Many people approach me and ask me: “Deepak, suggest me a way to make money using the internet.”
I honestly do not know how to answer the question. Many people think that there is a secret way and if they know that secret, all the income problems in their life will be solved.
Their mindset is “how can I make something”. They don’t think about economics, value creation, or how to make the world a better place.
Maybe expecting people to change the world is too much to ask – but I think people should at least learn how the value exchange system works – which is the foundation of our modern capitalist world.
Let’s start with you. Let’s say you have 50,000 rupees. Why would you ever spend that money instead of keeping it for yourself? You will only spend that money on something that you feel is worth more than 50,000 rupees.
Would you spend 50,000 to buy 25,000 rupees worth of gold? Definitely not.
However, you might spend that 50,000 to buy a motorcycle. You will only do that if you believe that the motorcycle is worth more than 50,000 rupees to your personally. It might help you get a job, and it might help you make even more money. You consider it as an investment to make more in the future. You consider it as a good deal.
If you believe that the price of gold will double in the next 3 years, you will feel that it is a good deal to buy it now and let it appreciate. You will treat gold as a store of value.
It is easy to make people pay you than you think. You just need to convince them that it is a good deal. When you are selling something, you should have one of the two:
1. A good deal where people feel that the product/service that you are selling is worth more than what you are charging for it.
2. An investment opportunity where people feel that their investment will grow in value and helps as a store of their wealth and monetary energy.
Deals are needed to run your life. And an investment is needed to protect your capability to be part of future deals.
If you can convince people that paying you is a good deal, your problem is solved. You just need to create a good deal in the first place. An offer that they cannot refuse.
So when people ask me “Deepak, do you know good ways of making money”, my answer is usually: “Figure out a way to create good deals for people that is attractive.”
If you are trying to get a job, you need to make your employer believe that you are a good deal. That you are going to be worth for the company far more than what you are asking for in terms of salary and benefits. Unless your potential employer believes that he/she can make a profit out of you, he/she will not hire you.
If you are selling your home, you need to convince your buyer that your home is a good deal at this price and it will appreciate in the future.
If you are selling a freelancing service, you need to convince the client that your work and contribution are going to help them make profits and provide even more value for their customers in turn.
If you are building a startup, you need to convince investors that investing in your company will be a good deal for them. If you cannot convince of your growth prospects, no one is going to invest in you.
No one ever wants to make a bad deal.
You cannot expect people to hire you because you are a hardworking and a “good” person.
You cannot expect people to invest in you because you have a degree or an MBA certificate.
You cannot expect customers to pay you because you “deserve” it.
The marketplace doesn’t care about your feelings, your qualifications, or your good intentions.
The marketplace cares only about your ability to offer them a good deal. The marketplace cares about their own needs and desires, not yours.
And understanding this is the most important lesson you will ever have in your life.
Spend your entire life learning the art of creating good deals for people to buy into and you will never worry about wealth in your life.
Put yourself in the shoes of your customers, your employees, and your investors. Understand what they want and give it to them. You will have a great time climbing the ladder of wealth. You will make wealth when you help other people make wealth. As simple as that.