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10 Time-Tested Ways to Make Money

10 Time Tested Ways to Make Money In Patterns That Work, I compiled a short list of patterns that describe how the vast majority of businesses make money:

Product: make a physical product, then sell and deliver it for more than it cost.

Service: provide a useful service, then charge a fee.

Shared Resource: create a shared resource that can be used by many people (like a gym), then charge for access.

Subscription: offer an ongoing subscription, then charge a recurring fee.

Insurance: write an insurance policy against some specific bad thing happening, collect premium payments up-front, then pay out claims only when the bad thing happens.

After thinking about this subject a bit more, I thought of five more common patterns…

Resale: acquire an asset, then sell the asset to another buyer at a higher price.

Lease: acquire an asset, then allow another person to use that asset for a certain amount of time in exchange for a fee.

Audience Aggregation: create and distribute information that appeals to a specific set of people, then sell access to that audience (advertising, direct mail, etc.) to an interested third-party.

Commission: sell an asset you don’t own on behalf of a third-party, then collect a percentage of the sale price as a fee.

Dividend: purchase an ownership stake in a business, then collect a corresponding portion of that business’ profit over time as a dividend.

You can describe 99% of all businesses – past and present – using one (or more) of these core patterns. If you want to create a successful new venture, start looking for ways to do one (or more) of these things.

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Categories : Online business    Themes : Learning
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