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Wealthifier – Internet, Affiliate, Email and Information Marketing…Teaching You How to Make Money Online » Mumblings » Making Investment Bankers Blush: Massive Profit Margins

Making Investment Bankers Blush: Massive Profit Margins

I just sat down with my wife and watched the movie Wall Street.  She had never seen the original, so we watched it and the new one that came out late last year.

It made me think over and over again how incredibly changed forever the landscape of business is because of the web.

In so many places I worked, people had always talked about that “one great stock” that they would become a millionaire from as the price skyrocketed to Pluto.  That business model for the wanna-be entrepreneur has several huge downsides:

  1. You have to invest a lot to make a lot.
  2. Making money is basically gambling
  3. Ensuring that you make a lot by doing significant research is illegal (insider trading)

The internet inherently connects us all so quickly and easily that communication is being streamlined in crazy, efficient ways.  You can check the traffic on your phone and find detours on-the-fly.  You can check your friend’s likes and dislikes while at the store buying them a gift.  …and you can do all this for FREE.  Not counting the cost and maintenance of your cell phone.

I don’t need mad manipulative skills like Gordon Gecko, Bud Fox, or Jacob Moore and certainly don’t need to break any laws.  I can reach the buying power of billions of people online.  I don’t dream of 35% returns on my money.  If I start a business online for a $8/month hosting fee and $8 for a domain name at InMotionHosting(my favorite hosting provider), I can build a site that will make thousands per month.  The costs become so small when compared to the profits you can make.

When was the last time you heard of a $16 stock share rise to $12,000?

Comparing the web to other types of businesses is almost sad.  If I want to sell a book about sewing a quilt online, I might ask myself some questions:

  • How much profit would I make? nearly 100%
  • How many employees do I need? Zero
  • What hours are my storefront open? 24 hours a day, 7 days a week
  • How much are my expenses for my store lease and materials? Maybe $10 per month
  • How are people going to find my store? They’ll automatically find it when they ask about sewing
  • How much starting money do I need? A few dozen dollars for the domain and hosting

How else can you earn so much from so little?  There are people with no employees and little stress making millions online.

BEFORE the web, the rich became richer.

WITH the web, everyone becomes richer.
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