Saturday, April 16, 2011

Ways to Make Money

So I started reading the Personal MBA by Josh Kaufman recently. He basically talks about all he learned through self-teaching and he promotes this philosophy instead of going to a business school and spending insane amounts of money.

He talks about ten different ways in which a business makes money.
  • Product: make a product and sell it for more than it costs to make. Ex. cars, books
  • Service: Provide a service, then charge a fee. Ex. barbershop, repairman
  • Shared Resource: Create a shared resource that can be used by many, then charge a fee. Ex. Gym
  • Subscription: Provide a an ongoing benefit, then charge  recurring fees. Ex. Magazines, Cable
  • Resale: Buy something and sell it for a higher price. Ex. Walmart, Grocery stores
  • Lease: Acquire an asset and let someone use it for some time for a fee. Ex. Leased cars, houses etc.
  • Audience Aggregation: Make and distribute information, then sell to an interested third party. Ex Advertisement, Direct Mail.
  • Commission: Sell something on behalf of another and make a percentage of the selling price. Ex. Realtor (houses)
  • Capital: Purchase a stake within a business and collect a portion of the profit over time. Ex. Stocks, Bonds

Many business use one or more of these ways to make money.

And, here's a link to his site

1 comment:

  1. Interesting stuff, I've bookmarked his site. thanks!