Photo Credit: Steve Wampler
There’s only two ways you can make money out of something; margin or volume. It’s very rare to be able to sell something that has high margin and at great volume. It’s almost always an extreme on either end, and it applies to everything.
Let’s take Google AdSense as an example, we all know that the high earners come from two categories:
- Owner of a single (or a few) high paying keywords niche
- Owner of multiple (some even own thousands) generic low paying niches
And you can drill this down even further into two categories:
- Single (or a few) high traffic web sites
- Multiple (tens or hundreds) low traffic sites
And as much as it is annoyingly painful to see a few hundred “Get rich with AdSense” ebooks, online courses and miscellaneous crapware on the topic; they all preach the same thing: Go for margin or volume. And if it’s such an easy thing to do, everybody would be AdSense millionaires now, and Google would be close to non-existence.
But what’s the reality?
This applies to practically any business out there; you go for margin or volume. Not both.
Let’s take my case. I run an IT solutions company… effectively by myself; and I don’t want to hire people, especially in this economic climate. So obviously time is an expensive resource for me. At any one time, I can only focus effectively on one project. Multitasking? Sure… but still, being human I can only do one thing at a time.
So in my scenario, it is glaringly obvious; go for margin! Take only projects where the returns can fund my lifestyle the longest. Ultimately, I spend most of my time on a single project until completion.
Upon completion, the revenues from this project give me some leeway until I secure the next undertaking without my family starving to death.
Is this lifestyle better than being permanently employed? My answer is “yes”. Even without the blanket of “financial security” of having guaranteed monthly income, it gives me almost full control of my time. This won’t be the case if I continued as an employee with restrictions like “working hours” and “being at the office”.
Of course, some restrictions are global; like deadlines and costs. Nevertheless, I still think working for yourself (or freelancing) is better in the long run.
In the end, it’s a question of willingness and where your priorities are.