The Ground Game Podcast Episode 49: Why Net Profit Is the Only Metric That Matters in Land Flipping
Sep 4, 2025
The hosts dive into their recent travels, combining personal anecdotes with business insights. They discuss the challenges of scaling in land investing and the crucial difference between net and gross profit. A focus on diversifying income streams is emphasized to combat reliance on land flipping alone. The importance of strategic planning in fluctuating markets is highlighted, along with the need for constant self-evaluation through feedback loops. Their lively banter makes complex topics engaging and relatable.
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Net Profit Beats Deal Count
- Deal count is a vanity metric; net profit is the true scoreboard for business health.
- Scaling more deals without scaling net profit increases headaches and reduces returns.
Scaling Often Shrinks Margins
- Rapid scaling often lowers margins because spending isn't optimized immediately.
- Gross profit can rise faster than net profit when teams and marketing scale too broadly.
Grow Profitably, Not Just Quickly
- Target sustainable growth rates and protect margins when scaling.
- Aim for meaningful net profit increases (e.g., 50% net profit growth) rather than just top-line growth.
