A Way to Predict Your Income

Oftentimes, increasing profit may seem challenging. It may seem somewhat unpredictable, out of one's control and hit-or-miss. Well, it doesn't always have to be that way.



If you are an entrepreneur, a business owner of some kind, let me assure you that you and you alone can increase or depress your income. Ultimately, it has nothing to do with the state of the economy, the government or anything else. It has everything to do with you.



The "trick" lies in maintaining analytics and in tracking and correlating ratios.



But first, realize that income has to be generated. It does not waltz in on its own. That is a common misconception. Even those entrepreneurs who have a residual income without seeming to do anything for it had to do something in the first place. Money has to be caused in order to be made.



Second, realize that when money is made, it is, in most cases, the result of several promotional factors, not just one or two. Therefore, it behooves one to know what those factors are for his/her activity. From there, one can track ratios and examine their correlations. Essentially, this is a "numbers game" as you can see. And it gives us an ability to predict and control our earnings.



To illustrate this principle, let us take a hypothetical example: say, an e-commerce site that sells t-shirts and other apparel. It tracks, for instance: how many PPC clicks it gets, how many hits onto its website, pertinent demographics (i.e. gender, age bracket, geographical location, etc., of its consumers), efficacy of ads (which ones generate most clicks), the size of its opted-in mailing list, how many newsletters are sent to it and when, how often it brands itself onto its various social media outlets (e.g. Twitter, Facebook fan page, etc.), how many viewings its YouTube videos get, just to name a few. All of these things either directly or indirectly result in prospective consumers purchasing merchandise from their site.



This online store may then see that its sales are somewhat proportionate to the amount of pay-per-click ads it has running every Friday afternoon on Facebook that target a certain demographic: Caucasian teenaged girls who live in the Long Island area of New York; also, to whenever it sends out a newsletter to its subscribers announcing helpful fashion tips. It can then see that new subscribers for its newsletter tend to increase proportionately to the amount of followers it has on Twitter and to its views on its YouTube channel. Then it sees that when it used a certain Twitter-related software not too long ago, it got more targeted followers.



You see, everything is in a sort of "chain-reactive" interrelationship; in other words, there are ratios. These various aspects either directly or indirectly affect sales for this venture. Therefore, income may be predictably raised. Upon seeing sales drop a bit, this business beefs up the amount of PPC ads to its most yielding Facebook demographic, creates more video logs, reactivates that Twitter software and sends out another fashion tip to its mailing list and voila: sales "magically" increase and they are back in the black!



So, you see, you do not need to scramble about or go into despair with your own venture. Instead, invest some time into analyzing those promotional factors, list them out and start tracking them. Monitor, spot interrelations, analyze ratios, tweak or increase certain things accordingly and you are very likely to be in control and increase your income. Wishing you success!





By Emanuel Simonian

http://www.YourFreedomAndProsperity.com



© 2011 Emanuel Simonian. All Rights Reserved.





Emanuel Simonian is an entrepreneur and mentor who helps others attain financial freedom and prosperity.