Wealth Secret Of The Day – To Make Fortunes, Solve People’s Problems

Wealth Secret Of The Day - To Make Fortunes, Solve People's Problems
Image – Pixabay (PD)

“You can have everything in life you want if you’ll just help enough other people get what they want.” — Zig Ziglar

The world is so full of problems, they say. There’s no real opportunity left any more, they say.

Can you see why these two sentences should not exist together?

Because every problem is an opportunity in disguise!

Solving people’s problems really is the best way to make money. Making money, fundamentally, is based on providing solutions.

Everyone: You want my money? Solve my problem. Yes you. I am sitting here with my check book out.

The more problems people have, the more opportunities there are to find a (profitable) solution. The bigger the problem, the more they are willing to pay to make it go away. Stay focused on that and the world is yours.

Option 1: Solving Big Problems For A Few People

One way to get rich is to solve a really big problem for a small number of people. People who solve ‘the big problems’ are typically well-paid: The bigger the problem someone has, the more difficult to solve, the more they can charge – because people will pay it.

Hence lawyers are expensive. Cancer treatment is super expensive.

In addition to highly paid hourly work, there is the option to invent / patent or otherwise create a game changing product or service that solves a big problem.

Option 2: Solving Small Problems For Many People

The other possibility is to solve a smaller problem for a large number of people. Interestingly, this has surprisingly massive potential – even though the actual problems being solved are smaller, they are “ubiquitous” problems. Little things that everybody wants. Go create one of those.

A perfect example of someone who did this was Manoj Bhargava, the founder of 5-hour Energy, who created a small, nutrient-rich energy drink that was sold at gas stations all around the world. He became a billionaire from selling a small, cheap product to a large number of people that solved a small problem (quick fix for short term tiredness without taking drugs).

The creation of value will always be competitive – as there are others striving to create more value and a better deal. There are also many, many people not focused on creating value / solving problems and wondering why they are poor. Have you noticed how these people typically blame someone else? Nobody taught them the better way…

Asymmetric Income Generation:

There are interesting scenarios in which income generation can be asymmetric. What this means is that the income generated is disproportionate to the amount of hours worked. You want this!

Typically these are opportunities in which a competition-beating useful, low cost or free service is provided to an absolutely huge number of people.

Case in point – Snapchat, the founders of which are billionaires in their 20s. The best lawyer in the world, serving clients for 50 hours per week for 40 years, cannot make as much money as these young entrepreneurs did.

However if it was easy to do what the Snapchat founders did, everyone would be doing it. It takes a unique brilliance, timing and execution to create a global game changer.

Another example – PayPal. The founders sold it for $1.3 Billion to eBay. Elon Musk’s share was $180 million. If he had been a lawyer earning $500 per hour he would have had to have billed 360,000 hours work – 180 years of billing clients 40 hours per week, 50 weeks per year!

You can see how timing is critical. You could not create another PayPal now. It solved a problem that everyone had at the time – internet payments. It’s been done now.

A lawyer can only serve one client at a time, and even at $500 per hour, there is a “glass ceiling” – a limit to how much money the person can make in a lifetime of work.

The internet on the other hand gives the potential to offer a service to literally billions of people. This is effective because the founders do not need to deal with every individual one-by-one but create a form of value that continues to give enjoyment and usefulness to people 24/7/365.

The internet is the best way to smash the glass ceiling, giving the potential to earn many times more per hour than a top lawyer.

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