We are in the wealth extraction business. Our job as business owners is to transfer as much money from our market as possible. In the most efficient, cost effective way.
Think of a professional athlete up for a new contract. Do they say, “oh, $3 million a year is good, let’s just sign the paperwork so I can go out and do what I love..” No no no. What their agent does is throw a number on the table that makes people’s eyes water. And then eventually you hear about the $100 million contract.
The athlete and his agent are engaged in wealth extraction. Their number is based on how much money is in the market. You can ask for $100 million from the bowling league but there’s no money there. So when someone says, “you have to be realistic” they are right. You have to base your projections on the amount of money in the market. At the same time you have to stop thinking in terms of scarcity.
You have to stop thinking “I hope I can get this,” to “how much money can I extract from the market.”
Shifting your thinking into the realm of wealth extraction is going to present some of the following scenarios: – If you are in a niche where the people either have no money, or are not willing to part with it, you will have to either abandon the niche or curtail your activity to the point where the effort matches the reward. – If you are stuck in category of either low price or have no back-end offers, you need to either raise your prices or get busy constructing an ascension ladder.
You will look at your whole operation and throw out the parts that aren’t contributing to wealth extraction. – When you consider a new market you will ask yourself “how much money is in there – and how much of it can I get.”
Adopting the wealth extraction mindset turns you into a business owner as opposed to a solo operator or craftsman plying a trade. Yes, you are good at what you do and your product helps peoples, blah blah blah. But the business mind, one keyed on wealth extraction, adds another gear to your engine.
Capitalism is about wealth extraction. Right now, there are actors extracting money from you. Many of them are mandatory or monopolistic in nature. When you insure your car or pay utilities or for health insurance, each of these players is running a machine based on the idea of extracting as much wealth from the customer base as possible, or legal.
And in the case where laws and regulation limit their extraction capacity, they employ lawyers and lobbyists to change the rules in their favor. For us, having a wealth extraction mindset is a hidden marketing advantage. When you change your thinking people can sense it. In crude terms you are now a winner instead of a loser. People will respect you more, they will be less likely to impose on your time or complain, they will hold your products in higher esteem – and most important, they will pay higher prices. Wealth extraction is the line of demarcation between professionals and amateurs.
You can get started coming up with your own mechanism to extract wealth from the marketplace by getting our book on product creation.
This is for the Kindle: Amazon.com: How to Create Million Dollar Products eBook : Giovinazzi, Frank: Kindle Store
This will take you to the paperback: How to Create Million Dollar Products: The hidden formula behind the legendary best sellers of the last 100 years!: Giovinazzi, Frank: 9798843922030: Amazon.com: Books