So I divide assets into three categories: virtual assets, physical assets and financial assets. For more information, see Asset Creation Panorama:
At the same time, I divide the cultivation of financial quotient or asset building into four stages and six abilities. The first stage is: creating assets (valuable+making money), the second stage is: increasing assets (financing+investing money), the third stage is: keeping assets (spending money+distributing money), and the fourth stage is: inheriting assets (letting children have six aspects of creating assets+increasing assets+keeping assets).
Then these four stages also represent four levels and six dimensions. The first stage: creating assets, that is, the ability to have value and make money, is the foundation of financial business cultivation. Only deep roots and luxuriant leaves can support the towering trees, so in my last article, I shared with you how to be a valuable person.
So today I'm going to share with you the money-collecting framework that money-making experts are strictly implementing. I want to let you know some principles and strategies behind making money through the sharing of this article, so as to help you become a person who can make money as soon as possible, and even become a person who can make a lot of money continuously. Then this universal framework of making money is: the core law of making money+the universal model of making money+the core formula of making money.
0 1. The core rule of making money
Law of making money 1: The origin of making money is to help others and benefit the world. My philosophy of life is: "cultivate one's morality, keep one's family in order, help others and benefit the world", in which "help others and benefit the world" is the source of making money, that is, your heart, heart, heart, help others and benefit the world, that is, morality and ability to carry things.
And money is the value medium and circulation tool of everything in the world. Money will only flow to places that are valuable to people, society and mankind, so what we can help and realize is how much money and wealth we attract and carry!
Rule 2 of making money: multiply your time infinitely. The scarcest resource in the world is time. How to double your time? You can continue to expand your team (let more people help you provide and export value); You can also engage in copyright creation and patent invention (selling the value created by your time indefinitely).
You can also let money help you make money, but you must know where the money goes, either becoming a liability or an asset. Only assets will bring us endless money, so you need to know how to build and lay out your own value assets in an all-round way and do a good job of family inheritance in order to achieve prosperity from generation to generation.
Special note here: grassroots should never invest easily, especially financing, otherwise it will be a narrow escape. Grassroots should first improve their abilities in an all-round way and make money first, instead of rushing to make money easily, which is called Qian Shengqian, but wait until they have a house, a car and spare money before stepping on various investment pits, and then accumulate investment experience.
Otherwise, it is easy for the grassroots to get into debt. If a person has no valuable skills but lacks the ability to make money, once in debt, he will become unconfident, have no energy and have no state. Debt can easily destroy some weak-willed people, but if you can rise from the bottom of debt, it will be the most precious experience and test for a person.
Rule 3 of making money: focus on areas that never decline. Only by continuous concentration can we continue to generate compound interest. Whether in business or any field, the algorithm of human brain will only easily remember the first, first and best brand promotion in a certain field.
Just like Huawei in the field of communications, Ren Zheng Fei, Huawei's boss, once said, "For 28 years, we only charged at a city wall." This wall is communication, an industry and field that will never decline.
Rule 4 of making money: business model is very important. It is better to choose a good track than to design a business model. Without model, there is no business, products are king and models are backward. The nature of some industries determines the advanced nature of their models. Therefore, when trying to design a business model, it is best to choose the industry first, because the trajectory of some industries is doomed to be extraordinary from the beginning.
This is why most of the giants that have risen in the past 30 years were born in the Internet economy, because the Internet economy has no time and space constraints. Anyone, anytime, anywhere, as long as there is a certain demand, the network can meet each other with high efficiency and low cost, and the marginal cost of the Internet giant will infinitely approach a certain point or zero with the increase of the geometric level of users.
Rule 5 of making money: money is a tool to gather people, and you can make more money by dividing money. When money is scattered, people will gather, and when money is gathered, people will disperse, so that we can earn more money by sharing money. Money is divided well, and it is divided more and more. On the contrary, if the money is not divided well, it may be divided less and less.
Among all the institutions, Huawei is the best at dividing money. Huawei is also the only one of the world's top 100 companies that is not listed. The potential energy of an organization is not only driven by vision, mission and values, but also driven by money and wealth. Huawei has grown from a little-known grassroots company to a world-class top 100 company in 30 years, which is not unrelated to Huawei's way of dividing money.
02. General mode of making money
What is the general mode of making money? The universal mode of making money is the golden triangle and the five-element map of the business world. The golden triangle of the business world is: boss, customer (user) and employee (team), and the five-element diagram is product, team, marketing, channel and capital.
Users, to whom? Solve the problem of doing it for whom.
Products, what to sell? Solve the problem of what to do.
Team, who will sell it? Solve the problem of who will do it.
Marketing, how much? Solve the problem of how to do it.
Channel, where to sell? Solve the problem of where to do it.
Money, who supports it? Solve the cash flow problem.
Money is a carrier of value and a tool of circulation, so to make money, we must provide value for people, create value, help people solve their pain points and needs, or help people realize their dreams.
Therefore, the starting point of business is to identify users first, that is, to develop a set of solutions that can solve the pain points and needs of such user groups around a certain pain point or demand of people. This solution can be virtual products and services or physical products and services.
Therefore, if you want to make money, you must be a person who understands human nature and users. Of course, in addition to understanding human nature and users, you also need to have the ability of product design, research and innovation. Only in this way can you create a good product that has a market and can make money. We often call such people "product managers".
In order to let people have a deeper understanding of the product manager, let me illustrate that Zhang Xiaolong, the chief designer of Tencent's WeChat, is the product manager, and Lei Jun, the CEO of Xiaomi, gave himself the first position in Xiaomi, not the CEO, but the product manager, and Li Kaifu, the chairman of Innovation Factory, once said that the product manager is the best "preparatory course" for starting a business as CEO in the future.
More introduction of product managers is explained in detail in the last article "There is a promising career called product manager" in my electronic book "How do I have a million dollars at the age of 26". Interested parties can check it out and have a look.
In the first section of this article, I shared the core principle of making money with you, and in the second section, I shared the general mode of making money. When we know some core business principles and business models, understand the architecture system, and have the quality of product managers, that is to say, we can design innovative products even if we know the users.
Not enough, you must be very proficient in market operation and promotion. Especially for grassroots entrepreneurs, understanding market operation and promotion is far more important than understanding business principles, business models and system architecture, and understanding product development and design is also important. Therefore, I especially recommend grassroots entrepreneurs to do agency business first.
We try our best to improve our market operation and promotion ability by joining agents. When we have the ability of market operation and promotion, you can live first, and living is the premise of living better. Therefore, I will share with you several universal formulas for making money, which are the core formulas to solve the problem of market operation and promotion.
03. General formula for making money
Formula 1: product profit * passenger flow * conversion rate = gross profit target. This formula is easy to understand. No matter what business you do, if you want to increase gross profit, you should either increase product profit, increase passenger flow, increase conversion rate or do it at the same time.
For example, when we do WeChat business, the gross profit target is = product profit * number of WeChat friends * conversion rate. If you want to be a freelancer and increase your income, it's simple. You can first find a merchant with front-end products and services to ensure the profitability of the products, and then try to add powder to create 10 WeChat, or even dozens of WeChat, each with 4000 people.
Then, it is to improve your communication and trading skills, especially your copywriting ability, which is why copywriting training is very popular now. What sales letters, what money-collecting copywriting, what killer copywriting and money-making copywriting are all teaching you to collect money and make money through copywriting.
Formula 2: customer unit price * passenger flow * conversion rate * repurchase rate = revenue target. Understand the universal formula to make money, then the universal formula 2 is easy to understand, because this formula is only an expanded version of the previous formula, for example, we open a shop to do business, whether online or offline.
We can all increase revenue from the above four dimensions. Through product optimization and upgrading, we can divide products into three categories: drainage products, trust products and income products. In particular, we should carefully design back-end profit products to improve the average customer unit price and profit.
Then it is not much to say that increasing passenger flow and increasing conversion rate. Let's focus on improving the repurchase rate. The same customer comes to the store once a month, which is different from spending 10 times and 100 times a month or never coming again. This has a very different impact on income results. Therefore, in order to improve the repurchase rate, we must make great efforts on products and services, including marketing strategies (the marketing means of recharging customers comes from wanting to improve the repurchase rate).
Formula 3: Product unit price * number of customers * number of teams = revenue target. Formula 3 is more for business and sales companies, that is, when our revenue is closely related to the personal performance of the business sales team, we need to increase our revenue by continuously expanding the sales team.
Formula 4: Explain the reason+core product+unique selling point+super gift+zero risk commitment/negative risk commitment+scarcity and urgency+price details+special reminder. This universal money-making formula, also known as the universal clinch a deal proposition, was put forward by China direct selling inheritor Liu Keya. This universal formula for making money is also a sales letter template. I would like to recommend Mr. Liu Keya, one of the pioneers in China's marketing field.
The omnipotent formula for making money 5: innovation-cultivation of maturity-transaction-fission. The fifth universal formula for making money comes from Mr. wangtong and Mr. Qin Gang of Qin, who defined the ranch theory. Ranch theory is a good combination of the fish pond theory mentioned by Mr. Liu Keya in his book "Making money is so simple" and users' thinking about the Internet. Here I mainly recommend wangtong and Qin Gang to you.
Formula 6: Seize the potential-cultivate-clinch a deal-pursue sales-fission. The sixth formula for making money comes from Mr. Zhi Duoxing, a direct disciple of Mr. Liu Keya. I studied and cooperated with Mr. Zhi Duoxing for a while and learned a lot from him. He is one of my favorite post-80s generation. I recommend Mr. Zhi Duo Xing to you.
Formula 7: Brand building-traffic explosion-trust cultivation-seamless transaction-fission growth. The universal formula 7 for making money comes from the wolf master's five-element system for making money in Langshan Society. Wolf owner once built a community space station that affected the whole community marketing community from 20 18 to 20 19. His five-element wealth-generating system in 2020 is worth learning and learning from, so I recommend Master Wolf for you.
Formula 8: influence+marketing strategy+profitable copy+good product. Formula 8, the universal formula for making money, comes from the personal brand profit system introduced by Mr. Zhi Duoxing in 2020. With regard to personal brand building, Mr. Zhi Duoxing published the book "Marketing Equation of Self-made Stars" on 20 16, and the personal brand profit system once again promoted personal brand building to a new height, so in the face of the unlucky situation in China in the next 20 years, I recommend you to study it again.
Formula 9: influence (brand building system)+marketing model (ranch theory+killer copywriting)+good product+organizational structure (automatic and efficient operation)+money-sharing art to make money universal formula 9 is what I integrated for everyone. Learning is to gather everyone's strengths and then use them for us.
I recommend learning from Apple, Alibaba, Xiaomi, Huahua, wangtong and Zhang Jiebin. I suggest learning from Liu Keya, wangtong, Qin Gang, Yuan Guoshun and Zhi Duoxing. I recommend learning from Liu Keya, wangtong, Li Bingchi, Zhi Duoxing and Huang Zhenyu.
For good products, I recommend learning from the explosive thinking of Apple, Xiaomi, famous products, IKEA and Jin Cuodao. I recommend learning from our party, Huawei, the Internet giant, Guo Fansheng's equity incentive, and Chairman Su Yinhua's systematic thinking and learning mechanism.
Just like Guo Jing in The Legend of the Condor Heroes, he learned archery skills from the first master "Zhe Bie"; He also learned some basic martial arts from the "seven eccentrics in the south of the Yangtze River": Yue girl sword, skillful swordsmanship and some foreign fists; During this period, I learned some internal skills of Quanzhen Sect from Master Ma Yu.
Later, his teacher "Hong Qigong" taught him excellent martial arts: clapping the hands of eighteen dragons and sticking dogs. Hong Qigong, a professor of Zhou, directed Jiuyin, and Deng finally translated Yijinjing Forging Bone and General Outline in Jiuyin, becoming a peerless master.
Therefore, if you want to make money, you must combine these great institutions I mentioned above with the wisdom of cattle people and vigorously implement them. Then I believe you must be the next master of making money.