How to earn on resources? You can make money on resources if you have something that may be of interest to other people and they are willing to pay for it. Literally anything can act as a resource that people may want to use without purchasing it for personal use. Even if you just bought virtual reality headset that allow you to look into the Middle Ages, you can organize a shop in a crowded place and, for a fee, allow passers-by to use the VR headset. This is undoubtedly a primitive example, but the meaning is conveyed absolutely correctly. If a person wants to access something that you have, but does not want to buy it, you have the right to allow him to use it for a fee. Now let’s get down to business.
To begin with, you and I need to define what we mean under a resource. In our case, this is something that literally any person can get access to for a certain fee, and for a rather long period of time. Thus, we are talking about a public resource that can be used in a specific place, on weekdays, throughout the entire calendar year. The essence of such a business is that you create some value for consumers once, and then regularly charge them for use. To successfully create a business based on this form of value, you need to follow these rules:
1) You must create a resource in which people in your area, city or country have a real need and desire to use it;
2) You must serve such a number of clients, at which it will not reduce the quality of service for each individual of them;
3) You must charge a fee for access to the resource sufficient to keep it in working order, including improving it.
TIP. This material is a logical addition to the series of articles: “Why do people visit a fitness club“, “How does a fitness trainer earn“, “Which way does a fitness trainer earn“, “How much does a fitness trainer earn“, “Top-5 tips for a fitness trainer“, “How to earn by selling goods” and “How to earn by selling services”, which I strongly recommend that you also familiarize yourself with.
How to earn on resources
In our case, the most obvious example of a public resource is fitness clubs and gyms. You, as a business owner, can rent premises, purchase the necessary equipment and hire staff and start attracting clients. You have created a resource, set a price for access to it, and now everyone can use your equipment and inventory without purchasing it. Customers just buy a membership. They make a certain payment, which gives the opportunity to visit the fitness club for 1, 3, 6 or 12 months. The fitness club combines a public resource, a service, and including a subscription.
All sorts of amusement parks, libraries, museums and more work on a similar principle. If you want to ride a roller coaster, you certainly do not want to and will not buy them for private ownership, but in an amusement park you can buy access to this resource and use whenever you want, on any day and most likely, in any season. For example, if you like to read books, but do not want to buy them, you go to the library, which contains thousands of books. For a monthly fee, you get access to this resource and you can take any book that you need to return after reading. If you want to admire the Girl on a Ball, but you cannot afford to buy a painting by Pablo Picasso, you need to go to the art gallery.
To earn on resources is actually not so easy. This type of business is fraught with many pitfalls. The most important of them is maintaining the balance of consumption levels. More precisely, the search for the point of this balance. The fact is that if too few people want to use your resource, you will not be able to adequately cover the costs of renting premises, maintaining equipment, paying staff, paying taxes and more. At the same time, if too many people want to use your resource, the quality of service for each of them will decrease, a crush, crowding will begin, this will cause discomfort and, as a result, lead to an outflow of customers. This is the main task of the business owner – to provide himself with the “optimal” number of clients.
How much you can earn on resources
Your earnings always depend on clients, including whether there are enough of them or not enough, that is, whether their number is “optimal” for your business at the moment. As you remember, there should be neither too few nor too many clients. Earnings on resources such as gyms, gas stations or computer clubs always depend on the following four parameters (4P): product, price, place, promotion. We will talk about them further.
- Product. What is the resource to which you give access? How does it compare favorably with competitors? Does it have any technical, technological or other advantages. You need to understand that if your product is no different from the competition, then there will be no compelling reason for the prospect to quit their old gym and move to your new one. Start from the fact that you need your unique competitive advantages.
- Price. How much will access to your resource cost? What types of season passes or club cards will you sell? How will your prices differ from competitors’ prices? Will they be lower, higher or the same? How will the price be justified? Keep in mind that customers will pay absolutely any price for access to your resource, if you can justify it and convey to them the value and uniqueness of your proposal. There will always be a buyer for any product.
- Place. Where will your resource be located? Will it be a stand-alone building or a room inside another building? Are you looking for a residential or commercial space? Where will it be located – in the basement, on the tenth floor or in the penthouse? What area do you need? In the end, the main thing you have to puzzle over is the location in the city. A place with a large flow of people will be more expensive to rent, but there will also be more clients.
- Promotion. How will you advertise your resource? Will you use lightboxes and bigboards, or will you be limited to distributing leaflets and flyers? Will you be advertising on YouTube and Instagram, or will you be limited to Facebook and Twitter? You may have a great resource, but no one will buy it if no one knows about it. Therefore, you must, by any possible means, convey to people information about what resource you have and what need it covers.
TIP. In the service sector, which includes all the types of business listed above, such as gyms, gas stations, computer clubs, amusement parks, and so on, there is an opinion that the main role of the four parameters (product, price, place, promotion) is played by the place. And this point of view has every right to exist. No matter how unique your business is, no matter how you promote it and no matter how profitable the price, if you did not guess the right place – alas, in order to earn money, you will have to put in a lot of effort.
Now you know what a resource is, how to create it and how to earn on resources. For example, the fitness club is a resource, but not yet a service. Despite the fact that the fitness business belongs to the service sector, this definition is only very general, but far from the most accurate. The fact is that the fitness club really provides a certain list of services, most often – for personal training (including, but not limited to). However, the club itself is not a service. It is precisely the resource to which everyone can get access for a certain fee. Now, when the client has purchased a membership card, he gets access to the resource (gym), and if he needs the help of a specialist, he will use the service (personal trainer).
If you want to make money on resources, you must create your business based on the four parameters that we talked about today. First of all, try to make your resource something different from competitors, or even better, so that it has its own unique characteristics that no one else has on the market. Then set a fee for access to it that people want, and most importantly – can provide. Next, try to choose a location for placement that will be close to a large flow of people, for example, not far from traffic intersections or in the city center. And finally, use all possible and impossible ways for promoting and popularizing your resource. And then just grind, debug and balance these four parameters until you achieve the most satisfactory result for you.
Felix Palmer – author of the blog crusfit.com