Two of the top Professional Bloggers have finally written a book

If there are two names who are synonymous with making money on the Internet and making money blogging, those two names are: Darren Rowse (Problogger.net) and Chris Garrett (chrisg.com).

These two guys are the top of the game and are the premier leaders on the Web. They have collaborated and produced a book that should be on everybody’s reading list who wants to learn:

• How to make money on the Internet
• How you can make money from a blog
• How to earn a substantial income to replace your 9 – 5 job

The product description notes the following topics are covered in this book:

• How Bloggers Make Money
• Direct Income Earning vs. Indirect Income Earning methods
• Why Niches are Important
• Using 20 critical blogging tools
• 20 Ingredients for a successful blog post
• Optimizing advertising
• Which advertising platforms work best
• Expert analysis of Technocrat’s Top Blogs - why they work

Special Report Series: the Philosophy of Making Money

This is the final entry that I am going to write for series on the philosophy of making money.  For all the other articles, please see: 6 Myths of Making Money – Special Report: the Philosophy of Making Money, 7 Points and 2 Categories of the Philosophy of Making Money, and The 7 Steps of How to Make More Money.

There is a simple formula to follow that is the most powerful formula for creating wealth.

The best formula for making money and creating wealth:

Creating Wealth = Discovering Scarcity + Solving Scarcity

Scarcity

To understand scarcity is not difficult for it’s not a complicated subject, but rather a very common and understood subject.  The difficulty is that most people don’t know how to use scarcity to create wealth.  Scarcity is concept that there are unlimited wants and needs, but there are limited resources to meet those wants and needs.

Example

There is a lot of discussion of different car manufacturer trying to create a “cheap” car to sell in India.  In India, there are a lot of people who want and need a car, but cannot afford most new car prices.  The scarcity is the lack of cheap cars for people to buy.  Solving the scarcity are what car manufacturers are trying to do by creating a “cheap” car.

How to Use

Scarcity creates opportunity.  When you discover scarcity in the economy, you have found an opportunity to make money and create wealth.  All you need to do is follow that opportunity and solve the problem of scarcity.  I suppose that’s a lot easier said than done, but it really can be that simple.  The only difficulty is finding the solution for scarcity – solving scarcity.  That takes creativity or, better yet, innovation.

Innovation in India

The innovation in the example of “cheap” cars for India is how to create a car that:

1. Consumers will buy.
2. Consumers can afford.
3. Manufacturers can still make money (profit).

To read more about this, click here.

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Ah the difficulties of being a young entrepreneur and demonstrating that you are responsible, intelligent, mature, in-control, and committed.  When dealing with banks, other institutions, and business contacts, I try to focus on two things:

1. Solid information (market, product, industry, etc) to demonstrate expertise.

2. The theories and concepts of management, business, finance, etc. to demonstrate a depth of understanding.

The Wall Street Journal published a story (WSJ Story) about the obstacles a young entrepreneur encounters and presented five strategies for dealing with those obstacles.

1. Be persistent

Follow-through, commitment, determination, and perseverance are strong pillars for an entrepreneur.  Time and hard work are required to launch a business, any business, and if you are young, then harder work and perseverance may be critical.

2. Partner up

You never have to go at it alone and there are many opportunities.  You can seek experience, expertise, and maturity in a partnership.  You can also find a partner who can open more doors than you previously even considered.

3. Hire the connections

Money is a major consideration for most entrepreneurs and especially young entrepreneurs, so hiring an expensive consultant or a well-connected lawyer may be out of reach.  Any cost should be assessed with a return on investment (ROI) matrix.  That connection may be the difference of being in business or sitting at home with merely a dream, so the cost may be worth it.

4. Stand out from the crowd

In business, a competitive advantage is pertinent and focusing on the competitive advantage helps to shield a young entrepreneur from unduly speculation.  A differential advantage is common, but an original idea is better than merely a different idea.  Work hard to develop a new, original business and then place focus on that idea.

5. Launch it anyway

The critique of venture capitalist, banks, or investment firms should never determine if you are going to go into business.  You must believe in yourself and be ready to follow step number one and launch your business anyway.  You may find that in a short period of time, investors and others may be more open to supporting your business after you have initiated the launch.

Whatever your strategy for overcoming the obstacles you encounter, the best strategy is always to plan, write it out, and then execute it.