How what Internet Marketers don't know might hurt your business

Chasing Revenue can be shooting in to the Wrong Goal

The throng of internet marketers have little grasp of Economics and the distinction between Revenue and Profit. Revenue is merely Price times sales - it is not profit.  Only after costs are deducted do you have profit (or loss). 

An increase in revenue is not always a desirable objective - it may not even be necessary in order to increase profit.

There are a few ways to get to the magic lamp. Sales can be increased by cutting price - demand elasticity will determine whether total revenue increases or decreases. But profit might remain distant in either instance. At times increased revenue can bring less profit owing to costs. The converse can also result from an increase in price and a drop in sales and revenue -  with less product required profit might be increased as costs drop. There is no automatic flow on that increased or decreased revenue will result in more profit or less. 

Of course each business and its products can be structured to reduce demand elasticity - to make sales less sensitive to price, contain costs and boost profits. The exact path for your business to choose may be predicated by the market, cost structures and product marketing. What might have appeared as straight forward will rarely be the case - each business and marketing decisions need to be addressed on a case by case basis.