Today I want to talk about the importance of focusing on profits rather than on site traffic. This is one of the most important business principles you must follow, in my opinion.
A mistake that many new webmasters and online entrepreneurs is to focus, almost obsessively, in generating Web site traffic.
While this may work, with some luck, definitely not the best way forward. There are many examples of Web sites and Web 2.0 business that went bankrupt despite having millions of unique monthly visitors. How is this, you’re wondering. Simple: they could not monetize the service efficiently, and maintaining servers and staff were consuming too much money.
Do not get me wrong, I’m not saying that traffic is not important, indeed is central to the Internet, but should be considered as a means, not an end in itself. To understand it, consider this: would you rather have a Web site that receives 10 million unique monthly visitors and makes $ 5,000 profit, or a Web site receives 20,000 unique visitors each month, but who makes $ 50,000 dollars benefits?
As soon start working on the idea of a new Web site or business, you have to determine, first, where you’re going to get benefits.
These are some of the questions you might ask yourself:
- What benefits will get with my products or services?
- Who is willing to pay for them?
- How will you pay?
- Are my expenses below my income?
This principle also affects the type of model business website and you’re done choosing. An example: Do you know why many of the largest online expert entrepreneurs prefer to sell their own products or working with affiliate programs instead of creating Web sites based on advertising? For the first two models need less traffic to make real money.
One Response to “The most important business principle”
Trackbacks/Pingbacks
[...] any company or business no matter how small should handle certain strategic plans and manage to keep all business operations in optimal performance. Thus, the success of the company [...]