's profits, as they're carrying me through this month.

    Hopefully April will be better, although there's still half of March remaining too!

    On a positive note, I'm starting to find some success with Adsense on my software download site, especially with Adsense Search. And I've set some boundaries for myself with regards to balancing affiliate work and family life, so that's been encouraging.

  12. #12
    Affiliate Manager cbsturg's Avatar
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    Quote Originally Posted by RickPlmr
    It turned out that my very best month was followed immediately by a very slow month for me (March 2007). I'm glad now that I didn't do anything crazy with last month's profits, as they're carrying me through this month.
    Good to hear you didn't blow the cash and then have to beg on the streets...

    Quote Originally Posted by RickPlmr
    And I've set some boundaries for myself with regards to balancing affiliate work and family life, so that's been encouraging.
    Ah, yes, I'm still struggling with this one...My wife's due date is, well, today, so I suppose the shuffle will get even more complicated soon.

    Here's to a more profitable April.
    Chris Sturgill
    "All my life I've had one dream, to achieve my many goals." - H. Simpson

  13. #13
    Full Member RickPlmr's Avatar
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    Chris, did the baby arrive as scheduled?

    Congrats to you if you're a new dad today!!

  14. #14
    Affiliate Manager cbsturg's Avatar
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    No, not yet. True to Sturgill form, she'll show up whenever she wants, and leave everybody waiting...
    Chris Sturgill
    "All my life I've had one dream, to achieve my many goals." - H. Simpson

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