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Psychology Of Making Money Online

February 19, 2022
the psychology of making money online

Someone said they want to make money, fair enough, And you want to make money online

So let’s start from there

For whatever reason you need money, that’s up to you. But I believe the reason why you need money predicts how you go about making it

One of the commonest ways known to man for generating income is the job

And with “getting a job” comes the need to acquire some qualifications in the form of certification for what you can do…

In other words, skill, knowledge, and experience.

Now, know that a skill is something of value. And knowledge is valuable. So is experience

But skills and knowledge can only be trusted if you have gone through the established institutions or perhaps done something to prove you can do something.

Therefore, we have all been taught to go to school, spend two decades acquiring basic knowledge that often doesn’t come with contemporary skills. Now remember I mentioned knowledge and skills, not only knowledge

When getting a job cannot be the plan

But as much as I can’t say “go to school, get a secure job and work there for 40 years and retire to your village” is a bad piece of advice, I can say we millennial and gen Zs don’t seem to do well with that advise

Why?

Things have changed and our generation has seen better ways of getting things done.

So the result? We

  • Hate work
  • Feel we weren’t motivated
  • Feel we aren’t achieving much
  • Can find work

Globalization has brought Indians into Ghana as much as it has sent Ghanaians into Spain.

We are now in a different game

And sadly…

“Get a job” doesn’t always work for everyone. A result of our times.

The major reason is the Internet. Or as it has come to be called “Online”

If you search for the term “make money online” on Google right now, you’d get 4.1 billion results in a fraction of a second

Insane!

While this alone shows that making money online is a booming niche, it is also highly competitive.

Secondly, the rate at which Google spits out the results shows how our economy has changed. It has moved from “waitlists” and Queues to “Now”

This has become known as the Microwave mentality

One thing we have realized as millennials and gen Zs is that, you don’t need an office job to make money simply because the internet in itself is a goldmine – and unlike other ways of making money where you could be judged by your color, age, race, etc. No one cares about your identity on the internet. Cryptocurrency and blockchain is giving testimony to this fact.

Back to knowledge and skills.

As much as no one cares about how you look, they do care about your knowledge and your skills

Basically, what you have to offer.

Why am I talking about this? Career, millennial, and some other fun stuff?

Because it’s all connected…

2020

Covid Hit us all.

The pandemic came – we had prices hike and everyone thought the economy would crash and heaven would open.

We panicked and something happened while we stayed at home.

Already billionaires,

Jeff and their friends increased their incomes by a couple of Bs.

Their traditional business CEO colleagues suffered while they thrived

Perhaps this pandemic has done more for the digital economy and the internet than years combined

Work from home became a thing and now, most employers don’t even want to go back to work. They would rather have a cut in salary than go back.

Some others (a lot) quit due to their newfound freedom and independent working from home falling to various make money online strategies.

We all realized it isn’t safe to rely on a single source even if you have a “stable secure job”

It seems a stable job is fast becoming a myth

I’ve spoken so far about

  • Skills and Knowledge
  • The Pandemic
  • The Great Resignation

There’s one thing missing MONEY. I guess that’s why you’re here.

If you want to make money online, truly, you cannot do it without understanding how money works

Are you with me here?

At its basic function, money is a unit of exchange.

Anything you want, you can exchange money for it.

Now, what determines the price (money you pay for something)?

Value

We all used to pay 10 pesewas for ice water. But when it was packaged and called pure water, the value changed, so we paid more.

We have perceived value

And we have actual value.

Knowing this distinction will help you understand how money works, pricing your products and how to sell.

The conclusion here is that, if you want to make money, give something of value.

It doesn’t matter online or offline.

People will pay for value.

There’s a hilarious story about value.

One man, Gary Dahl in 1975 did the impossible. What could he have done? Selling the unsellable.

This guy literally sold stones, or if you prefer “rocks” each for $3.95

How did he do it? Perceived value.

Now, this was years ago. I encourage you to Google “The man selling air”

You’d be “shook” to know that someone is selling air to some of the largest markets in the world.

How? Perceived value

So, I believe we all understand this bit

I’ve spoken so far about

Skills and Knowledge

The Pandemic

The Great Resignation

MONEY

Value; Real and Perceived

Now, how do these tie-up?

Thing is, there are only 3 ways to make money online. Two involve selling while one involves, well, “no selling”

This might shake you, so get a seat if you’re standing

You make money online in 3 ways.

What are these ways?

1. Selling Services

2. Selling Products

3. Being an Attention Broker

If anyone tells you to click some link, fill out some form to make some magic money, my brother and sister, then go take it, too.

One of the reasons I’m doing this class is I get irritated by those “click me”, “anniversary giveaway” and all. People laugh at network marketing which is a solid way to make money yet go and share such links. I hope after this, you never share them.

Some of them are harvesting data and could use your data. Or maybe sell it.

This is by the way.

Back on track.

Selling Services

When we take service’s, it mainly requires having a skill which you can sell.

Ask yourself, as a big boy or girl, which skill do you have?

Before you answer, I’m not referring to the “Microsoft word” we all put on our CV and neither am I referring to “ability to work under pressure”

You can’t sell this online. Maybe the MS word. But definitely not “work under pressure” as no one will pay you simply for that.

A skill is the ability to do something.

Selling is a skill

Content creation takes a number of skills

Editing audio is a skill

Etc etc

There are lots of skills.

The sad thing is, most of us never hear of skills in school. It’s just study and exams. You don’t even get accurate information on building a career and how to make money. It’s just “study and you’ll get good grades to land a job.”

Selling a skill is great. Lots of people who are freelancers sell a variety of skills to clients. There are lots of opportunities both internationally and locally. Especially locally.

But the skill/service route means you sell your time. And you only have 24 hrs out of which you spend about 8 sleeping, 3 on social media, 3 doing nothing such as daydreaming, etc.

You see this is not sustainable and you either have to get help or increase your prices if you want to grow.

This doesn’t mean you can’t make full-time income selling services to others. You can, and people do live off selling their services online.

The next is Selling Products

There are two categories of products online. Unlike the physical world where you can only sell something the buyer can touch, you can sell anything online provided it has value to someone/people. Enter digital products, intangible products.

Selling your own physical products like many ladies do as in selling hair extensions, bags, and clothing, and buying electronics like iPhones, etc means you need inventory. You have to buy the product with your money and you see the problem here…. what happens if they don’t buy? You lose your money. If the product is damaged, you lose your money.

A digital product cannot be damaged.

So unless you have good money and a system to sell physical products, you might want to slow down a bit

Focus on digital products which are far more profitable and have

-> 0 cost of production

-> 0 cost of reproduction

-> 0 cost of distribution

-> 0 cost of maintenance

Let’s say you’re a graphic designer, you make a style template that anyone can duplicate for their purpose.

You do so out of your skill (0 costs of production)

You upload it to your website, or Gumroad, for free. Now anyone can download it at your price. 0 cost of reproduction + 0 costs of distribution.

You don’t have to maintain such a product.

It’s literally “passive income while you sleep”

But provided you also have automated marketing. This is more advanced. We won’t talk about it today. This is for illustration purposes only today

But you don’t even need your product. It’s the internet. Lots of people already have products they want to be sold. Why not jump in on that?

You can promote products for a handsome profit/commission

The last way to make money online is

Being an Attention Broker.

Kalyjay on Twitter and other influences are attention brokers.

Bloggers are attention brokers.

YouTubers are attention brokers

Facebook is an attention broker but at a high level. They sell our data and attention to their “real clients”

That’s how it works. In attention brokerage, if you’re enjoying something for free, then you’re the product being sold.

You don’t pay to see Kalyjay’s tweets. But someone pays to get him to make some tweets, to get your attention.

Ameyaw Debrah is probably the biggest influencer in Ghana.

But there’s a secret way to benefit from all of these. Well, it’s not really a secret

CREATOR

Being a creator allows you to sell attention, sell your services, and still sell your products all at once.

I’ve spoken so far about

Skills and Knowledge

The Pandemic

The Great Resignation

MONEY

Value; Real and Perceived

3 Ways to Make Money Online 💰

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