Let me teach you the basics of making money

My Success from Scratch

This is “the post” that is the bottom line of any web business. This is where I explain in numbers how I turned $12.00, the cost of my domain, into a million dollar empire never sleeping, turnkey empire! One thing is for sure, if I can do it, you can too. That you can take to the bank!

Let me take your hand and show you how anyone can make passive income with an investment of only $12.00. Making money on the web is more common than what you might think. Who doesn’t own their very own blog? If you are looking to make money developing a online business, then what I have to say might interest you. I specialize in venture capital, creative concepts, fund-raising, micromanagement and unique web content. There is nothing for sale on this page. I made this page to display my results from owning a blog, a blog journal. I use this page to publish my results, stats, payments I post everything.

Let me be clear, the direction of making money is moving towards the web. The proliferation of sites like Facebook confirm that most people will at some point have a personal website or be willing to load their personal content on the internet for others to view. For example, nine out of ten people have Googled someones name, looking for possible negative information about them. I have even ordered a pizza from a website, so you know this “web-thing” is catching on in a really huge way. Making money has always been about “getting in the way” of a transaction. And more and more, transactions are done over the internet.

This blog is my electronic business card–my mouthpiece. I made this blog to show that money can be made from almost anything. When others try to conceal their snake oil, get rich quick schemes, I am the magician willing to expose the secret of the illusion. A friend of mine asked me, “Are you worried someone will take your idea?” No, I am not. I offer them like candy, take one and use it if you like. I’ve moved on to another idea already. I have forgotten more ways to make money, then most will ever know. I am the modern day prospector.

Ten easy steps to WordPress blogging success!

Are you looking to increase the traffic to your blog? Does your blog need something fresh? I can help turn your blog into a traffic grabbing machine! Blogging for dollars is easier than you might think. With my 10 step guide you will see a big boost in your blog’s traffic, making you more money. I hope you enjoy my 10 step guide to get your WordPress blog into the top spot!

Step 1. Start by reviewing your blog’s content, expand on the original ideas, link to articles and add helpful fun facts to your post.

Step 2. Build a solid amount of keyword-rich content surrounding your blog’s topic covering as much of the keywords related to your topic.

Step 3. Branch-out some – blog about events and niche subjects that have weaker competition that your blog is likely to rank better in, to draw ancillary traffic to your site.

Step 4. Blog swap – email other bloggers and swap posts inserting a link back to your blog, this is very valuable. This is almost as good, if not better than blogging on your own Word Press blog.

Step 5. Post blog comments – Spend a few hours leaving comment on other blogs with a link back to your blog.

Step 6. Buy some articles – You can hire freelance writers to write short 100-500 word articles from $2.00 -$10.00. With a small investment of fifty bucks, you could really improve your blog!

Step 7. Blog about upcoming events, like Black-Friday, Super Bowl predictions, events you are sure are going to draw lots of searches. These events happen yearly and can be relied on for excellent traffic. Some time posting silly things like when daylight-saving time will take place will return thousands of hits.

Step 8. Post useful information like deals, cheap gas, sales, review services, products, grandma’s recipes or something simple like how to save money on your Sprint bill.

Step 9. Start a link swap campaign – you can advertise on website like Sitepoint and Digital Point for other blog owners and webmasters to swap links. This can also be done by emailing blog owners directly.

Step 10. Merchandise your site, everyone wants to make money! But don’t make your ads a fly on the wall, instead cleverly include your advertiser into your post. You will get a better conversion rate!

How to improve your chances of selling your car on Craigslist.

It is very simple to get more people looking at your car for sale posting on Craigslist with less phone calls and less foot traffic, by posting a short YouTube tour video of your car!

With gas being very expensive, these days it is difficult to get people to show up to look at your car for sale, this is what I did to sell my car on craigslist!

Well you can make a short You Tube video and post it on craigslist with a short tour of your car with some general details. I sold my car on craigslist in the first day with this video.

I think posting a You Tube video would work well for boats, RVs, cars or just about anything you want to sale on craigslist!

How to Create A Search Engine Friendly Website Design

There are some basic rules that you need to follow if you want to create web pages that are search engine friendly. You will need to keep these in mind when you are designing your website. If you are having a web designer do the work for you then you can pass these details on.

What about Frames?

Frames are a big no go area. Most spiders are not able to handle frames. If you do have to use them, which you shouldn’t, you will also have to create a NO FRAMES version of your website if you want spiders to crawl it.

Can I Use Flash, QuickTime, Plug-Ins etc?

Search engines are able to read and index flash websites so this is good. You shouldn’t however design your whole website in flash because it will be too hard to implement SEO techniques properly and if any issues arise, they will be very hard to resolve. A small amount of flash is fine as are small amounts of movies and other plugins. Remember flash, movies, audio, etc., are used for your human visitors and not the spiders anyway.

What about JavaScript?

If you use JavaScript on your website then you should know that it is invisible to some of the search engines as they can’t read it.

Are Image Maps Useful?

Image maps may seem like a great idea when designing your website but it is worth noting that not all the search engines follow them. Another downside to image maps is that you can’t include anchor text so I would advice using an alternative navigational design.

Do I Need To Validate My HTML?

Validating your HTML is a great way to check for errors in your code. There are a lot of times when you will get insignificant errors but on occasions you may find that you have forgotten to close tags or something else that will cause problems when spiders are indexing your website. The rule goes that you should always check you HTML and fix and errors you get.

Can’t sell your used RV? I can help!!!

Having a hard time selling your used RV in today’s market? Today is your lucky day!! I think I may be able to help you out and unlike other websites the information posted on my website is 100% free.

Something you may not be aware of, but there is a small niche market, currently in Williston, North Dakota, that may allow you to sell your used RV for 2 times up to 5 times what your used RV is currently worth in this sagging market.

Wages are high and the lack of affordable housing is making hard for people moving to the area. With people sleeping at Wal-Mart and some are even camping on the side of the road in tents and sleeping bags. Williston, North Dakota, is the modern day gold rush!

Why?

In the town of Williston, N.D., America’s newest oil boomtown, more than 6,000 job seekers have come from every corner of the country looking for work. Yet, oil companies and other developers haven’t been able to build housing units fast enough.

In the past year, only about 2,000 new housing units have been built, leaving many workers out in the cold.

Another fun fact to support the idea is, local hotels are charging upwards of $6,000 a month and are booked till next year.

Newer arrivals who can’t find vacant hotel rooms or apartments, sleep in their cars, or in sleeping bags on spare patches of grass along the highway. The luckier ones nab a spot in one of the dozens of dorm-like facilities, known as “man camps,” that the oil companies have built to house their workers.

Important point – This market might only support RV’s in the price range $1000-$10,000.00. Many of the employees salaries are $4,500.00-$12,000.00 a month. Even fast food workers are making as much as$15.00 hour.

Something else that just crossed my mind while I was writing this –You may not be able to sell higher priced RV’s, BUT!!! You might be able to rent your RV for a thousand a month or something.

Quotes in this article taken from Yahoo Finance – to read the full article posted on Yahoo

CNN money oil boomtown article here

Thanksgiving dinner is on ScottRAsher.com this year!!!

This year Scott is feeding your family Thanksgiving Dinner for free!

This is all you need to get your free Thanksgiving dinner!

I want the family Thanksgiving recipes. Transfer your popular Thanksgiving family recipes into Word format and add them to a CD, and then meet me at the grocery store. In exchange I will buy your family Thanksgiving dinner this year!

Legal Disclaimer

  • Thanksgiving recipes must be yours.
  • I will gladly give credit to granny or mom. Must provide name.
  • Family recipes will be published on my website here on my Thanksgiving blog: http://turkeydinner.scottrasher.com/
  • 10 recipes or less gets $50.00 of food.
  • 20 or more recipes gets $100.00 of food.
  • Thanksgiving recipes must be related to a traditional Thanksgiving feast.

Please note: All recipes will be checked with copyscapes: http://www.copyscape.com/

Just make sure to thank God first of-course, then thank Scott!

A report released by the American Farm Bureau Federation said the average cost of a Thanksgiving dinner for 10 is $44.61, up $2.35 from last year’s average of $42.26. That’s a 6 percent increase.

What is REALLY happening on Associated Content (AC)?

Scott, I saw your article about relaxation on Associated Content (AC) and I read a little about writing for AC.  It looks like a fair opportunity to make money working at home.  What kind of money do you think I could make writing a few good articles a week?

Thanks,
Paul B., Minn.

Thanks for writing Paul.  I have written a few articles for AC and found them to be prompt in paying.  If you submit your content requesting an up-front payment, they review your piece and make you an offer within a week or so.  I haven’t been offered anything staggering for any piece, about $3 per article.  I made more money selling one item from the last storage unit auction I bought at but hey, it’s all about multiple streams of income, right?  One of the things I occasionally do to put things in perspective is to ask myself, what is really going on here.  It forces you to peel through multiple layers of reality.  To answer your question, I asked myself, “What is REALLY going on at Associated Content?”  Let’s look at it together.

Here’s Associated Content‘s vital statistics:

Associated Content, Inc. is a privately held Delaware Corporation.  This is only significant in that AC does not have any public reporting requirements as publicly traded corporations do.  Read – they do not have to publicly state their income – no biggie, right?  What they earn is their business.   According to Silicone Alley Insider, it is estimated at a value of $65 million.   The Associated Content site has a traffic ranking of 773 according to Alexa – compare eHow at 476.

According to AC,

  • Associated Content publishes authentic, useful and informative content on nearly every conceivable topic, produced by real people sharing real-world expertise from diverse perspectives.

Anyone who knows anything about the internet knows that “Content is King,” and AC has an army of Content Producers (CPs) constantly churning out articles on just about any subject or topic imaginable.  The site is covered in advertising links which generate impressions and clicks leading to advertising revenue.  I suppose it is remarkable that they pay writers anything since it seems people will submit content to many popular websites that don’t pay anything.  And this formula works – the payments keep many people actively creating content which draws search engine, direct and organic traffic to the site.

I didn’t start writing on AC to make money – I can make more money in a weekend selling goods than in a whole year of writing for AC – I wanted to promote my website.   AC allows you to put your website after the article, which I thought was great as I would be in essence, backlinking from AC to scottrasher.com – which could only improve my website’s search engine ranking.  I discovered today that this is not the case.

I went straight to the source code of one of my article pages.  Here is a snipet of code relating to my website:

[<li><a rel=“nofollow” href=“http://scottrasher.com” class=“link_383838”>scottrasher.com</a></li>]

No follow?  Apparently, AC does not want search engine robots to not follow the link.  So the only benefit of having the link is if someone reads the article and follows it – which is a potential although my stats don’t show any referrals from AC.  My website isn’t getting any search engine benefit from AC links.

Another thing I realized today is that I’m on my own promoting this content.  I’ve never seen it show up anywhere on the site. A google search of Associated Content revealed this discussion which you might be interested in reading.

It’s interesting to read through the disclaimers/terms of use you agree to when you sign up at AC.  You get paid for the page views where an advertisement impression occurs.  Here’s what AC says about that, “*Page View. means one view of a single page of Content on the Site containing an advertising impression. AC shall in its sole discretion determine the type, frequency, and category of advertising impressions served on the Site in general and any content page in particular.” and “3. Your Acknowledgments. You acknowledge that:

a. You understand that the data presented in the Beta Program may not be accurate, and that you will not rely on those numbers in any way“(emphasis added).”

I guess the lawyer in me just can’t help but be fascinated with the disclaimers we accept without even reading.

Paul, it seems there’s a little bit of money to be made but if I were you I’d get a hundred monkeys to each type ten articles a day and submit it to AC, then you could really make some dough.   It’s all a numbers game really.

Good luck!

Obama Announces Plan for Credit Amnesty

At an unexpected White House press conference this morning, on the heels of the gate crashing scandal, President Obama announced a bold, new economic stimulus plan he called the Credit Amnesty Plan of 2010.  According to Mr. Obama:

“With 16 million Americans unemployed and no foreseeable recovery, I am advised to take bold action.  The top economic advisors have informed me the only viable option to stimulate pre-crash vigorous commerce is to relax the credit standards used by lenders today.”

Republican opponents of the proposal, dubbed the Credit Amnesty Act of 2010, “a fool’s folly,” stating, “relaxing lending standards is exactly how this country found itself in this financial disaster in the first place.”

Leading economists speculate that a complete reversal of consumer credit ratings would bring consumers back to pre-2008 spending habits, ie. purchasing homes, cars and 1080p televisions that they cannot afford, thereby returning the United States back to the capitalistic utopia offered by the Founding Fathers of the country.

The Credit Amnesty Plan, according to Obama,

“Would set the clock back to zero on January first.  Every citizen of the United States would be given a credit score of 800.  How they choose to use it is up to them.  But, I have the utmost of confidence that my fellow Americans will use their new found credit status wisely.”

Congress is expected to debate the proposed plan as soon as legal proceedings are concluded in the White House Staff’s unprecedented claim of executive privilege surrounding the so called guest list and party guest screening, security debacle.  Of course, Congress is out of session until February of 2010 and legal proceedings on the executive privilege claims are expected to last until 2020 thereby essentially renaming Mr. Obamba’s bold plan, the Credit Amnesty Plan of 2020.  Skeptics have claimed that the end of the world is scheduled for 2012 thereby rendering Mr. Obama’s plan entirely moot.

The Numbers Game – Lessons From Mailbox Money

It’s All A Numbers Game – Lessons I Learned From Mailbox Money

Before the advent of the internet, get rich quick schemes were advertised in magazines.  These ads followed a predictable formula – there were pictures of expensive European cars parked in front of a mansion and an average, perhaps portly guy, with a polyester leisure suit and two hot blondes on either side and ad copy stating, “I make a million dollars a year without doing anything.”  It’s not at all unlike what is portrayed in internet get rich quick scheme ads today like the Rich Jerk.

I fell for my first get rich quick scheme at about age ten.  While other children were playing kick ball, I was dreaming about being rich.  Not just rich but filthy rich.  Funny money.  I sent the rich guy my ten bucks and waited on pins and needles for my very own blueprint for success to arrive in the mail.  What I got was a pamphlet telling me how to start my own get rich quick scheme.  The scheme suggested you write a pamphlet (or just photocopy his) and advertise it in classified ads.  He said if you charge five dollars for your pamphlet and spend two hundred dollars on advertising you should make roughly $2000.  He called it mailbox money because he said he opened his mail box and got money every day.

I never tried it and I fell for many more get rich quick schemes after that as I’m sure anyone who has been interested in getting “money for nothing and your chicks for free” has as well.  But the lesson I learned from all the various scams I was suckered into was this – IT’S ALL A NUMBERS GAME.

Take any method of making money and there’s at least a million of them to chose from.  The formula for success is how many times you actually performed the activity.  If it takes 100 sales calls to make one sale and you quit at 99, saying, “this doesn’t work,” you misunderstood the formula for success.  Another key component implicit in the formula is your belief in the method of making money you chose to engage in.  In other words, maybe you don’t have the personality (or the glamor shot photo) to sell real estate and you believe you are better adapted to, oh, I don’t know, how about shoveling dirt.  If that were the case and you honestly believed you should be shoveling dirt for money, the amount of money you make is directly proportional to how many times you shovel.  Even as a shoveler of dirt, you have to sell your service even if it means you have to go door to door with your shovel, asking people to hire you.  So to be clear, whatever we choose to do for money, we’re selling something whether it’s an idea, a product or our time.

So no more get rich quick schemes – just pick a method that actually makes money and do it over and over again until you have all the money you want.  That’s the lesson to be learned from mailbox money.  Good luck!

Camp Awesome!!

Remember Woody Harrelson?

I came across this article posted on the deceiver.com about the White Men Can’t Jump star, Woody Harrelson.

Woody Harrelson Has Lost His Damn Mind

He lives in a farming village in Hawaii where there are no shops and everyone uses solar power. A committed vegan, he eats mostly raw foods. He goes through a ton of weed, which may be his biggest carbon emission because his car runs on biodiesel fuel.

Now Woody Harrelson wants to take it to the next level: a forty-day fast during which he does nothing but surf all day. And probably smoke a lot of drugs.

“I know it’s going to be really hard,” the Kingpin actor says. “But can you imagine it? Eating nothing for 40 days? Swimming and surfing every day in a remote place? Where does the mind go?”

It goes away, probably.

Honestly, this plan is so extreme that I can’t help but respect it. And wait for the epic failure. Harrelson, I’m watching.

Sounds like camp AWESOME!!… Sign me up now! Woody is a god-damn uber-genius! Wait five years from now, when all the marrow has been sucked out of our souls, people are going to be lining up around the block to pay $15,000.00 a person for an experience like this.  This is the true essence of life.

I tell you who has lost their fuckin mind… People that sit on the fucking 405 for 2 hours a day, grinding out some stupid job for 30 years then they end-up dying from second hand smoke.

How to Come Up with Hundreds of How to Ideas

Electric Light bulb from Crestock Stock Photo

Want to create a stream of passive income?
Of course you do – who doesn’t? Writing “how to” articles is a great way to create a passive stream of income. Despite all the faults of the internet, there are millions of people searching “how to do (anything).” Whether you’re writing for your own blog or for paying sites, you can capture a share of the how to market with great articles. Here’s how to come up with literally hundreds of ideas for writing “how to” internet articles.

Go “Old School” for a moment.
You’ll need an old fashioned pad of paper and a pen. Not a pencil because there’s no need to erase anything. We’re talking about brainstorming basics here and there are no bad ideas during brainstorming. On the left side column of your pad, number each line, 1 – 100 and write the words “How to” on each line. Give yourself plenty of relaxation, time and freedom from pressures or obligations.

Now, Think…
What have I learned in my years on the planet that I can share with other people? Start writing down the ideas as they come. Don’t edit yourself or refuse to write one. If you think it, write it. While you’re writing, other ideas will start flowing and you should write everything. I started this list and after a few days, had about 300 how to ideas.

Keep your pad handy…
As you start writing your awesome how to internet articles, you’ll get more ideas. Stop whatever you’re doing and write them down. If you ever get stuck and don’t know what to do with your time or feel writer’s block. Just looking at all the great ideas you’ve written down will give you the creative inspiration to write something.

Need more ideas?
Maybe you detest paper. Perhaps you’ve forgotten how to use a pen. Maybe you just don’t like my idea for brainstorming. Whatever the case, here’s another idea for finding topics for writing how to articles. Believe it or not, you can “borrow” the ideas a popular how to website offers to its writers. eHow (and no, I’m not giving them a link) asks its readers to request articles. Sign up to be a member with them. You don’t have to ever write an article although you can make a few bucks writing articles for them. The feature I’m suggesting you look at is requests for articles. Their users suggest How to articles that they would like to read. You can get ideas from them to get you started.

Even more ideas…
If you don’t already have hundreds of ideas for how to articles by now, I’ve got one more suggestion you might try to find inspiration. At your next family gathering, (bring your pad, of course) and ask everyone in your family to write down ten things they’d like to learn in the format of “how to.” You may or may not know anything at all about the topics they would like to learn about but that’s ok. You know how to research and write a great internet article. If you have ten family members you just got 100 ideas from people who are potential internet searchers and one thing about even your family members, if they’re interested in learning about something, so are thousands of other people.

Want more???
If you don’t have at least 1000 how to ideas, more than you could ever write in your life time by this point, you can go to Google/trends and find all the how to ideas you’ve ever imagined. Google/trends shows the top 100 searches of the day and you could almost certainly find a dozen how to ideas related to what people are actually searching for. If you get good at this you can get massive traffic to your “How to” article, particularly, with Google Real-Time Search showing your article literally seconds after you’ve posted it.

Warning:  Brainstorming is addictive!

You can get very excited as ideas start flowing out of you like an open fire hydrant.  It’s ok to spend some time enjoying the naturally energetic high that comes from dwelling in ideas but to ideas are only worth something if you do something with them.

If you want to Make Money from ideas…

If you write articles or would like to write articles to earn money, consider this fantastic program to turn one of your articles into hundreds of unique articles, submitted to article directories for maximizing your payment

New WordPress blog blueprint for success or (how to avoid your blog becoming a giant suck hole of time)

I’ve just finished another round of analyzing old posts, filling in missing keywords, tagging articles, working in affiliate marketing and overall, trying to make this mish-mash of articles, photographs and random ramblings appear to have been written with some clarity of focus (although they may or may not have been at the time).  I’ve spent countless hours, tweaking and refining, adding and deleting plugins, working on design and trying to plot trends of the future.  In short, I allowed my blog to become a giant suck hole of time.

The kind of blogger I’ve determined to become is like the magician that turns on the industry and reveals the secrets.  I’m not being strictly altruistic, I’m getting focused.  You can learn from my mistakes and keep your blog from becoming a giant suck hole of time as well.

Beginning bloggers, take heed:

If you want your blog to ever make any money, set up your blog with this in mind.

1.  Don’t use blogger, typepad, free wordpress blogs or anything but your own unique domain.  Sure, free seems attractive but there’s always – I repeat, always a cost to free.  I guarantee if you start making money on your blog, you’ll regret having .whatever between your catchy name and .com.  There are so many other disadvantages to the free blogging setups that it’s really another whole article.

2.  I recommend you get your own web hosting – personally I use and love for a variety of reasons.  (a) it’s about 8 bucks a month and the storage and bandwidth is unlimited, allowing me to host a gazillion other blogs and websites (which I charge people for).  You can install your new WordPress blog with one click – it’s that easy.  You don’t have to be an expert on FTP to modify your dreamhost account, they offer web ftp and it’s easily accessed from your control panel.  Dreamhost will also give you your domain for free for a year when you activate your account.  So do it.

3.  Install your WordPress software and open an account at wordpress.com.  You’ll need an API to activate your Askimet spam protection and your wordpress.com blog statistics (you can quickly see your stats on the dashboard).  Pick a template that allows you to easily customize your look and once you’ve got what you like, keep it.  I’ve spent countless hours messing with the look of the site and it’s just a giant suck hole of time.

4.  Open the following accounts.  Google AdSense, Amazon Affiliate Account, and Google Analytics.  Install the WP-Insert plug-in and set up your sidebar, header and footer widgets to optimize ads.  If you don’t have a paypal business account, open one if you want to ask for donations.  You can do any of these things later but I’m trying to help you avoid wasting time.  If you know you want to make money from your blog, plan it from the beginning.

5.  Change the default setting on how your posts and pages are titled.  Go to the settings and choose the format that allows the title of the post to be spelled out in the url versus the “page=number” format.  After a year of blogging on this site, a friend suggested this to me; how embarrassing.

6.  Think ahead about what you want your blog to be about – it doesn’t matter what it is but pick a theme.  Maybe you want to blog about Crohn’s disease or mesothelioma lawyers (I understand they pay big bucks when someone clicks on their google ads), or whatever it is.  Think about the keywords associated with your topic.  Create categories from those keywords.  Must credit my friend with this one as well.

7.  Write excellent articles about your topic.  Use the SEO pluging to create hand crafted excerpts, description, and add keywords.  Be sure to properly categorize and tag the articles.  Add a photograph if you can.  Articles with photographs are more appealing to readers than without.  Then and only then, go to your facebook and/or twitter account and share the link in a status update.  Facebook and twitter is it’s own suck hole of time and I use it very sparingly, preferring to spend my time focused on making money, not playing Mafia Wars or Farmville.  And I really don’t care what people think of me on facebook – I only have a handful of real friends there and the rest are complete strangers.  My real friends get phone calls and emails from me with an occasional nod from me on facebook.

8.  After you’ve focused on what your blog is about and written some great keyword rich internet articles you can go out into the blogosphere and make comments, join blog carnivals, blogroll, guest post and all of the things that every blog writing about how to make money with your blog suggest.  But beware, these activities have the potential to become a giant suck hole of time.  If you have unlimited time, go for it, but I prefer to spend my blog time crafting keyword rich, informative content under the theory that if you build it, they will come.

If you will do these things from the beginning, you’ll have a much better chance of success without wasting a huge amount of time.  If however, you have to go back and fix a years worth of blogging to optimize your content, well, that’s the price for poor planning and it’s probably worth it to get back on track.  That’s how I’m choosing to think of my countless hours in the black hole of the blogosphere.  As always, I wish you the best of success in your blogging endeavors.  After all, this isn’t a competition unless you believe my prediction about Google Real-Time Search.

A Simple Formula to Evaluate the Value of Your Time

An all to familiar scene is playing out at my house.  My wife is searching craigslist for a job.  I’m working on our other computer.  She says, “what are you doing?”

“I’m working,” I say.  “Are you making any money?” she asks.  “Yes.”  “At this moment?”  “Not at this moment, no.”  “When?”  “Really soon, I promise, my love.”  The dog jumps on my lap, her paws land on my keyboard inserting random characters in my blog post.  If she could talk, she’d be saying, “play with me Daddy – you never want to play with me anymore.”  I could sit with my wife and try to explain the thoughts that are going through my head about money and work and the value of time but she’s knows that we need money now and that’s one of the many things I love about her.  She can focus and bring money in the door right now.  I’m entirely in a philosophical debate in my mind.  In that internal debate, I reach a mathematical formula to determine how to evaluate any monetary pursuit according to a value of one’s time.  I had to make some assumptions in order to arrive at this formula.

First assumption:  Any money earned (unless it’s gifted, inherited or compounded interest) is the result of converting a sales pitch.  I hear the first nay-sayer now:  But I have a job!  I’m not making a sales pitch. Landing a job required a big sales pitch and there’s a continual pitch made each and every hour worked.  A job is a 100% conversion rate of every hour worked.

Second assumption:  The percentage of conversion is an estimate based upon past performance.  If you’ve made a thousand sales pitches and had one hundred sales, the percentage of conversion is ten percent.  A percentage of conversion can be increased or decreased based upon the skills of the person presenting the pitch.

Third assumption:  Time is the most precious of human possessions therefore something that can be done using less of one’s time is inherently better than another.

With these assumptions, here’s the formula:

E = P x C  x e/ T = V

E= earnings

P = number of pitches

C = percentage of conversion

e = earning per conversion

T = total time investment

V = value of time invested

If you’re analyzing the value of time for a job, that’s easy.  If you make $15 an hour, V, the value of your time is $15.  There are only two variables that you can increase to increase your earnings, how many hours you work and the rate of your pay.

Let’s look at this formula with a different kind of opportunity – appointment setting, for instance.  Assume an insurance agent offers you $5 for every appointment that you set and you’re told previous appointment setters average ten appointments per one hundred calls.  You’re also told that most appointment setters work 6 hours a day, five days a week and earn an average of $500 weekly.  Assuming these are good estimates, here’s the formula at work:

$500 = 1000 x .10 x 5 / 48 = $10.42  To make $500 a week, you have to make 1000 sales calls, close ten percent of the sales at $5 per closing divided by the total hours worked, 48, for a value of $10.42 per hour.  If you want to earn more, you can increase the amount of pitches (which increases your time), the earning per conversion (ask for $10 per appointment) and/or increase the conversion percentage which would naturally occur as you perfect your sales pitch. While, this might not have been the best example, at least there are more variables you can control than with a job.

For me, the formula becomes infinitely more fascinating when dealing with the sale of intellectual property.  The creation of intellectual property; music, a photograph, a brand, a book, a website is time intensive to create but what makes it different from the above examples is, when it’s completed you’ve got the potential for your pitches to run an indefinite period of time and the amount of time required to maintain decreases significantly.  Residual and passive income is the boon of the successful marketing of intellectual property.

The hard thing to explain to my wife (and I know she already gets it without my explanation) is that I’m either creating some intellectual property, increasing the number of sales pitches I’m making, crafting pitches for a higher percentage of conversion, or increasing the earning per conversion.  This is difficult to explain when you should be working a job.  The final factor which I cannot seem to express mathematically is whether you enjoy your total time spent.   I’m not sure what E has to be to not enjoy what you’re doing – I guess that depends on just how much E you think you need.