- Business and Employment
The Philosophy of Making Money Online #1
I've decided to create a series of hubs based on my conception of a philosophy of how to make money online. This will largely be an unedited and uncensored view into my thought processes as I try to understand the fundamentals of making money online, but of course in my own rather idiosyncratic way.
The general way I think about things is purely reductionistic. I can't help but try to find the fundamental elements that underlie all causes and effects of the world, and making money online is no different. That's just the way I'm wired. Thus, this will all sound kind of highfalutin and largely pointless to the practice of actually making money on the Internet. However, pageviews aren't my goal here, unlike they are with my other online projects, though of course I would love if people do read this series of articles. Furthermore, I believe producing a coherent philosophy of online money making is central to getting the most out of all our daily activities and our final outcomes.
In sum, I just want to use this series of articles as forum for my continuing thinking. If any of you on the inter-webs actually get value out of this, so much the better. Leave comments if you like!
Online Assets are Fundamental to Success Online
What I want to discuss today is a concept I've been thinking about lately. It is about how we generate assets online. An asset is something that will provide us some future economic benefit. Thus, our goal in order to make money in any endeavor, especially online, is to generate as many assets as possible. This will translate into the highest equity that we can achieve. (Equity is just your assets minus liabilities, or what you owe.)
Unfortunately, we largely sabotage ourselves when it comes to this. Think about how most of us spend our time "working" online. We spend our time doing things that produce pretty much no assets: reading blogs, learning about making money online, reading more blogs, posting in forums, and reading more blogs. Meanwhile, we spend precious little time actually producing assets that will make us successful in the long run. This is, of course, because producing assets is incredibly difficult. It's time-consuming and mentally straining. This is why, of course, they're assets. It is precisely in their difficulty that we find their value.
The Connection to Productivity
Let's take it from the angle of the Pareto principle. 20% of our activities generate at least 80% of our revenue. Obviously, this 20% activity is our production of assets. Let's just put some flesh on these bones first and assume that the production of assets is writing online content, such as writing for HubPages. Instead of wasting time doing relatively unproductive tasks, we should maximize our time producing assets such as articles and backlinks to those articles to increase our search engine visibility.
Though I started this article with the objection that a philosophy of making money online would be largely unproductive, I believe we can extract a crucial nugget of value from this piece. It is simply this: we should maximize the amount of time spent producing online assets. Obviously, it is much more complex than this. We can ask: what exactly is an asset? How can it be produced? How can we maximize its value? And indeed, there are many other valuable activities that do not produce assets. For instance, though I denigrated education earlier in this article, learning about making money online is incredibly important in order to maximize the value of your assets.
However, these simplifications are not as damaging as one might think. It just comes down to this: spend the majority of your time producing online assets, and you'll surely not fail.
Until next time...
To your success today and tomorrow,
The Knowledge Broker
For 10 specific ways to get started making money online today, check out 10 Quick Online Moneymakers.