I need you to take a second look at your current income.
- Are you making more money than you ever dreamed of?
- Can you afford to lose your job tomorrow (or quit your business tomorrow)?
- Do the hours you spend on your job allow you plenty of time to spend with your family, lead a healthy lifestyle or lounging on the beach?
If you answered "Yes" to all three questions, there's no need to read further.
But if you answered "No" to even one question... then I want you to tell me:
What's it going to take to get you excited every morning?
Do you want to continue working 60, 80, 100 hours a week the rest of your life?
Probably not.
Do you want to be able to take time off to do what you want... whenever you want... without having to worry about affecting your income source?
Most of us would definitely say YES!
But if you cannot remove yourself from being directly involved in doing the work that generates the income, it will limit how much you can earn and the increase will be very slow.
This is because each and every one of us has only that SAME LIMITED amount of time each day. If you have to trade your time for income, you can only do so much...and there may be a ceiling to the amount of income that you can raise.
This is very much linear income. Linear Income is what you get when you work hard and get paid once for your effort...and most of the times it depends on the number of hours you put in. For example, linear income can be from your job that gives you your salary. Even as a consultant, you get paid based on a certain fixed amount of fee for certain hours.
There will be a limit to what you can earn with linear income and it depends on your time and fee or wage per hour. In order to increase income, either you increase your number of hours or get a higher fee/wage per hour. And if you stop work, your income stops too.
Passive income, which is what you want to aim for, is the type of income that you need not be involved directly. For example, rental from owning some property, royalties from a book, income from M-L-M, etc.
So if you seriously want to earn more and work less and be able to take time off whenever you want, you must start creating streams of income that do not require your direct involvement.
The sooner you can shift your work or business model to create more passive income, the sooner you can achieve personal and financial freedom.
As Robert Allen says:
Shift your streams of income from linear to residual.
Robert's 3 money mountains concept describes the possible multiple streams of income that can give you passive and residual income.
There are two basic types of passive income and we will also look at a third type that is not necessarily passive but can still help you earn more and work less.
Residual Income
This is the type of income that you can earn when you put in one time effort or work hard once and get paid for the rest of your life or over a period of time, whether you have to work on it anymore or not. This means you invest your time or money once and then get paid regularly over a period of time.
With residual income you work hard once and it unleashes a steady flow of income for months or even years. You get paid over and over again for the same effort.
According to Mark Victor Hansen and Robert Allen in the "One Minute Millionaire":
Prosperous People have always known two truths:
1) The Importance of Having Multiple Streams of Income
2) The Power of Residual Income
Do you now see the difference between linear and residual income?
So if you are smart, you will start shifting your income streams from linear to residual.
The secret of those who are rich and wealthy is not because they have more money but that they have time freedom! The trick is making money work for you instead of working for money.
So ask yourself, what percentage of your income is residual???
As you can see, you can have many different ways to generate residual income across a wide variety of businesses.
Do take note that this is slightly different from recurring income. For example, you may get recurring income as a coach or consultant on a monthly retainer, but you still have to put in the time and involvement and you will still have limit on your earning capacity...which is based on what you can produce.
Leveraged Income
Leveraged income or some may refer to as "Multiplex Income" means income that leverages from the work of other people. They help create more income for you.
A common example that has successfully applied this concept is the M-L-M industry. The key to success is the ability to leverage on your network of people or downlines to create the streams of income for you, in other words, making money off another person's effort (and this is also a win-win situation). A strong network or team will be able to create lots of income for you and you can be anywhere in the world, doing what you enjoy doing.
Franchising is another example where this type of income is generated. Leveraged income is awesome and if you combine that with residual income...you can be on the way to financial independence.
Active Leveraged Income
This is a term that describes income that is also leveraged from a group of people but will require your direct involvement or participation. For example, when you train a group of people and you charge based on certain amount of fees for each participant. The more participants you get, the higher is your active leveraged income.
Although you will need to be directly involved, your earning potential is multiplied by the group size of the participants in comparison to a one-to-one training.
How to Maintain Focus While Growing Multiple Businesses
We learned that we should have multiple streams or sources of income, especially those that can give us passive and residual income. However, as we build and build more businesses, we tend to get out of focus. So how can we maintain that momentum and focus while growing multiple businesses.
The reality is with these multiple businesses or projects, you will be dealing with multiple and sometimes conflicting priorities. It does not matter if you are doing this full-time or part-time, each and every MSI that you embark on can be an entire business. You must learn to juggle and maintain control and focus on them. If you are not able to, then we suggest you start and focus on your project one at a time.
Common myths about creating a passive, ongoing income
In an article by Kevin Bidwell on, he talks about the 4 myths of creating ongoing income and that we should dispel some of these myths surrounding the sales hype.
Myth One: Put up a Website and Sit Back and Collect the Checks.
Those of us who have run Internet businesses for a while can tell you: Making a good living on the Internet requires marketing, customer service and order fulfillment. Either you have to do it yourself or you need to hire someone to do it. Either way, having a website and selling your own products is often far from the "laying around on the beach while collecting your checks" image.
Myth Two: M-L-M Income is Residual Income.
Almost always a part of the sales pitch in networking is "creating residual income." While that is *possible* with M-L-M, it is very difficult to maintain. Here's why...
M-L-M income is built on three basic factors: new purchases by retail customers, the recruiting of new *wholesale* customers and the ongoing purchases by both groups. In order to have an ongoing "residual" income, you need to recruit, train and motivate a sufficient number of *leaders* who will then continue the process in growing numbers. This is rarely the case.
Instead, top leaders have found it is easier to build a large list of M-L-M "junkies" who they then take into one program after another. If you stopped joining new programs, your income would also dwindle within a few months.
Myth Three: Just Build Your Business and Hire People to Run It for You.
This does work, but it is often more of a nightmare than a dream.
At various times I have had anywhere from 0 to 15 employees. I have had many friends and clients with much numbers up to 1,000 employees. We all have the same opinion: Unless you have enough employees and profits to hire top quality managers, employees are a constant headache.
If you DO build a big enough, profitable enough, business and if you have the right personality, then building your business and hiring people to run it is a great idea.
Myth Four: Developing A Passive Income is Easy.
I don't want you to fall for this one, either. Developing a passive income will take some perseverance. The steps to getting it done are not difficult, but it requires one thing many people will not put in -- consistency. If a person does the right things, day after day, they will create an ongoing, growing income. If they try today, then one day next week, then one day a month later, they are unlikely to ever get there.
If you can dispel of these myths and avoid trusting in them, get ready to put in real effort and work towards a strong passive and residual income... and keep it up, in no time at all, you will be able to gain finan-cial independence and choose to live your life the way you want to.
source from : MoneyMastery
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To find out more : contact riche@7ants.com TODAY !
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