So how to make a million dollars fast? You may remember that in my previous blog posts, I had mentioned that a key method to become a millionaire is STARTING YOUR OWN BUSINESS.
But you may have several questions regarding this:
- “How exactly does it work?”
- “How can I start a business that will bring me so much money?”
Let’s start with the most fundamental thing – the MATH.
What Numbers Do You Have To See In Order To Make A Million Dollars?
- 250,000 people paying you $4 each for your product/service
- 100,000 people paying $10 each
- 50,000 people paying $20 each
- 10,000 people paying $100 each
- 1,000 people paying $1,000 each
- 1000 subscribers paying $83 per month
($83 per month X 12 months = $996)
At first look, these statistics might make it seem like earning a million dollars is a cakewalk. However, in reality, it is not so straightforward.
In the real world, money is not distributed and spent equally. A commonly stated figure is – 1% of the people consolidate over 50% of world’s total wealth!
Majority of the population purchases inexpensive products. Only a small minority will go for the premium options. In this case, even though the quantity of sales is low since the price of the product is high, it is still possible for you to realize good revenue.
From my experience, I can vouch for these two strategies:
1. Sell inexpensive products to a huge group of people
2. Sell premium products to a small group of people
Strategy 1: Sell Inexpensive Products To A Huge Group Of People
For those adopting this strategy, a common practice nowadays is to start an online business. You might think that this is a viable option as the initial capital required is very low.
However, it is also important to remember that – everybody else is also thinking the exact same thing! Since the entry barrier is low, the competition is very intense.
But don't be put off – it can still be the way to go.
For example, if you sell your mobile app that costs $2 to ½ a million people, then you can make a cool $1 million.
Moreover, Internet business allows you to combine the 2 “millionaire strategies”. You can sell a cheap product to a huge group of people. And then offer your premium product to a small percentage of your most avid followers.
Whether it’s online or offline, selling goods to a huge number of customers is the traditional way of doing a million dollar business.
“She Sells Seashells by the Seashore.”
The phrase “She Sells Seashells by the Seashore” is a famous tongue twister. Surprisingly, Alla from Ukraine used this phrase as a business model!
She buys the seashells from Vietnam. Then, she transports them back to her home country (Ukraine) and sells them on the seashore cities. Since the scale of this business is massive, she manages to generate millions of dollars in revenue.
Strategy 2: Sell Premium Products To A Small Group Of People
An example of this strategy is Gennady Balashov – he made his money through real estate.
Here is my recollection of an interesting interview of him:
The journalist: How many real estate units did you sell?
Balashov: Somewhere around 30.
The journalist: Umm, was that in the last month?
Balashov: No, over the course of my lifetime.
The journalist (surprised): That seems so little! How is that possible?!
Balashov: Well, our real estate products are so expensive that even if we make one sale in a year, we already can afford a very luxurious lifestyle.
To sum up, you must pick between these two strategies when starting a business.
You may still be confused about the business idea itself. Here is my advice – ‘Do what you like!’
Do What You Like!
This may be a clichéd advice, but it is only so because history has time and again proven its importance.
In this amazing book, "The Millionaire Next Door" by Thomas Stanley and William Danko, they studied several American millionaires. What they found common amongst these millionaires was that they were all very connected to their business.
They LOVED what they did and were PASSIONATE about their jobs.
Therefore, there is clear evidence that in order to succeed in a particular area, you must love it! This is pretty intuitive – you are competing with others who are in the same sector. Naturally, if they are passionate about what they are doing and you are not – they will obviously fare better.
Here is an interesting story from my life –
Once, my wife and I were touring Thailand. During this trip, we started conversing with the resort owner, where we were staying. He told us that recently he had received an offer to sell his resort for $8 million (so, he is obviously a millionaire).
What was more surprising was his age. When we were asked to guess his age, our best guess was around 40-50 years old. We were shocked to know that he was actually in his 60s!
When asked how he managed to look so young, he told us that he loved his job. He had no stress. He was happy. Therefore, he looked very young and healthy.
This just goes to show that ‘Doing What You Love’ is the best option.
What If I Am Clueless About What I’m Passionate About?
Not all of us know what we are passionate about or where our interest lies. In this case you have to approach it from a different angle – we tend to like things that we are good at.
For example, my wife gives training classes to children for board games.
When she asks the kids which game they like to play, the answer is usually the game that the kid performs the best in.
Therefore, it is not quite the ‘game’ that these kids are passionate about. Rather, it is the feeling of victory and superiority they enjoy when playing the game.
It is the same with adults too –
It is NOT quite the ‘activity’ that we love so much. Rather, it is the gains that we get through this activity that entices us.
Therefore, if you have no particular passion at this moment in your life, concentrate your efforts on mastering ‘One Particular Thing.’ It is most likely that this ‘one particular thing’ will become your passion later in life.
- Start your business. It is a key way to become a Millionaire.
- When starting your business, you have two options:
-Sell inexpensive products to a huge group of people
-Sell premium products to a small group of people
- Do What You Like.
- If you are not sure what you like, then concentrate your efforts on mastering one ‘particular thing’. When you start getting good results with this ‘particular thing,’ you will become passionate about it automatically.
P.S. Do you know of anyone who has followed their passion & became a millionaire at the same time?