Starting out in AM - Should i take out a high limit Credit Card? (4)
Starting out in AM - Should i take out a high limit Credit Card?
Hi guys,
Im starting out in affiliate marketing, already read plenty on the subject. I am learning mobile as my traffic source and looking to run sweepstakes. I have never ran a campaign before but i plan to continue to study for 3-4 months before i spend anything. Im currently £2.7k in debt in personal finances and when it comes to putting down money on AM i will have none - so my plan is to take out a high limit credit card.
What do you guys think? I hear the average amount people spend as newbies before they start getting profitable is anywhere from $3-6k. Is this a wise decision for me to take out a CC and how can i keep my budget in control?
I gather i should be looking for low payout offers to get statistical significance for less money, but is it unavoidable that i will have to rack up thousands in losses before i can hit a profitable campaign?
Many thanks!
Jacob
Im not sure man, to each his own, but I wouldnt do it. For me, it was a lot of pressure at the beginning, its not funny to be loosing money day by day at the start and thats exactly what you are about to go through. Im not aware of anybody who wouldnt be loosing money when he/she started with paid traffic. Im not saying it has to be $1000s in losses, but you will loose some money for sure. And keep in mind there is no guarantee you will actually make it, not everybody does. The best is to have some savings and a backup income, not going into debt more and more.
But maybe you have no problem to deal with risk and it doesnt stress you, so if you really have to do it, at least make sure you know what you are doing before you blow too much money on tests. High risk can result in high profits, Im aware of it, so this might be the situation. Just make sure you have a backup plan in case this goes in the wrong direction, so you dont end up with a nasty debt and no way to repay it 
Are you a risk taker?
There are three scenarios here:
1. You don't get a credit card. You save up your own money to pay down your debt and fund your first tests. This might cost you 6-12 months of your life... but it's the safest route.
2. You get the credit cards and go even deeper in debt. You can't make it work fast enough and now you have even more debt, plus exorbitant interest payments. This will cost you 18 to 24 months.
3. You get the credit cards and go even deeper in debt, but you find a campaign that gets you out of the hole and moving forward. You don't lose any time at all, win instant momentum and could start making decent to very good money very soon.
What are the odds of these 3 scenarios? Honestly, probably not very good. Most affiliates fail and give up. But if you know you're a biter, if you have grit and you make shit happen, if you have a track record of hitting shit out of the park in the past, then you can make this one happen too.
But, it's definitely risky.
So I guess in the end it comes down to
1. your own confidence in your own track record and
2. your risk tolerance.
I can relate to this quite well, as my risk tolerance is a bit higher than most I think, but still limited. I have friends who won't quit their jobs and try online marketing even with 15k in the bank because they think it's too risky. I started at -3k (USD), same as you. But I did it with free traffic so there were no further investments.
It worked out and I made about 12k net in short order.
My buddy said: "You should go take that 12k to the casino, put it all on red and let it rip. Then if you win, you can really chill."
He was serious. For me that was a bit too far out lol.
Hope that helps mate. I think it's a very individual thing... answer the two questions I posted above and you will come up with the best answer for yourself.
Cheers,
John Galt
Thanks John & matuloo! I plan to learn as much as possible to reduce potential losses, and also save during that period. Then, i will hit it hard and will persue until profitable, i know guys coming out of university with tens of thousands in debt, i will consider this my learning fund and will make this thing work.
Cheers guys.
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