There are diverse strategies used by the rich to make money and increase their revenues. Some of these strategies are models while some are just additional businesses for maximizing profitability. These are discussed as follows below:
1. LOW PRODUCT PRICE, BUT EXTRA SUPPORT:
This model is used by rich businessmen and successful businesses to make more money. Through this model, a product price is really affordable but clients are charged dearly for extra support such as installation, branding and training services. This is usually not favourable to clients as they get to pay high for these services. In some instances, these services may be recurring and the customers have to pay each time they need this service.
2. INVESTING IN STOCKS AND SHARES:
Steady investments in shares over a long period of time tends to yield profit. The most important thing is to make a wise choice and reinvest dividends so as to build a large capacity of wealth. Stocks usually have a potential to crash but even this crash presents a good buying opportunity for long term investors.
3. LOW PRICE BASE, BUT EXTRA INCOME ON DISPOSABLES:
This model is also known as the razor-blade model whereby the base unit is affordable and can be easily obtained. The main revenue is latched on expensive supplies. It is quite similar to the extra support model. An example of a business that uses this model is HP in which the printers are cheap but the ink cartridges are usually expensive. These cartridges need regular replacement and sometimes one has to buy like 3 ink cartridges at the same time for a clear print output.
4. INVESTING IN CRYPTOCURRENCY:
Cryptocurrencies like ethereum and bitcoin have proven to be strong over the years with investors’ confidence also increasing thus attracting more wealthy people. One unique thing about cryptocurrencies is that it can be decentralized. The bitcoin can be stored in a virtual wallet without bank account or monitored by any government. A lot of people have made millions investing in bitcoins and it is a way to make more money for the rich. Cryptocurrency is projected to increase further in 2021 before peaking and it is an investment a lot of rich people are looking at.
5. INVESTING IN REAL ESTATE:
A major strategy of the rich is to buy property. This is based on the fact that property more often tends to appreciate. Thus, this is a major model of successful people that is always being used. The turnover obtained from property or land purchase tends to be higher than the initial cost. Real estate can also be passed from generation to generation making it a viable inheritance.
6. WRITING A BOOK:
This is not just a hubby but an avenue for empowering others, widening one’s reach and also becoming more profitable. Book writing is becoming more popular these days as technology has made it possible to easily download ebooks and audio books with one click thus making books more marketable. Also, social media has made it a bit easier to market books. A lot of successful people are thus latching on this medium to expand their businesses.
7. NETWORKING WITH OTHER SUCCESSFUL PEOPLE:
The power of networking cannot be overemphasized; a lot of successful people intentionally network with other successful people and in doing this they expand their networks and networths. Networking with other rich people also tend to fix the mind focused on success.
8. FREEMIUM MODEL IN APP DEVELOPMENT:
This free model is used by a lot of app offerings like LinkedIn. A lot of app developers have functions that are free but premium services are available at an additional fee. Thus, the goal of the app developers is to convert the free users to paid users and thus also generate money.
9. CREATING AN ONLINE COURSE:
A lot of people would be willing to pay to hear successful people in any particular field give them success tips. A lot of people are leveraging on online training thus making more money and adding to their income. The higher the number of people trained, the higher the more money made.
10. PRICING BASED ON AVERAGE VALUE TO CUSTOMERS:
A lot of successful businesses and rich men put a price based on the value to a customer. They do not run a uniform pricing system. This model is unique to the product or service being delivered as not all products can work on this model.
11. BANK SAVINGS
The profit from bank savings may not be much but it provides an avenue to add to one’s savings and prevent extravagant spending. A lot of banks also have the option of creating a separate savings account and automatic withdrawals. A lot of rich people do this and thereby save passively increasing their income.
12. STARTING A PODCAST
This works well when an audience or large following is present. A lot of successful people have podcasts through which they dish out content to their base. Income through podcasts is usually through sponsorships and promotions thus, the more the audience, the higher potential to make money.
13. MAKING A BUDGET:
This strategy may seem too simple and can be easily overlooked but it is in fact one of the most important ways to make money and channel one’s resources towards the most important things. A lot of successful people budget and by engaging in budgetary activities spend money on what really matters and save money in the long run.
14. BECOMING A LIFE COACH:
Motivating others and sharing with others how to make life better is a way of making money. A lot of rich people have made more money by just speaking to others.
15. VACATIONING:
This might seem like an avenue to spend money but it is actually an investment in one’s mind and one health. Vacationing helps to relax, reposition and reshapen one’s mind thus giving room for creativity juice to flow. Vacationing also gives hope, sense of purpose and births new relationship. Money that could otherwise be spent on health can be channelled towards a vacation.