Develop a money making mindset to monetize of a product or service that you have created. The economy is tightening, prices of goods and services are increasing, and earning money is becoming more difficult. Working a job for a fixed number of hours and a fixed income just doesn’t keep up with the changing economy.
Some people are creating alternative income streams through the monetization of a product or service that they have created. Once they create a product or service, they make additional income with little effort. Let’s learn how to develop a money making mindset to monetize your skills and knowledge to earn extra income.
What is Monetization?
If you look up the term “monetize” in the dictionary you will get a definition like:
“Earn revenue from (an asset, business, etc.).”
“Convert into or express in the form of currency.”
A monetization business model is a methodology to earn money from products, services, intellectual property, or your own personal brand.
Sometimes you can make money from ordinary products or services in unexpected ways.
How to Monetize Your Business Ideas
Many business ideas started out as a hobby or interest that wasn’t intended to make money. The hobby was gradually scaled up into a business that eventually generated enough income to replace a job. This is usually a long and difficult journey for many entrepreneurs but is well worth it eventually.
Some people already had an existing business but were putting in too much effort to make any real money. Then they realized they were working the business the wrong way. When they changed the business around, they had a lot more success and started to make money.
Monetization Example
A man had a woodworking hobby in his garage. He developed his skill set and made some outdoor furniture. He enjoyed working with his hands and was proud that he crafted the furniture himself. Eventually, friends told him to start a business because his furniture was very good quality. The man began selling his furniture on a website and supplying a furniture store. However, he could only produce low volumes of furniture even though he worked 7 days a week in his garage. Soon he found he could not keep up with demand and started to lose customer orders.
The man thought about expanding the business. Maybe he should move into larger premises, purchase additional equipment, and hire staff. However, the cost of starting a larger business was prohibitive. He would need to borrow money to fund the expansion and work for several years at a loss before eventually, making money. He would be taking on a significant level of risk and be reliant on other people, and growth of customer orders.
One day, the man was reading a business article about changing your money making mindset. Rather than thinking about running a conventional business where you do everything yourself, why not focus on one aspect of the business. Become an expert at one part of the business and leave the hard work to others.
He realized that he could change the business around into a low risk, low capital requirement business that would be easy to manage. He knew that he should focus on the strength of his woodworking skill set. The success of his garage-based business was not the furniture but the designs of the furniture.
A Money Making Mindset
He had created original designs that you couldn’t find in any furniture store. The detailed designs were his intellectual property. The most difficult part to making furniture was the design. Making furniture was easy once you had a design with detailed instructions.
The man started a new business. He engaged a software business to build a website to sell his furniture designs. Customers would pay for the detailed plans and instructions to build the furniture themselves. Once the website was ready and designs loaded, all he had to do was promote the business.
The business was now generating passive income. Create the product once and sell it many times over. This is the best and most lucrative business strategy. Now the man made money while he was on holiday and sleeping at night.
How to Make Money with Affiliate Marketing
What is Passive Income
Passive income is money that you earn without continual, direct effort. You can earn passive income 24 hours per day without your involvement.
The simplest example is depositing money at a bank and earning interest. If you have capital, you can invest it and earn interest income.
Another example of passive income is investment property income. Rental income is generated from renting the property to a tenant. There is no direct activity required by the investor.
One-off Sales Income
One of the best and easiest business strategies is to create a digital product or service once and sell it to many customers. The cost of the creating the product is fixed and minimal. Once the product is created it may be able to be sold for a long period of time generating a permanent income stream. This type of business can produce a large return on the initial investment.
Here are some examples:
- Writing and publishing a book
- Writing a song
- Producing a song
- Producing music
- Creating a training course
- Design fashion templates
- Creating a design for house, landscape, furniture, etc.
- Developing a software application
Recurring Sales Income
The best and most lucrative business strategy is to acquire a customer and generate recurring income from the customer. The customer contracts to a service that may last many years. The cost of producing the service is fixed irrespective of the number of customers. Once the breakeven point is surpassed, each additional customer is pure profit.
There is an initial cost of capture to acquire the customer but the recurring income stream produces a highly profitable return on investment.
Here are some examples:
- Internet service reseller
- Website hosting reseller
- Mobile phone service reseller
- Electricity reseller
- Affiliate marketing sale for a recurring service
- Sell advertising space
- Membership websites to view content eg yoga videos.
- Gaming websites
Best Markets for Affiliate Marketing
Develop a Money Making Mindset Now
Product and service development is endless. Every year many businesses begin with new products and services. Some businesses may have a great idea for a product or service but have no idea how to start. Some business ideas require a lot of capital, are technologically challenging or are labor intensive.
Try to develop a business idea that does not need a lot of money, people, or new technology. Nothing happens in your life unless you first plan to succeed. There is no harm in developing a business plan and not starting anything. It’s a learning process that moves you closer to eventual success.
However, unless you develop a money making mindset and actually start a business you will never succeed and make more money than that 9 to 5pm job. So what are waiting for?