Today, we’re talking about money. Which is more important to you: revenue or profit? Has it changed over time?
In the beginning, when Erik was just getting started with freelancing, it was revenue. He just needed legitimate work so he could build up his portfolio. Once he was able to do that, he was able to parlay that into bigger clients with bigger budgets.
Once he became a full-time employee of this freelancing gig (when he quit his day job), it was still about revenue.
That all changed, though, when he hired an employee because he was paying her from the revenue and the profit went to paying himself. That focus persisted as he hired more and more employees.
Fast forward several years, Erik and Kevin merged and they’ve been growing ever since. They made a strategic decision in early 2019 to grow exponentially and that meant hiring an entire team. That meant profit decreased to almost 0 and in some months, it went negative.
Since that time, however, they’ve gained many more clients and are back to making a profit again so the focus is back on that.
The point is it’s not accurate to say one or the other is the right answer and is more important in your business. When you do that, you’re missing the time factor which is very important on your growth scale. These things will change over time. Think about where you’re at in your growth cycle, whether profits are important to you right now or if growth is more important.
Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.
Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.