Revenue V.S Profit

As a business owner, which of this is the most important aspect of your business? I’m sure most people will agree with me that its definitely profit. If you were to earn $5,000 a month in sales but your ad spend is a whopping $4,000, then that’ll leave you with $1,000 profit. And if you were to generate $3,000 in sales and your ad spend is only $1,500, then you would have earned yourself $500 more profit.

Of course, if you were to generate a higher monthly revenue, people will look up to you and think you are damn cool, but in actual fact, you could be earning much lesser then the person who earns only $3,000 a month.

I happen to thought about this issue when i was looking at my Adwords campaigns and realise that i was losing money on one campaign but that particular campaigns has been generating revenue for me on a daily basis. Thus i was thinking if i should just scrapped that campaign and forgo the revenue. Then it dawned upon me how stupid i was if i were to keep the campaign and continue losing money daily.

So just wanted to share with you my thoughts about revenue vs profit and that as a businessman, profit should be your main objective, not your revenue. UNLESS, you are trying to generate that high revenue as proof for your next big product launch on milking Google Adwords for profit again, because even if you are losing money now, you will earned it all back when your launch is successful with that huge long Clickbank bars.

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