As the Operations Manager for Captialism.com, let’s compare the business of writing vs selling physical products.
We’ll cover 2 things in this episode:
* Why writing is the most profitable business model I’ve found.
* The 4 steps that make up the Writerpreneur Business Model.
Why Writing is the Most Profitable Business Model I’ve Found
Writing Actually Makes Money
Unlike many businesses that require significant upfront investment, writing allows you to start earning with minimal costs.
Physical product businesses involve more expenses then you probably realize… There's the product cost (COGS), shipping to the warehouse, warehousing, fulfillment to the customer, operations to run the business, and paid advertising. The actual profit - what you walk away with - is whatever is left over.
Even with a healthy markup, most physical products businesses only have 10-20% profit. So for every $100 that comes in, you only keep $10-20 (and that’s before taxes)…
With writing, the only expense you have is Operations (usually a few softwares), so you’re left with 90%+ in your pocket.
Writing Has NO Upfront Costs
When lunching a physical product, you usually need to invest thousands of dollars before you make a single dollar…
Here’s a quick list of the typical costs:
* Buying the product
* Shipping to get it to a warehouse
* Paying for warehousing
* Paying a platform (Amazon or Shopify) so you can sell the product
* Paying for Ads to sell the product
* Paying to ship the product to a customer
The risk is high, and there's no guarantee of recouping your investment.
Writing sidesteps this hurdle.
You need a whole $0 to start writing.
All you need is your computer and internet connection.
Writing Will Pay You… Forever
Attention doesn’t disappear. It just moves from platform to platform.
Companies are always looking for people who know how to capture attention. If you learn this skill, your baseline pay dramatically increases - either as a W2 employee, a 1099 freelancer, or a coach/consultant.
Breaking Down the Writepreneur Business Model
Step 1: Your First 500 Followers
Your first 500 followers are more than just numbers—they're proof that your content resonates.
A follower is like having an investor - they are buying stock in you. They follow you because they believe your content is valuable today - AND it will be MORE valuable tomorrow.
This validates you ideas and shows that you have value in the market.
Action Items:
* Choose a platform where your target audience hangs out and trusts people.
* Consistently show up, publishing content that the audience finds valuable.
Step 2: Your First 500 Email Subscribers
With a growing follower base, the next step is to deepen the connection by building an email list.
Email subscribers are more committed and provide direct access to your audience without the interference of platform algorithms.
This stage is crucial for understanding your audience's pain points, desires, and what resonates with them.
Action Items:
* Create a valuable lead magnet or newsletter that’s relevant to your audience.
* Use sign-up forms and landing pages to capture email addresses (Mailerlite has both of these in their free plan).
* Send regular newsletters or updates that tell stories, provide value, and encourage engagement.
Step 3: Your First $500
Now that you understand your audience's needs, it's time to serve them.
Earning your first $500 validates your business model and proves that people are willing to pay for your expertise. Focus on genuinely solving problems rather than pushing sales.
Action Items:
* Develop a simple product or service that addresses a specific pain point.
* Use the insights from your audience interactions to tailor your offering.
* Promote your product through your email list and social media channels.
Step 4: Your Quiet 5-Figures
The final step involves scaling your efforts to generate a sustainable income.
This means implementing systems and processes, refining your offerings, and perhaps expanding your product line.
Becoming results-driven and focusing on delivering exceptional value will help you grow your income quietly and steadily.
Action Items:
* Create a value ladder
* Automate processes like email marketing and customer follow-up.
* Continuously gather feedback and iterate on your offerings to improve results.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thewriterpreneur.substack.com
