Struggling to Make a Business Decision? Try This...

I was there just yesterday.

Staring at two options, both seemingly good, yet feeling like flipping a coin might be the only way out.

But every time I hit that wall, I go back to one simple framework.

It’s called the Weighted Average Decision Matrix (WADM).

I first came across it while reading “The Millionaire Fastlane” by MJ DeMarco… and let me tell you, this book isn’t your average “rah-rah” motivational fluff.

It’s the kind of book that forces you to think about how you’re building wealth, not just dreaming about it.

Anyway, back to my dilemma.

I was debating whether to monetize my newsletter through ads and sponsorships or e-products.

When I realized I was stuck, I ran it through DeMarco’s framework.

Here’s how it worked:

Step 1: List Your Options.

• Option 1: Monetize with ads and sponsorships.

• Option 2: Monetize with e-products.

Step 2: Identify Criteria and Assign Importance (on a scale of 1 to 10).

To me these were

• Short-term profitability: Importance 8/10.
  (I need cash flow and don’t want to wait months to “scale” and start making money. I should at least recoup the cost.)

• Profit margin: Importance 6/10.
  (More profit, less stress and overhead.)

• Required outreach effort: Importance 3/10.
  (Honestly, I don’t have time right now to hunt down sponsors.)

Step 3: Score Each Option (0–10).

Ads and Sponsorships:

• Short-term profitability: 4 (Need 1,000+ subscribers to even think about this working.)

• Profit margin: 8 (Pretty good margins once it’s running.)

• Required outreach effort: 3 (You’ll be chasing sponsors like a stray dog who’s after scraps.)

E-products:

• Short-term profitability: 6 (Gotta build the product first, but the upside’s there, if the product is “desired”.)

• Profit margin: 8 (No middlemen, no commissions… just profit.)

• Required outreach effort: 8 (Build it once, sell it forever. No outreach required)

Step 4: Calculate the Scores.

• Ads and Sponsorships:
  (4×8)+(8×6)+(3×3)=32+48+9=89

• E-products
  (6×8)+(8×6)+(8×3)=48+48+24=120

Step 5: Compare the Results.

E-products: 120
Ads and Sponsorships: 89

In this scenario, monetizing with e-products has a higher weighted score, suggesting it may be the more advantageous option based on my specified criteria and their importance.

I’ll be testing it this week and sharing the results with you as soon as possible.

Anyway, decisions aren’t always easy.

But frameworks like this make them clear.

If you’re constantly second-guessing your business decisions, I highly recommend giving DeMarco’s book a read.

It’s packed with straight-talking, no-BS strategies that’ll make you rethink how you approach not just decisions, but wealth itself.

Grab it here if you’re interested:

https://amzn.to/4fNX17A