One of the most interesting delimitations of jobs in the modern day world is the concept of risk. Different jobs have different levels of risk:
- Bankers – they handle other peoples money, no risk
- Entrepreneurs – they take the risk and keep the money
- Artists \ inventors – no risk, no revenue – but much gratification
All vocations can be broken down based on the concept of risk. Today I was reminded of that concept twice. First, when I read an interview with Nissim Taleb, the author of Black Swan. A book in which he explains the force of events and crisis that can upset large systems – mainly economic ones. Basically going back to linking chaos theory with Marx’s critique of capitalism being prone to periodic crisis. The second instance was when I was watching The Dragons Layer – which is the Canadian format of an entrepreneur pitching some investors. It reminded me of an early and very sad episode of the American equivalent I saw many years back.
But with business being all about risk management (as entrepreneurs we take risk and work towards rewards), the questions is – what is too much risk? In the case of online marketing ,the answer is very clear. If you are working towards a single metric: profits, that is the end all be all of your efforts.
That is why performance-based online marketing, and in our case lead generation, make a lot of sense. You can set a budget to test, run a campaign and gauge the outputs very easily. Using such methods of performance-based marketing as part of the marketing mix is very helpful. It helps test the market early, cost-effectively and an affordable manner. This helps to avoid sinking too many resources into a bad product or campaign. Which is the (very unfortunate) case of the video shown above.