What Is The Key To GROWING An Online Business?

I have a simple question for you today?

Is your online business scalable?

A business that is not scalable will rarely, if ever, get you to the financial freedom you desire. Scalability is crucial.

So, what exactly is scalability?

As you probably know, if a business is “scalable” it can sell more product, make more sales, without dramatically increasing its expenses.

For example, the franchise model, like McDonalds or Subway, is difficult to scale. In order to increase their sales, franchisees need to find new locations, build brick and mortar restaurants, stock physical inventory, and hire new staff, just to name a few of the expenses.

It’s a strategy that CAN work, but it takes very deep pockets.

And when it comes to online businesses, you need to beware of a few things that will hold your business back and prevent it from scaling up.

  • Selling physical products. Physical inventory is expensive. You need to order it, pay to have it shipped, warehouse it, and pay to ship it back out. All of this costs money…and man hours. You can increase your sales only to a point. Eventually, you’ll be forced to rent more space or hire more employees to meet the increasing demand. Very expensive.
  • Selling low-priced, low-margin products. The difficulty in scaling a low-priced, low-profit product is that greater sales numbers don’t translate to greater profits.

Here’s an example…

Let’s say you sell a $50 product with a $25 commission. If you start out selling 100 per month, you clear $2500 per month minus what you spent on advertising. Let’s say your advertising was 10% of sales ($500)…that means you cleared $2000.

Now let’s say you pump up your advertising and increase your sales by 10 fold. Now you clear $25000 minus $5000 in advertising…for a profit of $20,000. And you had to make 1000 sales to get there.

But let’s say you sell a $10000 product with a $500 margin. If you start out selling 10 per month. You clear $5000 per month, minus what you spent on advertising. If again it’s 10% of sales ($1000), you cleared $4000. On just 10 sales.

Now let’s say you pump up your advertising by 10 fold. Now you clear $50,000 per month minus $10,000 on advertising. That’s $40,000 in profit on just 100 sales.

And the more you scale up, the better it gets.

That’s the power of scaling up with high-profit, high-priced products…

If you want to learn about a proven formula for making $500, $1000 and $3000 commissions online, and building an online business that is 100% scalable, check out iPAS 2 today at:

http://ipasgiveaway.com/cp1/?id=vcook1956&tid=13115vrc

Online Business

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