The Power of Numbers
In my mind, the secret to generating wealth is to create things of value to a large number of people.
Let's take a typical ambition of becoming a millionaire. How can you accomplish this?
Well, let's consider how many 'units' of the thing you plan to sell, you need to sell to become a millionaire.
Units Sold | Cost per Unit
100,000 -|- $10
10,000 -|- $100
1,000 -|- $1,000
100 -|- $10,000
Take a quick look at the above table, and think about this for a moment. You may think that it would be easier to sell a lot of very expensive units. Say 1000 units at $1000.
But - how many people can sell en-masse something priced at $1000. Very few. You might pay that in fuel in a year, or perhaps in electricity bills, but few people would spend $1000 on something on a whim.
Ok - a lot of people buy fancy tv's and such for that kind of money, but I want to focus on something that you or I could do. I don't have the money or infrastructure to develop a plasma tv, build the factory, then market it to the world.
My own preference is the 10,000 units at $100.
I believe that it is entirely possible to provide an internet service that nets you $100 a year per person. Say, a subscription site that provides some valuable content at 'only $8 a month' say.
That's cheap enough so that it doesn't require too much thought from the buyer. I would drop $8 a month on something I enjoyed or found valuable with very little thought.
Next - you need to market this product to 10,000 people, then keep those people happy with your product for a year.
So - that's the (very simplified) key to becoming wealthy in my mind.
Hope you enjoyed the post. -)
Let's take a typical ambition of becoming a millionaire. How can you accomplish this?
Well, let's consider how many 'units' of the thing you plan to sell, you need to sell to become a millionaire.
Units Sold | Cost per Unit
100,000 -|- $10
10,000 -|- $100
1,000 -|- $1,000
100 -|- $10,000
Take a quick look at the above table, and think about this for a moment. You may think that it would be easier to sell a lot of very expensive units. Say 1000 units at $1000.
But - how many people can sell en-masse something priced at $1000. Very few. You might pay that in fuel in a year, or perhaps in electricity bills, but few people would spend $1000 on something on a whim.
Ok - a lot of people buy fancy tv's and such for that kind of money, but I want to focus on something that you or I could do. I don't have the money or infrastructure to develop a plasma tv, build the factory, then market it to the world.
My own preference is the 10,000 units at $100.
I believe that it is entirely possible to provide an internet service that nets you $100 a year per person. Say, a subscription site that provides some valuable content at 'only $8 a month' say.
That's cheap enough so that it doesn't require too much thought from the buyer. I would drop $8 a month on something I enjoyed or found valuable with very little thought.
Next - you need to market this product to 10,000 people, then keep those people happy with your product for a year.
So - that's the (very simplified) key to becoming wealthy in my mind.
Hope you enjoyed the post. -)