By
Robert Smith
©
2000 All Rights Reserved
The
Power Of Residual Income
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 it's 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
doesn't 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
hasn't 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 - it's 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.
Don't
jump to the conclusion that you can get rich quick. Some do,
but most won't! 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:
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. It's the
easiest way to get started but in the long run, it's 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 won't 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:
-
Operating
costs are too high
-
Bigger
companies can undersell you.
-
It
takes years to grow profitability.
-
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.
-
If
your money is to earn money, you must have a great deal of
it to start with. Most of us don't.
-
It's
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. It's the way that inventors, authors, actors and
musicians earn income. It's 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 don't have a passion for it, you probably
won't 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 it's 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 doesn't pay off in a few weeks,
they go around telling everyone, "Internet marketing
doesn't work". I can't tell you how many times I've 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 that's
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 don't waste
your time trying to make people into something they are not.
Many
people are looking for someone to hold their hand. It's OK to
hold someone's 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 it's 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. It's not
in its nature, just as you would never plant cactus in a rain
forest expecting it to do well, again it's not in it's 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 - that's why God gave us two ears
and only one mouth.
5.)
Think long term. Most people give up long before making
very much money. Don't spend extra money or time in the
beginning, and don't allow yourself to be rushed into a
decision. Most Internet scams depend on making you believe you
must act now. The truth doesn't change over time, but scams
always promise more than is reasonable to expect.
It's
often what you don't 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 it's what
they don't 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. It's 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. It's important to choose
wisely in the beginning. You can't go back and do the
beginning over.
Success
doesn't 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
wouldn't 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 couldn't 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? Isn't 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 can't fail unless you
quit.
Best
Wishes
Bob
ROBERT
SMITH helps thousands successfully market their
Internet based home business. You'll find tons of free
marketing tools & resources on his Internet Marketing web
site at: <http://www.smithfam.com/>.
You
can reach him by phone at: (541) 689-1847 PST, and by email
at. <mailto:bob@smithfam.com>
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