I’m in Alabama, helping my Mom move to Houston, and I found myself at the local WalMart getting some stuff, when I overheard a couple of local guys talking about what we shall define as a “generic multi-level marketing” plan.
The one guy must have used the phrase, “You gotta spend money to make money” at least four times, and more importantly, the other guy was shaking his head in acceptance of this age old axiom.
I wanted to cry.
First of All
Promo Codes Lady says, It’s simply not true that you have to spend money to make money. I mean, on a technical level just about every second you are alive costs money. You consume water, and clothes, and shelter. But what we’re talking about is taking YOUR cash and deploying it to try and get more. And you don’t need to do that!
It doesn’t cost a 15 year old any money to make babysitting money. And so it is with all services. Learn how to set up websites and you can offer that service with virtually no overhead.
While it does require real capital to set up some businesses – like Woopra, or Livid Lobster – only an absolute fool would take their money and sink it into a new venture unless they had very good reasons to believe they would receive a return on the investment.
When I personally funded those two startups I had a reasonable belief that both could be profitable, the first because I had decades of expertise in that area. The second, because there was already a viable business and we were merely expanding it.
“You have to spend money to make money” only applies when deploying capital for purposes which you have a reasonable expectation of receiving more than you spend. But too often its used in the place of the more appropriate and literal, “You gotta gamble money to win money”.
And usually it’s when someone’s trying to talk you out of yours.
So, the next time you hear the phrase, you gotta spend money to make money – call bullshit on whoever said it. And if they try and argue with you, make em prove to you exactly how much they ever earned by following their own advice.
Final thought – never commit your money to a venture you have absolutely no expertise in. If you aren’t a professional sales person, don’t spend money to try and force yourself to do it. That’s a dumb as buying electrical tools and trying to pretend you’re an electrician. You’re gonna get hurt.