Lessons on Making Money

by Kevin March 12, 2011 22:16

I don't get up in the morning excited to start my day so that I can make money.  It's not the money itself; it's the freedom it gives.  The freedom to choose when I work and how hard I work.  The freedom provides the engine for the passion that comes from developing something new or making something better for other people.  At the end of the day however; making money provides the opportunity to get more people on your team to make a larger impact.

In a recent blog post Jason Fried co-founder of 37Signals.com tells his story of how he learned to make money.  You can read it here:http://www.inc.com/magazine/20110301/making-money-small-business-advice-from-jason-fried.html

Then a summary below for a quick reference later...

Lesson 1
Understanding what people really want to know—and how that differs from what you want to tell them—is a fundamental tenet of sales. And you can't get good at making money unless you get good at selling.

Lesson 2
Sell only things you'd want to buy for yourself.

Lesson 3
People are happy to pay for things that work well. Never be afraid to put a price on something. If you pour your heart into something and make it great, sell it. For real money. Even if there are free options, even if the market is flooded with free. People will pay for things they love.

Lesson 4
Charging for something makes you want to make it better. I've found this to be really important. It's a great lesson if you want to learn how to make money. When you put a price on something, you get really honest feedback from customers.

Lesson 5
Remove the fear, and people will be more willing to pay you. People don't like uncertainty—especially when they have to pay for it.

Lesson 6
Whether you're starting your first business or your next one, my advice is to bootstrap it. Bootstrapping forces you to think about making money on Day One. Anyone can spend money. Making it is the hard part, and being forced to do it early is one of the best ways to get better at it later.

Lesson 7
It's all about practice. Whether you're playing drums or building a business, you're going to be pretty bad at something the first time you try it. The second time isn't much better. Over time, and after a lot of practice, you begin to get there.

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Category: Business

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