16 June, 2009

The Smart Approach To Making Money

Instead of focusing on trying to make more money, put your time and energy into CREATING and DELIVERING real value. Find a way to give people what they want and/or need.

Take note that the keywords here are CREATE and DELIVER.

Creating value means expressing your unique talents and skills in a way that can potentially benefit others.

Delivering value means ensuring that other people are actually receiving and benefiting from the value you?ve created.

If you don?t do both in some fashion, then it?s going to be hard for you to generate sustainable income, especially during a recession. I?ll explain why.

If you only create value but don?t deliver it, then your value isn?t being received by anyone. So how can you receive value (such as money) in return?

I see this problem a lot with creative types such as would-be artists, musicians, and writers. They may spend lots of time honing their craft, but if they don?t actually get that value into the hands of sufficient numbers of people, they struggle financially, and this hurts them creatively too. A goodly number of these people are currently seeing their homes in foreclosure now.

The sad thing is that some of these people work very hard. But they spend too much time creating and not nearly enough time delivering. They watch people they consider hacks pull ahead of them. The hacks may not be as good on the creative side, but at least they?re getting their value into people?s hands, and on some level people are appreciating their work.

I went down that road myself. In the late 90s, I went bankrupt, even though I was working very long hours and creating a lot of potential value in the form of a computer game my company was developing. My problem was that I didn?t do a good job of getting that value delivered. I relied on publishers to do that, and for various reasons the game was never released. That resulted in years of wasted effort, aside from the valuable learning experience that is. So I know where this road leads because I traveled it.

On the other hand, if you only deliver value but don?t create it, then you?re delivering someone else?s value. This isn?t a terrible approach in the short run, but it?s a short-sighted long-term strategy if this is all you do. There?s nothing particularly special about delivering other people?s value. Anyone can do it. Anyone can sign up for affiliate programs or join an MLM program or become a reseller. If this is your primary means of generating income, your long-term outlook is weak. The better this works for you, the more it will draw competitors into your field. Eventually everyone will be working harder and harder for scraps. This happens all the time. This strategy can be especially weak during a recession, as more people turn to less expensive sources for the same value you deliver, squeezing your profit margins thinner and thinner.

Bloggers fall into this trap when they rehash other people?s content and don?t really have anything unique or compelling to say. A year later their niche is flooded with competitors doing the same thing. And hardly anyone is earning decent income from it.

The most viable long-term strategy is to create AND deliver value. You can mix and match other strategies with it, but this should be your primary method of income generation. If you get good at creating and delivering value, you can basically write your own ticket and enjoy lots of abundance.

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