04/10/2024
2 ways to make paper in this world: Skill and arbitrage. People either make stuff or exploit inefficiencies to earn a living.
Skill money is straightforward. You can make stuff or do stuff and people will pay you to do it for them. Carpentry, auto repair, writing, coding: All skill money.
Arbitrage money is using inefficiencies to your advantage. Crypto, forex, stock trading, dropshipping: All arbitrage money.
Both valid ways to make number go up. Both have their pros and cons.
Skills tend to make less money but are consistent. And their value compounds. You make more the longer you do it. Skills can also become commodified.
Arbitrage can have bigger payoffs but tend to be zero-sum (someone else has to lose for you to win). Any edge is competed away and you're left looking for the next arbitrage opportunity.
I chose skill money – writing, specifically – and I've stuck to it. Even though I was tempted during crypto and NFT bull runs. Even though I wish I had an easier way to make money. I chose to rely on skill for 2 reasons.
One, is something we Muslims call “baraka” or blessing (granted by Allah). When something has baraka it is more effective and beneficial than something without. Food that has baraka is more nourishing and cures disease. Money that has baraka goes further when spent and has downstream effects on every aspect of life. Money pays for the food we eat, the clothes on our back, the house we live in. And it seems to me making something with my hands, creating something others will use and benefit from, has more baraka in it than seeking alpha by exploiting market asymmetries.
Two, I control myself and have some influence over my outcomes. I know if I invest in myself to increase and improve my skills and work hard, I will see a return on my investment. If I relied on arbitrage, I don't control markets or influence the events that affect them. How much I know means nothing. How hard I work means nothing. I'm just trying to get lucky.
My choice to rely on skill didn't produce an ROI overnight. I had some rough years. One year in particular was really bad. But because of my stubbornness, I now have 3 ways to make money with my skills. Copywriting services. Training copywriters. Writing books. (There are more but I'm keeping it simple.) And I know if I keep getting better, the returns will compound.
For example, I recently consolidated my buyer list. And it turns out I have +1,200 customers. Many of them have spent hundreds of dollars with me. This is just for my info products. I haven't included my client list. Some of those have paid me 6 figures. All because I discovered copywriting almost a decade ago.
