Recently,
Charles Ngo sent out an email about some success he had with one of his Affcelerator students. I thought it was great someone was able to benefit from his course, but what stood out to me was a mention that he spends $20 million a year on ad spend. My question is, what does that look like to be able to spend that much on ads?
Do you have a line of credit with the bank in this scenario, because I am assuming funding your business with credit cards wouldnt be possible. Unless you had one of those fancy black cards. How do you manage risk with this much float going out to buy ads? It seems like he would dry up an offer pretty quickly once he committed to it.
Thanks.
After 3-6 months if you do serious volume they offer you Invoice billing for your company.
You ask for Weeklies, and work with people who you trust on the advertiser side.
It just builds out over time as you foster more and more relationships and people know you are the real deal.
Just to clear it up, its $20m total ad spend, over 8 years, not every year.
Charles Ngo is a legend of AM and a noble man. He has very strong work ethic/systems. As Skeatatu said, Charles was referring to 20+ millions ad spend on 8+ years that he his in this industry.
Respect for Doctor Ngo
Most credit card companies (including Amex) let you pay down balances at any time, not just after the billing cycles close.
If affiliate networks are paying you on a weekly basis, you can just use those funds to continuously pay down your credit card balances to free up credit for more charges.
Yes you can... even with a 20k CC, just as Clickright said. As soon as you receive your weeklies, pay your CC.
$20k CC and weeklies...
$20,000 x 52 = ~$1 million
Now if you are paying off a $20k card weekly you could certainly get onto daily wires or a higher limit CC (or dozens...), so in a perfect world where nothing goes wrong and we only look at the cash flow mechanics, even $10 million USD a year is not much at all.
Hi!
That's ad spend over 7 years.
1. I get weekly wires from networks / advertisers
2. I have credit cards such as Amex centurions, platinums, and plums which can float a large amount of money.
Once you break it down like this it makes everything seem more realistic and do-able.
But yea there are some affiliates out there with far more success than me you'll never hear about. I'm just the most "visible"