Tuesday, April 08, 2025
Before diving into this article, I highly recommend reading my previous article, where we discussed Magic Schemes vs. Real Strategies and why most "Get Rich Quick" plans fail. As promised, in this article, I will address three key questions you might have:
How do you build real wealth without falling for scams?
If "Get Rich Quick" schemes always fail, what actually works?
What does a real wealth-building strategy look like?
The first thing to understand is that wealth is created by providing value, not just moving money around.
Real businesses earn profits by solving problems, improving lives, or increasing efficiency. Schemes, however, rely on extracting money from new participants rather than generating real value.
There’s no magic formula. Real wealth comes from:
Since we’re talking about legal ways to make money, here are a few ideas to consider. I once discussed this with my son and told him that there are three legitimate paths to financial success:
Paths #1 and #2 are personal choices, but if you're considering path #3—entrepreneurship—I can help.
If you truly see yourself as an entrepreneur, here’s something you may not have heard before but need to know:
1. Stop Thinking Like a Technician
Most small businesses fail because their founders are technicians (skilled workers) who mistakenly believe they are entrepreneurs. They remain stuck in the Technician role instead of transitioning to building systems.
A business should operate like a franchise—systematized and scalable. Successful businesses have clear, replicable systems. Your success will depend 80% on marketing and system-building, not just the quality of your product or service.
Work ON Your Business, Not IN It!
Example: Does McDonald's make the best burgers? No! But they have the best system and marketing strategies.
2. Stop Competing—Start Innovating
Instead of battling competitors, innovate to create new demand and unlock profitable growth. Enhance unique features that make you incomparable.
3. Stand Out or You Are Invisible
The only way to grow in a noisy market is to be truly remarkable.
Need proof of my advice above?
Here’s the proof: Zipf’s Law: The most remarkable businesses attract all the attention.
Zipf’s Law states that in any competitive environment, a small number of top players dominate while the majority struggle for attention. This applies to business, marketing, and even social influence.
Have you ever heard of Zipf's Law?
In any industry, usually, 3-4 top companies control half of the market, while the rest (potentially thousands of businesses) fight over the remaining half.
See the chat below.
In 2023, Amazon, Walmart, Apple, and eBay dominated the e-commerce landscape in the USA, holding a combined market share of 50.6%.
Curious for more jaw-dropping insights?
After analyzing many charts, I uncovered The Harsh Truth About Competition:
What This Means for You:
If you're not among the top players, you're in a highly competitive, low-margin market. You’re trapped in a cutthroat battle for the leftovers.
What should you do?
There are two paths to consider:
1. The Linear Grind (A Race to Nowhere)
2. The Blue Ocean Shift (Escape the Bloodbath)
See the chats below. The yellow arrow (below) shows how even slight differentiation from competition can propel you from #10 to #7. If standing out more? The gains become exponential.
The Lesson: Success in business isn’t about being slightly better—it’s about being dramatically different.
Build systems, innovate, and be remarkable. Don’t just sell products and services—design a system that eliminates hassles, making it effortless for customers to get exactly what they want. Otherwise... you’ll be invisible.
Stop looking for 'magic' shortcuts—they’re an illusion. Real wealth is built through value creation, smart strategies, polished systems, and long-term commitment.
If you're looking to deepen your understanding of business, here are some essential reads:
The E-Myth Revisited by Michael E. Gerber
Blue Ocean Strategy by W. Chan Kim & Renée Mauborgne
Purple Cow: Transform Your Business by Being Remarkable by Seth Godin
Good to Great: Why Some Companies Make the Leap...And Others Don’t by Jim Collins (a seminal work in the field)
The Four Steps to the Epiphany by Steve Blank
The Lean Startup by Eric Ries (a groundbreaking approach transforming how companies launch products worldwide)
Finally, Nobel laureate Daniel Kahneman’s acclaimed Thinking, Fast and Slow (winner of the 2002 Nobel Memorial Prize in Economic Sciences)
Each of these books contains unique insights that will help you improve your business intelligence.
So stop chasing 'magic schemes' and start learning and building something real.
Now, you might ask: But how?
How do you build something real when it’s not easy?
What if you’re not the top expert in your field, don’t have a high-paying job, and aren’t an entrepreneur?
What should an ordinary person do?
What might a real wealth-building strategy look like for you?
Find out in my next article: "What Does a Real Wealth-Building Strategy Look Like?"
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