This Is The First Step To Make Easier Profits in Your Business
This Article Is Based On $1.9+ Million In Sales And Research From 6 Of The Most Successful Salesmen in History
For most of my life, I made little profit in business.
Starting around 2016, I read multiple books by the fathers of modern advertising
Men like: Claude Hopkins, David Ogilvy, John Caples, Victor Schwab, Gary Halbert, and Rosser Reeves.
These books were written in the early to mid-20th century.
As a result…
Over four years, I went from $0 to a total Of $1.9 million in sales
With hundreds of thousands of profit.
During this time…
I learned that, specific types of businesses make easy profit
Most of us have been wasting our time.
Because we don’t understand that a few types of businesses make most of the profit in this world.
Now, I cringe when a person doesn’t understand what types of products and services make money
Many of those business owners are passionate about money-LOSING ideas.
“If an iron tool is dull and one does not sharpen its edge, he will need to exert much effort. But wisdom helps to achieve success.” Ecclesiastes 10:10
I hope this article helps you avoid wasted time and effort
If you remember only one thing from this article, remember this…
Profit-making businesses satisfy a profitable appeal
What is an appeal?
An appeal is a need, problem, or want that your customers have
For example, humans need money. So, “I help you make money” is an example of satisfying an appeal.
But some appeals are big money-makers and some aren’t
For example, if a man’s life is at stake, you can charge that man every penny he has to save his life and he will pay it.
That’s why medicine is so profitable.
But, if a person is hungry, he may look for the cheapest meal possible.
That’s why it’s difficult for a restaurant to stay in business.
Therefore…
To predict money-makers, you need to become familiar with the most profitable appeals
The better you remember and understand these, the better you’ll become at picking winners.
Finally, don’t confuse these appeals with superficial attention-grabbing appeals like sex appeal or humor
Sex appeal, humor, etc. are sometimes referred to as appeals. (Saurav, S. “Top 10 Advertising Appeals that really work”, 2020)
But…
What gets attention, doesn’t necessarily make money
The appeals in this article are NOT appeals that get superficial attention.
They’re appeals that you can build profitable products and services to satisfy.
The appeals we’re talking about solve real problems or fill real human needs
Saving money is a real need.
Making money is a real need.
Being healthy is a real need.
Finding a romantic partner in life is a real need. (Again, not the superficial sex appeal used to sell a hamburger or a car. But a product of service that genuinely helps a person find a partner in life is a real need — for example, a book with relationship advice.)
Without further ado…
Below are the appeals humans will spend any amount of money to solve
#1 The Need For Income
Most humans don’t have as much income as they need, or as much income as they want.
If your business idea can make your customer a bigger income, it’s a money-maker
For example, as of 2020, Google and Facebook are the #7 and #10 most profitable companies on the planet. (Statista, 2021)
Why?
Google and Facebook both sell ads by the billions to help businesses generate sales
Those two companies have close to zero percent of their revenue coming from any other source.
Yet…
Because Google and Facebook help their customers make income, their customers spend whatever it takes
For example…
I’ve spent over $86,000 on Facebook and Google ads; and I’d happily spend $86,000 more
Why?
Because those ads have made me many hundreds of thousands in sales
You get the point?
Your customers will happily give you money if your business idea can boost their income
In reality, your business doesn’t even need to do this successfully for all customers.
Sadly…
Even the hope of higher income generates sales
That’s why pyramid schemes are popular.
Colleges sell this hope.
Many colleges never deliver. Still, every year, students line up to go into debt for this hope.
The income appeal is so powerful, many make millions and never even deliver on their promise
Please, note:
I’m not advocating you exploit this appeal unless you can deliver
But, I want you to understand what makes money and why.
The better you understand it, the faster you can find profit-making ideas and skip losers.
#2 The Desire For Wealth
After a human has income, his next goal is typically wealth.
Some of the most profitable businesses in human history focus on creating or protecting wealth.
In 2020, the top 15 hedge fund managers made $23 billion in income! (Maloney, T. Et Al. Bloomberg, 2021)
Fifteen men were paid $23 billion ($1.53 billion each) in a single year to help make rich people richer.
Humans want their wealth to keep growing
That’s why the women and men on Wall Street are some of the best paid humans on the planet.
Remember, you can build a product or service that builds wealth without starting a hedge fund
For example, real estate education, personal finance blogs, stock newsletters, investor education are all examples of business ideas that help customers create wealth.
The possibilities are practically infinite.
If your product or service helps your customer build wealth, it’s a money-maker
The next appeal is closely related to the first two.
#3 The Desire To Protect Wealth And Possessions
Wealth protection is the next profitable appeal.
Humans will pay beyond real-risk to protect their possessions and pass on wealth when they die
Life insurance and many other forms of financial insurance are profitable because humans pay an excessive premium to protect what they have.
That’s why insurance is lucrative
Did you know…
Warren Buffet built his business empire on insurance (Frankel, M. Motley Fool. 2017)
For example, his company — Berkshire Hathaway — owns GEICO and many other insurance businesses.
Except for health insurance (which we’ll get to later) almost every type of insurance is for protecting assets and financial security.
Here’s another example of a profitable business that protects possessions…
Storage units are a form of protection for possessions… They are hilariously profitable
Would you rather run a busy restaurant or a full self-storage facility?
Many entrepreneurs try to start a restaurant because it seems like an easy way to make money
What a sad waste of effort.
As we mentioned earlier, satisfying hunger is not a profitable appeal.
This makes a restaurant one of the least likely businesses to ever turn a profit.
Unsurprisingly…
Storage units are 3–4x more profitable than the average restaurant (Storable.Com, 2021)
Yet…
Imagine how much easier it is to operate a storage facility versus running a restaurant
Again…
When you pick a business that targets the right appeal, making a profit is easier
Customers who have money or possessions want to pay someone to protect it.
They will give your business large amounts of money if you can help them protect their possessions and their wealth.
This is the end of part #1 on this topic
In summary, we’ve discussed three money-making appeals.
If your product or service can deliver on any of the above appeals, you have a great chance of running a profitable business.
The next article is going to discuss three more money-making appeals
If your current product or service doesn’t target the three appeals listed above, that might be okay.
There are a few other appeals that are also reliable money-makers.
We’ll discuss those appeals in our next article.
Stay tuned for Part II and three more money-making appeals!
References
“Most Profitable Companies in the World | Statista.” Accessed November 6, 2021. https://www.statista.com/statistics/269857/most-profitable-companies-worldwide/.
“Coleman Leads $23 Billion Payday for 15 Hedge Fund Earners.” Bloomberg.Com, February 10, 2021. https://www.bloomberg.com/news/articles/2021-02-10/chase-coleman-leads-23-billion-payday-for-15-hedge-fund-earners.
“Why Warren Buffett Loves the Insurance Industry | The Motley Fool.” Accessed November 7, 2021. https://www.fool.com/investing/2017/03/18/why-warren-buffett-loves-the-insurance-industry.aspx.
