Where Money Comes From

18 replies
There are basically three ways to get money. Imagine that you do something that takes 20 minutes, like say, keyword research.

You can get a job working for someone at an hourly rate. He might pay you $30 an hour. You do the job MANY times and get paid ONCE. If you need to make more money, you have to ask for a raise. He may say no. You may get laid off or fired.

You can also freelance, and charge $10 for custom keyword research. This is the same hourly rate as the job, but you do the job ONCE and get paid ONCE. (You can also do the job MANY times and get paid MANY times. Same thing.) If you need to make more money, you simply raise your prices. Nobody can stop you, and there will still be clients willing to pay.

Or... you can do keyword research when and how you want, pack it up as a "done for you" product, and sell it for $5. You do the job ONCE and get paid MANY times.

It's not hard to figure out which of these stands the greatest chance of making you rich, now, is it?

Whatever you do, however you get paid for it, this is your real job: turn it into WORK ONCE, GET PAID MANY TIMES. If you can't make something you do work this way, stop doing it. If you don't do anything that can work this way, go find something that does and start doing it.
#money
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  • Profile picture of the author jborjaperez
    I'm likin the first way. O_O!

    JK.

    Thanks for putting things into perspective. What do you say to being able to work a paying job, but refusing to because it sucks(IMO) to have to commit hours of the day to a job or being broke and scraping by at mom's house, putting it all into what I can online?

    =P
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    • Profile picture of the author CDarklock
      Originally Posted by jborjaperez View Post

      What do you say to being able to work a paying job, but refusing to ... and scraping by at mom's house, putting it all into what I can online?
      I say that's smart and more power to you.
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      "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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    • Profile picture of the author WebPen
      Originally Posted by jborjaperez View Post

      I'm likin the first way. O_O!

      JK.

      Thanks for putting things into perspective. What do you say to being able to work a paying job, but refusing to because it sucks(IMO) to have to commit hours of the day to a job or being broke and scraping by at mom's house, putting it all into what I can online?

      =P
      I'd say that's great...if you can actually follow through.

      But there are thousands of people who NEVER leave their momma's house because they're always "ALMOST there!"

      Most people just don't work hard enough due to a lack of self discipline. Or they do work hard- but its going the wrong direction.

      So while I agree with Caliban that IM has more potential than the traditional method to earning a wage- don't take it to mean that he's giving you an excuse to not work.
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      • Profile picture of the author CDarklock
        Originally Posted by Justin Stowe View Post

        don't take it to mean that he's giving you an excuse to not work.
        Wanted to underscore this. When you said "putting it all into what I can online," I am taking you at your word. If, instead, you mean "playing on the internet and calling it work" then I don't approve at all.
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        "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author jborjaperez
    Appreciate that sir!
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  • Profile picture of the author jborjaperez
    Wha? Diablo 3 isn't gonna make me rich?

    Haha, Thanks for the clarity though. Important that you guys mentioned that and I'm the first to admit I am a work in progress.

    -Jared
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  • Profile picture of the author Joe R Piercey
    Thanks I like this post.

    I'd like to add that by following method three you give yourself more exposure to customers/clients.

    From a standpoint of building a customer list you will have a much greater asset by selling a $1 to 100 customers than providing the same work to one customer for $100...even though the sales figures are the same.

    It's why I'm now focussing more on PLR creation than servicing individual writing clients.

    Cheers
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  • Profile picture of the author WeavingThoughts
    Not really. They are web development companies where the owner makes seven figures a year. That isn't scalable but isn't bad either
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    • Profile picture of the author CDarklock
      Originally Posted by WeavingThoughts View Post

      Not really. They are web development companies where the owner makes seven figures a year.
      I used to run a custom software development operation.

      I "made" $1.7 million a year.

      I got to put less than 10% of it in my pocket.

      But you can bet your arse everyone that wanted to know how much money I made got told the seven figure amount.

      Who wants to hear that I have two dozen programmers working for me and I only make $160k a year? I may as well just go work at some big company. Which I eventually closed up shop and did, because Microsoft gave me more money, better benefits, and shorter hours.

      The story is not always what you think it is.
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      "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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      • Profile picture of the author Andyhenry
        Originally Posted by CDarklock View Post

        I used to run a custom software development operation.

        I "made" $1.7 million a year.

        I got to put less than 10% of it in my pocket.

        But you can bet your arse everyone that wanted to know how much money I made got told the seven figure amount.

        Who wants to hear that I have two dozen programmers working for me and I only make $160k a year? I may as well just go work at some big company. Which I eventually closed up shop and did, because Microsoft gave me more money, better benefits, and shorter hours.

        The story is not always what you think it is.
        And sometimes it is.

        I know quite a few people who have taken millions of dollars out of their company, not just on paper or as revenue but actual cash - and other people did most of the work for it.

        Maybe it's not the 'common' result - but getting other people to do the work that you make your money on over and over again is for some people a much better model than doing the work yourself.

        So while I completely agree with you about leveraging your work - I think it's even more valuable when you can leverage other people's work.
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        • Profile picture of the author CDarklock
          Originally Posted by Andyhenry View Post

          So while I completely agree with you about leveraging your work - I think it's even more valuable when you can leverage other people's work.
          Personally, I see a minor issue with "the work I do once and get paid many times for... is to get someone else to work repeatedly and get paid once."

          But that is just me.
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          "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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          • Profile picture of the author Andyhenry
            Originally Posted by CDarklock View Post

            Personally, I see a minor issue with "the work I do once and get paid many times for... is to get someone else to work repeatedly and get paid once."

            But that is just me.
            Yeah - me too.

            But actually that's the model that most people buy into.

            Like you said in the OP - many people do the work time and time again - because they just get paid once for everything they do. That's a normal job.

            The fact that they pay you every month is just because you keep doing more work.

            When I started my software company - I almost immediately made our programmer a partner rather than an employee - because it just didn't seem fair that he'd be doing a lot of the work we'd get paid repeatedly for and only be getting paid for his time.

            So now, apart from the latest guy we just hired, we only have partners because that just seems like the right thing.

            Leveraging other people's work does not have an inherent focus on abusing that work to take advantage of others - there are ways to give everyone the benefits for working together.
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            • Profile picture of the author CDarklock
              Originally Posted by Andyhenry View Post

              Like you said in the OP - many people do the work time and time again - because they just get paid once for everything they do. That's a normal job.
              Here's the dilemma I wrestle with on that.

              What if they WANT to? I mean, it's a tradeoff. They have voluntarily chosen to be paid by the hour instead of by the deliverable. Why not let them? Surely they have made the decision for reasons that THEY consider good, right? Why is my way objectively better?

              I mean, I don't go looking for exactly the articles I want when I want articles. I look for a writer who will write them. I pay a fair rate. They do a fair job. We are both happy.

              What if I were to say "hey, I'll only pay you 20% of your rates, but I'll let you sell these same articles to other people too" instead? Maybe that's not what the writer wants. Maybe looking for more people to buy the same articles doesn't interest them. Maybe I'm in a weird niche and finding more buyers will be hard.

              And on a one-off basis, I'm fine with that, because I accept that every time I want another set of articles I need to find a good writer. The one I used last time might not be available anymore.

              But with ongoing work... I feel like the stability is part of why the writer doesn't move on. Like I'm contributing to this continued stagnation.

              I don't know the right answer. I'm drunk. But I think about this stuff.
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              "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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              • Profile picture of the author Andyhenry
                Originally Posted by CDarklock View Post


                But with ongoing work... I feel like the stability is part of why the writer doesn't move on. Like I'm contributing to this continued stagnation.

                I don't know the right answer. I'm drunk. But I think about this stuff.
                Maybe you don't need to have an answer - like you say - people are free to do what they want.

                Some people think having a job offers security. Whether that security is real or not is irrelevant.

                Some people have self-worth problems or just do not understand the value of what they do, so rather than go looking for the real value of their work and to get paid by people who agree with that value.

                It's not a 'problem' for anyone other than the people involved.

                If you have a problem paying people small amounts for articles because you think they're selling themselves short - that's actually your problem not theirs.

                If they feel the same then maybe you can help them find another way.

                But then again I'm not drunk so probably not thinking clearly.
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  • Profile picture of the author Gengis
    Great post. I need to finish my wso
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  • Profile picture of the author TimothyTorrents
    Thanks for the great post! Time to start brainstorming.
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  • Profile picture of the author YasirYar
    Whichever way you follow, it all boils down to one thing - that everything in fact still needs hard work and discipline. But I think, you can add one good principle to go with all of it - work smartly!
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