How to Reverse the Zero Profit Spiral
Hi everyone,
Wayne here. Your Online Business Advisor and
Guerrilla Information Marketing Certified Trainer.
Thank you in advance for taking the time to review, learn,
and act on what you’re about to discover from
this post. The operative phrase here is
“to review, learn, and act”.
If, after reviewing and learning what I’m about
to share, you fail to act by taking the steps
needed to realize the financial results you’re
looking for, then let’s face it, you will have
wasted one of the most valuable resources that
there is…YOUR TIME, AND you’ll be no
better off financially for having read this post
than you would be had you not read it.
If on the other hand, you do review, learn, take
action you’ll know exactly how to achieve the
positive financial outcome that you’ve been looking
for online. With that said, let’s begin…
All business systems work on the same fundamental
model of
Input -> Process -> Output
Consider the business process for any money making system (online or offline)
Input——————————————–>Process—————————————————>Output
Business Owners -> Invest to Acquire and Produce Goods and Services -> Goods and Services for Sale
Marketers -> Generate Consumer Interest in Goods and Services for Sale -> Consumer Interest
Interested Consumers -> Purchase Goods and Services for Sale -> Business Owner Income
Business Owner Income -> Pay Business Expenses including Commissions -> Profit to re-invest
Why is this model important for you to understand?
Because it illustrates some obvious but nonetheless
significant points of truth when it comes to making
money online or offline:
1. Business Owners use THEIR money to acquire and produce goods
and services for sale
2. Marketers earn THEIR money through commissions from the sale of
goods and services
3. Business Owner Income resulting from goods and services for sale
being purchased is what pays marketer commissions and produces
profit to reinvest in more goods and services
And the process repeats.
Now, I’d like you to notice something with regard to the
business system model.
Notice WHEN everyone gets paid.
Everyone gets paid WHEN an Interested Consumer makes a purchase.
When an Interested Consumer makes a purchase the result is a Sale.
There’s NO Secret.
There’s NO Magic Button.
There’s NO Whiz-Bang Technology.
Bottom Line: No one makes ANY money until a sale occurs.
As a business owner, the income from the sale of goods and
services is at a price point sufficient to do the following:
· Recover your initial investment, so you can re-invest
· Pay commissions to marketers
· Make you a profit to live the lifestyle you choose
As a business marketer, you have no investment to
acquire and produce the goods and services for sale;
however, you likely have expenses associated with
advertising the goods and services for sale to potential
consumers, and with the cost of being a marketer.
Therefore, your commission from the sale of the
business owner’s goods and services that you represent
must be sufficient to do the following:
· Recover your costs to advertise to consumers
(Just as the owner recovers his/her initial investment)
· Pay expenses associated with being a marketer
(Marketing system, Continuing Marketing Education)
(Just as the owner pays commissions)
· Make you a profit to live the lifestyle you choose
Now, it’s important to notice here that the business
owner passes the cost of advertising to consumers
along to you the marketer, and as should be obvious
by now, if the commission you receive on a sale is
not sufficient to do all three things listed above,
then what happens? Here’s what happens…
YOU SLOWLY GO DEEPER AND DEEPER INTO THE DEBT HOLE
UNTIL YOU GET FRUSTRATED AND COMPELLED TO TRY A NEW
PROGRAM, ONLY TO HAVE THE SAME THING CONTINUE TO
HAPPEN AGAIN AND AGAIN…
WHY?
Because you fail to consider to two key things:
Revenue – the total amount of money for goods or
services sold during a given time period.
Profit – The positive gain from a business operation
after subtracting for all expenses.
So, if you never understood before
· WHY most fail to make any significant cash online?
· WHY most give up and jump to another program
when the latest one isn’t working as expected?
· WHY the latest and greatest system isn’t doing it
all for you like you thought it would?
· WHY you can never seem to make any SIGNIFICANT
money even though you’re making a few sales?
Now you know…its THE PROFIT FACTOR.
So, if you’ve followed what I’ve presented so far
then hopefully you’ve had an “AH HA!” moment.
AGAIN WHY?
Because NOW you should understand the following:
1. MAKING MONEY SIMPLY MEANS YOU’RE GENERATING REVENUE
2. IF ALL YOUR REVENUE GOES OUT THE DOOR TO COVER EXPENSES
YOU HAVE NO PROFIT
3. IF YOU HAVE NO PROFIT YOU HAVE NO POSITIVE CASH FLOW
4. WITHOUT POSITIVE CASH FLOW YOU HAVE…ZERO, NOTHING, NADA,
ZILCH!
So, how do you turn things around?
Here’s how…
First, consider who’s really cashing in every month
from the program you’re promoting. Is it the
Business/Affiliate Program Owner (BAPO)?
OR
Is it YOU the Business/Affiliate Program Marketer (BAPM)?
THE ANSWER?
Well, if you said the Business/Affiliate Program Owner,
you’re right! WHY?
Because the Business/Affiliate Program Owner after
recovering his/her initial investment which can be
reinvested again and again to drive the business cycle,
any money left over not used for business reinvestment
or to pay commissions is what…you guessed it…PROFIT.
What’s more, because the BAPO likely has a small army
of affiliates generating revenue for him/her, in a given
30 day period the BAPO realizes profit from multiple
sales, and if the BAPO effectively manages his/her
costs, then KA-CHING, KA-CHING!
IS THERE A WAY FOR THE BUSINESS/AFFILIATE PROGRAM MARKETER
TO CASH IN?
Absolutely! The Business/Affiliate Program Marketer can
make an absolute killing by doing 3 simple things
There are 3 things that the Business/Affiliate Program
Marketer can do to reverse the ZERO PROFIT SPIRAL!
1. Focus on monthly revenue (sales commissions)
exceeding monthly expenses (advertising, marketing
system, continuing marketing education costs)
2. Apply effective cost management and use profit
centers to earn from everything you do as
described in The Guerrilla Balance Sheet.
3. Increase your commission per sale.
Apply these 3 simple principles and you’ll be amazed at
at the transformation from a profit zero to a profit hero!
===============================================================
Wayne Brooks aka Coach Cashflow is a
Guerrilla Information Marketing Certified Trainer,
and Founder of YourOnlineBusinessAdvisor.com, a Web-based home
business development consulting, education, and marketing firm.
Feel free to distribute this article in any form as long as
you include this resource box.
Learn more by visiting http://www.YourOnlineBusinessAdvisor.com.





















Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..
Matt Hanson
I wanted to take a moment to thank you for grabbing my attention. I really needed to focus more on what is helpful to me, instead of what isn’t.
THE TRILL
favorited this one, man