It takes money to make money—or does it

You’ve undoubtedly heard the business adage: “It takes money to make money.” Is this true? What does it mean?

Many Internet entrepreneurs—and those aspiring to be one—seem to fall into two camps. There are those that think this business adage means you must spend a lot of money to make money. The other camp believes you can do everything for free.

I’d like to modify this adage to read: “It takes resources to make money.” Now, that’s a cold hard fact.

Whether you spend your time or your money, you’re spending a resource. For some cash is less valuable than time, and for others it’s reversed.

I think many fail to make more money and reach their goals because they have misunderstood this concept.

There’s a large segment in the would-be business population that ends up doing nothing, because they believe that one must possess a lot of money to start making money.

Another segment of that population runs themselves into the ground. This segment believes that time is free and “free” is better than spending money. They either work extra hard for minimal gains or they never get off the ground. Almost all will fizzle out. I’ll go more into this in another article.

Here’s a nugget for you. I’ve been self-employed and doing business on the Internet since 1994. I actually started with mail order marketing before that. When I did my first business venture as an adult, I had about $40 to my name. I was just a young lad. I’m still living off that $40. To this day, I’ve never taken out one loan for business purposes and I’ve never subjected myself to being an employee.

I’m not going to talk about my finances too much, because I believe that’s poor form. There are some key reasons I’m still here and in another article for Internet Business Entrepreneur I’ll go over them.

Remember, it takes resources to make money. Learn what resource mix to use. Don’t fall into the “time is free” camp and you’ll be better off.