Where does the money come from?

People that haven’t paid a penny for Taylor Swift’s music pay $300 to see her live. You might think selling CDs and songs on iTunes pays the bills, but live performances are what demand high price tags.

Profit often doesn’t come from the most obvious source. Car dealerships actually don’t make very much money selling you a new car. Most of their profit comes from service! The sleazy car salesmen has to be sleazy because he doesn’t have much margin in his business. The service department, on the other hand, can charge $500 to make an easy fix because you NEED your car to run so you can get to work tomorrow.

Business isn’t always as straightforward as it appears. The main way of reaching people doesn’t have to be the money maker.

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