Daniel Scocco here, and this is the Daily Blog Tips newsletter.
Today I want to talk about the importance of focusing on profits
and not on website traffic. This is one of the most important
business principles you should follow in my opinion.
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One mistake that many new webmasters and online entrepreneurs make
is to focus on generating website traffic.
This is the logic they follow: build a website, work until it is
getting a huge amount of traffic, figure out how to monetize that
traffic.
While this might actually work if you get lucky, it is definitely
not the best route to follow. There are plenty of cases of websites
and Web 2.0 companies that went bankrupt despite having millions of
monthly unique visitors. How so? Simple: they couldn't monetize the
service efficiently, and sustaining the servers and the staff was
consuming far too much money.
Traffic is certainly vital on the Internet, but it should be seen
as a means to an end, and not the end itself. Just think about it:
would you rather have a website that receives 10 million unique
visitors monthly and that makes $5,000 in profits, or a website
that receives only 20,000 unique visitors monthly but makes $50,000
in profits?
As soon as you start working on the idea for a new website or
company, you need to figure out where the profits are going to come
from. Here are some of the questions that you might wanna ask
yourself: Who is going to gain value from my service or product?
Who is going to pay for it? How is he going to pay? Will my costs
be lower than my revenues?
This principle should also affect the type of website and business
model you end up choosing. For instance, do you know why experienced
online entrepreneurs prefer to sell their own products or to work
with affiliate marketing instead of building advertising-based
websites? Because the first two models need a lot less traffic to
make decent money.
The takeaway message is: you are ultimately aiming for profits, not
traffic.
If you want to learn more about the basic business principles you
should follow, come check my training program. Here is the link:
Talk to you next week,
Daniel Scocco
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2972 Columbia St. Suite # 8161 - Torrance, CA 90503 - US
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