ASH AMBIRGE

Author, CEO & Founder

Learn More >>

Are You Making Money or Losing It? Also: Porridge

In: Money Talk,

It's never just about the money coming in; you have to consider the money going out. 

When you take on a job, sure, you might earn $5,000.

But what's the cost of earning it? 

If you have to forfeit 3 other projects (and your favorite Wednesday night TV show) for a combined total revenue of $15,000, you're not making money. You're losing it.

As an example, when our team embarks on a copywriting project, oftentimes we get asked for heavy consulting advice, too–from how a program should be structured, to what a service should include, to what price points should be…and every element of their business model.

So in order to serve those folks, say we decide to offer some type of $500 consulting add-on.

Sounds like a great upsell, right?

Wrong, and here's why.

Because consulting takes time, and it takes energy, and it takes a lot of it. It isn't something you can just throw out there off the top of your head–you've got to be strategic. You've got to investigate. You've got to dig deep. You've got to form an educated opinion, based on a client's specific circumstances. In short, you've got to do a good fucking job.

And while that's all good and well, if I have to dedicate the rest of the working day to doing that, then I can't use it to do other things. Things like: Writing a book proposal, marketing our company, creating business-changing workshops, building useful resources, and more. In other words–all of the other high leverage activities that are much more useful to a whole group of people, instead of just one person, and are also more profitable, too. (My favorite win win.)

So when you frame it like that–which makes better business sense?

Allowing for a $500 consulting add on, maybe selling 4/month for a total of $2,000…because you feel obligated to.

…Or giving yourself the bandwidth to make an extra $100,000 this year through smart, higher leverage efforts?

Because if you could have made $100K doing something else, then offering your consulting add-on for $2,000/month or $24,000/year in revenue minus expenses (like employee salaries), then at best you've just lost $75,000.

At worst (and more realistically), you've lost more than that.

My point?

It isn't that you don't want to help people. It isn't that their money isn't perfectly good money. It's simply that you need to pick and choose your business battles.

And pick and choose your business strategies.

Put on your cost-benefit analysis thinking cap.

Be smart.

And while you're at it?

Don't run around doing business without a contract, for goodness sake.

It's poor form, and then I'm going to have to come visit you in the slammer, and then you're going to be all mad I didn't bring cookies, and then I'm going to be all, “But I don't bake cookies,” and then you're going to grimace and fling a spoonful of porridge at me.

And then I'm going to be pissed.

Enter your email address and I'll rummage around in my bag of tricks for JUST the thing.

3,063

READS

Caution: Stop Masturbating With Your Money.

Last year I had $224,225.77 in business expenses. That’s a metric fuck ton of cash for a small business to be throwing down, and probably more than my mother ever made in her entire life. And yet, I’ve never been so pleased and here’s why: When you do it right, your expenses aren’t expenses. They’re […]

In: Money Talk,

READ MORE >>

1,848

READS

“How do I raise my rates without making it awkward?”

  Well isn’t this the motherloving question of the year. It gets asked a lot sometime between the stages of that time you started your business and worked for peanuts because you were feeling wildly insecure about your worth and holy bananas I’ve been doing this for years and I’m still barely making rent even though […]

In: Confidence, Money Talk,

READ MORE >>

become unf*ckwithable

What does it mean to be Unf*ckwithable? View the 10 commandments >>

 

THIS IS A PLACE WHERE YOU'LL ALWAYS BELONG.

Click here to tell me what *you* think + let your ideas be seen naked—and then sign your name on our wall of wonder.

Your email address will not be published. Required fields are marked *

20 thoughts on "Are You Making Money or Losing It? Also: Porridge"

  1. Nikki Groom says:

    HAHA looooove. (Esp the cookies/porridge flinging.)

    1. Ash Ambirge says:

      I mean, who doesn’t love a little old fashioned porridge flinging? HA.

  2. Nikki Groom says:

    HAHA looooove. (Esp the cookies/porridge flinging.)

    1. Ash Ambirge says:

      I mean, who doesn’t love a little old fashioned porridge flinging? HA.