Going back to the idea of that which is measured grows, you want to ensure that you are always checking your income and expenses on a regular basis. The reason is that income can go up or down in unexpected ways.
If you notice a trend in either direction, you can act to either increase earnings or find out what is causing the income spike if that is the case. For example, if you notice your income is steadily rising each month, you can look deeper into the numbers to find out where the income flows and work harder on marketing that.
Likewise, if you see an income dip, you can figure out what’s new or different that could be causing the issue. Have you stopped advertising, are you behind on your blogging? You can look for a correlation between them.
Expenses can sometimes get out of hand.
You buy a membership here and there and before you know it you’re paying out hundreds in subscription costs when you don’t even use the software or the product that much. I mean, is a paid Canva.com account worth it if you only create a couple of graphics a month? Add up the costs to find out if it’s worth it and find out if you can choose alternatives.
Where is your income coming from?
Look at your income – sometimes it doesn’t come from where you think it does. You may be shocked to find out that 60 percent of your affiliate income comes from just one product or one company. When you find out that a lot of your income comes from one place, you can do a couple things. Promote it more. But, you may also want to find a way to increase the other income because you never know when that company you’re now relying on to make all your income could go out of business.
Which traffic sources convert more?
As for marketing, you may find out that Pinterest sends the most converting audiences. They send the audience that buys your products and services 10 times more than the other places you spend time and money marketing. The best course of action here is to put more money and time into the place that’s sending you more paying customers.
It’s amazing what you can find out when you review the data surrounding your income and expenses. You can make a lot of better choices about where you’re going to spend your resources when you do it. The numbers may shock you when you get down to looking at them. But, it’s going to be a good thing for you to see what is real so that you can make wise choices about where you spend your time and money. You’ll increase your bottom line exponentially by keeping track of your income and expenses and keep your business healthy and your cash flow good.
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