There’s a common saying which goes “the higher the risk, the higher the return.”
But there is a critical factor missing with this sort of thinking – you.
That’s right – it doesn’t matter whether it is business, property or shares… the level of risk in any given opportunity all boils down to one thing…
How good are you at it?
For example, let’s say I placed a bet that I could beat Lleyton Hewitt in a game of tennis. There would be massive risk in doing that.
Why?
Because I am not very good at tennis.
But if my name was Rafael Nadal or Roger Federer there would be a lot less risk in doing so.
And it’s the same with everything else.
I am not particularly knowledgeable about property or shares. Sure, I’ve picked up a few things over the years… I’ve written a number of sales letters on the topics…
But it’s not my game. It’s not what I do all the time.
So there would be a higher risk for me in doing that than there would be in running a marketing campaign.
And there’s one good reason for that – I have more knowledge in this area.
One area which can be risky is online advertising.
Now in my view, there’s no better form of getting traffic fast online than Google AdWords.
The internet has virtually replaced phone directories, or it’s certainly moving that way. And research shows 92% of Australians are now going online to search for products.
But I’ve talked to a lot of people who have lost money with AdWords because they don’t know what they are doing.
Low knowledge = high risk.
