Speaking of making money, I want to talk about financial intelligence first. What is financial intelligence? This is how I define financial intelligence. I think financial intelligence is the wisdom about asset creation and asset layout. So what are assets? Assets are tangible or intangible value carriers that can continuously bring us money.
So I divide assets into three major categories: virtual assets, physical assets, and financial assets. For details, see the asset creation panorama:
At the same time, I also divide financial and business training or assets into Building is divided into four stages and six major capabilities. The first stage is: creating assets (making money with value), the second stage is: adding value to assets (financing money and investing money), and the third stage is: holding on to assets (using money) Scattering money), the fourth stage is: inheriting assets (to equip children with the six abilities to create assets, increase assets, and defend assets)
Then these four stages also represent four levels and six dimensions, among which The first stage: creating assets, that is, value and money-making ability. I think it is the root of financial and business practice. Only when the roots are deep and broad can a towering tree be supported. So in my last article, I shared with you: How to be a valuable person.
So today I will share with you the money collection framework that the money-making masters are strictly implementing. I want to share this article to let everyone understand some of the principles and strategies behind making money, thereby helping everyone To become a person who can make money as soon as possible, or even become a person who can continue to make a lot of money, then this universal framework for making money is: the core law of making money, the universal model of making money, and the core formula of making money.
01. Core Rules of Making Money
Rule 1 of Making Money: The origin of making money is to help others and benefit the world. My philosophy of life is: "Cultivate yourself, manage your family, help others, and benefit the world." Among them, "Helping people, benefiting the world" is the origin of making money, that is, your motivation, your motivation is right, your intention is to help others, and your intention is to benefit the world. That is virtue, and only by being virtuous can one carry things.
And money is the value medium and circulation tool of all things in the world. Money will only flow to places that are valuable to people, society, and mankind. Therefore, we can attract and carry as many people as we can help and achieve. How much money and wealth!
Rule 2 of making money: Multiply your time infinitely. The most scarce resource in this world is time. How to double your time? You can continue to expand your team (let more people help you provide and output value); you can also engage in copyrighted creations and patented inventions (sell unlimited amounts of the value you create in your time).
You can also let money help you make money, but we must know where the money goes, either into liabilities or assets. Only assets will bring us money continuously, so you You need to know how to build and layout your valuable assets in an all-round way, and pass them on to your family, so as to achieve prosperity from generation to generation.
Here is a special reminder: grassroots people must not make investments easily, especially financing investments, otherwise they will have a narrow escape. Grassroots people should first improve their abilities in all aspects and work hard to make money first, instead of rushing to make easy money. Money is the so-called money begetting money. Instead, you wait until you have a house, a car, and spare money, and then use the spare money to step into various investment traps, and then accumulate investment experience.
Otherwise, it is easy for the grassroots to get into debt. If a person has no valuable skills, but also lacks the ability to make money, once he goes into debt, he will become less and less confident, have less energy and status, and the debt will be easily destroyed. Some people are weak-willed, but if you can rise from the trough of debt, this will be the most valuable experience and test for a person.
Rule 3 of making money: Focus on areas that will never decline. Only continuous focus can continuously generate compound interest. Whether in the business field or in any field, the algorithm of the human brain will only easily remember the number one in a certain field, and the number one is also the best brand promotion.
Just like Huawei in the communications field, Huawei boss Ren Zhengfei once said: "In the past 28 years, we have only charged at one city wall." This city wall is communications, an industry and field that will never decline.
Rule 4 of making money: The business model is very important. Instead of going to great lengths to design the business model, it is better to choose a good track.
There is no model and no business. The product is king and the model is second. The own attributes of some industries determine the advanced nature of their models. Therefore, it is better to choose the industry first when designing a business model, because some industry tracks start from the beginning. It was destined to be extraordinary from the beginning.
This is why most of the giants that have emerged in the past 30 years were born in the Internet economy, because the Internet economy has no time and space restrictions. Anyone, at any time, at any place, as long as they have a certain need, the network can satisfy each other efficiently and at low cost. And as the marginal cost of Internet giants increases geometrically with the number of users, their marginal cost will approach infinitely. at a certain point or approaching 0.
Rule 5 of making money: Money is a tool to bring people together. Only by being able to divide money can you make more money. When money disperses, people gather together, and when money gathers, people disperse, so only by being able to divide money can you earn more money. If the money is divided well, the more money will be divided. On the contrary, if the money is not divided well or cannot be divided, the more money will be divided. The less.
Among all organizations, Huawei is the best at splitting money. It is also the only Fortune 100 company that has not been listed on the market. In addition to vision and mission, the potential of an organization is driven by values, and it is also inseparable from money. Driven by wealth, it took Huawei 30 years to grow from an unknown grassroots company to a world-class top 100 company. This has something to do with the way Huawei distributes money.
02. Universal money-making model
What is the universal money-making model? The universal model for making money is the golden triangle and the five-element diagram in the business world. The golden triangle in the business world is: boss, customers (users), employees (team), and the five-element diagram is products, teams, marketing, channels, and funds.
Users, who are they selling to? Address the question of who to do it for.
Product, what to sell? Solve the problem of what to do.
Team, who will sell? Solve the problem of who will do it.
Marketing, how to sell? Solve the question of what to do.
Channel, where to sell? Solve the question of where to do it.
Funding, who supports it? Solve cash flow problems.
Money is the carrier of value and a tool for circulation, so to make money, you must provide and create value for people, you must help people solve their pain points and needs, or help people realize their dreams.
Therefore, the starting point of business is to first identify users, that is, to develop and develop a complete set of solutions that can solve the pain points and needs of such user groups around a certain pain point or need of people. This complete set of solutions It 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 product design, R&D and innovation capabilities. Only in this way can you create A good product that has a market and can make money, and we often call these people "product managers."
In order to give everyone a deeper understanding of product managers, let me give an example. Zhang Xiaolong, the chief designer of Tencent's "WeChat", is a product manager. Xiaomi CEO Lei Jun's first position in Xiaomi is not CEO. , but product managers, and Li Kaifu, chairman of Innovation Factory, also said: Product managers are the best "preparatory course" for future entrepreneurs and CEOs.
As for the introduction of more product managers, I wrote the last article of the e-book "How I Became a Millionaire at the Age of 26", "There is a very promising career called product manager." "There are detailed explanations in it. If you are interested, you can look it up and read it.
In the first section of this article, I shared with you the core rules of making money, and in the second section, I shared the universal model of making money. When we understand some core business principles and business models, and understand the architecture system, we can also Is it enough to have the qualities of a product manager, that is, to understand users and be able to design and innovate products?
It is not enough. We must also be very proficient in market operations and promotion. Especially for grassroots entrepreneurs, understanding market operations and promotion is far more important than understanding business principles, business models and system architecture. , is more important than understanding product development and design, so I especially recommend grassroots entrepreneurs to start the franchise business first.
Through agency franchising, we first strive to improve our market operation and promotion capabilities. When we have the market operation and promotion capabilities, you can live first. Being alive is a prerequisite for living a better life. So below I will share with you several universal formulas for making money, which are the core formulas for solving market operation and promotion problems.
03. The universal formula for making money
The universal formula for making money 1: Product profit * customer flow * conversion rate = gross profit target. This formula is relatively easy to understand. No matter what business we are doing, if we want to increase gross profit, we must either increase product profit, increase customer flow, or increase conversion rate, or increase the three-pronged approach at the same time.
For example, if we do business on WeChat, the gross profit target = product profit * number of WeChat friends * conversion rate. If we want to be a freelancer and want to increase our income, it is very simple. , you can first find a business with front-end and back-end products and services to ensure product profits, and then work hard to increase followers and create 10, or even dozens or hundreds of WeChat accounts, each with 4,000 people.
The next step is to improve your communication and transaction skills, especially copywriting skills. This is why copywriting training is so popular now, such as sales letters, money-collecting copywriting, heart-breaking copywriting, etc. Killer copywriting, money-making copywriting, etc. all teach you to collect money and make money through copywriting.
Universal formula 2 for making money: customer unit price * customer flow * conversion rate * repurchase rate = revenue target. After understanding the universal formula 1 for making money, it is easy to understand the universal formula 2, because this formula is just an expanded version of the previous formula. For example: we open a store to do business, whether it is online or offline.
We can all increase revenue from the above four dimensions. Through product optimization and upgrading, we can classify products into three major categories: traffic products, trust products, and profit products, especially after careful design. High-end profit products to increase average customer price and increase profits.
Not much to say about increasing customer flow and improving conversion rate. Let’s focus on improving the repurchase rate. The same customer comes to the store once a month to make purchases, and if the same customer comes to the store to make purchases 10 times, 100 times a month or never again, the impact on revenue results is hugely different. Therefore, if we want to increase the repurchase rate, we must work hard on products, services, including marketing strategies (the marketing method of recharging and locking customers comes from wanting to increase the repurchase rate).
The third universal formula for making money: product unit price * number of customers * number of team members = revenue target. The third universal formula for making money is more aimed at business- and sales-oriented companies, that is, when our revenue is closely related to the personal performance of our business sales team, we need to increase revenue by continuously growing our sales team.
Universal formula four for making money: 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 formula for making money is also called the Universal Deal Proposal. It was proposed by Mr. Liu Keya, the inheritor of direct marketing in China. This universal formula for making money is also a sales letter template. I would like to recommend to you Mr. Liu Keya, one of the pioneers in the Chinese marketing industry.
The five universal formula for making money: attract new people - cultivate them to maturity - close deals - fission. The fifth universal formula for making money comes from teachers Wang Tong and Qin Gang of Qinwanghui. This is exactly the pasture theory defined by them. The pasture theory is a good combination of the fish pond theory mentioned by teacher Liu Keya in the book "Making Money Is That Simple" It is well integrated with the thinking of Internet users. Here I would like to recommend teachers Wang Tong and Qin Gang to you.
The six universal formula for making money: seize the potential - cultivate - close the deal - pursue sales - fission. The Sixth Universal Formula for Making Money comes from Teacher Zhiduoxing, a direct disciple of Teacher Liu Keya. I have studied and cooperated with Teacher Zhiduoxing in depth for a period of time. I have learned a lot from him. He is one of the people born in the 80s that I admire most. I am here to share it with you. Highly recommend Teacher Zhiduoxing.
The Seventh Universal Formula for Making Money: Brand Building - Traffic Explosion - Trust Cultivation - Traceless Transactions - Fission Growth.
The Seventh Universal Money Making Formula comes from the Five Elements Money Making System of Langshan Hui Master Lang. Master Lang created a community space station that influenced the entire community marketing industry from 2018 to 2019. The Five Elements Money Making System he proposed in 2020 is worth learning and learning from. , I would like to recommend Master Lang to you.
The eight universal formula for making money: influence, marketing strategy, money-making copywriting, and good products. The eight universal formula for making money comes from the personal brand profit system launched by Teacher Zhiduoxing in 2020. Regarding personal brand building, Teacher Zhiduoxing published a book "Self-Celebrity Marketing Equation" in 2016, and the personal brand profit system will build a personal brand. It has been raised to a new level again, so in the face of the situation that China will have nine fortunes from fire in the next 20 years, I once again recommend you to study.
Universal formula nine for making money: Influence (brand building system) Marketing model (ranch theory, killer copywriting) Good products Organizational structure (automatic and efficient operation) The art of money sharing. The ninth universal formula for making money is integrated by me for everyone. Learning is to gather the strengths of everyone and then use them for our benefit.
For influential brand building systems, I recommend learning from Apple, Alibaba, Xiaomi, Huawei, Teacher Wang Tong, and Teacher Zhang Jiebin; for marketing models, I recommend learning from Teacher Liu Keya, Teacher Wang Tong, Teacher Qin Gang, and Teacher Yuan Guoshun Teacher, Teacher Zhiduoxing; for copywriting, I recommend learning from Teacher Liu Keya, Teacher Wang Tong, Teacher Li Bingchi, Teacher Zhiduoxing, and Teacher Huang Zhenyu.
For good products, I recommend learning from Apple, learning from Xiaomi, learning from Miniso, learning from IKEA, and learning from Jinmao Dao’s explosive thinking, etc.; for organizational structure and the art of sharing money, I recommend learning from our Party and learning from Huawei. Learn from Internet giant companies, learn from Guo Fansheng's equity incentives, learn from CEO Su Yinhua's systematic thinking and learning mechanisms, etc.
Just like Guo Jing in The Legend of the Condor Heroes, he learned archery skills from his first master "Zhe Farewell"; he also learned some basic martial arts from the "Seven Monsters of Jiangnan": "Yue Nu Sword", "Paoding Sword Technique" and some external boxing; during this period, I learned some Quanzhen internal skills and mental techniques from Taoist Master "Ma Yu".
Later, his mentor "Hong Qigong" taught him superior martial arts: "Eighteen Palms for Subduing the Dragon" and "The Fighting Stick Technique". Then "Zhou Botong" taught the "Nine Yin Scriptures" instructed by "Hong Qigong", and finally "Master Yideng" translated and taught the "Yi Jin Jin Tuo Gu Pian" in the "Nine Yin Scriptures", the general outline of the scriptures, and so on. Become a master.
So if you want to make money, you should integrate the great institutions I mentioned above and the wisdom of great people and implement them ruthlessly. Then I believe you will be the next money-making master.