Imagine a business model where you make one sale and get paid for it over and over, potentially for the rest of your life – now that’s powerful. It’s how a singer song writer or an author earn money – royalties on their work, it’s also the way utilities such as power and water, phone companies, and many software companies…. make their money. Think about it, you buy that iphone on a contract, you might even get it for free, but you pay the company for 1 or maybe 2 years, every month like clockwork. This is an example of repeat, passive, also known as residual income, if you can grab a slice of this through your own home based business it has the potential to radically change your life.
To get a really good grasp of the concept look at the image above, most of us trade time for money in either the Eemployee or Self employed quadrants, where as time and money freedom generally come from Bbusiness owner or Investor quadrants.
Here are some examples of passive income businesses or “B” type business systems where the owner(s) get to enjoy both TIME & MONEY!
- A successful franchise owner – The franchise has a system that operates without the owner being there. On the downside is, in most cases, the cost of entry (investment required) and with the bigger franchise there can often be a waiting list.
- A self employed business owner who has subtracted themselves from the equation – Many times this takes years to do but it can be done! One of the potential problems that I see with training someone that is qualified to replace you in your business is that often times they start their own business doing exactly what you are doing and become your competition. Be careful!
- Internet marketing – As with network marketing a person who has learned how to develop a successful Internet marketing business has learned how to “make money while they sleep”. It takes time to set up and learn the ropes but many people have made millions with the internet.
- Network Marketing – Often times when a person enters into network marketing there is already a system in place. Just remember however that not all network marketing opportunities and network marketing systems are equal (what constitutes an ideal homebased business). A person who has a successful network marketing business may have thousands of people in their organisation. This may take years to accomplish but one of the benefits is that you can get involved for a minimal fee. Unlike a Franchise.
- Internet network marketing – Still the same steps required as with network marketing, i.e.
- Connect With People
- Present Your Opportunity
- Follow Up to Collect a Decision
That’s it. Both online and offline.
Robert Kiyosaki describes network marketing beautifully in his book titled -” The Business School for People Who Like Helping People”. And in his most recent book “Business of the 21st Century” he points out the advantages of the network marketing / direct sales model as follows:
- You get a real world business education
- It’s a profitable path to personal development
- You have a circle of friends who share your dreams and values
- The power of building your own network
- A duplicable and fully scalable business
- Incomparable leadership skills you can develop
- A mechanism for genuine wealth creation
- Big dreams and the capacity to live them
Watch this video to see how easily it can be done and how you can get started.