My name is Matthew Bredel and as of March, 2007, I am a full-time, work-at-home internet marketer.
For close to 10 years, I worked for a defense company which was an OK job, but I was so uninspired in life and frankly, I needed some more money. That is when I first discovered internet marketing! Now I admit that I didn't start making thousands in my first couple of months (in fact, I lost my shirt!), but I finally saw the "internet light"...
Having no formal education in marketing or accounting, the term “Cash Flow” never meant much to me…until recently. My understanding of cash flow (now) is how and WHEN cash is flowing into and out of your saving account. In the past, it was simple! I received a steady check from my employer. [...]
Having no formal education in marketing or accounting, the term “Cash Flow” never meant much to me…until recently. My understanding of cash flow (now) is how and WHEN cash is flowing into and out of your saving account. In the past, it was simple! I received a steady check from my employer. Every month, I received my standard bills: Utilities, Cable, Phone, Mortgage, etc. This was very manageable. Plus, I was receiving checks from all of my affiliate marketing companies once a week. That helped even more.
Now that I work from home permanently, the concept of Cash Flow has become very important to me. Understand that while I had a job, I was making enough money to support both my personal as well as my affiliate marketing expenses. Over time, my affiliate marketing expenses have grown a lot, too. Right now, for example, I pay a few thousand dollars per MONTH on PPC’s alone. And this number continues to grow as I create new websites, promote new products, and accept lower profit margins for high rewards. But here is the big problem! I pay for all of these PPC’s NOW (or in some cases, like Yahoo Marketing Solutions, ahead of time). My affiliate marketing commission checks usually are not send until later (and in some cases, QUARTERLY!). Yes, I have earned the money and I do continue to make a healthy profit on paper, but my monthly gross income keeps going negative!
Cash Flow is my problem here! For now, the way that I handle this is by holding and reinvesting a lot of my income within my company rather than distributing it all to myself up front. I now must pay myself a salary rather than just hoard all of the profits. Now I understand that many of you are not to this point yet, but the point of the matter here is to still watch what money is going in and out of your bank account! Expect to take losses before you start building income. Unfortunately with affiliate marketing, your earnings are at the mercy of vendor you promote.
- Matthew Bredel
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Developing the right mindset is the most fundamental requirement for success online and frequently the most ignored. In the world of affiliate marketing this area is normally left up to each individual to acquire.
April 3rd, 2010 at 9:48 pm