Tap Into the Ideas Economy for Money-Making Projects

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Posted by The Savvy Retiree on August 2, 2016 in Money Saving Strategies, Personal Finances

James Altucher writing on financial freedom

Let me share with you how to stay ahead of the trends that will unlock over $20 billion (maybe more) in our economy in the next five years…

Billions of dollars will be made in areas that barely even exist today…3D printing, synthetic biology, sensors, robotics, biotech, artificial intelligence, and on and on.

And you don’t even have to learn anything about these industries to make money off of them.

Right this very second, there are a lot of smart books and pundits out there patting themselves on the back…

They do this because for many years they were right about one thing: We moved from an industrial economy to a knowledge economy.

In other words, we began to outsource industry (e.g. cars and computers) and we began to “insource” (i.e. hire) knowledge. Knowledge means things like programming, engineering, other sciences, etc.

And these same people are still writing books about how smart they are.

Sadly for them (and dangerously for you) they are wrong.

Listen…we are NOT in a knowledge economy and we haven’t been for at least five years and probably closer to 20.

The middle layer of the economy – middle management and “knowledge workers” – are being outsourced or demoted or replaced by temp staffers or robotics or…simply fired.

It’s because we now outsource knowledge.

Right now I have several projects going on.

  • I’m translating one of my books into several languages (all outsourced to India or Vietnam).
  • I’m doing a programming project (an app for the Apple Watch). It’s being outsourced to India.
  • For the fun of it, I’ve even outsourced the rewriting of a famous book to a group in Malaysia.

Because of the increase in literacy throughout the world, people have been electing not to come to the U.S. anymore to get their higher education.

They are staying at home.

But the pay has not yet caught up.

Eventually it will. But until it does, it pays to outsource as much traditional knowledge as possible to these other countries.

So what economy are we in?

What can’t we outsource?

Ideas. This is the economy we live in.

I can’t really say to someone in a foreign country: “Come up with 10 ideas for me for a business I can start here.”

They can help me execute on those ideas (as I outsource industry and knowledge) but they can’t help me come up with a vision.

I can outsource grammar and spelling mistakes but I can’t outsource leadership.

Again, we live in an Idea Economy, or if you prefer, a Leadership Economy.

A human generation is about 20 years.

An idea generation might be just a few years.

3D printing, synthetic biology, sensors, robotics, biotech, are all evolving at incredibly fast rates right now. If I have an idea for a car, I can outsource some CAD Designs for the entire car. Then I can send the CAD Design to a 3D Printer in Malaysia. Then I can “print” a car.

Oh and by the way, then I can sell it to you.

All without having it in my inventory.

I should say, this is impossible right now.

BUT…I know it’s going to come true. How come?

Because the technology is all there and it’s growing at 200% to 300% per year.

Right now, for instance, at a very basic level, there are people who design jewelry.

They use simple CAD designs which they send to Shapeways, a 3D printing company using the latest technology.

Shapeways “prints” the jewelry and sends to the customer.

I hired a researcher who spoke to several people who had stores set up on Etsy. They are not making great livings (yet) but they ARE making a living.

They never even see their inventory. This is called “dropshipping” when you outsource every aspect, including the shipping, of your business.

Jewelry is easy. Cars are hard.

But the benefits of 200% growth per year every year is that we are not so far away from “printing” whatever we want.

Since we know these trends are coming, how can you make money?

Well, I want to tell you a story of a friend of mine.

He invests in both private and public companies with me. He makes his money by researching everything going on at the FDA (all of the innovation in biotech).

  • Which drugs got approved?
  • What drugs are they chemically similar to?
  • What are the economics of the drugs?
  • What are Phase II drugs coming up that are similar? Etc.

He sells this newsletter for $10,000 a month to pharmaceutical companies.

So he only has a few customers. But they pay him a lot.

Something similar can be done with any of the trends mentioned above.

I mention this not because you should necessarily do this.

But here was someone with no medical background, no pharma background, no anything background, and he made millions in the medical/pharma industry.

He couldn’t outsource that idea.

But he outsources all the research.

You can start researching some of these trends on your own.

Here’s what to do now: Be the first, be the expert, and you can start thinking of 10 ideas A DAY on how to make money off of them.

You’ve got a head start because I just showed you two ideas…

The first was to write a very expensive, business-to-business newsletter about the latest technologies in each sector.

The second one was to outsource product design, development and shipping, and set up a store as if products were sitting right there in your garage.

There will be hundreds, maybe thousands, of business opportunities popping up in the next few years on all of these technologies, plus other opportunities in trends as well.

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