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[Please Read] 2 Phrases Everyone Should Know, Sales & Profit.

Discussion in 'BlackHat Lounge' started by radarsurge, Dec 12, 2012.

  1. radarsurge

    radarsurge Regular Member Premium Member

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    Let me begin with my astonishment of the amount of people that are 'Making Money' that really don't quite grasp the concept (yet). In my frustration I hope to shed some light to some folks, clearly there are very astute business people here on BHW. When you make a dollar, the premise is that the dollar enters your wallet or bank account. It does not impress most people if you made $1,000,000 dollars and invested $999,000 to get there, as you would only be left with one expensive night on the town and no where to live.

    Source: http://en.wikipedia.org/wiki/Net_profit

    1. Sales Revenue = Price (of product) X Quantity Sold

    Sales revenue is a total of all the sales/monies accumulated in any given period of time. **Not to be confused with profit. ie "I made $95 today, wooooo hoooo" should read "I made $95 in sales today, woooo hooooo"

    2. Gross profit = sales revenue minus cost of sales and other direct costs. We'll just call this profit to keep in simple.

    Gross Profit is the amount of money in your hand after paying expenses. We can simply call this "profit" for the sake of most of us here...

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    I can't even count the number of times I've read a post where someone has 'made' $x,xxx, only to find out (after reading 10 pages of comments) that they really made $100 after paying their PPC charges etc.

    So, to save us all time, please know the difference between sales and profit. Thank you.