14
Aug

Harsh Reality 5 – No Risk Equals No Reward

Big RiskAffiliate marketing is somewhat like investing in that you have to decide what you are willing to risk to ultimately succeed. Be it time, money, a regular work schedule or the comforts of a nice car and other material things until you reach a livable level of income, all these things will factor into your risk tolerance.

Time is not always thought of as being risky to spend, but it is because we only have one time bank account and when it’s gone, it’s gone, no earning it back. That’s why it’s important to put your time into something that has the potential to earn you an income for a long time.

Working on spammy techniques or purposely going against search engine webmaster guidelines that put your business at risk may earn you some money up front, but they will seriously hamper your venture for the long run. There’s a difference in using a loophole in the system, that when it’s closed will only cause you a loss of traffic from one source versus risking your entire site or network of sites being deindexed from the major search engines. Loopholes are meant to be exploited, clear policy violations will eventually kill your business.

You can also spend time on building what you thought was a wonderful idea for a site only to have it fail and not really be able to figure out why. I put many hours into a work at home site a few years ago and even though the site has been up for about 4 years, it may get 30 visitors on a good day. The site used to get 200 or 300 people a day, but it eventually died a slow death as page after page lost rankings and traffic plummeted. Maybe it was too may affiliate links, maybe the site was too broad in scope, probably it was the domain name with 6 dashes in it (stupid!), I might never know. But I do know I put a lot of work into something that didn’t pay off. At least one thing I learned from building that site was to never get a domain name with dashes in it.

Money is a harder commodity to be risked because we can see the immediate results of losing it and racking up big debts through PPC or other advertising. But that’s what any advertising is really all about, getting your product or service in front of the right customer in the hopes you’ll make some sales, eventually making a profit. You do that by risking money up front and there are no guarantees.

That’s why it’s important to set a budget that you can afford to spend (risk) on advertising. My wife is the accountant in our home and we determined that any earnings my affiliate business generated over $2,500 per month could be spent on advertising and more specifically PPC. Through reading the adventures of PPC masters and thoughtful consideration of several offers, I am now earning some money with PPC.

I was also fortunate enough to get $250 in Facebook ads coupons and even thought I didn’t do so well with them and ended up spending more money after those coupons ran out, I’m now turning a pretty good profit with FB ads because I just felt there was a way to make them work. Despite losing money up front, despite the ridiculous hoops they make you jump through at FB to advertise, if I would have given up I wouldn’t be realizing almost $100 a day profit now. The risk in time and money has definitely been worth it.

And that’s the lesson to be learned. If you are reading what the experts in PPC have to say, learning from your mistakes, willing to risk time and money and are dilligent in your efforts, more than likely they will eventually pay off. The reason I was willing to risk more time and effort with FB is because for the people who are succeeding, they are succeeding wildly and I just though, ‘I don’t care if I have to spend $2,000 or $3,000, I’m going to make this work.’ Something just happens when you have an attitude adjustment like that. The trick now is to transfer my Facebook success over to PPC with Adwords. Maybe a bit more difficult task, but the truth is, it does work for some, why not for me or you?

Educate, calculate, risk, and earn the reward.

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8 Responses to “Harsh Reality 5 – No Risk Equals No Reward”

  1. Nice one Alan … risk and losing money is part of the game. If you’re not willing to do that, it will be tough to ever be successful.

    I did a post similar to this awhile back
    http://www.ppcfool.com/beginners/are-you-willing-to-risk/

    Continued luck on your efforts!

  2. “Educate, calculate, risk, and earn the reward”

    Well said. You’ve really hit the button with this one. Risk is everything in this business, or any business for that matter – but that risk must be calculated.

  3. I’m curious about your work at home site because I always agonize over whether my next new site should be static or a blog. How often do you update it, and do you think the drop-off in traffic is due to it being a static site that isn’t updated as frequently as a blog? I’m curious about your thoughts on making money with static sites versus blogs. Thanks.

  4. A good read, like said you hit the nail on the head with this one.

    It also goes to say the higher the risk the higher the reward, just ensure you know how much you can afford to lose.

  5. No risk and no reward. Unfortunately many new to affiliate marketing misjudge the risk and apply at best limited skills to their business. Fortunately there is good information in blogs, like this one, which will help educate those new to AM.

  6. Risk is our friend, without the fear it creates there would be nothing to stop all the dreamers from actually doing something, and taking away a piece of the pie we do-ers are chasing.

  7. I don’t agree with you here – just make wise and well thought out decisions and u will succeed

  8. I would say that risk is like a door labeled “come here if you are ready”, and that there is another door for those not interested in risk that is labeled “quit the procedure through here”. If I don’t take a certain risk I have in my mind, I will regret it whether I benefit or not from not having taken the risk.

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