You Make More Money When You Give it Away
"Never underestimate the worth of giving things away." From the as kid hearing these words on a typical basis. Actually this philosophy was re-enforced so much by my parents in my younger years so it has changed into a part of who I am today. But, I'm also a businessperson who enjoys earning a full time income, and in operation, our primary goal is to increase profits. So we have what is apparently an evident conflict here. So how exactly does one remain profitable, not to mention increase profit levels if they're giving things away?
This really isn't a brand new concept. In the original business world this has been prepared for years. It always will come in one of two forms or a combination of both. The foremost is giveaways that are used to lure customers into creating a purchase or as thinly veiled advertisements.I need 1000 dollars right now We've all seen these tactics. Contests you are able to win if you buy something, free Tupperware for applying for a department store credit card, a pencil or a pot for each $20.00 of gasoline from a particular service center. You get the idea. We've also seen large companies and wealthy business owners throw a bundle and/or resources at "good causes ".I'm sure some genuinely do this for the betterment of society. The skeptic in me though suspects that usually this philanthropy is simply an endeavor to get credibility and respect in place of earning it.
So how does all this connect with online business and how is really a small online businessperson in a position to capitalize onto it? Actually, when we look at the internet we don't have to appear very far to understand the potential value of giving things away. In fact a lot of the technology we use online was "given" to us by way of a few brilliant people who were more enthusiastic about sharing their inventions and ideas with the planet than becoming millionaires. It ought to be noted that a number of these people as a result of the efforts have with time done perfectly for themselves. They have earned a lot of respect, a dedicated following and incomes to match as a good little bonus. Indeed on the Internet today there exists a whole culture of men and women with this particular mindset. Why do they get it done? Why give it away for free? Are they crazy? The individual reasons are as abundant as the amount of individuals but they all share one common thing. An awareness that by providing value to people, they will receive value in return. It may be money, fame, additional resources to keep with projects, respect or just the feeling of accomplishment that includes a job well done. Not so crazy...and there's a reason many fortune 500 companies are embracing the philosophies of the open source software movement. The business enterprise world can learn a whole lot from these ideas.
However, there has to become a balance when it comes to business. If you should be in a position where that you do not need certainly to be worried about profits and don't have any expectation of future ROI, fine. Give everything away and someday you might well be rewarded. Unfortunately there is realty to contend with! The reality is that we are here to create money. So exactly what do you give that won't hurt your profit margin? Lots of things! If you're really smart about you'll actually manage to increase your profit margin considerably.