Being an Internet marketer is all about being a great salesperson online for the most part. People think that this job is all about trying to convince people to buy things over the web and that’s true in a lot of cases. However, the fact remains that every Internet marketer is in this game to do business and all businesses have one core motivation in common: profits.
In business, there’s bringing in revenues and then there’s fattening up your bottom line. If I were to choose just one of them, I’d pick the latter.
Any smart businessman would.
KISSMetrics co-founder Nick Patel had an interesting post last week over at SEOMoz detailing the 7 Lessons he’s learned from running an SEO agency. One of the lessons he brought up warns us not to be blinded by dollar figures because doing that might not be moving our businesses much good overall. He explains:
#5: Don’t Get Too Greedy
As I got better at selling I stopped taking clients that could only afford to pay me $5000 a month. I had a strict rule: if you couldn’t pay me at least $20,000 a month on a one-year retainer, I wouldn’t take you on as a client. I was stupid! If taking on a client for $10,000 a month is highly profitable, you should sign them. By the time I learned that, it was a bit too late and once the recession hit the clients I lost tended to be the higher paying ones.
Don’t get too greedy! Take on clients as long as they are profitable. Although they may not be paying you what you want, you can always upsell them later on.
I couldn’t agree more. What Nick talked about doesn’t only apply to SEO. It applies to all business deals in general. It’s never about the gross revenues that a campaign can generate; it’s always about the net income and how much of it will actually end up going to the bank.
I’ve been around the block in this business and I’ve seen a lot of marketers pass up on some business opportunities because they think the opportunities are too cheap. Everyone wants to play in the big leagues but very few actually ask themselves if they’re ready for it.
Let me give you an example: If you were asked to be an affiliate marketer of laptops and you had the option to sell either Alienware computers and Acer ones, which of the two would you rather market? Alienware is bound to give out bigger commissions on a per sale basis while Acer will tell you that they pay less commissions but more people buy their laptops due to the lower price point and wider audience.
If it was me, this one’s a no-brainer. I’d go Alienware for sure. While it’s true that it’ll scare off a lot of people with its hefty prices per SKU, it has a more narrowed-down niche and a more credible brand name. It also has fewer competitors because it’s primarily a gaming laptop brand, which makes it easier to market. Acer’s product line is more general and will compete against more brands and more affiliates on the web. At the end of the day, the profits for marketing Alienware rigs are likely to be much higher than those from Acer rigs even if you sell more laptops with the latter.
So the next time a business opportunity presents itself to you, try not to let greed take control. Have a calculator handy and think about your bottom line before making any decisions and commitments. It’s never about the size of a project. It’s always about the value of the work you do — and how much you take home. 
Until then,
Andy
