Do you have the entrepreneurial spirit? Do you sometimes sit around with your calculator and wonder just how much money you could make? Do you have the vision of working for yourself? Are you one of those who realize working for others makes money for them and not you?
Are you one of the few who realizes the potential of online sales over the Internet?
Some people complain about the minimum wage. They also complain about working for “the man.” Well this is all well and good, to a degree; most don’t have the gumption to change their lives by making something happen.
There are two limiting factors when you’re working for someone else. One is time, the other is money (or the rate at which someone will pay you). Four instance, if you are working full-time at 40 hours a week, at the end of the year you will accrue 2080 hours. Multiply 2080 by your pay rate and you can determine your gross income for the year. Typically, for most of us, it is never enough.
Again, the limiting factors are time and money.
If we took the first side of the equation, time, it could be argued you could work more hours. Yes, you can. And possibly even get time and a half for working all those hours if the company allows.
Keep in mind however, working a 40-hour week is a lot of work. Stacking extra hours on top of that necessitates working into the evening, or putting in time on the weekends.
Now, let’s look at the other side of the equation, the rate at which you can command payment for your services. What might that be? Perhaps $40 per hour? Maybe $60? And if you are really gifted, as much as $200 per hour?
No matter how you cut it, making big money requires a suspension of the ideas of time and rate of pay. For instance, take time and the rate of pay above – $200 x 2080 hours. That equates to $416,000.
That would be a tidy annual salary. The question is who will pay you $200 an hour for almost 2100 hours of work?
More than likely, most of us will fall into the range of $50,000 $100,000 a year. We will be content with our time off and our two-week vacation. Almost everyone will be satisfied, except for a few.
Those unsatisfied souls would be the entrepreneurs among us. They are the dreamers in our midst who make the connection between sales and the Internet.
First off, sales, it is the idea of buying something at a discount price and selling it at the retail price. Let’s say your product cost you $9.20. If you were able to sell that for $18.95, your profit would be $9.75 for every transaction.
Hold that thought.
Now let’s look at the magic that is the Internet. How many people buy goods over the Internet? And what hours does the Internet operate?
If you are an entrepreneur, you have already figured out the Internet keeps its doors open to customers 24 hours a day 365 days a year. This, combined with good research, can make you a millionaire. In other words, if you did your research right, and you perfected a product in high demand by many, you might expect four or five sales for every hour throughout the world.
Your math would look something like this: profit times hourly sales times 365 days. In numbers this would appear, $9.75 x 4 x 24 = $341,640.
After taking out 30 percent for a third-party company handle orders and delivery, that will leave you with $239,148. Taxes on that profit will be about $86,000 leaving you with a net income of about $150,000.
You are probably thinking that of $341,000, one should be able to keep a lot more than 44 percent of the gross. You’re probably right, but it is the reality of the situation.
However, here is something else you should keep in mind. That is $150,000 for – almost not working. In other words, you have already completed the work in setting up your system, researching your product, finding your third-party vendor for orders and distribution. In the end, all of the work you have to do amounts to comparing statements from your vendor against the deposits made to your business account, a couple of hours a month, maximum.
If you are contemplating something along this line of business, the sooner you start the better.
Good luck.
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©2014 J. Clark
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