The Magic of Float

If you've ever received a service today and paid for it in 30 days you've experienced the concept of "float" ? the time difference between when you receive a service and when you paid for it. In most cases this time period is a convenience to you as a customer, but in the world of business marketing it can absolutely transform your business. In the last 18 months we've grown our marketing budget at Swapalease.com (the company that owns me) by more than 1000% by simply leveraging the concept of float.

The reason we can grow our marketing budget so actively is because of a whole new breed of on-line marketing tools that allow us to actually make money faster than we spend it. And we're not the only ones. Thousands of companies are taking advantage of new on-line advertising models that are driving millions of qualified buyers to their respective sites on a shoestring budget. Let me explain the models and then we'll get back to leveraging the float.

Google rocks

Yes, they have a $50 billion market cap, but that's not why Google rocks. It's how they got there. Google helped pioneer a concept called "cost per click" (CPC) advertising. Google displays a handful of ads on each of its search results pages. Advertisers only pay for those ads when someone actually clicks on their ad (hence cost per click, get it?). Companies of all sizes have jumped on this incredibly targeted and efficient ad model to drive millions of visitors to their sites, and turn those visitors into cash.

The beauty of cost per click is that you can start small (a Google campaign can start at only $5) and grow your budget over time. More importantly, you can use your credit card to pay for the service. At Swapalease we get thousands of qualified visitors per month that we turn into cash. Then we get a bill at the end of the month which we have 30 days to pay. The time period between when we got a paying customer (and collected our fees) and when we actually paid to acquire the customer is our float, and it makes all the difference.

Google isn't the only company that provides such a great opportunity. Overture, Kanoodle, and FindWhat have nearly identical services that can drive even more traffic to your site and employ the same model. I would recommend that you leverage all of them. Collectively they can drive a massive amount of business to your Web site virtually overnight.

Marketing Shangi-La

Cost per click is just one example of the "buy now, pay later" model. An even better example is "cost per acquisition" (CPA). CPA is the panacea of marketing. Instead of paying publishers for the click, you get the click for free. Only when someone actually makes a purchase do you pay the publisher a commission for that sale. Smart marketers will sign up for this business every day of the week.

Companies like Commission Junction and Dark Blue serve as proxies to connect interested advertisers to publishers looking to make commission revenues. Once again you have the ability to pay your fees by credit card and create a small float between the time you earn cash and the time you write a check.

Your mileage may vary

Each of these models, while wonderful, will only work if you have a business model that can turn site traffic into customers in short order. At Swapalease.com we collect fees immediately when customers visit our site and sign up for our service. This allows us to put money into our bank account faster than we pay it out. Ultimately we have the ability to roll the increased profits into each additional month to aggressively grow our marketing budget. Every business model is different and your mileage may vary.

Grow baby, Grow

You can profitably sustain your business by leveraging these and other on-line models to make money. But just sustaining your business is boring. To really grow your business you'll need to continuously re-invest a portion of the profits each month into your next month's marketing budget. The process works best when you allocate the additional cash into your next month incrementally, reserving a portion of the additional profits for potential mistakes.

Beware, though, there is some risk in doing this. Spending too aggressively before you truly understand what works and what doesn't can absolutely sink you. The best approach is to start small, understand what works, and scale accordingly. The good news is there is enough traffic out there to keep you busy for a long time to come. Now just sit back and watch the checks roll in (boy that would be nice, wouldn't it?)

- Wil

Wil Schroter is a serial entrepreneur, author, and public speaker. Wil has been recognized as U.S. Small Business Person of the Year, twice as the Ernst and Young Entrepreneur of the Year (1999 & 2004), and is a member of the Business First Top 40 under forty. Connect directly with Wil at wschroter@yahoo.com. Visit http://www.goBIGnetwork.com.

---

Google News Updated : Thu, 24 Jul 2008 06:51:44 GMT Christian Bale's lady sidekick: Sibi Bale - Los Angeles Times ABC News Christian Bale's lady sidekick: Sibi Bale Los Angeles Times - 4 hours ago Like the Dark Knight/Bruce Wayne, Christian Bale is a real-life man of mystery. Averse to personal publicity, he is well-known for not wanting to discuss his private life. Christian Bale, Wife "Solid" at Knight's Spain Premiere E! Online Bale's family feud led to scuffle The Star-Ledger - NJ.com People Magazine - New York Daily News - Boston Herald - Variety all 2,386 news articles Publ.Date : Thu, 24 Jul 2008 02:10:31 GMT Rapper 50 Cent sues Taco Bell over ad - New York Daily News ABC News Rapper 50 Cent sues Taco Bell over ad New York Daily News - 36 minutes ago BY THOMAS ZAMBITO The rapper - real name Curtis Jackson - is suing the fast-food chain for using his hip-hop persona to tout its tacos. 50 Cent sues Taco Bell over ad campaign The Associated Press Rapper 50 Cent says Taco Bell stole his endorsement Reuters E! Online - MTV.com - CNNMoney.com - KWCH all 187 news articles Publ.Date : Thu, 24 Jul 2008 06:15:09 GMT Karadzic lived the good life with wine, song - Reuters ABC News Karadzic lived the good life with wine, song Reuters - 2 hours ago By Ivana Sekularac BELGRADE (Reuters) - Radovan Karadzic lived the good life while hiding from justice for 11 years: he watched his diet, fell in love and hung out in a small bar where hardliners gathered to sing about his wartime exploits. Video: Karadzic's arrest sparks clashes - 23 Jul 08 AlJazeeraEnglish Karadzic's secret life enthralls his fellow Serbs The Associated Press Reuters UK - euronews - New York Times - Voice of America all 5,771 news articles Publ.Date : Thu, 24 Jul 2008 04:05:33 GMT Discovery may boost statin safety - BBC News InjuryBoard.com Discovery may boost statin safety BBC News - 7 hours ago Scientists have pinpointed a gene mutation as a major cause of a rare side effect of the cholesterol-lowering drugs statins. They hope the discovery could lead to a simple test to identify patients at increased risk of myopathy - severe muscle pain and ... Gene May Predict Cholesterol-Lowering Drug Risk, Study Says Bloomberg Genetic Cause of Statin-Related Muscle Pain Found Washington Post U.S. News & World Report - Reuters - The Associated Press - The Star-Ledger - NJ.com all 172 news articles Publ.Date : Wed, 23 Jul 2008 23:14:24 GMT Billionaires Back Antismoking Effort - New York Times Boston Globe Billionaires Back Antismoking Effort New York Times - 27 minutes ago Bill Gates and New York Mayor Michael R. Bloomberg announced their antismoking initiative on Wednesday in New York. By DONALD G. MCNEIL JR Bill Gates and Mayor Michael R. Bloomberg announced on Wednesday that they would spend $500 million to stop ... Video: Gates, Bloomberg Pool Riches to Fight Smoking AssociatedPress The $500 million war on smoking Minneapolis Star Tribune BusinessWeek - eFluxMedia - Bizjournals.com - FOXBusiness all 471 news articles Publ.Date : Thu, 24 Jul 2008 06:23:48 GMT Zimbabwe Parties May Sign Unity Deal Soon, Business Day Reports - Bloomberg ABC News Zimbabwe Parties May Sign Unity Deal Soon, Business Day Reports Bloomberg - 28 minutes ago By Carli Lourens July 24 (Bloomberg) -- Zimbabwe's ruling and opposition parties may sign a power-sharing agreement soon as they have already agreed on a wide range of issues, Business Day reported, citing people it didn't identify. Fearsome Zimbabwe militias are afraid Los Angeles Times Delayed Zimbabwe Power-Sharing Talks Seen Beginning Thursday Voice of America BBC News - guardian.co.uk - AFP all 3,609 news articles Publ.Date : Thu, 24 Jul 2008 06:23:06 GMT Favre's heir? With backing from mates, Rodgers waits patiently - USA Today Bleacher Report Favre's heir? With backing from mates, Rodgers waits patiently USA Today - 4 hours ago By Matt Ludtke, AP By Larry Weisman, USA TODAY He no longer sounds like a retired player after seemingly passing on the opportunity to lead a talent-laden Packers squad. Video: The Rift Between Favre and the Packers AssociatedPress Finding new home for Brett Favre won't be easy Chicago Tribune Minneapolis Star Tribune - Kansas City Star - The Canadian Press - Tampa Tribune all 512 news articles Publ.Date : Thu, 24 Jul 2008 02:06:18 GMT Clickbank Data Feeds RSS For Web Pages

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Starting Your Business By The Book

I've gotten several questions recently about the legalities of starting... Read More

Franchises - Emotional Fulfillment - The Challenge

Does A Franchise Meet Your Needs?Do you look forward to... Read More

Is Now the Right Time to Become An Entrepreneur?

A number of economic changes are magnifying the role of... Read More

The Risks of Entrepreneurship

The "spark" for many entrepreneurs is seeing an opportunity that... Read More

Strategies for Overcoming Obstacles to Discovering Your Gifts

What are the unique gifts that differentiate you from other... Read More

Time Management Tips for Solo Entrepreneurs

Does it seem like everyone and everything is vying for... Read More

10 Tips for Would-be Entrepreneurs

Every evening as the sun sets beyond the mangroves that... Read More

Competing With The Big Dogs

You run a small consultancy. You're well qualified, experienced and... Read More

Before the Business Plan

Purveyors of conventional wisdom would have you believe that the... Read More

How To Start a New Business

While it is tempting to just leap into a new... Read More

Entrepreneurs Ask: As a Novice Entrepreneur, How Can I Feel Less Overwhelmed?

Great question! Overwhelm is very common even among the most... Read More

Pre-Money vs. Post-Money Valuation

When a company decides that it must raise capital, a... Read More

Confidence = Preparation + Courage

It always amazes me when I see someone on television... Read More

Entrepreneurship: What does it REALLY mean?

Introduction:In a world where ideas drive economies, it is no... Read More

Franchises - Success and You

Many people believe owning a franchise will make them rich,... Read More

Be Where the Pucks Going To Be

The "Great One" said it bestHockey legend Wayne Gretzky, when... Read More

The 9 Key Distinctions of Successful Solo-Entrepreneurs!

SUCCESSFUL Solo-Entrepreneurs approach life and business from a perspective that... Read More

Business Planning for College Students and First-Time Entrepreneurs

More and more students, both in undergraduate and graduate institutions,... Read More

The Danger Of Hate

As you have shown an interest in starting a business... Read More

Become a Recognized Authority in Your Field - in 60 Days or Less!

You don't have to be rock-star famous before you are... Read More

What is Entrepreneurship?

In discussing entrepreneurship and writing articles on the subject, I... Read More

Prescription for the Future and Technological Revolutions

The world sure has changed in the last two-decades hasn't... Read More

Great Tips Of Choosing An Office

You have decided to strike it out on your own... Read More

Raising Entrepreneurs: What to Do When Your Kid is Born to Think Differently

Adolescence brings with it many challenges ? for both parents... Read More

5 Tips to Step Boldly into the World & Set Yourself Apart from Others

"Real champions believe in themselves even when no one else... Read More