How To Get Rich Selling To Rich People
If you're looking to significantly boost your income, the key might be to shift your focus from selling low-cost items to those who can barely afford them, towards offering premium products and services to clients who can readily invest. This approach can be a faster route to wealth.
Understanding Business Models
Many people starting a business often end up just buying a job. They might be skilled in a trade, like being a welder or an electrician, and decide to go solo. However, doing the job is different from running the business. Running a business involves many more tasks than just the core service, tasks that employees might not even see.
When you start your own business, you trade one boss for many – your customers. While this can lead to earning more money, it often means working more hours. The common belief that time is money isn't entirely accurate; time is actually far more valuable than money. Wealthy individuals understand this and prioritise their time over money, a key difference from those struggling financially.
Key Takeaways
- Value Time Over Money: Rich people prioritise their time, understanding its infinite value compared to money.
- Business Models Matter: Different business models exist, and choosing the right one is key to financial success.
- Solve Problems: The core of selling to anyone, especially wealthy individuals, is solving their problems.
- Focus on High-Value: Selling high-priced items to affluent clients is a more profitable strategy than selling low-priced items to many people.
Different Business Models Explained
There are several ways businesses operate:
- The "Entrepreneur" (Low Volume x Low Price): This model involves selling a few items at a low price. While it might feel like being in business, it often doesn't generate enough income to be sustainable. Many people in network marketing or part-time real estate agents fall into this category. They might be learning valuable skills, but the business model itself isn't built for significant wealth creation.
- The "Entrepreneur" (Low Volume x High Price): Here, you sell a smaller number of items, but at a high price. An example might be making £30,000 a month by selling 60 units at £500 each. While this seems good, a mentor once pointed out that this level of income, while decent, was still small compared to the potential for much larger earnings.
- The "Walrepreneur" (High Volume x Low Price): This is the model of businesses like Walmart. The strategy is to sell a lot of products with small profit margins (e.g., 30%). Sam Walton became incredibly wealthy by passing good deals from vendors onto customers, making a small profit on a massive volume of sales.
- The "Wealthrepreneur" (High Volume x High Price): This is the preferred model for building significant wealth. It involves selling a high volume of high-priced items. The key is to offer something valuable that solves a problem or fulfills a desire for wealthy individuals.
Selling to the Wealthy: The Core Strategy
The most effective way to build wealth is to sell high-priced items to rich people. This isn't about selling cheap things to those with less money; it's about understanding the needs and desires of affluent individuals.
Identifying and Attracting High-Net-Worth Buyers
Wealthy people, like everyone else, have problems and pain points. The difference is their willingness to pay more to solve them. To succeed, you need to:
- Solve Their Problems: Whether financial, business, personal, or family-related, identify a problem a wealthy person has and offer a solution. For instance, a marketing expert who isn't a lawyer can still teach lawyers how to market their practices, a business that generated millions.
- Soothe Their Pain: This involves addressing not just problems but also the pain associated with what's missing or what's annoying. This could be the pain of not playing golf as well as they used to, or the annoyance of dealing with commercial air travel.
- Supply Their Pleasure: Offer things that bring them joy or fulfill future desires. This could be anything from custom golf clubs that improve their game to travel arrangements that eliminate hassle.
The Principle of Not Getting Worse
A crucial concept is that in life, there's no such thing as staying the same. If you're not getting better, you're getting worse. This applies to all areas of life, including finances. To improve, you need energy and intention. Neglect leads to decline.
If you don't intend to get richer, you will inevitably get poorer over time due to factors like inflation. It's not about being greedy; it's about actively pursuing growth and not allowing yourself to fall behind. Wealthy individuals understand this and are motivated to grow their wealth, not just maintain it.
Conclusion: The Wealthrepreneur Path
Selling expensive items to wealthy individuals is a proven formula for building significant wealth. It requires identifying problems, soothing pain, and supplying desires. By focusing on high-value offers and understanding the mindset of affluent clients, you can create a business that grows rapidly and profitably. Stop selling to those who need to be convinced and start selling to those who can readily invest in solutions that matter to them.
