It definitely takes money to make more money. If you want an college education, you need money for tuition. If you want to start a business, you need money for investing. If you want to work at a pizza place, you need money for transportation. You get the point; we all need money! But in businesses, how much initial investment is the most important thing: It’s a lot easier to start making money with a big cash supply, than a weak one.

 
If you have $10,000 you won’t fear losing a few dollars as compared to a guy with only $100. This may seem common sense, but it’s important when you make daily decisions that can increase/decrease your total $ supply. Take for instance marketing with Google Adwords, a program which allows you to bid for keywords to display your ads on Google. You just start a new campaign, with untested keywords that might earn/lose money. This new campaign targets an offer that that pays $2.55 a conversion; that’s a very slim margin of profit/loss. For instance, you have 1000 keywords in the new campaign and maybe 500 of these accumulate 1 cent each without a single conversion yet. Now you have lost $5 and still don’t know what keywords are profitable. If you have $10,000 you can keep on going: A $5 loss isn’t much to you. But if you’re the guy with $100 what do you do? Risk it or admit defeat with the $5 loss?

 
Scenarios like that happen to me all the time. I have to decide whether or not to shutdown untested keywords, because of a losing streak. Just because the keyword starts off bad, doesn’t mean in the long run it’ll lose you money. In my Adwords account, there are different periods you can view; sometimes during a 3 day period, it will show high costs for bogus keywords but in the 7 day period they will be right on the spot. The only way to know if specific keywords are profitable is to test, and that requires spending money. If you don’t have enough funds, obviously you cannot test everything so you have to play it by chance; therefore, unless you have the money, you have to risk it to make it. Sometimes these decisions can be very regretful and drive men into..

madness.

 
The bottom line is, it’s a lot easier making money with a big initial investment. But if you don’t have a lot don’t be scared lose, because you have to pay to play.

 
I made this post to encourage myself, not to give up when I’m getting gamed by Adwords.
Yeah.