Tuesday, April 1, 2014

Observations - Making Money

There are only three ways to make money. The first is to sell a product, the second is to provide a service, the last one is to invest. There are also only three ways to get paid. You can be paid directly by a customer, you can get paid in some fashion by a third party, or you can earn some kind of interest or appreciation. In order to make money online you need to keep all this in mind. For example, Google provides a service that is paid for by a third party (advertising). Apple provides products and services that are paid for directly by the customer. Facebook is a service that is trying to find a way to get paid (so is twitter).

Everything can be broken down into these categories. Everything is either a service, a product, or an investment. Everything is paid for by either the customer directly, a third party indirectly, or through interest or appreciation. What about Government? It is all a service paid for by a third party (taxes). What about education? Public schools are a service paid for by a third party. Private schools are a service paid for by the customer directly. You can look at just about everything in business and figure out what it is. It's either a product, a service, or an investment.

What do you think?