The Art of Mental Training: The intersection between Sports Psychology & Entrepreneurship

It’s been a very long time since I last published a blog post. Been very busy building my business and been doing a good job of it… Writing a blog post feels like it both tickles my mind and exercises my brain cells & a chore… So I hope, if I can get off my fat arse, to write more often. Even if the writing is poor, but to try and get into more of a writing habit, so that it becomes more routine and less chore… After all my English teacher Mrs Silver was disappointed that I got into medicine, she thought I had a writing career ahead of me… So here is to Mrs Silver 🙂

It might come as a shock to you, but the main motivator of most people is almost always selfish at its core. So I’ve been reading quite a lot lately (inspired by some of my other entrepreneurial friends), and I sometimes feel that I don’t reap the full benefit unless I create a summary… So I guess by writing this summary as a blog post, I can benefit and so can others who read this.

In my mind entrepreneurship is a very mental game. I recently sat down with a young entrepreneur who wanted my 2c on business. And we came to discuss the issue of belief in self and he reminded me what a hurdle it is to get started. And one of the major hurdles is just believing that you can do it. That’s why earning your first dollar online is such a major milestone, just to prove to yourself that it IS possible, even if the money starts out as a measly trickle.

Entrepreneurship is quite a young field academically. It is a field with lots of room to grow. There is no doubt that mindset plays a massive role in an entrepreneur’s success, but this area of entrepreneurship I think is not spoken about so much in academic circles.

Sports Psychology on the other hand is an established field. There is probably quite a bit of money in the field. There are lots of books written on the subject, since mental toughness is a critical part of an athlete’s success. And there are a lot of parallels that can be drawn between the mindset required to succeed as an elite athlete and the mindset required to succeed in business.

My interest was recently rekindled after I listened to a great podcast with the “Peak Performance” coach Todd Herman.

This served as a springboard for my interest, and I dived into Amazon to buy up a few kindle books to look further into the topic.

One of the better books I read recently was “The Art of Mental Training – A Guide to Performance Excellence” (Amazon Affiliate Link – I get a tiny commission if you buy through this).

A word of “warning” about this book. It wasn’t quite what I expected. I was expecting more of an academic type text, but instead it was written more as a parable. Which actually made it highly readable and fun.

Anyway, lets get into the summary.

The major thing that I took away from the book was the following – control your mind and you will control your life. This might seem obvious, but at least for me it is a lot harder to do (but I’m working on it!).

“A champion teaches himself the skill of turning things around inside his head… He learns how to look at a negative setback both as temporary, and even as an opportunity for positive change”.

This ties into to things I read in the past from Martin Seligman, a leading psychologist and founder of the Postive Psychology movement. In his book Learned Optimism (Affiliate link, also a great book!), Seligman says that optimistic people tend to view negative events exactly as described above – temporary, changeable and not personal. Pessimistic people tend to view the world in the opposite manner (permanent, not changeable, personal).

For example, lets say you sit for an exam and fail. The pessimistic person might think “I’m stupid [personal]… I will never pass this subject [permanent, not changeable].” I have been guilty myself of this type of thinking, and I think naturally my personality tends to be on the more pessimistic side. Although I’m trying to change 🙂 See, not permanent! 🙂

The optimistic person, faced with the same event, might think “The exam was very hard [not personal]… Next time with a bit more study I’m sure I’ll pass [temporary, changeable].”

As Seligman’s book title implies, people who tend to be more pessimistic naturally can LEARN to master their thoughts… The first step is of course to be aware of your thoughts and once you are aware you can point out to yourself when you are having this permanent / personal / non-changeable thoughts and replace them with more appropriate responses.

“Never beat yourself up after a loss – there’s always something positive to be gained, even from a negative situation.”

This ties in to an important lesson in entrepreneurship and life in general. Perfectionists, like myself, tend to look at outcomes as either success or failure. This is not the most productive thought process.

Here is the better model:

Look at everything as an experiment. When you perform an action there is an outcome. The outcome can be either desirable or not desirable (notice: not black and white in terms of success or failure). But the process doesn’t end there.

If the outcome is not desirable, then you need to learn from the action / outcome and perform a little course-correction on the next action. Then observe the outcome and again, either you reach a desirable outcome, or you learn from the experience and course-correct with the next action. This is the action / outcome feedback loop.

Everything gives you the opportunity to debrief, learn and improve. This can be in business, but also in life.

For example, lets say there is a girl you like and you ask her out. She says no. Don’t wallow in self-pity. Learn from the experience and try and improve, either with the same girl or the next. “You must look [at a loss] long enough to learn from it – but then you must let it go.”

“Champions focus on what they can control. They know that while they can’t always control what takes place during an event, they can always control how they respond to an event. Within every setback lies the hidden opportunity for a great comeback.”

“Mental control starts with a decision

I found this sentence resonated particularly strongly with me. I feel it is very simple, yet very powerful.

You need to decide NOW that you are going to take control of your mind and by doing so you are going to take control of your life.

You need to be aware of it and set it as a goal. It might not be easy, and probably won’t. But once you decide to work on it, you will practice and succeed. Once your unleash the power of your mind, the world better watch out!

Visualization

Visualization and mental rehearsal are key to athletic peak performance. There is a great anecdote about Pele, one of the Brazilian all-time soccer champs.

Before EVERY game, Pele had a visualization routine, whereby he would go into the locker room an hour before the game and he would find a quiet place to lie down and cover his eyes. He then would proceed to watch a mental movie, a film of himself playing soccer on the beach in Brazil as a kid, feeling the feel of the grains of sand on his feet, the rush of the game and the joy it brought him. He felt like he was there, vividly reliving his love of the sport as a kid.

The next step in his visualization, he would relive the greatest moments in competitive soccer. The feeling of scoring goal after goal. And then he would move on to visualize himself performing at his peak in the upcoming game. Dribbling around players, scoring goals, the feeling of triumph.

After his visualization, he would stretch and then when he finally jogged into the stadium he was relaxed and primed for victory. In his mind, victory was already a reality, he had already experienced it.

Why is this so important? Visualization creates confidence and confidence allows you to perform in your peak mental state, maximizing your chances for success.

I know from my own personal experience that visualization is IMMENSELY powerful.

How can you apply this to entrepreneurship? There are lots of ways, but for example imagine in your mind’s eye your life 5 years from now… Where will you live? What will the house look like? Who will be in the house? What will your day look like? When you’re imagining this use all your senses and emotions… How will you feel… What scents do you breath in? Your sense of touch… What do you hear? By using all your senses you will help your visualization feel all the more real.

You should ingrain this into your daily routine. EVEN if it’s only 5 minutes, or even 2 minutes. You may be surprised by the effects…

Especially when you’re starting out, and success seems so fickle and imaginary, SEEING yourself succeed in your minds eye can help make your success seem real and inevitable. And that can only increase your chance to bring your dreams to reality. “If you ever hope to achieve [your vision of the future], you need to see it and feel it, vividly, in your mind’s eye, and not just occasionally.”

What’s your dream? Figure it out and then visualize it, every day!

“Interrupt negative self-talk and images the moment they arise… Replace them with positive self-talk and positive images.”

Gonzalez, the author, also tells the story of a jet fighter pilot who incorporated this into his visualization exercise. He would see himself performing confidently, automatically, quickly and would even notice in this visualization negative self-talk arising and instantly shutting them down and replacing with positive self-talk.

He recommends performing the visualization exercise after entering a state of relaxation / meditation. He mentions a particular technique, but any mindfulness meditation type technique will do. I’ll be writing some future posts about this (I try to meditate pretty much every day, even if its just for 10 minutes).

“Are you the kind who likes to play it safe and just do alright? Or are you the kind who’s willing to take a chance on possibly failing in order to accomplish something amazing? More than anything else, it’s a fear of failure that keeps people from achieving their full potential in sports, in life, in business – in everything.”

Wow, this really hit home! I think this is SUCH a key to succeeding in life…

Most people live within their little box, afraid to step outside. They have their mediocre career, mediocre spouse, mediocre everything. They are afraid to take the risk in order to achieve an OUTSTANDING life, an OUTSTANDING career, OUTSTANDING relationships.

This is something I really need to work on, especially in the relationship space!

Gonzalez says that fear of failure “is nothing more than a perceived psychological threat to your ego and self-esteem.” It’s a state of mind where a person is afraid of looking bad or else “such a perfectionist that he’s become overly self-critical.” This state hold you back and kills your chance of success. It cripples you.

So how do we get around this? You first have to turn failure on its head. Learn to accept that the only way to accomplish anything great it to risk failing at it first. Without occasional failures, you can’t learn and get better. On the path to greatness, failure is inevitable. When you learned to walk, you failed. You fell and fell and fell, but each time you got up. Sometimes you cried. Sometimes you didn’t. But eventually through enough attempts you learned to hold your balance. To waddle a few more meters. Imagine if as kids we had a crippling fear of failure?? We would all still be crawling around everywhere!!

As adults our ego kicks in. Our ego becomes something to protect, more important than our ability to grow and learn. So we end up protecting our ego, playing it safe and in the process, stunting our intellectual, emotional and entrepreneurial growth.

When an athlete “fails” he needs to use it as an opportunity for learning and growth. Debrief and analyze dispassionately so that next time you can perform better. Failure = valuable feedback.

failure

If we can really INTERNALIZE this, our lives will change dramatically for the better.


Back to the athletic analogy “fear can turn a competitor from someone trying to win, to someone trying not to lose.” Are you playing to win in life? Or are you playing just NOT TO LOSE??? Most people play not to lose, the time has come to play to WIN in life!

So how can we manage fear? “Fear happens inside your head, and thus it can be managed.” This is encouraging. A degree of fear is normal, but it is important to stop it from getting out of control and taking over. The way to control this fear is to come back into the present moment and the easiest way to do that is again routed in mindfulness, in focusing on the inflow and outflow of breath and to be aware of your thoughts. Then drown out the emotion with positive self-talk and images. See in your minds eye little wins you have had in the past. Tell yourself “I can do this.”

Many athletes apparently create their own affirmations (“I’m good, I’m fast, I’m strong, I dominate”). Use these affirmations in conjunction with focusing on the breath to bring you into the present and create a positive attitude. This is ESPECIALLY important when things are going bad. Shut down your internal critic and turn on the self-love.

Another important point is to not be outcome focused but rather to focus on action. Outcomes we generally can’t control. We can do everything in our power to PREPARE, but the outcome itself is not dependent solely on ourselves.

If you don’t meet a revenue goal, don’t beat yourself up. Be proud of the actions you took. Learn from mistakes and “failures”. I am naturally extremely outcome focused. For a long time I was quite miserable because I was so far away from the lofty revenue goals I set. But when I learned to appreciate the actions I took and the DOING, it started to free me up from this dependency on the RESULT. And it made me happier.

“Pinpoint your weakness and set out to work extra hard on them.”

Work out what your weak points are that are preventing you from achieving your goals and the life you want. Then you need the self discipline to work on these points. It won’t be easy, but champions are prepared to work hard in order to achieve their dreams.

Changing Mental State

There may be times when you need to quickly change your state from nervousness, fear and anxiety to a state of confidence and success.

By taking control of your thoughts, you can take control of the emotions and feelings that create your state.

Gonzalez teaches that there are three elements to quickly bringing about a change of state.

First is self-talk. Ask yourself what would be the self-talk of a champion before a competition?
(Business analogy: let’s say you are before an important meeting, you might think to yourself, “If Donald Trump was going into this meeting, what would he be telling himself in his mind?”)

Pretend that you are the champion (or business mogul). Be an actor. Imagine hearing their self-talk.

Second, is the the way you carry your body. How would a champions body and posture be like as he is preparing for battle (OR: how would Donald hold himself before the big meeting?).

Move your body around. Adjust your posture as you continue the self talk of the champion.

The third element is breathing. How would the champion (or Donald) be breathing now? Maintain the self talk and posture as you focus on breathing like a champion would breath.

This can take only a few minutes but apparently can result in a quick change of state, from a state of fear to a winning mindset.

“Be totally in the Present… that is the key.”

Play in the present moment, where mind and body are one. This creates a quiet mind during competition, in the present performance is flawless and automatic.

“A true champion… learns how to feel no pressure, because pressure is created by anxiety, and anxiety can only exist if one allows one’s thoughts to wander away from the Present to some uncertainty in the future or to some remembered failure of the past…”

Man, oh man! This is such an important point. It is damned hard… But as you practice mindfulness, and the power of focusing on the Present, on being present, you start realizing how many damned thoughts you have racing around your head (or at least I do!). These thoughts often aren’t helpful, but when you learn to be fully in the Present (isn’t it interesting that Present also means gift?), you learn to NOTICE these thoughts but not be carried away by them. An analogy I like is that you are observing your thoughts like someone sitting at a bus stop on a quiet country road. As a car (a thought) passes by, you notice it, but you don’t get on it. Ah, there goes a thought! And then go back to observing the traffic.

Mindfulness and being in the present is not about suppressing thoughts, but rather about gently noting them, and then returning to the here and now. Focusing on your breathing is a technique that can help center you in the present. I also like to note “I’m sitting”…”I’m walking…” and also I find that focusing on the soles of my feet help, notice the textures I am feeling there.

Using mindfulness, when you are in the fully present state, you can turn the mundane into the interesting and enjoyable. If when I’m in the shower I focus on the feeling of the water on my back and running down my body, instead of the usual thoughts racing about my head about the night before or the day ahead, it turns the shower into a whole different experience. When I’m drinking, if I focus on the feeling of the cold water running down my gullet and then the coolness pooling in my stomach, it turns drinking into an activity full of wonder instead of the usual gulping rush…

It’s a challenge to master, but that’s where I want to get to. Remember, if you control your mind, you control your life! Mindfulness is an important step in the right direction because it brings with it AWARENESS, which is the first step to a quiet mind living in the present.

“The past is gone… the future lies ahead… So in reality, today is all we have. And today is here.”

So, if I have to summarize what I learned from the book in a few dot points, here goes:

1) Make a decision to control your mind, so you can control your life.
2) Failure = Valuable Feedback. Learn from it and improve.
3) Visualize your ideal life, every day!
4) Practice mindfulness meditation and focus on mindfulness throughout the day. Live life in the present.
5) Play to win in life! Don’t play not to lose.
6) Figure out your weaknesses that are preventing you from achieving peak performance in life and work on them!
7) Switch into an empowering mental status by focusing on how a Champion thinks, stands and breaths. Have some positive affirmations ready.

 

Perhaps it sounds easy, but each of these take a lot of work!

I hope you enjoyed this summary, but if not that’s cool since it’s mainly for myself 🙂
If you have friends who you think might benefit from this, hit up one of the sharing buttons.

Leave any comments / thoughts below… any other books you recommend?

 

Do A Business You Don’t Hate (& Other Lessons From A 2 Year Old Entrepreneur)

Most of you know that in a previous life I was a medical doctor. It’s always pretty vague when I try and think back, but if I remember correctly the date I hung up my stethoscope and left the prestigious hospital doors was in June or July 2011.  So, if my maths is about right, I’ve been out of the system for about 2 1/2 years… Wow it felt kind of longer.

I want to share with you the lessons that I’ve learned in business so far.

It’s not that I’m saying that I am a stellar success, but I have managed to grow my business quite nicely. It still doesn’t feel ‘stable’ to me and I always feel that I’m still in survival mode.

I’ve been muddling my way and fumbling in the dark through the business world and I’d like to share any realizations that I’ve had through my half blind journey in the hope that it might make your journey maybe a tad easier.

I’m writing this for you – my friends, family, readers; but also for me in order to help me crystallize my meta lessons and take action on these lessons (which I am already doing).

A Bit About Me…

I guess before I delve into the concrete lessons part, it’s probably worth giving you a bit of a background about my journey.

I wasn’t in business on day 1 when I left the hospital and I certainly wasn’t in the App Store yet.

I think I had a vague idea that I wanted a web based business, but the initial thing I felt and knew and what dominated my day to day was… Utter Terrifying FEAR (UTF).

I knew I had to make money and I didn’t have the patience for the as yet unknown web business to start generating revenue, so I resorted to what was most familiar and what it thought could generate pretty much instant cash…

Business can be scary
Business can be scary…
…a bit like a cute zombie girl.
Photo by Grmisiti

I remember when the idea first came to me…

I had just finished up a run with a friend along a beautiful cliff top above one of the most stunning beaches in Tel aviv and we ended up outside a kind of defunct hotel which now had a little shopping center, which included one of the most well known and media-famous plastic surgeons in the country.

And my friend told me… “You know, any doctor can inject Botox…. Good money…”

Beach runs and bad business ideas
Beach runs can breed bad business ideas…Photo by kxande2 

So the idea was born and I was on (almost) the next plane to London to take an aesthetic medicine course and start raking in the cash.

Botox destroyed my soul.  At least that’s how it felt.

I didn’t like the patients focus on vanity. I just didn’t like them full stop.

Potential legal liability was constantly on my mind (even though everything went smoothly and my patients really liked me, any phone call from a patient set me on edge).

What was supposed to be a lucrative ‘side’ gig to use my professional background so that I could focus on my ‘muse’ business ended up sucking all my time – even here the focus was on survival, trying to drum up clients.

(Funny side note: I was my own first patient – I injected myself with Botox to get some extra practice in and so that I could experience what my patients would feel.)

What I did find was that I avoided anything to do with the actual botoxing and I would spend the bulk of my time creating my business website (myself), deepening my knowledge of SEO and using that knowledge to rank my website and set up PPC campaigns.

To cut a long story short, after I think almost a year of soul sucking botoxing I made the leap…

While SEOing my main business site, I had managed to build a network of sites that they in themselves started to produce income (I created an informational site for doctors interested to learn Botox injection techniques – to this day the site is still ranked #1 in Israel and still brings in a small side income, which comes from referring potential leads to these high-priced courses).

After my pretty horrendous first business experience, one thing really became clear to me – that in general I definitely knew now that I wanted to be in the internet / mobile space…

And this led me down the path to creating MAKE APP magazine (initially just on the iPad, now only on this blog), which in turn led me to interview leading entrepreneurs in the app space…

I took the lessons that I learned there and put them into play in my own app business, which is where I am now…

Business Lessons Learned

The first app ever that I produced was with a good friend and my current business partner.

The Men in Black 3 movie has just came out and we wanted to capitalize on that trend, so we created our own app from scratch which was a replica neuralyzer from the movie…

We didn’t really care too much if app made money or not (secretly we hoped we became millionaires from it of course 🙂 ) the main aim being just to have the experience of creating our first app and learning from the process.

We didn’t become millionaires of course, although the app was bringing in about $300 per month, so we were getting close :). Not amazing, but it let us understand what sort of return we could expect and now we understood the process. Even though this app didn’t let us retire, the experience we gained from publishing our first app was invaluable.

So now I’ve been “in business” for about 2 and a half years. While I’m still very young in industry , here are the lessons Ives learned….

MAKE THE LEAP

Make the leap
Photo by Binomialphoto

Starting a business will probably never be easy. For me it is a bit like diving into a pool of cold water.

I initially thought that I could work on and develop a business on the side while I was still working in the hospital, but I found that with my work hours, even though they weren’t too bad, I just didn’t have enough hours or energy at the day to do any real damage.

While you hear of stories of people who manage to grow a side income will working in their day job, I can’t do this. I needed to make the leap and devote myself full time to business making.

I also wanted the feeling of hunger that would come by leaving stability behind and I think this worked for me, although it is extremely stressful.

EVALUATE THE WORST AND BEST CASE SCENARIOS

Of course before you make the leap into the unknown, you need to assess your worst case scenario.

I has been working for quite a few years at a good paying job and had managed to save up a sizeable sum so that I knew that even if I didn’t have any income I could probably pay my bills for about 2 years.

And even though I dreaded the thought, at the very ‘worst’ I could take on hospital shifts or go back to a full time hospital job if I really had to, so I knew that I probably wouldn’t end up on the street.

If you look at the flip side, the upside potential was huge.

I could become financially independent, learn new skills, expand my horizons.

It’s sometimes hard to step back and logically assess your situation when you’re in the thick of it, but for me the knowledge that my downside risk was limited really helped me move forwards.

BE DETERMINED

While knowing that my downside risk was limited helped me, on the other hand I didn’t really care. I was going to succeed no matter what it took – the thought of ‘failure’ and going back to work was not an option. If this is the last thing I did. This HAD to work and I has to make it work.

That was and is my attitude and I guess having ‘made the leap’ and experiencing the hunger it brings helps.

In fact I’m not the only one who thinks that determination is the key to success. Angela Lee Duckworth, in her fascinating TED presentation, reveals that quality of grit is the best predictor of success in any field (watch this awesome talk below – its only 6 minutes long and pretty inspiring).

That really makes sense to me.

I don’t actually view myself as particularly intelligent.

I think the main reason for my success academically has been simply my motivation, determination and for want of a better word, grit.

TEST DIFFERENT DIRECTIONS

This might be a bit controversial, but it’s what I did and I guess it’s kind of worked for me.

Initially I didn’t know what direction I wanted to go in business and I certainly had no idea of what would work, so I tried lots of things as you saw above.

Botox, multiple lead generation websites, Newsstand magazine, original app development, reskinning apps – and that’s not even a full list.

Some things didn’t work at all, some things had moderate success and some showed great potential.

Some of these I liked more and some less.

But it’s only by going through this process that I was able to come to a point where I’m in a place that I’m fairly happy with and that is generating revenue.

Jim Collins in his latest book ”Great By Choice” calls this process ‘firing bullets, then cannon balls’, and it is one of the elements that he found characterized 10x companies (companies that stood out from their industry during tumultuous times).  What’s interesting is that I’ve heard of this approach of validating ideas quickly in the start-up realm, but it’s interesting that Collins discovered that the same approach is one of the elements that distinguishes great, established companies.

So, summing up all these approaches, I think that this is something that should be constantly applied, not just at the beginning of a business but throughout its life cycle.

In our case we are constantly testing different app themes, different types of app development, different app markets (we’ve had various “experiments” in BlackBerry, Windows Phone and other alternative markets – more on these in another post).

Through all these experiments we first of all learn, then we double down on the winners and discard the losers.

The extreme opposite of this would be to set a plan and focus on just one thing, which I believe I has a very important place, but perhaps not at the very beginning of an entrepreneurial journey.

HAVE A PLAN AND STRUCTURE YOUR DAY

Leaving a ‘normal’ job behind, I knew structure in my day was going to be one of my biggest challenges.

I’ve been ‘institutionalised’ as I think most of us have been.

We are taught throughout our lives to follow a set path, to listen to your parents or your teacher or your boss.

We are used to others telling us to come to work at 9 and leave at 5, or to study for the test next week.

No wonder that during my holidays I would wonder around aimlessly not knowing what to do, since I didn’t have anyone to direct me.

And it HAS been bloody hard.

These are some of the things that have helped me…

Working out of an office

I tried working at home (went stir crazy after a while) and at coffee shops (not comfortable).

I’ve been working out of a really cool co-working space for the past year or so and this has been really important for me. I’m forced to get out of the house and travel to work, it gives me a routine and structure without the distractions and isolation of working at home.

It’s not easy to make the leap to work out of an office (I know), especially when you’re starting out and you’re counting every penny.

Many people might work really well from home, but my productivity suffered in a massive way.

If that sounds familiar to you then going to work in an office or co-working space could be an investment that pays itself back many times over.

Pomodoro Technique
Photo by Michael Zero Mayer

The Pomodoro Technique

You can look this up here.

This gives me a mico-structure to my day.

Sometimes I do and and sometimes I don’t use this, but it can definitely help focus.

Planning

I’ll go into more detail about the planning aspect another time because it’s worth a whole post in and of itself.

Planning has several layers.

The first is the overall goal for the long term and a detailed Gaant chart which plans out what we’ll be doing week by week over the next 6 months in order to achieve the goals.

I’ll do a weekly plan at the start of each week, where I’ll review what I achieved from last week’s plan and what needs to be done this week. At the start of the week I’ll also fill my calendar with what I plan to do when.

And lastly the daily plan. When I do the weekly plan I’ve already set a general plan for each day, but when I get to my desk I’ll review all tasks and re-prioritize if necessary.

LEARN FROM OTHERS

The problem with our knowledge base is that it is limited to what we know (duh!).

Undoubtedly one of the biggest things I got out of the magazine was talking to others who were more experienced than me. In fact, I’m certain that if I hadn’t done so I would be much poorer for it.

Whether you have an interview show or go to physical meet up events or join a mastermind, I can’t stress enough now important learning from others is.

I don’t do it enough and definitely should do more. The brevity of this point doesn’t do justice to its significance.

I’ve also had a business coach for a year or so and I think that going through the coaching process definitely helped me a lot.

Since there is no real school for entrepreneurs, I found that it really helped to have someone observing from the side with a bit of perspective.

The benefit that each coach brings would be very individual. Where my coach helped me was in stretching my goals and sharpening my planning skills and probably in many other ways.

What I know is that when I started the process life felt very much like a jumble. It still does, but less so.

DO A BUSINESS YOU DONT HATE

If I had to guess, I’d say that a lot of people are looking to monetize their passion and find something that gives them pure bliss every moment of the day. From my limited experience I don’t think that such a thing exists, or if it does it is really really rare.

I think that you definitely shouldn’t do something that you hate (for me that was Botox) and as long as you don’t hate it you’ll find some things that you enjoy and others the you enjoy less, but hey that’s life.

Do I love every aspect of the app business? Definitely not.

But I do find elements that I enjoy and see as a challenge (particularly systematization – will be a subject of a future bog post).

Ultimately I want to do something that I perceive as deeply meaningful, but I think that in order to start your entrepreneurial journey you need to just do something you don’t hate and find meaning where you can.

As you become more financially stable you can look to focus on other projects.

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So that’s it… a few of the major lessons that I’ve learned from my limited experience in the past couple of years.  I hope it helps you out!  Writing it down has helped me see what I need to work on (especially learning from others), so I’m already taking action on that…

If you want to get more great articles shoved into your inbox, then please slip your email into any of the forms on this page.

99% of people who do this end up being generally happier in life.

Also, a last thing…

…If you were mildly entertained, amused or informed, then please share this with any friend or family you think should read this…

… and (really) last thing… lets discuss this, because I’m sure you have your own perspective, so leave a provocative comment below.

 

How To Monitor And Optimize Your iOS App Ad Revenue

Personally one of the ongoing struggles of the app business is maximizing revenues from the various ad networks.  First off I’ll just say that there is no one perfect solution and a big part of this is opacity on the part of the ad networks.

The question is, how do we decide which network is working best?  How do we know if we’re getting what we’re worth from the ad networks that we’re using?

eCPM is the generally accepted model for measuring the effectiveness of an ad campaign (whether as a publisher or as an advertiser).  The problem is that sometimes this fails, which is why I’ve invented a new parameter to measure, eCPI.

eCPI – The New eCPM

eCPI means Effective Cost per Install.  You can work this out by dividing total revenue by total installs. I believe this is an important new parameter to measure to make sure you are using the best performing ad network and optimizing your ad revenue.

The best thing to make my point is to give you an example.

revmob stats

Here are some stats from an app of ours on Revmob.  You can see in the second column from the right that the eCPMs are pretty good, right?  $4-5 eCPMs are pretty high at the moment across various ad networks and $16-17 revenue per day is not bad for just one ad network, so if we were just looking at these stats we’d be jumping for joy (or would we?).

The thing is though, how much are we actually getting per install?  Without a doubt most advertisers are paying using a CPI (Cost Per Install) model.  Chartboost also helpfully publishes stats on average industry CPIs around that world so you can easily get industry benchmarks.

Just so you know, here are the current stats for November 2013:

Chartboost network CPI iPhone:   $1.65

Chartboost network CPI iPad:  $2.06

iOS US CPI:  $2.12  (with the range from $0.88 to $2.82)

chartboost network CPI

So, if we crunch the numbers for what we’re getting on this app, we find out the eCPI is a shockingly low $0.43 (to get the eCPI divide the revenue by number of installs, in this case $16.60 / 39).   If we had been measuring eCPI alarm bells would have been ringing instantly that we are getting paid far below any acceptable industry benchmark.

How much should we have been getting?  If we take the network CPI for iPhones of $1.65 and multiply this by the installs we generated (39), we SHOULD have been generating revenues of $64.35 for that same game, which would work out to an eCPM of $17.79.

Impossible you say?

For comparison, on that same day on another ad network (Applovin) in the SAME APP we had an eCPM of $14.20 and generated revenue of $143.91.  I’d love to give you our eCPI figure here, but unfortunately Applovin doesn’t reveal the amount of installs generated.

(Note – this is not to say one ad network is better than the other.  Each network has its advantages and disadvantages).

So, the bottom line is that wherever possible you should be measuring your eCPI (effective cost per install) and comparing this to industry benchmarks to see if your ad network is doing you a good service or not.

CPM – Watch Out!

Another reason for taking CPM with a VERY BIG grain of salt is that this doesn’t take into account FILL RATE.  An ad network might show fantastic CPMs, but it might only be achieving 50% fill rate, meaning you are losing out on A LOT of impressions.

A better statistic is to look at rCPM (request CPM).  To understand this you need a bit of background about how ads are called.

Let’s say you have an ad placement on app open.  When the app opens, a REQUEST will be sent to the ad server telling the server “the app just got opened, please show me an ad!”  The server will then check if it has advertisers available, and if the answer is yes it will send an ad to be shown.  If not, then obviously no ad will be shown.

Why might an ad not be shown? Typically advertisers pay a lot of money to get users from the US, Australia, UK and other Western countries, since these users tend to spend more money in their apps and so are worth a lot more money to the advertisers.  For most ad networks, fill rates in these countries are pretty good, while in other countries fill rate can be non-existent or at least much lower since advertisers aren’t looking to get users from non-Western countries.

So by looking at request CPM (rCPM) this takes into account fill rate.  If the fill rate is 100%, then rCPM will equal CPM.  But if the fill rate is 50%, then rCPM will be 50% lower than CPM. This will give a much truer picture of an ad network’s performance, since fill rate is a critical revenue driving factor.

A Call For More Transparency From Ad Networks

Unfortunately us publishers are left way too much in the dark when it comes to statistics from our ad networks.  As you can see from what I’ve written above, ad networks can be pretty selective with what info they share with developers.  Chartboost leads the way by a long long way in terms of transparency, with publishers able to view even which ads are showing and detailed stats for each ad.

This should be the minimum:

  • Fill Rate
  • Impressions
  • Clicks
  • Click through rate (CTR)
  • eCPM
  • eCPI
  • Revenue

Of course, it would be great if we could see even more detailed information, such as stats for various advertisers in our apps, stats for various countries, etc., but the above is really the bare bones of what I would want to see.

[Note:  while writing this article we corresponded with Applovin and they already implemented display of Fill Rate to their dashboard, so kudos to them!]

What can you do about all this?

First off, you really should be monitoring your stats.  Unfortunately as I pointed out above, most ad networks are missing out on vital information for us to make informed decisions, but you should be monitoring whatever you can.

Where possible, I’d advise you to keep track of your eCPIs (this is what we are doing).

So, if you see that an ad network is offering non-competitive CPIs, simply switch off their SDK and try out another ad network.  Compare the results and keep the better one.  This simple exercise can yield a huge difference in revenue, as I showed you above.

Apart from monitoring the payment per install, you should also keep in mind the massive issue of fill rates – this can be a huge source of missing revenue.

Ideally I would love to use an ad mediator for interstitial ads, using the highest paying networks first and then if there is no fill, to default back to a network which might be lower paying but which will have fill.  Unfortunately, to the best of my knowledge no such ad mediator exists.

So, in practice what we do at the moment is we use two ad networks at placements such as app open and on app movement to foreground.  Chartboost in our experience has the highest fill rate, so we will always use this in addition to Applovin or Revmob or other ad networks.

If you do these two things, you should see a significant increase in revenue.

What do you think?  Should ad networks be more transparent with their reporting? Write your thoughts below!