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Saving for a Rainy Day
(Article Contributed By Dino - Posted on April 23rd, 2008)
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The biggest problem we face is that we’re basically commission-only salespeople. I actually worked in mainstream on commission only for a while and it was without a doubt the most stressful job I’ve ever had. I was constantly worrying I wouldn’t make enough money to pay my bills and rent at the end of the month, and in the end the stress outweighed the earnings potential and I went back to a salary position.
You can see how webmasters who promote pay-per-signup programs are in a similar situation (i.e. most of us). One day we might make amazing sales, the next we don’t see a penny. One month we might pull in a few thousand dollars and the next we’re struggling to pay our hosting bill.
What this basically boils down to is this: earning $X isn’t as important as having a reserve of money to deal with the fluctuations.
I’ve played a fair amount of poker in my life and at one point I did consider doing it full-time. If you’re good you can make a small living even in the $3-$6 games in Vegas, but asking around about how to keep yourself afloat brought a surprise. Most players who play every day for a living keep a bankroll (or reserve) of around one thousand times the biggest bet of the limit they’re playing. I was intending on playing $20-$40, so I’d need around $40,000 to be able to play and deal with the swings.
While promoting online porn isn’t gambling (well, in a sense it’s a crap shoot sometimes), we still get the fluctuations. Things happen outside our control all the time in this industry and if you’re running a small paysite and your processor packs up shop and moves to the North Pole, warming themselves with your cash, there’s not a lot you can do about it.
If you have the reserve then you’re set. At the very, absolute minimum, a full-time webmaster should have around three month’s worth of living expenses and business expenses stashed away in order to at least be half-way conformable in their daily activities. If you’ve got more than this, all the better.
Taking away the stress of having to make that sale can go a long way towards your bottom line and your productivity. Some people work well under pressure but the rest of us would rather have a little security and peace of mind in case the shit does it the fan.
Till tomorrow, pimps!
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