Quote:
Originally Posted by Illumination  Why separate the two to begin with?
Focus on providing value that rakes in money. It's a cycle to me.
If you provide value, you should get monetary returns. Once you get monetary returns, you then use it to innovate and improve your productivity to provide even more value. And so on. |
Provide value first. Money will come when people start demanding the value you are offering. Value creates demand.
The reason you can't mix the two is that focusing on money early on will dilute your focus on providing value. For example, if you're giving away free information, you start attracting a lot of people. Those people will equal money in the long run. But if you're too worried about the money, you might be thinking you're losing out on those early dollars by giving away the information for free. This will throw you off the path.
A more concrete example would be the mobile phone industry. Wireless service providers figured out that if they practically give away cell phones, customers would flock to them and subscribe to their services.
Same thing with broadband internet. Give away the cable/dsl modem to make it easier for people to sign up.
Other loss leaders: Grocery Coupons, Gaming Consoles, Any Other Type of In-store Sale, etc.
The idea is the same with all of these. Create value by giving away something for free or cheap and you reap long term residual revenues.