Your business success stems on the reality of actual earnings and not potential earnings and how you handle your money.

KNOW THE DIFFERENCE

What is potential earnings? Potential earnings are future possible earned fees through a set or flat fee for a product or service offered. Not earnings that are substantial and reality but futuristic of what you feel you can make. These potential earnings are done as projections in business plans to start a business or to get a loan. With these potential earning you are required to have a least 5-6 years in the business to show you are actually making some form of income.

You then can project your potential future earnings, but you must also take in fact the future  economy. Is the economy in a good place and moving forward or is it stagnant, lack of consumer confidence, lack of income being spent, lack of jobs, housing shortages or any economic problems that could effect your potential earnings.

When you are projecting potential earnings you have to take into consideration everything going on around you good and bad to make a fair assessment of the situation.

What is actual earnings? Actual Earnings is the amount of money you actually do receive that you can count on at the time of sale and not what you think you will receive in customers. It is the actual substance and not guessing or projecting.

Example: Lets use Consulting or even Psychic Readings as a business example of services offered (there are many others) and not with product. These are harder to project potential earnings because there is always financial up and down cycles of earnings.

It is called the (lack of) "fasting" or (abundance of) "feasting." These are the times you have to prepare for. It is not because of your competition taking all your clients away but economic or financial woes country wide.

If someone is charging $1,000 an hour for their services potential earnings would go like this $1,000 X 8 hours equals $8,000 total for one day (saying your getting a paying client for $1,000 every hour in an 8 hour business day. If you want to figure potential earnings weekly it would be $1,000 X 40 hours (8 hours a day times 5 days) which would be $40,000. Or you could do it monthly or yearly. Potential earnings at $1,000 for a year working 40 hours a week would be $365,000. Now remember this is potential earnings, earnings that you hope you receive and not the actual amount of earnings in reality.

This is where problems occur, people really believe they are going to make this amount and loose their shirts when the money starts coming in. They become so overwhelmed that they spend more and more living way beyond their means.

Actual Reality earnings is the actual number of clients you do receive per day with the actual payment received. 

Lets take for example

Those that keep track of hits per website. The money they charge for directing potential clients to your site is usually per click or an estimate from the readings they obtained. If you have 400 visitors to your site, some businesses charger per click to your site from these 400 visitors, who maybe only 1 may become a client.

Other business that direct people to your site may do a potential earnings cost. This cost is based on the number of hits to your website such as 400 X what you are claiming for fees lets say $1,000. The company doing this then take some of both and come out for your payment to them as an average. Example you get 400 visitors to your site, they figure at lease 1/2 of this 200 will be paying clients with your income potential of $2000,000.

This is untrue. If you are getting 400 visitors and we estimate that only one customer/client your earnings in actual fact and reality would be $1,000, but they are expecting you to pay them a tremendous amount such as 5X that amount more in earnings you don't have and will never be able to earn for them to make huge substantial earnings themselves.

These type of businesses will have high pressure sales people, or sales reps that sell you a package listing all this stuff, that you would want, after talking to you, when in reality it is a total different package of nothing with high cost to you. They entrap you in some manner into the sale, and when you try to cancel it they refuse to do so, or even stall around till the terms of agreement  of 30 day cancellation policy have been void so you have to pay and are locked into something that was totally different, that you didn't agree to, or that you investigated finding out it was an entrapment.

Some companies such as Dex and various others throughout the country are doing this type of sales and pressure, locking clients in and deliberately ignoring  holding back the paper work for the cancellation, when the clients don't want the package, have cancelled it, right away or within the 30 days repeatedly through their sales rep, dispute centers, corporation offices, and so on. It is their way and means to force customers to be tied into their company so they can make a profit from them, especially when their company is not doing well and must force clients through these devious means to make a profit.

Watch out for those companies who refuse to cancel after you have cancelled and contacted several offices, your rep, and so on repeatedly, contact and immediately hire an attorney, report them immediately to the State Attorney General and Better Business Bureau.

We ask you to watch and choose wisely and carefully how you market your business.

Why do people who are top consultants, psychics or who offer just services charge a large amount. This is because they limit the number of their clients to  2-3 or 4 a day, or during the week which adds credibility to their well established business. They give more for what they charge that is of value to the customer.

 Working or becoming a 24 hour service charging lower or cheap fees, cheapens the individuals reputation and their service. They are not taken serious and gives less to the customer/client to charge more time to make more money.

Once this route is taken it is hard to ever be taken seriously and still have a credible reputation with earning potential. 24 hour services especially in the consulting and psychic field have been given the reputation of cheap, scams, or even lack of accuracy or just for fun, never being taken seriously to earn serious money. This can hurt the consultant or psychic as well as their actual earnings, or building of their reputation.

What you can do.  

1. Evaluated your business service, is there anything you can do differently to draw clients in to your business?

2. Look at what others are doing in the field, how are they handling it?

3. Looking at what others are doing does not mean this same thing is right for you. Do research, change your approach, try different things to see what works and what doesn't

4. If your competition or other businesses jump off a cliff, that does not mean you have to. In other words think carefully in what you will do and choices you make.

5. Learn to predict the times that you will have business and times you will not.

6. Save appropriately for these times, don't spend, spend, spend. Spending all the times on things you think you need, instead of putting some away only leaves you living from paycheck to paycheck.

7. It is never easy, but it is always better to be safe then sorry in spending based on what you are earning.

8. Top consultants, psychics, or those who earn by giving services, not product have learned to go with the flow.

9. Know when there is a recession and cut back on spending.

10. Do not cut back your fees but keep a flat fee in a recessing, cutting back your fees while paying other high business costs incurred is a sure fire way to go bankrupt and out of business.

11. If you have low business costs, you can offer discounts, keep a flat fee at all times, but only if you do not have high business costs incurred by your business.

12. Learn to watch when your sales of services are coming in and when they are not.

13. Learn how to market, make the necessary changes, try new things.

14. Find a marketing strategy that works for you.

15. If you don't have a website, get one. Most sales are down by seeing websites and calling the company themselves, talking to them directly.

16. Update, Update, Update. People are attracted to updated businesses, websites, information and so on. Its hard work, but business as well as any business website upkeep is important.

Success in any form depends on the person, their knowledge, expertise and skills. We all go through learning experiences, sometimes failure. Success  comes to those who over come obstacles, who keep trying even when they are down and out.

Success also comes to those who know when to as in the gambling terms from the movie and song "The Gambler" you have to know when to fold, play the cards, or just walk away. In other words you have to know your self inside and out, your abilities, your expertise, your knowledge but  most of all your experience. Successful businesses are about learning and moving forward, doing new things, changing approaches, changing the business, or even yourself.