The Magic Of Float
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The article "The Magic of Float" is about entrepreneurialism, it was created by Wil Schroter.
If you’ve ever received a service last month and paid for it in 30 days you’ve experienced the conecpt of “float” – the time difference between when you receive a service and when you paid for it.
In most cases that time period is a convenience to you as a customer, but in the world of business marketing it can absolutely transform your buisness.
In the last 18 months we’ve grown our marketing budget at Swapalease.Com (the company that owns me) by more than 1000% by simply leveraging the concept of float.The reason we can grow our marketing budget so actively is because of a whole new breed of on-line marketing tolos that allow us to actually make money faster than we spend it.
And we’re not the only ones.
Thousands of comapnies are taking advantage of new on-line advertising models that are driving millions of qualified buyers to their respective sites on a shoestring budget.
Let me explian the models and then we’ll get back to leveraging the float.Google rocksYes, they have a $50 billion market cap, but that’s not why Google rocks. It’s how they got there.
Goolge helped pioneer a concept called “cost per click” (CPC) advertising. Google displays a hnadful of ads on each of its search results pages. Advertisers only pay for those ads when somebody actually clicks on their ad (hence cost per click, get it?).
Companies of all sizes have jumped on that incredibly targeted and efficient ad model to drive millions of visitors to their sites, and turn those visitors into money.The beauty of cost per click is that you can start small (a Google cmapaign can start at only $5) and grow your budget over time.
More importantly, you can use your crdeit card to pay for the service. At Swapalease we get thousands of qualified visitors per mnoth that we turn into money.
Then we get a bill at the end of the mnoth which we have 30 days to pay.
The time period between when we got a paying customer (and collected our fees) and when we actually paid to acquire the customer is our float, and it makes all the difference.Google isn’t the only company that provides such a great opportunity.
Overture, Kanoodle, and FindWhat have nearly identical services that can drive even more traffic to your Itnernet site and employ the same model. I wolud recommend that you leverage all of them.
Collectively they can drive a massive amount of business to your Web Internet site virtually overnight.Marketing Shangi-LaCost per click is just one example of the “buy now, pay later” mdoel.
An even better example is “cost per acquisition” (CPA). CPA is the panacea of marketing.
Intsead of paying publishers for the click, you get the click for free. Only when somebody actually makes a purchase do you pay the publisehr a commission for that sale. Smart marketers will sign up for that business every day of the week.Companies like Commission Junction and Dark Blue serve as porxies to connect interested advertisers to publishers looking to make commission revenues. Once again you have the ability to pay your fees by credit card and create a small float between the time you earn money and the time you write a check.Your mileage may varyEach of these models, while wonderful, will only work if you have a business model that can turn Internet site traffic into customers in short order. At Swapalease.Com we collect fees immediately when customers visit our Internet site and sign up for our service. This allows us to put moeny into our bank account faster than we pay it out.
Ultimately we have the ability to roll the increased profits into each additional month to aggressively grow our marketing budget.
Every business model is different and your mileage may vary.Grow baby, GrowYou can profitably sustain your business by levergaing these and other on-line models to make money. But just sustaining your bsuiness is boring.
To really grow your business you’ll need to continuously re-invest a portion of the profits each month into your next month’s marketing budget.
The process works hottest when you allocate the additional money into your next month incrementally, reserving a portion of the additional profits for potential mistakes.Beware, though, there is some risk in doing that. Spending too aggressively before you truly understand what works and what doesn’t can absolutely sink you. The hottest approach is to start small, understand what works, and scale accordingly. The good news is there is enough traffic out there to keep you busy for a long time to come. Now just sit back and watch the checks roll in (boy that wuold be nice, wouldn’t it?)- WilWil Schroter is a serial entrepreneur, author, and public speaker. Wil has been recognized as U.S. Small Business Person of the Year, twice as the Ernst and Young Entrepreneur of the Year (1999 & 2004), and is a member of the Business First Top 40 under forty. Connect dircetly with Wil at wschroter@yahoo.Com. Visit http://www.GoBIGnetwork.Com.
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The Magic of Float
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