Lies, Damn Lies & Vanity Metrics
Quick, how many Instagram followers do you have?
Now tell me what your year-to-date sales are. Go!
Got it? Fantastic.
How about your Net Profit Margin?
If you have that, congratulations.
If you don’t, you’re not alone.
Here’s the thing: Those Instagram followers don’t pay the bills, or put food on your table. The majority of them probably never spent a dollar on your work. Yet we pay attention and watch that number like it’s the stock market and our life savings were at stake.
But the numbers that matter, the ones that show us the true direction of business – sales and profitability – meh.
If you don’t know your sales numbers, find them.
If you don’t understand your net margin, learn it.
Followers are great, but they don’t pay the bills. Margin does.
Followers, even gross sales, are “vanity metrics”. Vanity Metrics don’t pay the bills. Profit – Net Margin – the money you get to KEEP – that’s what pays the bills.
What’s your net margin?