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How to provide value and make money?
Thinking of a side hustle?
Try these economic value forms that people are willing to pay for.
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Thinking of a side hustle?
Try these economic value forms that people are willing to pay for.
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1/
Product.
Sell a physical item that your prospects find useful.
Sell at a price that’s higher than the manufactured cost to make profit.
Sell as many as you can.
For the highest price people are willing to pay for.
Product.
Sell a physical item that your prospects find useful.
Sell at a price that’s higher than the manufactured cost to make profit.
Sell as many as you can.
For the highest price people are willing to pay for.
2/
Service.
Help your prospects solve a problem.
There are all sorts of problems.
Charge them for the benefits that they received.
Keep delivering high quality service.
Retain the paying customers.
Service.
Help your prospects solve a problem.
There are all sorts of problems.
Charge them for the benefits that they received.
Keep delivering high quality service.
Retain the paying customers.
3/
Shared Resource.
Create an asset that can be used by many.
E.g. co-working space, recording studio.
Charge customers for access.
Serve as many people as you can without compromising on quality of the experience.
Shared Resource.
Create an asset that can be used by many.
E.g. co-working space, recording studio.
Charge customers for access.
Serve as many people as you can without compromising on quality of the experience.
4/
Subscription.
Give value on a recurring basis and charge repeatedly.
Build subscriber base and attract more.
Retain subscribers for as long as possible.
E.g. Spotify, Netflix.
Subscription.
Give value on a recurring basis and charge repeatedly.
Build subscriber base and attract more.
Retain subscribers for as long as possible.
E.g. Spotify, Netflix.
5/
Flipping
Buy low from a seller.
Sell high to a buyer.
Sell as quickly as possible to keep inventory costs low.
Sell as high a markup as possible.
Flipping
Buy low from a seller.
Sell high to a buyer.
Sell as quickly as possible to keep inventory costs low.
Sell as high a markup as possible.
6/
Lease.
Buy an asset that people want.
Let them use it for a fixed time in exchange for a fee.
Protect yourself from loss or damage of the asset.
E.g buy a property and rent it out.
Lease.
Buy an asset that people want.
Let them use it for a fixed time in exchange for a fee.
Protect yourself from loss or damage of the asset.
E.g buy a property and rent it out.
7/
Agency
Provide a service on behalf of a business/person.
Charge for service rendered.
Make sure your fee is high enough for the effort to be worth it.
E.g. advertising, marketing, consulting agency.
Agency
Provide a service on behalf of a business/person.
Charge for service rendered.
Make sure your fee is high enough for the effort to be worth it.
E.g. advertising, marketing, consulting agency.
8/
Audience aggregation.
Get eyeballs of people on a platform.
Keep their eyeballs engaged.
Sell their eyeballs to interested parties without alienating the audience.
E.g. YouTube channels, Blogs, Instagram pages.
Audience aggregation.
Get eyeballs of people on a platform.
Keep their eyeballs engaged.
Sell their eyeballs to interested parties without alienating the audience.
E.g. YouTube channels, Blogs, Instagram pages.
9/
Loan.
Have money.
Lend money.
Charge interests.
Protect against possibility of loan being defaulted.
Loan.
Have money.
Lend money.
Charge interests.
Protect against possibility of loan being defaulted.
10/
Option.
Give offer to take a predefined action for a fee.
Convince buyers the option is worth the price.
Options are valuable because buyer has a choice on whether to take that action.
E.g. financial securities, movie, concert tickets, licensing rights.
Option.
Give offer to take a predefined action for a fee.
Convince buyers the option is worth the price.
Options are valuable because buyer has a choice on whether to take that action.
E.g. financial securities, movie, concert tickets, licensing rights.
11/
Insurance.
Take on risks of specific things on behalf of policy holder.
Create a legal agreement that transfer that risks.
Charge for a series of payments.
Pay claims when bad things occur.
Insurance.
Take on risks of specific things on behalf of policy holder.
Create a legal agreement that transfer that risks.
Charge for a series of payments.
Pay claims when bad things occur.
12/
Capital.
Buy ownership in a promising business.
Collect portion of profit as payout.
Or collect on-going dividend.
E.g. Angel investing, venture capital, stock in public companies.
Capital.
Buy ownership in a promising business.
Collect portion of profit as payout.
Or collect on-going dividend.
E.g. Angel investing, venture capital, stock in public companies.
If you have a business idea,
Figure out which value form fits your product the best.
You don’t always have to reinvent the wheel. https://twitter.com/distillmike/status/1304454559905923074
Figure out which value form fits your product the best.
You don’t always have to reinvent the wheel. https://twitter.com/distillmike/status/1304454559905923074
Personal MBA is the book that keeps on giving.
A must read for all aspiring entrepreneurs.
A must read for all aspiring entrepreneurs.
