The Work From Anywhere Accelerator By Christian Martin

DIGITAL NOMAD

Work From
Anywhere

https://www.digitalnomad.com/

Revenue vs Profit:
Which Is More
Important?

Christian Martin

Is Profit Really King?

Some people in the internet marketing industry talk about their
revenues as if that’s the end, all Beale. And if you don’t know, revenue
is top line, what comes into the business?
That means actual cash that came into the business. And sometimes
people even report the sales that were made, including accounts
receivable, meaning cash that hasn’t been collected yet as revenue
where other people will say profit is all that matters. I don’t care what
your revenue is at all.
So how do you know which one matters revenue or profit or both, but
like most things it’s somewhere in the middle. So today we’re going to
break down. What’s important about each one and why profit is not
the only thing that matters. Here we go.

Revenue Equals Investment

We have to have revenues to support the operations of a business.
And oftentimes they’re taking some of that profit and we are investing
back into our product. We’re making things better.
We’re building systems and we’re gearing up to scale. So we’ve had
the comparison of these two businesses, but let’s take things further.
Let’s say that revenue in the business, number one is almost the same
as profit with the solo preneur.
They probably cannot scale very much at all next month. They’re
probably max out, but we take that business with a hundred K in
revenue, 20 Cain profit.

Scaling Requires Revenue Not Profit

So does revenue matter? Of course it does more than most people
think this is how you build an actual, scalable business versus just
building a job for yourself.
So when everybody says profit is the only thing that matters, it matters
what order we’re doing things right. When we’re scaling revenue is
going to be more important. And we’re going to cut into our profit
margins.
You cannot scale without cutting those margins and giving away
some of that money. But what you have to realize is a small piece of a
massive pie is so much better than the whole pie that is very, very
small and could go away at any minute, but we can take things even
a step further.

Start with Revenue, End with Profit

He also gets to provide a paycheck for people and a sense of purpose
and training and build out a team and develop his people and get
that sense of fulfillment and create bigger opportunities for him or
herself. So do you see how important it is to not just focus on profit, but
focus on revenue and then put some of that money back into the
business.
Now, famous example of this is Amazon has built one of the most
valuable companies in the world that provides value to pretty much
every single person you can see and hundreds of thousands of jobs,
they didn’t make a profit for 20 years because they just put it all back
in.

Start with Revenue, End with Profit

He also gets to provide a paycheck for people and a sense of purpose
and training and build out a team and develop his people and get
that sense of fulfillment and create bigger opportunities for him or
herself. So do you see how important it is to not just focus on profit, but
focus on revenue and then put some of that money back into the
business.
Now, famous example of this is Amazon has built one of the most
valuable companies in the world that provides value to pretty much
every single person you can see and hundreds of thousands of jobs,
they didn’t make a profit for 20 years because they just put it all back
in.

https://www.digitalnomad.com/

DIGITAL NOMAD

Thank You For
Attention