Troy Wray | troywray

Have a Micro-profitability mindset

Sep 7th 2010 at 9:14 AM

Upgrading in a traffic exchange is the quickest way to get far better leverage from it - so why do so few people upgrade?

The answer is of course, the cost! But I'm going to demonstrate to you why this whole situation is an indication of flawed thinking and behaviour in the majority of people and why an unwillingness to risk any outgoing is what ultimately makes many people fail to make income.

Ask most people why they don't upgrade and chances are that they'll say, "I can't afford it right now, I will as soon as I'm making enough money from [substitue the business they promote]" - this is fatally flawed thinking.

Typically they're using one or more traffic exchange to promote a business. Let's not get side-tracked into the many ways people even do that wrong. Assuming that they're not upgraded and they surf for credits, they are totally expense-averse so tend not to be using other tools that might improve their results, like tracking.

And the reason they're not growing their business as fast as they'd like is partly due to the fact they're getting at best half the benefit from the traffic exchange than if they were to upgrade. So they're waiting for their business to provide enough income so they can upgrade the tool that they're using to grow their business. Is it only me that sees the flaw there? It's like a farmer harvesting a corn field by hand because he's not going to buy a combine harvester until he makes enough money - which he probably won't because he's harvesting by hand.

This is small-thinking in action - negative, risk-averse thinking. In terms of thinking about the typical online marketer's business, I think in terms I've come to call macro-profitability and micro-profitability. Macro profitability is simply looking at the cost of the tools as an expense that you pay from the revenue generated by the business. So a business can have be 'macro-profitable' let's say spending $100 a month on tools and traffic exchange upgrades and generating $200 a month.

Making the business 'micro-profitable' is a far better goal. In micro-profitability 'thinking' you aim to make each of the tools (that cost you a monthly fee) their own micro profit centre and you make sure they at least break even. Now you have a situation where the tools cost you $100 a month but also generate $100 a month (or more). Now your revenue from your business, the $200, is all profit!!

This may seem a trivial distinction but getting into the habit of making everything self-funding adds a robustness to your business.

So how do you achieve micro-profitability? Well in online marketing, virtually every tool you might want to use has an affiliate program - they pay you a monthly commisison if you introduce other paying members.

So let's say you upgrade in a traffic exchange. Your goal should be to 'recruit' other members into that traffic exchange. Many of the people won't be thinking in micro-profitability terms and won't upgrade, so you may need to recruit a few people before you have the 3 or 4 paid referrals that you typically need to break even.

Depending on how risk-averse you are, you can do this process one traffic exchange at a time until you're upgraded in as many as you want with effectively no cost to yourself or you can do it a few at a time. You can even remain free in the exchange until you have enough paid referrals to cover your own cost and then upgrade.

How do you decide what to upgrade in first? Well most people using traffic exchanges need:

  • An autoresponder
  • A good downline builder
  • A tracking solution
  • Any number of traffic exchanges

The key to becoming micro-profitable as fast as possible is to prioritise according to what gives the greatest returns. As the downline builder gives you huge leverage by promoting all your traffic exchanges with one link and building your downlines in all the traffic exchanges, it clearly should be one of the top priorities.

Because once you're upgraded in that, the benefit applies to all your traffic exchanges, whether you're a free or upgraded member. VitalViralPro is a downline builder and tracking solution all in one that will help you achieve micro-profitability while you promote your main business.

As it itself has a very low-cost upgrade option that you can make micro-profitable with just 3 paid referrals, it's probably the tool that will give you the greatest instant leverage by being upgraded.

Breaking even on the tools is obviously the goal but using a good downline builder will often see the tools you use make you a profit, not eat into your bottom line!! It needs a shift in thinking to adopt this philosophy. If you're too risk-averse or cost-averse then you're going to see much slower growth in your business than if you grab the bull by the horns and say, "I'm going to upgrade in this tool because it's the right thing to do and I'll make sure I make it pay for itself."

One last thing to think about is this: if you rely on macro-profitability only to cover the cost of your tools, what happens if your main business folds or stops producing income? You're left with the expense of all the tools and you'll probably downgrade again, possibly losing benefits you've built up. If you make everything micro-profitable, you have a self-funded set of tools and source of traffic that you can take with you to any new business.

Please to comment
Sep 7th 2010 at 10:56 AM by ChuckBartok
Well done as always Troy. Another focus is the MINDSET skill of THINKING profit, large or small. Also the recognition of Turnover. A business person NEVER asks How much does it COST..they immediately look to the potential Outcome. A $500 horse could COST yopu a Fortune in training (or Medical bills) but a well started and trained horse for $5,000 will probably return $1,0000's in Pleasure and maybe even some Prize money. We are just introducing Best Business Mindset Alliance.. Membership and product focused on honing the Skill set of developing a well trained Business subconscious. Thanks again for your sharing the knowledge above

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