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Use this “Magic ratio” to make wise decisions. It’s easy to get caught up in the “Amazingness” of a new opportunity, right? Right now, getting into eCommerce or Amazon business is hotter than a stack of mamma’s buttermilk pancakes. However, there are a lot of horror stories out there right now. They aren’t always advertised out there in the how to space. Folks that have $30k, $100k and even over $300k in one product. All gathering dust in a warehouse or their own garages. They’ve got the product, all the legal stuff handled that they know of.
Now they just have to move product. A skill that many are stuck on because they hop on Amazon or Shopify and they see another 100+ people selling the same exact product. How will they stand out from the other 1000 people selling organic turmeric or yoga mats? Think that can cause a smidgen of anxiety? When you’ve got up to $50k plus in product and not even one sale or any real idea of what to do next, savings you invested that your significant other may not have been as thrilled or hopeful about? Sweating a bit?
The same thing applies to many mom and pop businesses. There’s a massive overhead, no guarantee in profits in return. On the flipside know what it costs to deliver a digital product. Well, not much of anything really. Just a few small costs like hosting and so forth but the opportunity for growth and income can be massive.
So, here’s a scale of sorts I’d love for you to think about in today’s blog post. Most never entertain this critical piece of data for themselves. Whenever you’re examining an opportunity, ask yourself:
- What’s the risk to reward ratio? – It’s not always about the investment.
- Is it high reward/high aggravation?
- Is it low reward/high aggravation?
- Is it high reward/low aggravation?
Is it going to keep you up at night? Is it going to tie up every penny you own? Is it going to require 60-70 hours of your week? I’ll straight up tell you, the aggravation and stress isn’t worth any high reward. Getting the ratio right ends in much less stress, much more happiness and usually it’ll result in more fulfilment and income as a handsome side result. That’s personally why I love more digital styled types of businesses with a high ROI especially when it’s more done for you and hands off like this one:
Big paydays coming your way, high reward, low aggravation and lots of fun.