The Power Of Residual Income
| Category: Home Based Business - Getting Started | Date: 2003-10-23 |
Before discovering the power of residual income, I worked in a highly skilled trade for thirty-five plus years. I made great money because of the investment I made in learning very specific skills. Still I was unable to get ahead and only a couple paychecks from becoming homeless. Unfortunately, this is a fact of life for most of us today. For the last 4+ years it has been my purpose and passion to change that one fact of life.
When I started out in the workplace 35 years ago, I was able to provide a good income to support my family all by myself, since then things have changed.
Did you know that 9 of 10 families now require two working members just make ends meet? So who is left to raise our children? Surveys indicate at least 85% of all Americans would like to own their own business.
Today new home-based business opens every second. 25% of the people living in North America are involved in home business in some way, and its no wonder when you consider the alternatives. Our Western Capitalism depends on a company earning more from your efforts than the amount they pay you. This model simply doesnt work any longer for many of us. Everyone seems to want to own his or her own home based business.
The average job today pays an average of $27,000 a year. This hasnt changed that much in the last few years, but the cost of living has almost tripled since 1965.
The average Western home-based business generates over $50,000 a year. Not all home based businesses earn that much, especially in the beginning, but some earn many times that amount. That brings up the overall average. The best part is that we get to choose to be one of the ones who make the most, or the least. It is up to us - its not up to anyone else.
A home based business offers advantages that are unavailable in most professions. We can reclaim the true freedom missing in most of our lives through a home-based business. The Internet truly offers an opportunity of a lifetime. It is leveling the playing field and is making it possible for anyone to sell and compete with the big guys worldwide.
Dont jump to the conclusion that you can get rich quick. Some do, but most wont! It takes time and effort, especially in the beginning, just as building any other worthwhile project. You first build a foundation, then gradually "grow it" from home."
A great tree starts with a very small seed. The potential for an entire tree is already present in the seed. If you can envision the potential, you can achieve the results. This is the foundation of my business, and why I am writing this today.
"A Seed Gives Birth to Fruit of its Own Kind"
As your home business grows, it gradually takes less and less effort two key concepts that must be understood are in a nutshell:
1) You may not earn much - or anything - from the initial work.
2) You earn residual income AFTER you do the work.
When you see a movie that you enjoy and tell someone else about it, you are, in effect, selling the movie to that person! The highest paying profession in the world is sales! Selling is simply sharing stories and helping people. Everybody hates selling, but almost everyone enjoys helping others.
WHY RESIDUAL INCOME IS SMART MONEY
http://www.smithfam.com/news/feb99r.html
THERE ARE FIVE WAYS TO EARN
Working A Job
This is the way the majority of us earn income. Its the easiest way to get started but in the long run, its not usually the best way. You may work for years developing specific skills, only to be replaced at any time by the whim of the company employing you. Your employer must earn more from your efforts than you do.
Today if you have a job, you will most likely work more than 40 hours a week. Employers today maximize your efforts in order to make a profit. If you work at a regular job, you should really love your work because you will be spending most of your time doing it.
Owning A Conventional Business
You may sell or resell goods or services. This method usually requires you to make a major investment. You need to lease or buy a physical store then spend money to get people to come to it. Eighty percent of all Conventional l businesses exist less than 10 years.
Even if your conventional l business succeeds, you wont be the boss. Every customer is your boss. Growing a conventional business requires very long hours and years to build. In the end, your business may end up owning you. The odds are against your success because:
1) Operating costs are too high
2) Bigger companies can undersell you.
3) It takes years to grow profitability.
4) You depend on profit from the labor of others.
If you begin without substantial funding, you have only a small chance of success, and in the end, owning your own conventional business is another form of selling.
Investments
Stocks and bonds, venture capital, and other investments are proven ways to earn income, but again, they require substantial up front capital.
There are two major problems you must overcome to enjoy success.
1.) If your money is to earn money, you must have a great deal
of it to start with. Most of us dont.
2.) Its high risk, you can lose money almost as easily as you
make it.
Earning Residual Income
Earning Residual Income is a powerful and efficient way to earn income. Its the way that inventors, authors, actors and musicians earn income. Its called "residual income". Future earnings are derived from work you have already performed.
Royalties, licensing fees, distribution fees and commissions are examples of this powerful earning method. You can earn unlimited income for many years for work you have already performed.
Home Based Business
This is one the best methods for the rest of us. It usually requires very little up-front investment and the income earned may continue to grow long after your initial efforts are complete. Once you have established your own home-based business, your initial efforts may continue to generate income indefinitely.
You should consider the following when selecting a product or service to market from home:
BEFORE GETTING STARTED
1.) When you choose your first home business start in an area where you have already developed some initial interest and knowledge. If you dont have a passion for it, you probably wont follow through.
2.) Keep your costs down as low as possible at first. Work on producing a targeted income. This seems so easy when you start and you may assume your product will make some money because others have, or said they have, made money. The truth is many people make little or no income the first time out. You need to learn what to do and how to do it. At its best; it may involve some planning and testing in a sort of trial & error on your part.
I use a concept I call "The $300 Solution". My first goal, when considering a home business opportunity, is to determine:
a) What is required to earn $300?
b) What can I do to earn $300 a month?
c) What can I do to earn $300 a week?
d) What can I do to earn $300 a day?
I continue goal setting in small but exponential increments. You can use any number you want to.
The $300 Solution
http://www.smithfam.com/three300.html
3.) Look for a turnkey business system, if you can. Most people spend too much money, and not enough time, promoting their first home business. If it doesnt pay off in a few weeks, they go around telling everyone, "Internet marketing doesnt work". I cant tell you how many times Ive seen Internet "newbies" spend $300 to $1000 to earn under $25 dollars the first few months.
4.) Choose your affiliates and teammates wisely, as if you were hiring management employees to your staff, because thats exactly what you are doing. You want to find self-starters who bring more than an appetite to the table.
What Do You Bring To The Table
http://www.smithfam.com/news/aug99aa.html
Your time is important. In the end, the time you invest is your product. People who learn quickly, can plan, and are willing to work, are the ones who will stick around, so dont waste your time trying to make people into something they are not.
Many people are looking for someone to hold their hand. Its OK to hold someones hand from time to time, but you can never succeed with someone who does not understand how to do the work. The best thing you can do for others is to share what works best for you. The process is called duplication.
The Art Of Duplication Is A Key To Online Success
http://www.smithfam.com/news/f0.html
People are used to having jobs where they are told where to go and what to do. The majorities are waiting for someone to tell them what to do. When you find these people, send them to "those other guys" who will hold their hand. You will be able to help them only in rare cases anyway. Most affiliates 80% - 95% do absolutely nothing.
"Every seed gives birth to fruit of its own kind", you are looking for those seeds that are ready to grow. You would never plant a peach and expect to grow a watermelon. Its not in its nature, just as you would never plant cactus in a rain forest expecting it to do well, again its not in its nature.
Success in home-based business depends on a set of learned professional skills. To choose people to work with, listen to what they ask or tell you - thats why God gave us two ears and only one mouth.
5.) Think long term. Most people give up long before making very much money. Dont spend extra money or time in the beginning, and dont allow yourself to be rushed into a decision. Most Internet scams depend on making you believe you must act now. The truth doesnt change over time, but scams always promise more than is reasonable to expect.
Its often what you dont know that ruins your chances for success. In almost all cases, look for bottom line first literally. Read the fine print first. Realize that very often its what they dont tell you that count. Later, when you ask about the fine print, they will tell you should have read the entire offer in the first place including the fine print. Know what you are getting into BEFORE putting out your time & money. Success is in understanding the details.
If it sounds too good to be true, it usually is - especially on the Internet. Its that simple. Since most people fail, I study what everyone else is telling me to do, and then I do the opposite.
Your long-term results will depend FIRST on your efforts - not the efforts of others. Take your time. Its important to choose wisely in the beginning. You cant go back and do the beginning over.
Success doesnt care how you get there. Success is based on your taking the time to understand the basic principals. Most people go from one opportunity to another, waiting for success to come to them. I call this the Internet lottery.
In order to make the big money you need to learn how to earn a little money first. Once you have earned something, you can teach others how you did it. When you help others make the same money you are already making, you will earn more and more yourself.
6.) Once you start making money grow then diversify. You must learn to make your business grow FIRST. How else would you get the funds to diversify? Long term you want to develop several income streams. You diversify so that all your eggs are not in one basket.
If McDonalds had stopped with the first hamburger stand, it never would have become the giant it is today, but if Mcdonalds had gone into the car business after their first success, they wouldnt have been able to leverage their successful fast food experience. After you start earning money, start planning how to leverage what you have already learned.
Your first on-line business should offer products that are already in demand, just as any good investor will buy conservative stocks and later diversify into other (sometimes more risky) investments.
In the long run, develop a mix of conservative businesses and shoot for the stars as a sideline.
TARGET & DIVERSIFY
http://www.smithfam.com/news/oct99w.html
I worked a single on-line business for almost a year and used most of the knowledge and profits to diversify my business. Now I am reasonably comfortable producing several independent income streams. I couldnt have been successful if I had not spent the time learning the first business, but I could have chosen that first business more carefully and saved a lot of time.
7.) Build your own marketing team. I use a concept I call a Mastermind Alliance. This is cooperative marketing that uses your strengths plus getting help from others it their areas of expertise. In a perfect world, everyone would do what he or she was drawn to and skilled at doing.
A Master Mind Alliance
http://www.smithfam.com/mma.html
I prefer to call affiliate programs and multi-level marketing cooperative marketing. Why start with new people every time you discover a new opportunity? Isnt it smarter to bring in the people you have already worked with before? How about going with them when the opportunity is perfect for their skills and interests? Build a team, learn to be a team leader, and then learn to know when to follow someone else.
8.) Once you learn how to be a leader, then can learn to serve. You will find that if you focus on making your team money, you will end up making more yourself. You do this by teaching and learning. You will find that other leaders will want to work with you if you build your team right. Each teammate may all focus on different aspects of the businesses, and using cooperative teamwork and synergy; you will all earn more, and do a better job.
The Power Of Team Building In Multi-Level Marketing
http://www.smithfam.com/teambld.html
Absolutely anyone can make money marketing goods and services on the Internet. Internet marketing requires development of a specific professional skill set. Start small; do as much as you can on your own; find others to trade support; and most importantly - never give up
If you follow this prescription you cant fail unless you quit.
Best Wishes
Bob
About the Author
:To contact see details below.
bob@smithfam.com
http://www.smithfam.com/
When I started out in the workplace 35 years ago, I was able to provide a good income to support my family all by myself, since then things have changed.
Did you know that 9 of 10 families now require two working members just make ends meet? So who is left to raise our children? Surveys indicate at least 85% of all Americans would like to own their own business.
Today new home-based business opens every second. 25% of the people living in North America are involved in home business in some way, and its no wonder when you consider the alternatives. Our Western Capitalism depends on a company earning more from your efforts than the amount they pay you. This model simply doesnt work any longer for many of us. Everyone seems to want to own his or her own home based business.
The average job today pays an average of $27,000 a year. This hasnt changed that much in the last few years, but the cost of living has almost tripled since 1965.
The average Western home-based business generates over $50,000 a year. Not all home based businesses earn that much, especially in the beginning, but some earn many times that amount. That brings up the overall average. The best part is that we get to choose to be one of the ones who make the most, or the least. It is up to us - its not up to anyone else.
A home based business offers advantages that are unavailable in most professions. We can reclaim the true freedom missing in most of our lives through a home-based business. The Internet truly offers an opportunity of a lifetime. It is leveling the playing field and is making it possible for anyone to sell and compete with the big guys worldwide.
Dont jump to the conclusion that you can get rich quick. Some do, but most wont! It takes time and effort, especially in the beginning, just as building any other worthwhile project. You first build a foundation, then gradually "grow it" from home."
A great tree starts with a very small seed. The potential for an entire tree is already present in the seed. If you can envision the potential, you can achieve the results. This is the foundation of my business, and why I am writing this today.
"A Seed Gives Birth to Fruit of its Own Kind"
As your home business grows, it gradually takes less and less effort two key concepts that must be understood are in a nutshell:
1) You may not earn much - or anything - from the initial work.
2) You earn residual income AFTER you do the work.
When you see a movie that you enjoy and tell someone else about it, you are, in effect, selling the movie to that person! The highest paying profession in the world is sales! Selling is simply sharing stories and helping people. Everybody hates selling, but almost everyone enjoys helping others.
WHY RESIDUAL INCOME IS SMART MONEY
http://www.smithfam.com/news/feb99r.html
THERE ARE FIVE WAYS TO EARN
Working A Job
This is the way the majority of us earn income. Its the easiest way to get started but in the long run, its not usually the best way. You may work for years developing specific skills, only to be replaced at any time by the whim of the company employing you. Your employer must earn more from your efforts than you do.
Today if you have a job, you will most likely work more than 40 hours a week. Employers today maximize your efforts in order to make a profit. If you work at a regular job, you should really love your work because you will be spending most of your time doing it.
Owning A Conventional Business
You may sell or resell goods or services. This method usually requires you to make a major investment. You need to lease or buy a physical store then spend money to get people to come to it. Eighty percent of all Conventional l businesses exist less than 10 years.
Even if your conventional l business succeeds, you wont be the boss. Every customer is your boss. Growing a conventional business requires very long hours and years to build. In the end, your business may end up owning you. The odds are against your success because:
1) Operating costs are too high
2) Bigger companies can undersell you.
3) It takes years to grow profitability.
4) You depend on profit from the labor of others.
If you begin without substantial funding, you have only a small chance of success, and in the end, owning your own conventional business is another form of selling.
Investments
Stocks and bonds, venture capital, and other investments are proven ways to earn income, but again, they require substantial up front capital.
There are two major problems you must overcome to enjoy success.
1.) If your money is to earn money, you must have a great deal
of it to start with. Most of us dont.
2.) Its high risk, you can lose money almost as easily as you
make it.
Earning Residual Income
Earning Residual Income is a powerful and efficient way to earn income. Its the way that inventors, authors, actors and musicians earn income. Its called "residual income". Future earnings are derived from work you have already performed.
Royalties, licensing fees, distribution fees and commissions are examples of this powerful earning method. You can earn unlimited income for many years for work you have already performed.
Home Based Business
This is one the best methods for the rest of us. It usually requires very little up-front investment and the income earned may continue to grow long after your initial efforts are complete. Once you have established your own home-based business, your initial efforts may continue to generate income indefinitely.
You should consider the following when selecting a product or service to market from home:
BEFORE GETTING STARTED
1.) When you choose your first home business start in an area where you have already developed some initial interest and knowledge. If you dont have a passion for it, you probably wont follow through.
2.) Keep your costs down as low as possible at first. Work on producing a targeted income. This seems so easy when you start and you may assume your product will make some money because others have, or said they have, made money. The truth is many people make little or no income the first time out. You need to learn what to do and how to do it. At its best; it may involve some planning and testing in a sort of trial & error on your part.
I use a concept I call "The $300 Solution". My first goal, when considering a home business opportunity, is to determine:
a) What is required to earn $300?
b) What can I do to earn $300 a month?
c) What can I do to earn $300 a week?
d) What can I do to earn $300 a day?
I continue goal setting in small but exponential increments. You can use any number you want to.
The $300 Solution
http://www.smithfam.com/three300.html
3.) Look for a turnkey business system, if you can. Most people spend too much money, and not enough time, promoting their first home business. If it doesnt pay off in a few weeks, they go around telling everyone, "Internet marketing doesnt work". I cant tell you how many times Ive seen Internet "newbies" spend $300 to $1000 to earn under $25 dollars the first few months.
4.) Choose your affiliates and teammates wisely, as if you were hiring management employees to your staff, because thats exactly what you are doing. You want to find self-starters who bring more than an appetite to the table.
What Do You Bring To The Table
http://www.smithfam.com/news/aug99aa.html
Your time is important. In the end, the time you invest is your product. People who learn quickly, can plan, and are willing to work, are the ones who will stick around, so dont waste your time trying to make people into something they are not.
Many people are looking for someone to hold their hand. Its OK to hold someones hand from time to time, but you can never succeed with someone who does not understand how to do the work. The best thing you can do for others is to share what works best for you. The process is called duplication.
The Art Of Duplication Is A Key To Online Success
http://www.smithfam.com/news/f0.html
People are used to having jobs where they are told where to go and what to do. The majorities are waiting for someone to tell them what to do. When you find these people, send them to "those other guys" who will hold their hand. You will be able to help them only in rare cases anyway. Most affiliates 80% - 95% do absolutely nothing.
"Every seed gives birth to fruit of its own kind", you are looking for those seeds that are ready to grow. You would never plant a peach and expect to grow a watermelon. Its not in its nature, just as you would never plant cactus in a rain forest expecting it to do well, again its not in its nature.
Success in home-based business depends on a set of learned professional skills. To choose people to work with, listen to what they ask or tell you - thats why God gave us two ears and only one mouth.
5.) Think long term. Most people give up long before making very much money. Dont spend extra money or time in the beginning, and dont allow yourself to be rushed into a decision. Most Internet scams depend on making you believe you must act now. The truth doesnt change over time, but scams always promise more than is reasonable to expect.
Its often what you dont know that ruins your chances for success. In almost all cases, look for bottom line first literally. Read the fine print first. Realize that very often its what they dont tell you that count. Later, when you ask about the fine print, they will tell you should have read the entire offer in the first place including the fine print. Know what you are getting into BEFORE putting out your time & money. Success is in understanding the details.
If it sounds too good to be true, it usually is - especially on the Internet. Its that simple. Since most people fail, I study what everyone else is telling me to do, and then I do the opposite.
Your long-term results will depend FIRST on your efforts - not the efforts of others. Take your time. Its important to choose wisely in the beginning. You cant go back and do the beginning over.
Success doesnt care how you get there. Success is based on your taking the time to understand the basic principals. Most people go from one opportunity to another, waiting for success to come to them. I call this the Internet lottery.
In order to make the big money you need to learn how to earn a little money first. Once you have earned something, you can teach others how you did it. When you help others make the same money you are already making, you will earn more and more yourself.
6.) Once you start making money grow then diversify. You must learn to make your business grow FIRST. How else would you get the funds to diversify? Long term you want to develop several income streams. You diversify so that all your eggs are not in one basket.
If McDonalds had stopped with the first hamburger stand, it never would have become the giant it is today, but if Mcdonalds had gone into the car business after their first success, they wouldnt have been able to leverage their successful fast food experience. After you start earning money, start planning how to leverage what you have already learned.
Your first on-line business should offer products that are already in demand, just as any good investor will buy conservative stocks and later diversify into other (sometimes more risky) investments.
In the long run, develop a mix of conservative businesses and shoot for the stars as a sideline.
TARGET & DIVERSIFY
http://www.smithfam.com/news/oct99w.html
I worked a single on-line business for almost a year and used most of the knowledge and profits to diversify my business. Now I am reasonably comfortable producing several independent income streams. I couldnt have been successful if I had not spent the time learning the first business, but I could have chosen that first business more carefully and saved a lot of time.
7.) Build your own marketing team. I use a concept I call a Mastermind Alliance. This is cooperative marketing that uses your strengths plus getting help from others it their areas of expertise. In a perfect world, everyone would do what he or she was drawn to and skilled at doing.
A Master Mind Alliance
http://www.smithfam.com/mma.html
I prefer to call affiliate programs and multi-level marketing cooperative marketing. Why start with new people every time you discover a new opportunity? Isnt it smarter to bring in the people you have already worked with before? How about going with them when the opportunity is perfect for their skills and interests? Build a team, learn to be a team leader, and then learn to know when to follow someone else.
8.) Once you learn how to be a leader, then can learn to serve. You will find that if you focus on making your team money, you will end up making more yourself. You do this by teaching and learning. You will find that other leaders will want to work with you if you build your team right. Each teammate may all focus on different aspects of the businesses, and using cooperative teamwork and synergy; you will all earn more, and do a better job.
The Power Of Team Building In Multi-Level Marketing
http://www.smithfam.com/teambld.html
Absolutely anyone can make money marketing goods and services on the Internet. Internet marketing requires development of a specific professional skill set. Start small; do as much as you can on your own; find others to trade support; and most importantly - never give up
If you follow this prescription you cant fail unless you quit.
Best Wishes
Bob
About the Author
:To contact see details below.
bob@smithfam.com
http://www.smithfam.com/
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