28 Feb 2016

Things That Do Not Make Sense Are What Makes A Whole Lot of Money


We are not totally rational beings, especially with money. Or how do you explain how we humans go to the cinema to watch a movie for N1500 that will cost N500 when it comes out on home video, and we buy popcorn worth only about N50 for N800 because we want to chew and feel great while watching the movie. [A friend that works at a cinema house here in Nigeria told me that more than 80% of their profits come from the popcorn and Pepsi, and not from the movies people come there to watch.]

Humans have long been known to do things irrationally especially when it comes to emotional matters. And that is why advertisers appeal to our emotions when they want to 'sell us' items we probably don't need, at outrageous amounts we can't afford. [Sex Still Sells!]

We are emotional beings, and emotions can be very erraticI know because I am also a medical scientist. Hormones and neurotransmitters such as oxytocin and endorphins are behind our emotions and they are released pulsatile in cycles that have positive and negative feedback mechanisms designed by our creator. There are what we call 'feel good' hormones such as oxytocin, serotonin, phenylethylamine and dopamine, and when their levels are low, people can get very cranky and depressed.

Studies have shown that some people get 'high' when they go shopping, similar to what they feel after having good sex, or eating chocolate. And some do not get over their depression till they have spent huge sums of money

Even when we are 'in love', how we spend so much (on them) and justify such expenses!

Of luxury goods
The craze for social acceptance and the need to feel superior is the main reason luxury goods sellers are still in business. And you would be surprised that most of their faithful customers are middle-income earners struggling to keep up with the Joneses and 'feel among', especially in Africa (where many have their values and priorities backwards).

Or how do you explain how salary earners will spend all their salary on a gold iPhone, or customised Hermes bag which even billionaires (who worked hard for their money) think twice before buying.

It does not make sense, but it makes a whole lot of money. And business owners have been known to ride on these idiotic nonsense to making 'nonsense money' (what some people call FU*K YOU MONEY)...because human beings act irrationally especially with their money.

A fool and his money are quickly parted
Why do humans fall for get-rich-quick schemes? Why do we believe we can make quick money doing what no one has succeeded in (doing), or only few have ever succeeded at? Maybe because we like to believe we are different, rational and more intelligent than we are. We sometimes think we have become experts at a thing when we were only lucky fools. We put too much confidence in our natural abilities.

We often possess an overinflated idea of who we are, and what we will actually do in situations. But find ourselves doing the opposite when reality sets in.
For example, a person might tell you he won't fall into temptation, but soon find himself doing what he said he will only do 'over his dead body'.

So you can never waste $1000 on a perfume, or stay in an hotel of $5000/night, or send your children to a school of N1 million per term, or buy a meal of £200 in a luxury restaurant. You will never...but eventually you find yourself buying/spending or doing it. You could not resist- "That blue bag was so attractive, and I just had to buy it!"

If you want to make money, don't make sense
..you have no business doing that! What you should be doing is appealing to people's emotional centres for social acceptance, self-worth, 'feel good' hormonal surge, and so on. If you are finding it hard to close a deal, or get your audience to let go of their money, then you are not hitting the right emotional spots.

1. People will always have need for luck, and hope to be rich overnight [-that's why we have lottery companies]
2. People will always have need for (pleasing) God by helping others [-so many religious/charity organisations]
3. People will always have need for high self worth- including sexual appeal, social acceptance, etc [cosmetics industry, plastic surgery, luxury goods industry]
4. People will always have need to relax and be entertained
5. People will always have need for security- financial and physical -to feel/be protected
6. People will always have need to leave a legacy after they are dead, etc


You want to be rich, build a business around any of these (emotional needs).

When it comes to money, people are more emotional than logical...and the things that do not make sense always make a whole lot of cash.

Never forget that on your way to great wealth. 


P.S: If you know other examples of things that do not make sense but makes a lot of money, feel free to share in the comments section. Thanks

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