The lure of what is thought to be easy money by creating, producing and selling your own product directly to the end consumer is so enticing. Its almost like taking the risk to spend $100 for a shot at a $1 billion winning lottery ticket. Why not? If you don’t take that chance, you could miss the opportunity of a lifetime. The purpose of this article is present reasons to create your own product as a path to wealth.
Take the risk for huge reward by creating your own product
Take Apple products. All the founders had was an idea, technological know how, time and self confidence. Even though it is a commonly held belief that the company was founded in a garage, it is a bit of a stretch, says Apple co-founder Steve Wozniak to The Guardian that Apple’s first products were designed and manufactured there.
Online entrepreneurs, remote workers, telecommuters and those working from home, take notice. The key take away is, when you’re bootstrapping your idea to turn it into a viable business “you have to work out of your home when you have no money,” reflects Wozniak.
You may have little to no extra cash now. But that doesn’t mean you won’t generate a positive cash flow in the future. All because of your hard work, sweat equity and side hustle attitude. You put in the extra time to strategize, expand your network and modify your product and service to achieve financial success.
Examples of entrepreneurs promoting their own products to wealth
A dream taken together with an actionable plan worked every day, can lead to monumental success. Here are a few ideas from everyday people who ended up making millions:
- 3D Pop up Cards by Love Pop, generated revenues of $80 million
- Hair Curlers by Sleep Styler, generated in $100 million in sales
- Squat to Pot by Squatty Potty, generated $33 million in sales
- Organic sports drink alternative by Super Coffee, generated $200 million in sales
The examples above show that the Apple success experience isn’t for Apple founders alone. Today Apple’s iPhone holds a commanding 65% market share of the US smartphone market by revenue, writes the Financial Times (US brings a landmark case against Apple, March 28, 2024).
Recessions are the best time to create products
Naysayers will argue that there is a global recession now. Other critics will point to the forecasted downturn in the economy here in the US. Even so, the United States may still continue to be the land of milk and honey. A place where vast amounts of wealth can be accumulated in just one lifetime. But how did we get here?
Author Richard Langlois in his book, “The Corporation and the Twentieth Century,” observed how prior American behemoths of industry (Du Pont and General Electric) were not agile enough to respond appropriately to technological change brought on by the likes of Apple and Microsoft. Start ups, small business owners and online entrepreneurs:
- are closer to the customer and their employees meaning they are on the ground, have less hierarchical structure of decision making and can turn on a dime
- small companies are less vertically integrated making individual units producing independent revenue streams less vulnerable to the foibles and adversities of other units
- more reliant upon non-physical intangible assets like intellectual property, business reputation, and goodwill
By creating your own products, goods and service, you’ll see the profits surpass anything you could earn if you just stuck to selling for others. That’s because you get 100% of the profits for some sales and a percentage of profits that your army of affiliates send your way. If you sell a $200 product for someone else and make 50%, then you get $100. But if you sell a $200 product of your own, then you’re doubling your profit. Not only that, but you can sign up other people to sell for you, pay them a commission – and you’re earning effortlessly as they do all of the marketing work that delivers targeted traffic! But what gives? It takes money. Lots of it to bring your product to market.
Outside investors can help entrepreneurs bring their products to market
Referring back to Steve Wozniak, the co-founder of Apple. Wozniak emphatically made clear that while Apple was started in the garage of Steve Jobs’ parents, there were no products designed there, no prototyping, planning or manufacturing of products.. To take your company to the next level, you need to be like the founders of Apple and Microsoft. Seek outside investors.
To create prototypes and manufacture your product to scale. you need investors who are willing to take a bet on you. That is, if you weren’t born wealthy. Getting outside investors can be difficult. But, if you watch the popular television show, SharkTank, raising money for your business may not be as difficult as it seems. Yahoo Finance estimates that 1,218 entrepreneurs pitching their products to the ‘sharks’ obtained $221 million in investments with a success rate of almost 60%. That’s not too bad!
Even if you don’t create the product yourself, using your street cred and influencer status, you can sell products made by other companies to your audience. Then you’ll earn a percentage or a commission based on how much the products are sold from your promotions. Many online entrepreneurs can make a nice living promoting for others.
But there’s a difference between a nice living financially and making the profits that can give you the kind of life you’ve always dreamed of. When you promote products for others, you make some good money – but the product owner gets rich. As owner of your small business, you can offer a solution to a problem widely experienced by many. In this case you may become wealthy. When you’ve recruited a team of others to distribute your solution to the masses, they you’ve reached the ultimate pentacle of success and can become wealthier still.
