Some Knowledge

I just watched a video somebody sent me on how to make money.  What you need to do is find businesses in your local area that don’t have a web presence.  You go to these places and propose to them that you set up a website for them.  Then you set up a website and get paid.

Of course, the video I watched was almost seven minutes long, but I just gave you the general idea in three sentences.  Why does it take some people ages to say something simple like this?  Anyway, if you know how to make web pages, this might be an opportunity for you.  I might look into doing this myself.

The way to make money is to sell something.  It’s simple.  You sell something to somebody for more than you pay for it.  The difference between what you buy an object for and what you sell it for is your profit.  It is important to sell your offering for more than you pay for it.  If you sell at a discount for less than you pay for something you will not make money, you will lose money.  Total profits will be the amount you make on each item multiplied by the number of items you sell.  The math is very simple.

There are hidden costs in selling items.  You might have to pay shipping for items you buy to sell.  You might have to pay some salesman to sell your items.  You might have to package your items before you sell them.  All these costs should be added to the price of your item.  Then you add on a profit margin.  If you do not account for the costs involved in selling items you will lose money.  It is very simple.  You need to sell items for more than it costs you to purchase the items and handle them and package them.

There are other costs to doing business.  If you sell items over the internet you will need to pay for your web hosting.  You will need to pay the government taxes on your sales and profits.  You may need to pay wages and benefits to workers who do the actual work in your sales business.  If you manufacture the items you sell, it will involve a whole slew of costs such as running a factory and buying raw materials.  You need to account for all these costs in your price.  You may need to hire promotional people to generate a hype for your product.  You may need to hire tax accountants to keep the books.  You may need to do a lot of running around to get the best deals on the stuff you sell.  All these costs add up and need to be taken into account when you sell your offering.

Of course, you can only jack up the price of your items so much before people stop buying them.  There is also competition from businesses selling the same type of item.  You will need to set prices at the right level to maximize your total profits.  This may take some trial and error.  You may have to get sales data at different price levels to see how well your product sells.  Of course, this is going to be a big operation and a lot of things can go wrong.  Maybe nobody wants your expensive optional decorative product.  You may end up losing a lot of money instead of making money.  You need to do some research and planning before you decide on what you want to sell.

You make money by getting people to give you more money for some thing you are selling than what it costs you to supply to them.  To get rich you will need to make a lot of money.  More importantly, you will have to spend less money than you make.  This allows money to accumulate.  If you spend more money than you make you will lose money and not get rich.  No matter how much money you make, if your outflow of cash exceeds the inflow you will have less than nothing and end up in a lot of debt.  You do not have to be a miser, but you have to watch what you spend.  Your business will be the biggest expense.  It costs a lot of money to run a business.  Still, if the business makes more than it costs this will be a source of income for you.

To make money and get rich you will have to run some kind of business.  Unless you get lucky and win the lottery there is no other way to make a fortune.  There is a lot of competition in business.  You will have to sell your products for less than the competition if you expect people to fork over their cash for your offering.  This is how an economy operates.  There is no magic formula to getting rich.  Sure, you can always invest in other people’s businesses by buying stocks and bonds.  Of course, you will have no control over how other people do their business and if you lose money there is nothing you can do about it.  You will also need a lot of money to invest if you try to make a fortune this way.  In the end, it is still some business making or selling some product to people that is generating the money.

Even if you become a rock star or a famous author and make your fortune this way you will still have to do some work.  Nobody is going to give you money for nothing unless you are a politician running for office.  If you work for yourself and take all the risks in your occupation you will be the one to benefit from your efforts.  Of course, you might also fail and lose all the money you had to start with.  Business is like gambling.  There is always the chance of failure because of factors you can not control.  That’s life.  There is no reason you can not start over and try something else if your first idea does not pan out.  Find something you can sell for a profit and get busy.  If you work hard and are lucky and don’t spend all your profits, you too might become rich.

When the price of oil increases, the stock market seems to decline.  There is a causative factor here.  Our economy runs on oil and other fossil fuels.  The energy to produce items is derived from this fuel.  When the price of oil increases, the cost of producing and shipping an item also increases.

Many of the goods produced by industry also contain significant amounts of oil in the form of plastics and other petrochemicals.  The increasing price of oil causes the costs of production to also increase.  To preserve a profit margin for an industry, the price of an item will have to be increased to cover higher costs.  When prices are increased, sales decrease.  It is a simple economic relationship.  People will be less inclined to buy some article if it costs more.  When sales drop off due to higher prices, profits decrease.  When profits drop, the price people will be willing to pay to invest in a business in the form of stocks and bonds will also drop.  Thus, when oil goes up, stock goes down.

The only way to decouple a stock from the price of fuel is to operate a business on a stable source of energy.  If a large investment was made up front, a factory could be run by wind and solar energy.  Transportation is going to be the weak link in any such scheme.  Aside from electric trains, there is no means of transportation that does not depend on the cost of oil.  Some day it will be necessary to run the world on renewable energy sources.  This time will approach faster as the cost of petroleum continues to increase.

The converse of decreasing stock prices with increases in the price of oil is that as oil prices decline, stocks will tend to increase in value.  This is because lower oil prices mean a decrease in costs associated with production and distribution of goods, which means prices on goods can drop and sales can increase.  Increased sales lead to higher profits for a business and more attractive stock ownership.  The relationship between the price of oil and the price of stock is a causative relationship.  It is very easy to see that as the price of oil increases, the economy will lose money.

Here is how you make money on the net.  You sell information.  Copies of information cost you nothing.  You will need to follow this procedure exactly:

• Pretend to be rich
• Write as if you can’t spell
• Offer secret information
• Set up a site to take payments
• Be rude and obnoxious
• Call yourself The Rich Moron
• Offer a discount on your ebook
• Get your ebook from a PLR site
• Offer a money back guarantee
• Promote your website
• Make your money selling information on how to make money.

Any variation in this procedure is fine.  You don’t have to know anything about making money on the Internet.  The fact that you can’t write only proves you are a regular guy.  Look out for the authorities.

A popular search today is for Missing Money.  Are people really so daft that they would have forgotten that they had some money somewhere?  I can see using this site if you have amnesia and maybe you used to be a millionaire but you forgot where you kept your bank account.  I doubt anyone else would get any benefit from searching for missing funds.

I am not in the habit of opening bank accounts and then forgetting that I salted away some cash.  If I had an old account I’m sure the bank would have siphoned off all my funds by now for inactivity.  After a certain time the account gets sent off to the state as unclaimed property.  I’m sure the government doesn’t owe me anything.  I haven’t inherited any stocks or bonds from any rich relatives.  Why is this site so popular today?

All I can say is there must have been a news story about this somewhere.  I am in the mood to blame the media for everything.  Some person probably found out that they had a million dollars in some account by using this website and the news got to people who just had to check to see if they were dumb like that.  Maybe it was a famous person who found out about some inheritance.

There are 14,462 news stories about missing money listed on Google.  There were at least five stories today.  The news media creates buzz on some obscure topic and all of a sudden people start searching for more information.  All I can say is if you have lost some money by putting it in a bank and then forgetting about it you are probably an idiot and need a website to help you out.