Only Two Things Actually Make Money in a Business
According to Eben Pagan, only two activities actually make money in business: products (creating something people want to buy) and marketing (selling those products to customers). Everything else is either a waste of time or an expense.
Marketing Products and Relationships — Three Business Value Pillars
Marketing and sales, products and services, and relationships. These three areas create all value in business - focus on marketing that generates leads, products people buy long-term, and relationships with partners and team members.
Teaching
Building Controls Around Your Most Critical Business Systems
Create controls requiring approval before anyone changes customer-facing copy or critical processes. Make sure your entire team knows which systems are essential money-makers that shouldn't be modified without careful consideration.
Teaching
Developing the Skill to Make Money at Will
Making money whenever you want is a higher level skill that requires understanding and controlling the forces that create emergent money-blocking situations. It's about developing systematic ability rather than occasional success.
Teaching
Only Two Activities Create Significant Money in Any Business
Only two activities create significant money: creating products and services that solve urgent problems, and marketing/selling those solutions. Everything else should be outsourced because it doesn't generate substantial revenue.
Why You Must Fix Money-Preventing Conditions First
Because lack of money is emergent - it's a direct result of specific things you've set up in your life. You must first identify and control the conditions preventing money before you can effectively develop money-making skills.
Why to Start Work on Productivity Before Email
High-value activities include talking to prospective customers, creating products, and doing sales and marketing. These activities create 80-90% of your business value but aren't urgent, which is why they often get skipped.
Teaching
Most Business Activities Are Expenses, Not Revenue
Most business activities, from Fortune 500 management to small business administration, are actually expenses rather than revenue generators. Only a very few specific activities in any business actually create money.
Information Products Sell from $20 to $24,000
Information products can generate substantial revenue across a wide price range. Products can sell from $20 for books up to $24,000 for high-end coaching programs, with value determining price rather than format.
Teaching
Growth and Profit Both Required for Healthy Business
A healthy business requires both growth and profit - growing in size and sales while making more money than it spends. When businesses aren't in a growth or profit phase, they become less enjoyable to run.
Teaching
Two Risk Reversal Models — Upfront Guarantee vs Post-Delivery Pay
The first model is charging upfront with a money-back guarantee if clients aren't satisfied. The second model is billing after service delivery, where clients only pay if they feel they received value.
Build Systems That Create Value Rather Than Trade Time for Money
The progression for financial independence is: System creates value, creates money - not just trading time for money cyclically, but building systems that create predictable value streams
Find a Niche Where You Create Real Value for Real Needs
Entrepreneurs should focus on finding a niche where they can create significant value for a group that has a real need, rather than focusing on direct money-making activities.
Repeat Paid Advertisers Signal a Profitable Niche
If you search a term on Google and see the same advertisers showing up repeatedly in paid ads, you can ascertain that it's probably working and they're probably making money
Cash Register Activities Live at the Fringes of Your Business
Money-making activities are at the fringes of your business - marketing processes, converting ads, upselling processes, and automated systems that ring the cash register
Information Products as the Fastest Niche to Monetize
Information products are the best niche for making money fast because you can identify problems, create solutions quickly, and sell globally for very little money
Teaching
Most Business Activities at Fortune 500s Fall Under Expenses, Not Revenue
Most business activities in Fortune 500 companies and small businesses don't actually make money - they fall under expenses rather than revenue generation
Your Unique Formula for What Prevents You from Earning
Everyone has a unique internal formula for their inability to make money that combines what they learned, who they hang around with, and other conditions
High-Value Work — Customers, Products, Sales, Marketing
High-value work includes talking to prospective customers, creating products, and doing sales and marketing - this creates 80-90% of business value
Professional Selling Makes You Bulletproof in Any Business Environment
Professional selling skills make you 'bulletproof' in any business environment because you can be dropped into any situation and survive and thrive
Teaching
Price Testing Can Increase Both Sales Volume and Revenue Simultaneously
Price testing can dramatically increase both sales volume and revenue simultaneously, defying conventional wisdom about price-demand relationships
Test Several Products Simultaneously to Accelerate Revenue
To make money fast, test several products and services simultaneously. Focus on getting to market quickly rather than perfecting one product.
Teaching
Wholesale and Affiliate Alternatives for Long-Development Products
For products requiring long development time, consider buying wholesale, striking shipping deals, or doing affiliate relationships instead
Net Cash Metric for Real Business Value
Implement a 'net cash' metric that shows real business value by accounting for all incoming money, bank balance, and upcoming obligations
Products and Marketing — The Only Revenue Activities
The key insight about money-making activities is that they involve getting customers - that's what products and marketing have in common
Marketing and Selling as the Engine of Revenue
Marketing and selling of products is a very high-value activity because it generates customers, which is essential for business revenue
High Dollar Per Hour Activities Ring the Cash Register
High Dollar Per Hour activities are those that 'ring the cash registry' and bring in money right now through direct revenue generation
The Only Votes That Count Come With Checks
The only votes that count are the ones that come with checks - opinions are interesting but real money validates your business idea
Money Is the Symbol Focus on Creating the Value
True success comes from focusing on creating value rather than making money, because money is just the symbol, not the thing itself
Personal Follow-Up Emails to Recent Customers Generate $10+ Each
Personal follow-up emails to recent customers offering advanced products with no-risk trial can generate $10+ per email in revenue
Only Two Activities Actually Make Money: Products and Marketing
Most business activities are either a waste of time or expenses - only two activities actually make money: products and marketing
Most Sales Presentations End With Avoidance Not a Close
Most people end sales presentations with avoidance strategies like 'So what do you think?' or 'Let me know if you want more info'
Money Is Made Indirectly Through Value Creation
The fundamental secret of making money is that you can't make money directly - it must be done indirectly through value creation
Teaching
Identity Arbitrage Across Multiple Personas and Markets
Identity arbitrage allows entrepreneurs to leverage different personas for different markets to maximize reach and revenue
Teaching
Information Products Generate Sales 24/7 Through Online Automation
Information products can generate sales 24/7 automatically through online systems, creating true passive income streams
Making Money Ethically Means Creating Real Value
Making money ethically and honestly is one of the purest things you can do - it's about creating value in the world
Making Money On Demand, Not Just Sometimes
The goal is developing the ability to make money whenever you want, not just being able to make money sometimes
Lack of Money Is Emergent Not Random
Lack of money is emergent and created by specific conditions you've set up, just like making money is emergent
Teaching
Backend Sales Drive Real Business Revenue
The real money in business comes from backend sales to existing customers, not front-end customer acquisition
Marketing and Sales Lead to Profit More Than Any Other Skills
Marketing and sales are the two skills that most dependably lead to profit and long-term income in business
Teaching What You Learn Immediately Accelerates Your Own Learning
Price testing can reveal that higher prices actually increase both sales volume and revenue simultaneously
Broad Messaging Is the Brake That Stops You From Helping Anyone
Being too broad in your messaging puts your foot on the brake of actually helping people and making money
Controlling Your Money-Preventing Ability First
You must take control of your money-preventing ability before you can control your money-making ability
Making Money Requires Specific Ingredients in Specific Order
Making money requires specific ingredients combined in a specific order, just like baking a cake
Mastering Marketing and Sales for Unlimited Customer Acquisition
Master marketing and sales to have unlimited customer acquisition power for any business
Test Multiple Products Simultaneously to Make Money Fast
To make money fast, test several products and services simultaneously
Teaching
Monitor Daily Cash Deposits to Understand Revenue Timing Patterns
Monitor daily cash deposits to understand revenue timing patterns
Selling Is the Best-Paid Research for Your Business
Selling is the best-paid research you can do for your business
The Seven Business Roles Every Entrepreneur Must Fill or Hire
The seven roles are: entrepreneur (moving resources to higher productivity), product designer (creating innovative solutions customers prefer), salesperson (converting prospects to customers), marketer (scalable sales through psychology and communication), technology guru (bringing businesses into the future with efficient systems), project manager (taking ownership of delivering results), and recruiter (attracting superstar talent).
Guarantees Remove Risk and Lift Overall Sales
Guarantees remove perceived risk for prospects, allowing more people to get involved with your product or service. Even though some people will take advantage and it's costly, sales go up enough to make it worth the cost of doing business because it helps more legitimate customers overcome their hesitation.
Innovation Is Creativity Combined with Consistent Productivity
Innovation requires translating creative ideas into real tangible products, services, and marketing consistently at a business level. It's creativity combined with productivity, focused on products and marketing that create something better in the customer's eyes.
Answer
Playing Business Is Designing Cards; Doing Business Is Getting Customers
Playing business involves activities that feel productive but don't generate customers, like designing business cards, choosing website colors, or naming your business. Doing business focuses exclusively on customer acquisition and selling products or services.
Better-Than-Risk-Free Guarantees — Money Back Plus More
A better-than-risk-free guarantee gives customers their money back plus something extra, like keeping the product or receiving additional compensation. Eben offers full refunds plus $100 cash at seminars, which he honors immediately when requested.
Growth Plus Profit — Both Required for Health
A healthy business needs two essential elements: growth and profit. This means growing in size and sales while making more money than it spends. When businesses lack either growth or profitability, they become less enjoyable and engaging to run.
Answer
Playing Business — Setup Activities vs Actually Getting Customers
Playing business involves activities you think you should do like naming your business, designing business cards, and choosing website colors. Doing business focuses directly on getting customers and selling products and services.
How Much Guarantees Increase Sales — Real Numbers
Money-back guarantees can increase sales by 10-50%, while better-than-risk-free guarantees can often double your sales. Try-before-you-buy offers can double, triple, or even more your results depending on the offer.
Marketing and Sales — The Two Skills That Generate Revenue
Marketing and sales are the two most critical skills for generating profits and long-term income in business. These skills directly help you get customers, which is the fundamental activity that creates revenue.
Answer
In Business Every Unoptimized Component Costs You Sales
In business, you literally earn every dollar and must optimize every part, unlike jobs where you get paid regardless of performance quality. Every unoptimized business component equals lost sales and income.
Only Purchases Validate a Business Idea — Not Opinions
Opinions are interesting but only purchases with real money validate your business idea. The marketplace votes with actual checks, not feedback or opinions about whether they might buy something.
Focus on Products and Marketing Delegate Everything Else
Focus exclusively on products and marketing - the highest value money-making activities. Delegate everything else so you can concentrate on what generates revenue and grows your business.
High Earners Over $250K Share One Trait — Fast Implementation
High-income professionals earning over $250,000 annually share one key trait: speed of implementation. They immediately act on good ideas rather than waiting to implement them.
Give Ten Times More Value Than You Charge
Give away 10 times more value than you charge. This mindset of massive value delivery over extraction is the way to make a lot of money in business and dominate your market.
Answer
Most Business Activities Are Expenses Not Revenue
Most business activities fall under expenses rather than revenue generation. Even in Fortune 500 companies, management, projects, administrative work, and accounting don't directly create money - they're necessary but non-revenue activities.
Main Advantages of Virtual Business Structure
Virtual businesses can generate substantial revenue - Eben's virtual businesses have done a combined over $100 million in sales, all without a central office.
The Four Key Metrics in the Vital Stats Dashboard
Bank balance, daily cash deposits, net cash (real business value accounting for all money in/out), and daily expenses tracked over 90 days.
Ship Close Enough Fast and Test in Market
Don't get too caught up in trying to create the perfect product or the perfect service. Just get something that's close enough, that looks good enough, that works, and get out to the market and test it as soon as possible.
Information Is the New Currency of Digital Commerce
information in the form of ebooks audio programs video trainings coaching membership sites blogs and other formats it is the new commodity in fact as far as I'm concerned it's the new currency
Money as Stored Life — Why Customers Guard It
The hardest thing to learn how to do is to get another human being to open up their wallet or take out their money and give it to you in exchange for what you're selling.
Making Money as One of the Purest Things You Can Do
don't ever, ever let someone make you think that the act of making money or pursuing money is a bad thing. It's one of the purest things you ever could do.
Success Is Indirect — Income as Byproduct of Maximum Value
Success is an indirect game. We win when we create more value, and we get income as almost a byproduct or an offshoot of creating maximum value.
Tasks Worth Less Than $100 an Hour Are Self-Robbery
if you've got cash flow and your bills are paid and you're doing anything that's worth less than $50 or $100 an hour you're robbing yourself
Sales Presentations Are the Foundation of Business
Making successful presentations and sales presentations. Right. It's the foundation or the building block or the heart of business success.
Making Money Requires the Right Ingredients in the Right Order
just like baking a cake requires specific ingredients combined in a specific order making money is the result of the right combination
Avoid Activities That Don't Directly Lead to Getting Customers
you want to avoid wasting your time on things that don't directly relate to getting customers and selling your products and services
Quotable
Almost All Business Money Made After the First Purchase
Almost all of the money in a business is made after the customer buys their first item and then returns to buy additional items.
Making Money Is Applied Psychology Plus the Scientific Method
business and what you call making money is in a sense really just applied psychology and it's the scientific method
Separating Yourself from Business and Product
Those that have consistent money-making success separate themselves from both the business and the product.
Quotable
Every Missed Contact Is Revenue You Never Collect
Every contact that you don't make equals sales that you don't make, and income and money that you don't get
Your Financial Reality Is a Product of Your Life Setup
your lack of money is a direct result of the things you've set up and done in your life in a specific order
Two-Step Thinking — The First Step Is Always Value Creation
most things don't make money most of the activities that people do in business actually do not make money
Control Money-Preventing Ability Before Money-Making
to take control of your money-making ability you must first take control of your money preventing ability
Only Two Things Make Money — Products and Marketing
To simplify, there are only two things that make money in a business. One, products, and two, marketing.
The Difference Between Making Money and On-Demand Income
it's one thing to be able to make money it's another thing to be able to make money whenever you want
Past Income Was Labor; Future Income Is Value Creation
Income in the past was about manual work and labor. income in the future is about results and value
If You Want to Make Money, Think Two Steps Minimum
if you really want to actually make money you got to think two steps okay a minimum of two steps
Quotable
Master Coaches Improve All Business Areas Over Time
almost all of the money in a business is made after the customer buys their first item
One Good Distribution Channel Can Make Your Whole Business
you just need one good distribution Channel and it can make your whole business
Don't Take Money Advice From Your Broke Friends
don't take making money advice from all your broke friends. That's stupid.
Some People Trade Income for Calling Their Own Shots
some people would rather make half the money and just call their own shots
The Indirect Path to Making Money
The real secret about making money is that you can't make money directly.
The Real Secret — You Cannot Make Money Directly
the real secret about making money is that you can't make money directly
Money-Making Activities or Rest — No In-Between
You should ideally be either doing money making activities or relaxing.
Most Business Owners Throw Away as Much Profit as They Make
you're probably throwing away at least as much profit as you're making
Throwing Away as Much Profit as You're Making
you're probably throwing away at least as much profit as you're making
It Only Works When the Customer Votes With Their Money
It doesn't work until the customer has voted with their money.
Favorite Niche for Making Money Fast — Information Products
My favorite niche to make money fast is information products.
Money Isn't Made Directly — It's Given in Exchange for Value
money isn't made directly it's given in exchange for Value
Make Money Fast by Testing Multiple Products at Once
to make money fast test several products and services
