How serious would you take a business owner if they told you that they didn’t invest any money into their business to help make it grow? It would make it seem like the business has a very small chance of growing successfully. Investment is necessary for growth. Serious entrepreneurs and business people realise that. The ones who expect to cut budgets short are often the ones who struggle to achieve their business’s financial goals, as they aren’t willing to invest the 100% that’s necessary to give the business the best chance of succeeding.

What’s even more crazy is that these same decision makers are quick to invest in other income-generating channels that aren’t anywhere near as lucrative as the online marketing channels that are available to them.

Below is a synopsis to give you an idea.

Shares

Depending on where you invest in the world, you can expect the dividend yield payout of shares to be anywhere from 1-8% per annum on top of your original investment. So if you invested $10,000, you would receive $100-800, depending on the dividend yield of profits that the company is offering.

On top of that, the equity value of the share can fluctuate. So there is a chance that you may lose the value from the initial investment that you put in.

Property

If you purchase property, typically the rental yield is approximately 5% of the investment that you put in. So if you invested $200,000 in a property, you should receive $20,000 annually in revenue from the property. There is also the chance that the value of the property will increase or could possibly decrease, due to the property demand in the market.

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Cryptocurrency

The rise in popularity of cryptocurrencies has seen the market cap soar and many of the early investors become millionaires from the sale of the currency. The value in cryptocurrencies has always been volatile and the money that can be earned relies simply on the demand for the currency in the marketplace. Bitcoin soared from a valuation of $1000 per coin to over $20,000 before falling sharply in January 2018. Despite the fall, cryptocurrencies have outperformed in value when compared to many traditional currencies, shares or property.

How about online marketing?

There’s a risk that the online marketing campaign won’t work. However, if you target the right market with the right incentives and through the right communication channels, it can be very lucrative.

For organisations that have SEO as a part of their online marketing strategy, it isn’t uncommon for them to make up to 10 times more on their initial investment. The best thing is when it is done well, it is a one-off investment that continues to payout a hefty dividend yield year after year.

It is common for an Adwords campaign to yield at least 100% ROI. Despite the cost of the ads and keyword bids going up, it is still one of the most lucrative channels.

Content marketing is another very lucrative avenue. It is challenging to recognise the value initially as it doesn’t work in the same way as a direct response campaign. However, it does yield thousands (or even millions) in revenue over the long-term.

The interesting thing about the online marketing channels is that a large budget isn’t necessary to develop the campaign into something that works. A content marketing campaign may only cost you time, whereas an Adwords or SEO campaign may need $2000 to get you started.

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What next?

Commit to investing at least 20% of your income or revenue into marketing activities so that you can expand your online business and continue to build a strong income stream that will outperform your shares, property and cryptocurrency portfolio.

Author bio

Nathan Elly is the branch manager for the digital marketing agency Digital Next. When he isn’t busy optimising online marketing campaigns, you can find him on the futsal pitch.

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