How To Profit In Business

increasing your sales profit in business

Let’s talk about how to profit in business. This, after all, is why we are in business, right!

Of course, the exception to that would be if you are a non-profit organization. You may feel like you are a non-profit organization when you really want to be in business to earn a profit.

So what gives here for you?

When producing and delivering goods and services it is necessary to understand the costs involved. This way a price that includes profitable returns can be determined. This selling price consists of an increase in the value that ultimately gives you profits.

As other companies reduce prices, you can increase your profits. Overcome obstacles like a recession or a downturn in the market. Put your company in a profitable growth mode for the long haul.

I am going to layout how to go about profiting in business by looking at 4 steps. These four steps will allow you to get the maximum benefit from each transaction through easy-to-implement profitability management techniques.

By identifying all the revenues and costs associated with each sales transaction, you can leverage this knowledge to reallocate your resources correctly. This will support more profitable sales, establish advantageous selling prices, and convert more marginal sales transactions profitably so they do not cut into your profits.

To increase the revenue of existing customers follow these 4 steps!
1. Determine Profit Generators
2. Protect Your Profit Generators
3. Get More Profitable Customers
4. Applying Profit Concepts To Affiliate Marketing Sales

1. Determine Profit Generators

It is possible, even probable, that some sales transactions or sales channels of a profitable company are profitable in another way. It is almost certain that there are unprofitable sales channels and sales transactions within a lucrative company.

The useful areas are compatible with the losers, or from a different perspective, and the losers exhaust the gains. Also, within all profitable and unprofitable companies, some sales transactions do not generate or drain profits.

The same is true for customers: some exhaust profits. Many do not contribute anything. While a few create the majority of your profits.

2. Protect Your Profit Generators

being counterproductive online for huge profitsThis clear practice of analyzing and measuring all your costs may lead you to believe that comprehensive cost reduction measures are the only answer. Random cuts may seem wise and quick in the short term.

However, the reduction of all expenses in all departments, products, and employees is considered short-sighted and ineffective. Sometimes cutting expense can be counterproductive to what you are trying to do.

Reducing costs and arbitrarily interrupting their capabilities when competitors try to take their market share is a recipe for disaster. It may not be reduced enough in some areas and maybe reduced substantially in other regions.

A better way to protect the sales of products that are generating profits is to increase value as opposed to cutting costs. More on that below.

3. Get More Profitable Customers

Distinguishing between profitable growth and growth only for growth is essential. Embrace the fact that not all income is created equally.

Revenues are only useful if part of them are retained as a profit. It can not always be configured in size or dollar volume.

Having a higher volume of sales temporarily inflates your ego. I mean looking at a spreadsheet full of sales is a great feeling right?

Maybe or Maybe not!

Offering more benefits while increasing cash flow adding to the bottom line is better. Be selective with any new business you accept. See if they qualify for this profitability management model.

By evaluating the most profitable customers identified when analyzing your sales transactions, you can create a perfect customer profile for each of your markets or sales channels. Use these profiles to target similar, but slightly different customers and new potential customers in these markets and sales channels.

Now you can confidently assign the appropriate level of resources to reserve this work. Turn your marginal sales transactions into more profitable ones.

4. Applying Profit Concepts To Affiliate Marketing Sales

Applying Profit Concepts To Affiliate Marketing SalesSince we spend so much time here on my make money tips blog discussing affiliate marketing I want to talk about these profit concepts we’ve just discussed as they apply to affiliate marketing sales.

When you’re selling affiliate products you normally would pre-sell the product. Then you pass the customer to an affiliate sales page.

In reality, the customer is leaving your online store and are now on the website of the affiliate merchant. Their sales page is designed to close more sales and then provide all product fulfillment.

Why Preselling Your Customers Is Important?

This is great in the sense that you spend most of your time getting traffic to your website or blog. Then you can pre-sell the affiliate product before sending them away to make a purchase.

The downside to this is you have no input into the price of that product. You’re competing against other affiliates who are selling the exact same product for the exact same price.

To me, that becomes a problem when I have higher overhead because I’m doing things like paid advertising or outsourcing to freelance workers that my competition may not be doing. If you want to make more profitable affiliate sales considering taking more of an e-commerce approach.

Purchase affiliate products from the merchant at their price but sell them at a higher price this way. You could do this by selling the products directly to the consumer and shipping them yourself.

Of course, this will only work if you can control your cost, and are able to offer more value to the sale of that product.

If not, people may catch on to the fact they can buy it cheaper from another affiliate website. When you throw more into the sale this takes away the apple for apple sale and becomes more of comparing apples to oranges.

The process on how to profit in sales for success

Conclusion On How To Always Profit In Business

Changing your combination of products and services can increase perceived value for your customers and grow your revenue at the same time. It can also turn the wrong customers into the right customers.

Changing the combination of products and services can deepen your relationship with your customers and make it more difficult for another seller or affiliate to compete with you.

Whether you need more money to increase your profits, or just want to make more money, I can help you with affiliate marketing and you can start learning for FREE!

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10 thoughts on “How To Profit In Business”

  1. I really like your idea of taking more of an e-commerce approach to affiliate marketing.  It is difficult to compete with other affiliate marketers with the same products at the same price. The idea of setting yourself apart is always a really important way to be able to make money for ourselves in this type of market. Great job.

    • To separate yourself from your competitor, e-commerce sometimes is your best approach. In this way, you can buy it from the merchant and sell it at a higher price to your consumer in this way you guarantee a profit. Thank you for the feedback and input here.

  2. Find what works for you, then take a calculated risk by focusing on that, and see success come in. That’s a universal step by step for success one can apply to everything in life. To be honest, I’d never thought about the mini-e-commerce investment. Buy the products, add something to them, and then market them for a greater price due to the added value. Sounds interesting. Kind of like a bridge between affiliate marketing and network marketing.

    • Faheen,

      Indeed, that is the best approach to profit in business. Once we find what works, we can scale it to build up our profits. this has worked in many areas like paid advertising. E-commerce is one of the best approaches to this and using Amazon FBA can help to move your products at an affordable price.

      Cheers!

  3. A very unique approach to affiliate marketing and definitely makes this post a worthy read for me. Engaging in mini e-commerce might actually be a great way if one is ready to input the capital because competing with everybody while offering the same product with them will only be a matter of luck to win more sales. But offering more than what others offer will definitely give an edge. This is great

    • Yes, those four steps have helped me in the past and it is still effective today when implemented in your business continuously.

      Although many might be offering the same products and it may look like the opportunity is saturated, it will make lots of difference if you have the right marketing strategies. That is one reason I refer people to wealthy affiliate, to learn all these strategies and move ahead of their competition

  4. I understand the importance of price control in the purchase pipeline. And you suggest one option being to purchase the product, price it on your website and ship purchases yourself to your customers. May I ask where would be the best place to acquire the capital to purchase the products? 

    Personally, I prefer to be a channel to the supplier and let them handle the billing and fulfillment. Even if that would cut into my potential profit.

    All the best.

    Edwin

    • Hey Edwin, thank you for the comment and insight on the best way to make a profit in your business. there are a few companies that give loans to small businesses that help them get off their feet when purchasing products to resell. this one I know that has helped a few of my associates. Excelsior Growth Fund.

      Being a channel to the supplier is always the best way to go or you can open an Amazon FBA account and have Amazon do the fulfillment for your business. Read more about it below.

      Fulfillment by Amazon Hope that helps!

  5. Great post on how to profit in business, Bishop!

    The four steps you have outlined are all logical concepts, but I don’t think I’ve seen then put together in this way before… and I don’t really think that people actually take enough time to consider them either.

    Business is all about generating profits and you really need to take your time to consider how you are going to get these profits!

    I love how you mention the importance of pre-selling to your customers… this is something that has been working really well for me lately, but your e-commerce approach is certainly very interesting.

    Lots of food for thought in this article, thanks 🙂

    • Thanks, John, for the feedback and kind words.

      yes, the four steps have been overlooked many times, even by me. but once I start to implement them I was able to get better results with my income. S please do not take them lightly.

      A few of my associates had teamed up with their spouse and involve their children to help them fill their products and shipped them to their customers. this e-commerce approach had caused them to increase cost and make better profits for their business. Amazon can also help with fulfillment as well. Thank you for the feedback.

       

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