Money Making Mind

Wednesday, September 13, 2006

Know what makes money for you!

I mean precisely. If you deal with it in a scratchy way, your product - or service, or the blog/site you publish - is what is making you money, but it will be very difficult to get to any consequences from that. And anyway, is it definitely true? I guess it is worth a moment of thinking.

Let's have a look at the two things: one is the way of keeping your product up and going. And the other is the way of money from outside of your pocket, through your pocket, and in an ideal world into your pocket.

What makes your product go round?
Let's assume, you have some kind of information product. A site, a blog, an e-book, whatever. If this product is really yours, meaning you personally have created it, than your product is only a tool in a long process of monetizing your knowledge.

In fact, it all began with something you know. Something you know better than other people, so these guys will read your site or blog in order to learn what you already know. Your knowledge may come from different sources: through studying, through expertise, through invention, it doesn't really make a difference. But you have to identify your ultimate source as your knowledge. You would have nothing without it.

Than there is a skill of making a product from your knowledge. This is as important as the knowledge itself. Your knowledge and profession only makes money if you turn it to a product. Actually a very good one. Of course you can have someone do it for you - as you can have someone have the knowledge for you, it's only a matter of money and time investment -, but you have to see that this is a totally separate step from the knowledge itself.

And the last is that you have to have people meeting with your product. Yes, we are at the great fountain of Internet Marketing, SEO and stuff like that. I won't go into details here - you will find zillion sources in a matter of seconds, if you want - but marketing your product is necessary to make it successful. And to have it make money for you.

What makes money within your product?
The way of money within your product and on the market you enter is a completely different and more complicated matter. What is the key to have your product make money for you?

  • Is it the content?
  • Is it the reader?
  • Is it the advertiser?

If you continue this line logically, you will discover something really surprising. It is none of them. I mean all of them. I mean it depends.

It is the guy, who buys your advertiser's product.
Ideally this could be your reader, and talking about an affiliate product this guy definitely must be your reader. So when your income is focused on affiliate sales, your product's most valuable part is the reader.

It is the guy, who pays you when your readers click on his ads
This is nearly the same as the previous one: actually the one who is paying is the same. The difference is on your side: now the advertiser himself gets more important. In this case the advertiser is your product's most valuable participant.

It is the guy, who will actually buy your product
You don't have to be advertiser dependent. You can have your own product on sale (and have someone else bothering with affiliate marketing for you). In this case, your product's most valuable part is definitely content. Unless it is of high quality content, nobody will ever buy it.

I'm not sure I've made every possibility clear, but the bottom line is this: you have to know which part of your product is the most valuable for you, and it has to be defined from the aspect of its money-making capabilities. The way you want your product to make money, the way you have to develop it further. You don't have to bother with content a lot, if you are depending mostly on your readers, and advertisers get secondary, when your product's main value is content.

My suggestion is that you analyze your product as deeply as you can, and I'm sure you will find surprising things.

And come back tomorrow!

This post is closely connected to a previous post: Know your subject!

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