The biggest hurdle to grow your business is cash flow. The norm in the digital media space is that you must wait 30-90 days to get paid. The average is about 58 days that most wait to get paid. The pain comes from the fact that your vendors make you pay up front. Driving traffic with FB? Pay weekly. Adwords? Weekly. Taboola or Outbrain? Pay up front. Doing an install campaign? Pay up front. This creates a big mis-match between income and expenses: you have to pay your suppliers now, but you don’t get paid until later. That is the infamous “cash flow gap” we always speak of.
The Value of O.P.M. (Other Peoples’ Money)
If you have a cash flow gap, as most in the space do, you have to “fill it”. You can fill a cash flow gap a number of ways – with a credit card, with your own money, or with a service like OAREX. One common objection we get is “I have enough money, I don’t need OAREX.” But here are two damn good reasons why using a service like OAREX is better than your own cash.
Reason #1 – Use OAREX To Stay Liquid
Imagine you use your cash to fill your cash flow gap, and a great opportunity crosses your desk. Or worse, an emergency knocks – like a missed payment from Sizmek. Wouldn’t you want to have cash laying around to sustain the blow? Why would you use cash to fill your cash flow gap? If you have an opportunity (i.e. an acquisition) or an emergency, don’t you want to be liquid to act on it? With OAREX, you preserve your cash pile. You pay us a fee to stay liquid. Liquidity means flexibility and control. But if you have all your funds tied up in your cash cycle, simply to save a few bucks, you’re leaving yourself exposed. It’d be like swimming in the ocean without a life jacket because you don’t want to rent one for the day. With us, you de-risk your cash flow cycle.
Reason #2 – Churn OAREX Funds 8x More
Are you actively driving new traffic and users? If so, we can fund you weekly. Given the average wait time is 58 days, this means you can turn over each $1 eight times in a two-month period. Versus using your own cash, which allows you to churn each $1 one time per 60 days. 8x more spending means 8x more growth, provided your margins are there.
Having cash in the bank account is cool but you can’t de-risk your cash flow while growing 8x faster.