Spend Money You Don’t Have

One of my clients was asking me: how he can actually scale the business faster? And so I wanted to share this with you.

How to spend money you don’t have to grow your business faster? And I think this is the ultimate advantage in business, and almost everybody has access to this. The answer is credit cards, now before you let your misconceptions play a big part in your decisions just hear me out.

Credit cards when used wisely are an advantage and let me prove that to you. There’s good debt and there’s bad debt. Good debt is one that builds you and bad debt is the one that robs you. Credit cards used wisely can be used as an instrument to grow your online business, but this is the most important warning.

My client has his numbers down, he knows that he’s going to spend money, and he’s going to make money. Because we’ve worked on sales cycles and we’ve worked on getting him paid upfront.

Only use credit cards when you know your numbers are super solid and you know them for sure. You’ve to be super sure to not put yourself into debts that you cannot pay back or you cannot afford.

If you spend $1,000 and you make $1,200 back and you’ve been doing it consistently for a couple of weeks but you get paid after 30 days. Use credit cards to spend $2,000 and make $2,400. I’m pretty sure that makes sense.

Let’s say you promote an affiliate offer and you spend $1,000 to buy traffic and the affiliate offer makes you $1,200 back. But the affiliate offer actually pays you after 30 days so it’s a net 30-day payment.

When you get paid after 30 days you can actually use those $1,200 to pay the credit card bill and now you have an extra $200 that you can put back. Once you know your numbers you can actually just go and use your credit cards to spend $2,000 and make $2,400.

You can spend $10,000 and make $12,000; that would make you $2,000 richer and again I really want to emphasize the point that you’ve to know your numbers. Credit cards also earn you reward points which is a fabulous bonus because you can use that for business travel and stays or you can take a holiday with them. Because that is what pays the bills and everything.

So the best part is it is not your money and if you paid on time within 30 days it has 0 interest rate depending on where you are.

But again, the only case in which I recommend you use credit cards is when your sales cycles are less than 30 days. So if you have a 15-day sales cycle essentially means that the person comes in contact with you they give you the money after 15 days.

You can grow much faster but even if it’s a 30-day sales cycle where you get paid after 30 days you can use that credit card and spend much more than you can afford just to grow your business faster. Just make sure that you know your numbers. There are two sides to a coin.

I’ve already spoken to you about how to use credit cards wisely but you can use credit cards stupidly and that’s what a lot of people do. They buy things that they don’t need to show off and impress people who aren’t even worth impressing. People who matter really don’t care whether you wear a Gucci belt or you know Balenciaga sneakers or just plain polos.

Don’t run into debt trying to impress somebody else. If you already have some debt you already have a disadvantage because you’re not starting from zero you’re below zero. And as long as your sales cycle is small and you’re 100% sure about your numbers, credit cards are amazing.

15 days and 30 days are the maximum sales cycle you can have. “Money is in the follow-up” is bullshit if you’re not making money at all within the first 30 days because there is a very low chance of you converting, somebody who’s seen at least a few emails from you and they still don’t buy. Nothing is gonna change their mind. There are cases in which they might buy later but I would rather bet upon money in the bank than hope to get conversions.