What is your monthly cost of operation excluding adspend? (9)
What is your monthly cost of operation excluding adspend?
Was just looking over some company bank statements the other day and realised something i paid much attention to before.
My costs of operation outside of buying actual traffic. Adspies, STM subscription, Programmers, Paying out salary, Banner creation, hosting, translations, tracker, other tech tool subscriptions, internet connection, office rent etc are really piling up.
Some months i'm paying as much as $25k in expenses such as this. Usually it's around $13-15k however. So, some months it takes quite a few days of decent profit to get the company to breakeven overall.
Lessons learned,
1) The reason the base costs of operation is so high is that i've chosen to outsource so many things that i find boring. Mass banner creation, making landers, content writing etc. Now - the reasoning behind this should be that it's a good investment to outsource because it frees up my time to do more important stuff. Gotta look myself in the mirror and ask if i'm not using a bit too much time browsing Reddit when i could've been doing the work myself and cut costs.
2) Time to cancel some old subscriptions to worthless adspies i barely use. Also time to start optimizing all the other expenses more thoroughly and take that part of the biz way more seriously.
How far off other affiliates am i with my base costs? What do you guys spend per month?
The key thing is your ROI once you include those costs too. Doesn't matter that you spend $100k/month if you make $1M/month profit. It's about margins, and what you use your freed up time for.
You can certainly work to optimize those costs, so what you said makes sense.
As for how much others spend on that, it depends a lot on how they built the business and with what goals in mind. For me, the costs scale up or down, depending on what other projects we are trying.
I prefer to have a smaller team that works well together, and optimize our workflow, instead of just hiring more when things seem like they don't work as well as they could. That makes us slower with hiring and sometimes scaling but I think we get decent results per employee, and much less headache.
In regards to a tracker, I represent
-Zach
Staff (huge but necessary invesment (not cost!)), office, accounting/law firm, fairs, plane tickets, hotels, catering, hosting, forensiq, and so on and so on. The list is endless.
At the end of the day Manu is definitely right. Cost is one thing and is ultimately not that important, its the profit and profit margin that is truly important.
VA's, tracker, hosting, cloaking, IP's, spytools, creditcards, bookkeeping, office is already a hefty 8000$/month overhere.
These are costs that would keep running when I don't run any campaigns at all.
On average I currently spend another 5k/month on coders to get tools built.
When running campaigns, I think I invest +/- 100$/campaign for creatives, translations etc..
What is your monthly cost of operation excluding adspend?
Facebook... monthly costs off the top of my head. Likely plenty more
Team: $8000 (not inc media buying staff)
Hosting: $500
Cloaking: $2500
IP Farm: $1000
Desktops: $800
Banking: $8500
Domains: $200
Tracking: $300
Spy Tools: $700
Sim Cards: $50
Wtf us 8500 per month in banking fees?
Originally Posted by jason a
Im 100% FB these days...
Servers - $350
Domains - $160 (varies)
Cloaking - $2000
Team: $5000 (not incl media buyers)
IP Farm: $1000
Tracking: $300
VPS's: $1000
various other tools: $1000
Legal Firm: $1200
Generally costs could be 20% higher on some months if you add things like travel, hotels, food on the go bla bla bla
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