What is compound interest? If you re-invest every incremental piece of income you earn back into your interest, then you can also start making interest on that money too. Let’s see what it would look like if you use compound interest rather than simple interest with your investment. If we simply scale this from 20 years to 50 years, with simple interest you would earn $6000 and with compound interest you would have earned $117,390.85! And that is how every content marketer should begin to see content marketing – as a long-term investment. You create epic content, evergreen content or even situational content, get it published, drive some traffic to it, don’t stop – create more content that will bring more traffic. I was recently doing a content strategy audit for a client and I noticed an article we published in 2015 had brought in 2249 fresh visitors in that month alone. What is most amazing is that the success has been replicated through constant re-investment back into more content and updating old content. Content marketing is a marathon and not a sprint What I am trying to say here is that, unlike winning the lottery, content marketers won’t see a huge return on content overnight. And that is just the difference between simple interest and compound interest.
Relax, I’m not about to take you through a complex mathematics lesson…
Instead, I’d like to show you how a long-standing mathematical term – compound interest – can be related to content marketing and its successful application for your business.
What is compound interest?
I’ll try to make this as simple as I can – hopefully!
Let’s assume you have $1000 cash you are willing to invest in a fixed deposit with your bank.
Let’s assume again that you will be getting 10% interest on your fixed deposit annually.
If you invest this for say 20 years, your accrued interest would be $2000 independent of your invested principal of $1000.
In simple terms, you have turned $1000 into $3000 using the concept of simple interest.
What this means is that you have earned interest of $100 every year in passive income.
See how it looks like:
However, with the same $1000, there is a way you can earn much more.
If you re-invest every incremental piece of income you earn back into your interest, then you can also start making interest on that money too.
This is called compound interest.
Let’s see what it would look like if you use compound interest rather than simple interest with your investment.
Amazing, isn’t it?
The result above is even more than double of the simple interest total of just $3000
With compound interest, it’s a whopping $6,727.50.
If we simply scale this from 20 years to 50 years, with simple interest you would earn $6000 and with compound interest you would have earned $117,390.85!
You see the amazing difference in the figures as you keep scaling?
That is the power of your ability to compound.
So, now to the bigger question…
What does compound interest have to do with content marketing?
Every piece of content you create is an asset that accrues value over time.
This article is both an asset for me and an asset for Jeff.
The concept of compound content marketing is unique yet simple.
And that is how every content marketer should begin to see content marketing – as a long-term investment.
Regardless of the type of content, whether it is blog posts, eBooks, videos, podcasts, courses or something else.
If you do not see them as an asset, chances are you will not make a good business decision.
This is where most content creators, especially bloggers get it all wrong. We do not treat content like a business investment.
How to treat content like a business investment
This is something I call “the content snowball effect”.
I like to explain this using Phil Ivey – Regarded as the top poker player in the world.
Phil has won more tournaments than just about anyone else.
Do you want to know his secret to making millions?
Here is what he says “You play better when you’re winning. No matter how good or bad a player you are… you play better when the chips are flowing”.
You get yourself a win.
You don’t stop, you pile on more and more until your momentum is like a jetpack strapped to your back.
It’s the same thing with content marketing, and that is exactly how to treat your content – like a business.
You create epic content, evergreen content or even situational content,…