It can be very easy for the novice Internet Marketer,
who has separate income to invest in business, to
spend freely on information products and AdWords
campaigns.

Rationalizing that “You have to spend money to
make money” is very easy to do. Don’t fall for it!

It’s a bad idea and an unsound business practice.

Unfocused spending can become a habit that is hard
to break. Too much debt can stifle a business at the
time when a bit of credit or cash could carry it over
an economic bump in the road.

There are times when being generous to your
customers will reap even bigger profits in the future.
Planning, in advance, is absolutely necessary to
make sure your generosity isn’t killing your bottom
line.

As you grow in your business, you will learn how to
“leverage” free bonuses, “loss leaders” and other ways
of giving more value than you receive in payment.

NEVER indulge in giving away value without a clear
plan for recouping the loss in the future.

Copying what someone else does, without understanding
why and how that person uses it in business is another
major mistake the novice business owner can make.

Just because your competition, with years of
experience and financial reserves you do not have,
gives away products or services at a loss does NOT
mean you can do the same.

Use you imagination and find ways to offer additional
value or content without dipping into your capital to
do so.

The same goes for spending on outward appearances.
You really don’t need a company car if you’re an
Internet Marketer. The same goes for extravagant
clothing, office space, unnecessary staff, offline
advertising just to “brand” yourself, etc.

Many of the practices of “brick and mortar”
businesses are often a waste of money when it
comes to physical appearances. Feel free to spend
your actual profits on yourself, as a reward.

Just don’t pour cash down the drain with the
excuse that, “It’ll make me look good” offline.

Not every spending decision you will make has to
be determined by what is cheapest. Sometimes,
the most expensive solution will end up being
cheaper, in the long run, than a less costly
solution that doesn’t perform.

Having to do something over, at a loss, can be
very costly. Examine carefully what you need
to accomplish a task and purchase the best
tool for that job.  In many cases, there will be
free or very inexpensive software and “scripts”
that will do the job as well or better than the
costlier versions. In other cases, the free or
cheap version will just get you into trouble.

Learn to identify the differences!
Finally, learn the value of measuring your
“metrics”.

Statistics like how many visitors you need to
make a sale, what percentage of your list are
active buyers, how much your AdWords cost-
per-click is changing, etc., will allow you to
find ways to save money and increase your
income.

“What can be measured can be managed.”
Learn how your particular business model can
be measured and tested to improve your
profitability. Sometimes, a simple change can
increase your profits manyfold.

Simply increasing your conversions of views
to sales in one area could be expanded to
many areas, multiplying your profits with just
a simple “tweak”.

It can be seductive to see money pouring
into your PayPal account. You may be fooled
into thinking that a bunch of money
automatically means success.

Even worse, you may be deluded into thinking
that once it starts, it won’t stop. There are
no guarantees in business. Careful planning
and cash management is vital to your survival.

Get help in learning how to protect yourself
and your business from unnecessary losses
and finding ways to increase your revenue.
Never leave that to chance!

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