Guest post by Bill Anderson–see the interview also 🙂
A lot of people don’t understand the concept of “Wealth Creation” or how to create wealth.
It’s not the same as wealth accumulation like saving or investing in stocks.
It’s not even working hard in a job that pays good. That’s just trading hours for money most of the time. It may be wealth accumulation, but it’s not wealth creation.
In a job, you may be helping the business owner create wealth, but you are not creating it yourself.
It’s not even the same as being a middleman – buying stuff and reselling it for a profit.
However, if you are the manufacturer of that product, you may be creating wealth.
A basic definition of wealth creation is any process of taking raw materials, forming them into a useful product, and then selling that product to people for a monetary gain. If you do that, you’ve actually created wealth.
It could be farming, manufacturing, gold mining, generating electricity, etc.
You can even have wealth creation if there is no money involved in the transaction. Like in a barter situation. But there has to be an increase in “value” for one party or both parties involved.
For instance, Let’s say I need a truck and I have no need for my motorcycle. You want a motorcycle and have a truck you don’t use much anymore. So, we make the trade and we both have an increase in useful value. So wealth has been created for both of us.
Now we can get into other areas that may not seem so cut and dried… like selling information. That is wealth creation because the author created that book and sold it for money which created wealth for him and hopefully great value for the buyer.
If you provide a valuable service and someone pays you for that service, that would be wealth creation also. Some jobs may fall into this category.
If you were simply flipping burgers at McDonalds, you may be an important component in a wealth creation process, but considering you a wealth creator would be a stretch. The franchise owner would be the one taking all the raw materials that go into a happy meal, putting them together into a sellable product, taking money for that product, and thus creating wealth for himself.
To be more specific, he took certain raw materials that cost him a certain amount of money and then he added value to them, and the customer received what they thought was a greater value in return for their money.
And therein lies the wealth creation – giving someone a greater perceived value than the cash or trade value.
It’s really one of the basic concepts of salesmanship… giving your customer more perceived value than cash value.
Some people call it staying on the creative plane as opposed to a competitive plane.
On a competitive plane, you sell products that are just like everybody else’s products. If you are selling widgets and Joe is selling widgets, then all you have to go on is why your widget is better than their widget. This is often accomplished with extravagant sales messages. You may even get into a price war. You’re basically competing for the same customer base. It’s just who has the better sales message.
Now if Mary comes out with a widget that has a big improvement made to it, then Mary is on the creative plane. Now she is providing a widget that everybody wants because it is much better in their eyes and they are willing to pay for it. She now has a USP – unique selling proposition.
Let’s say you sell a Picaso painting to an Eskimo for $100. Did the Eskimo get a good deal? It depends on your point of view… after all, what does an Eskimo need with a Picaso? He can’t feed his family with a Picaso. They can only look at it on the wall. But what if you sold him a hunting rifle for $100. He could now go hunting for moose and feed his family all winter long. Now, that’s a greater value for the Eskimo!
Wealth has now been created for that Eskimo. Not so much with the Picaso.
There are also all forms of wealth like emotional, financial, asset, social, health, time, etc.
The Perfect System is a wealth creation system because it gives members like you a back office full of useful information to become successful and at the same time provides you with a DFY business of your own that can keep you on the creative plane and creating wealth for years to come.
And it’s all guaranteed…