I must admit I was wrong. So wrong that when I found out “I was wrong” I almost wanted to cry.
No, it was not a cry for sadness, but rather a cry for joy.
I came to realize I was modeling my online business after those cash sucking Silicon Valley Start Up companies.
let me back up a little bit and tell you this story…..
After some in depth analysis on Amazon affiliate income and predicted how much I could make at the end of 2015, I decided to go full scale by hiring and expanding my team. I was not thinking about how much I was spending but rather how much I could potentially make. I started off by hiring people and spending a lot of time delegating all the tasks including analysis and collecting site data.
It was an exciting time. We managed to accomplish a lot but soon the reality hit.
A lot of the work we did ended up producing “nice to have” stuff like data analysis, beautiful graphics, Social likes / follows etc.
I was running out of money FAST and the website traffic wasn’t increasing. Revenue was inconsistent month after month and not enough to cover the cost.
Eventually I had to let my team go.
I was not thinking like a frugal entrepreneur but rather a CEO of a venture backed Start up….. even though it was backed by my full time job paychecks.
The Book: Profit First
I was depressed and sad.
Around then, I came across to a book called Profit First. Essentially, it talks about why many small businesses fail by not paying the owner of the business. A lot of the business owners have the typical Silicon Valley mentality.
I was one of them. How wrong was I to think the only way to grow a business is to put more money in it.
So, I took the advice and scaled it down. Started only working on tasks that mattered such as SEO my sites and building backlinks.
It was tough. I mean REALLY tough. But slowly it started to pay off.
Where I am and where I want to be
I am not out of the woods yet. Thanks to cost cutting and slow but steady revenue increase, the business has been breakeven for a few months now and even creating a small profit.
Now I can use that profit to get some help on the tasks. I want the business to be self-sustainable and keep it that way. It may grow slower but at least I can sleep better at night.
I am a SEO consultant who happens to be interested in affiliate marketing.
Unlike general SEO, websites built for affiliate marketing require completely different mindset and strategy.
Join my journey to generate passive income using SEO.