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E-Commerce Sites and Cash Flow!

By Shalom | August 3, 2007

99% of all e-commerce sites fail – for a variety of reasons which I won’t go into today. However, one major barrier for an e-commerce site is cash flow to fuel marketing expenses. Like any business offline or online, marketing is an investment. E-commerce sites that utilize valuable online marketing media can see a quicker return on their marketing investment than an offline business.

For example: Your site sells (X) and converts at 3%. Profit on every (X) sold = $50. Marketing via Google Adwords you pay $1 for every click on keywords related to product (X). For every $100 you worth of clicks you sell 3 products and profiting $50 – 50% return – not bad.

But its not always so simple. We know that SEM campaigns need to pass their own optimization process and expanding campaigns slowly through testing and retesting takes time. You might be making sales but cash flow is needed to maintain your marketing especially if fulfilment delays your transactions from being captured, and your merchant account only transfers funds back to your credit card that pay for your Adwords Ads after a few days. See the problem; Cash flow!

Now take all your numbers and figures walk into the bank and ask the executive there for a small business loan. Banks don’t give small business loans to e-commerce ventures. So what do you do? If you have personal credit and collateral you can take a personal loan. Or, if your sites is currently accepting credit cards get an Unsecured Business Cash Advance. With an unsecured business cash advance you don’t need good credit, collateral or a personal guarantee. As long as your business is established, registered in USA and processes at least $1K in Visa or Master Card invoices a month – you will qualify! Another advantage is that unlike small business loans, there is no fixed monthly repayment amount with an unsecured business cash advance. Basically the lender takes a percentage of you future sales – which means that you pay when you can. Business Cash Advances can not be used for starting a new business – only businesses that already process credit cards can get an advance on future credit card sales.

FastUpFront: Unsecured Business Cash Advance Program offers up to $250,000 quickly without the hassles associated with business loans.

Topics: Google Adwords, Internet Marketing, Microsoft Adcenter, PPC and CPM Advertising, SEM, Web Development, Yahoo Search Marketing | No Comments »