Summary

The article advocates that selling services or tools (metaphorical "shovels") to online entrepreneurs is a more reliable way to make money than directly trying to create a successful online business ("mining for gold").

Abstract

The concept of selling "shovels" during a gold rush, rather than mining for gold, is used as an analogy for making money online. The article highlights historical examples such as Samuel Brannan and Levi Strauss, who profited by providing essential goods to gold miners rather than mining gold themselves. It suggests that in the digital age, service providers and freelancers are the modern "shovel sellers," offering their expertise to business owners in various fields such as copywriting, affiliate marketing, and digital advertising. The article emphasizes that by learning to provide valuable services, individuals can increase their earning potential and have a better chance of success than by trying to create and sell their own products. It also stresses the importance of finding the right niche, enjoying the work, and continuously learning to adapt to the evolving online marketplace.

Opinions

Selling services or tools to those in pursuit of online success is presented as a more stable and potentially lucrative approach than attempting to strike it rich with one's own product.
The article posits that the online equivalent of "shovel sellers" during the California Gold Rush can make significant profits by addressing the needs of digital entrepreneurs.
It is suggested that by providing value and demonstrating expertise, service providers can earn more than some product-based business owners.
The importance of learning and mastering a service, such as affiliate marketing, is highlighted as a key strategy for building a successful online business.
The article advises against chasing after the latest trends without a solid foundation of knowledge and skill, advocating for a focus on strengths and interests when selecting a service to offer.
It is implied that the modern digital economy offers numerous opportunities for those who position themselves as problem-solvers for online business owners.

Selling “Shovels” is the Easiest Way to Make Money Online

If you are just starting out….or have not made any money online.

“Gold!!! Gold!!! Gold!!! from the American River!” Shouting these words, A newspaper publisher and merchant Samuel Brannan walked through the streets of San Francisco holding up a vial of gold.

Rumors of the discovery of gold were confirmed in March 1848. This started the California Gold Rush, where 300,000 people came to California with hopes of finding gold and making tons of money.

Only a few were successful — Samuel Brannan being one. He became the first millionaire of the Gold Rush.

He did not become a millionaire by mining the gold, but by capitalizing on the needs of miners, and selling them picks, shovels, and pans.

Another story about “shovels” is that of Levi Strauss and Jacob Davis. During the Gold Rush, these two men wanted to cash in on the action, but they did not head for the river to pan for gold.

They invented the riveted-pocket work pants now known as “jeans’’ today, and also sold picks, shovels and wheelbarrows. What they did not do is… pan for gold.

When digging for gold, you have a slim chance for a huge payoff. Most miners went home with nothing after betting everything they have on mining for gold.

While “Shovel Sellers” like Samuel, Levi and Jacob however made money from every prospector who came to town wanting to pan for gold.

What has this got to do with you?

You either have a Product or Sell Shovels (Service Providers) online to make money.

Every freelancer is a Shovel seller — They help you get result from your business.

Every employee is a Shovel Seller — You sell your time for a fraction of the profit.

The only difference is for the first you set your price as you get better with the “shovels” you sell — The other Your Price is set for you.

THE GOLD OF 2020 and beyond…

The same thing that happened in 1848 continues to happen till date. Gold was the most valued “currency” at the time and now “Money” “Results” “Satisfaction that a product gives” is the most valuable currency.

If you look around you, one out of every 10 persons you know has a sort of online “business” or is talking about starting a business online — selling something — a skill, service or product for Money.

Those selling a product are all “prospecting” gold. While the service providers are the “shovel sellers”.

The Shovel sellers of 2020 and beyond are people who make money not from creating products but from selling products and making a commission or helping business owners solve one problem or the other that would make the business owners sales or bring a result that would solve a problem.

Some Categories of Shovel Sellers online in 2020 are

Copywriters
Affiliate Marketers
Drop shippers
Facebook ads experts
Writers
Proof readers and Editors
Freelancers and so on

These guys much like Samuel Brannan are helping businesses in one way or another get results and this leads to money on their pocket — Some even make more money than some of the business owners they help.

This is where you come in — What shovel are you selling?

The shovels sellers of 1848 sold shovels to the gold prospectors to help them achieve their aim of making a fortune out of gold and they sold to every one — both the successful and unsuccessful gold miners and prospectors.

If you take a pause here and look around you— you would see lots of gold miners (Online business owners — some good, some bad but they all need shovels — to succeed.)

Instead of looking for a huge capital to start a business, you have a better chance starting learning one of the many ways to help business owners make money and get paid yourself.

Affiliate Marketing for instance, gives you the chance to recommend peoples products to those in need of it and you earn a commission. but most people fail at this because they do not take the time to learn the basics. It is just like riding a bike — you learn the basics and you can ride any type.

Pick A “shovel” — Learn the basic and find gold miners you can help

The difference between the gold miners of the 1814 and now is that there are many bad shovel sellers — that is people who do not know what they are doing.

Now, business owners are wiser — they will not allow anyone sell shovels to them. You have to show value upfront and the only way to do this is to learn the basics and show through your work(portfolio) that you are not a rip off.

Other advantages of selling “shovels” before you start “prospecting for gold” is that you get to see what is working for others and know the pain points.

You also can sell to a variety of people and make more money for yourself.

How To Pick The Best Shovel, Pans or Wheelbarrows for you

Success at anything you do has to be done daily — this means if you want to pick something it should be something you enjoy doing daily.

People fail at this because they pick something that would earn the money but does not play to their strengths.

You’re smart — don't do this — It is the easiest way to quit at any venture.

You should try a bunch of things and find one you are good at and stay with that for a while, practicing and getting better.

Of all the shovels you could possible learn to use — Affiliate Marketing provides the one place I have found where you can build a business around something that interests you, Learn and Earn from while you build.

With affiliate marketing you can make money selling anything you are interested in as long as they are consumers and since you know that you need practice to be good at anything — choosing the right affiliate marketing opportunity is the best and fastest way to get ahead.

Because if you chose a good one you can start selling the affiliate marketing platform to a community of like minded individuals just like you.

You do not have to figure anything out before you start- you just have to start.