The Seven Principles of Passive Income
Most people either don’t understand what passive
income is, or they don’t think they can earn it.
Ugghh!! That
frustrates me!
I know that anyone can have passive income.
ANYONE!
I’m on a mission to educate as many people as I can on how
anyone can learn about and earn passive income. And, I’m going to start
with you. I want to help you earn MASSIVE passive income. And I’m going to
ask you to join my crusade and get the word out to as many people as possible.
Why?
Because once you have income coming in month after month;
once you have the freedom do what you want, when you want it, without asking
your boss or looking at your bank account; once you experience the incredible
joy of passive income, you will want everyone to know about it!
We can
do this together. Are you ready?
PASSIVE/RESIDUAL
INCOME
Passive income is magic. It is the most incredible
financial concept that you and I will ever encounter.
Passive income
is the secret of the rich.
Lack of passive income is the plight of
the poor. If you don’t have passive income you are financially poor.
Period.
I know people who earn $200,000 per year who are poor. They
have no passive income, and they save nothing. It’s unbelievable. Perhaps
you recall the teleconference call with the gentleman who was a millionaire
with another company, yet he DID NOT even own his own home. They know how to
make a lot of money, but they don’t understand what it means to be rich.
They are shackled to their jobs and to their boss’ wishes. They may love
their work, but they HAVE TO WORK. They don’t have a choice. To me,
that’s imprisonment. It’s poverty. It's slavery.
What is
Passive/Residual Income?
Passive income is income that comes in month
after month, without you having to work. It is a monthly income created from an
investment source such as savings, stocks, oil wells, etc. A million dollars in
the bank produces passive income, a platinum record will produce passive
income.
But what if you don’t have a million dollars or a great
singing voice? Can you still earn passive income? Yes! Now, with the Internet,
it’s VERY possible... for anyone!
There are seven principles you must understand if you
want to produce passive income. These principals are well known by the
super wealthy. These ultra- successful people will not even touch a project if
it doesn’t meet the criteria that I’m about to share with you.
EVERYTHING I DO in business revolves around these simple principles -
it’s the reason I have so much free time in life!
PLEASE MASTER
THESE PRINCIPLES. They cost you nothing to learn and can make you richer than
you ever dreamed.
PRINCIPLE 1 --
DUPLICATION
You are DEFINITELY LOSING MONEY if you haven’t
mastered DUPLICATION!
Duplication simply means the ability to easily
copy or duplicate, the system or strategies that are making you
money.
So if you have the skills of a top doctor, plumber, lawyer,
accountant or sales person, that's great, but those skills are not easily
duplicatable. A great surgeon doesn't have freedom, because he can't duplicate
himself. Surgeons have money, indeed. But if they stop operating, they stop
earning. Period.
Being a great "anything" other than a great duplicator
is not the way to massive passive wealth. Become a great duplicator: someone
who duplicates systems and strategies.
- Every system of passive wealth has duplication. The
more things in your business you can make easily duplicatable (easily repeated
and copied), the more passive your income.
This Team Training website is an example of duplication.
Through it, I will show you the things I'm doing to bring financial
independence to my life. If you will begin doing what I'm showing you - I mean
really do it, not just read about it, and get your downline doing the same -
then we will all be duplicating and growing our business.
- Ordering pre-qualified leads is duplicatable. Anybody
can do it.
- Inviting prospects to weekly online meetings is
duplicatable. Anybody can do it.
- Training provided by Follow Our Lead team is
duplicatable. Anybody can do it.
Home-based business owners, like you, must make sure that
what you are doing is duplicatable. Can anyone do what you do to make money? If
you are doing all the selling because you can’t easily teach anyone else
to do it, you’re not duplicatable.
Here's the question to ask to
make sure your business is duplicating: Will what I’m doing eventually pay
me money if I don't work? If not, you don't have a duplicatable system. If yes,
you have the potential for a fortune of freedom.
But duplication is just
the start.
PRINCIPLE 2 --
SYSTEMIZATION
There is no passive income without a system. It
just can't happen. You don't have to invent the system, you just have to
utilize one.
A musician may write a song once and can duplicate it as
many times as she wants, but if there wasn't the system of music distribution,
she wouldn't have that passive income.
Here's what's not a duplicable
system: trying every opportunity that comes across your desk, or investing in
stock and then guessing that it's time to sell, or joining a home-based
business and trying to do it all yourself. That's called a waste of time and
energy.
Make sure you systemize your home-based business as much as
possible.
- Online Marketing with replicated website for
everyone
- Sales presentations made by your upline team
leader
- Automated lead generation
- Centralized training for your whole team
That’s EVERY major function you need to perform in a
home-based business that pays you for duplicating your efforts!
Remember this: passive wealth is unattainable without a system.
PRINCIPLE 3 --
LEVERAGE
Has it ever bothered you that you work so hard and you
look around and see that others, who don't seem to work nearly as hard, make
more money.
Here's why:
They have other people working for them.
That's called leverage.
Your boss, for example, has leverage with you.
Because of your work, she gets paid. In traditional business, the CEO makes the
most money; the janitor makes the least.
The problem with that is if you
are the janitor, at the bottom of the leverage heap, you don’t have much
chance of EVER making it to the top. There is only one CEO, and he’s not
in any hurry to let you take his place.
But with a new breed of
home-based businesses, anyone has the ability to be "CEO", no matter what your
background is. In these businesses you are encouraged to help people build a
team and get to themselves to the top. If they get to the top, that helps you
get to the top too. If they make money, you make money.
How you do this
is through leverage. You recruit people who then recruit people who do the
same. You get paid an override on multiple levels of sales made in this growing
organization.
Some people have a hard time with businesses that pay you
on the efforts of people down multiple levels. I understand that because I used
to feel that way too. But that’s because I didn’t really understand
passive wealth creation. It's not a subject taught in school.
But now I
realize that EVERY organization on the planet is structured for people to
leverage the efforts of other people. EVERY ONE! Even in non-profit
organizations people work to support each other. They LEVERAGE each
other’s skills and efforts by supporting each other.
And that is
exactly what good business is about: people supporting each
other.
You’ll soon come to find out that the person at the "top",
got that way because he or she supported massive numbers of people. You get
leverage from others by GIVING to others first. The more you give, the more you
get in this business.
Zig Ziglar says, "You can have everything you want
in life if you'll only help enough other people get what they
want."
Leverage is the principle I love most, because it took a change
in my mind and in my heart to truly understand it and apply it. I won’t
even go near a business venture now that doesn’t leverage other people (by
supporting and benefiting them), because it would be a lonely and selfish
venture if it didn’t.
The Bible teaches the same principles. It's
the same method Jesus used in training his 12 disciples who in turn went out
and trained others to take the Good News to the ends of the earth [Mark 16:15;
Luke 9:1-6]. Because of duplication, systemization, and leverage there is
hardly a place on the planet today that has not heard the message.
Help
lots of people by giving them the opportunity to create more freedom in their
lives.
Give them a:
- SYSTEM that is
- DUPLICATABLE and allows them to get some
- LEVERAGE in their life,
and you will be paid an extraordinary amount of
money!
It may seem like you have everything you need with these three
principles, but there is much more.
And there are things you are going
to have to understand and do to make the entire system work.
Now, before we go any further - you ABSOLUTELY MUST
understand the rest of the principles that make the actions we will take
profitable for you.
These principles, not the strategies, will be the
difference between success and failure in creating passive wealth.
Let
me repeat that... "These principles, not the strategies, will be the difference
between success and failure in creating passive wealth."
In other words,
I can show you the strategies I use for building my business and you can begin
using them too - but those strategies WILL NOT make you successful. Not until
you begin to fully understand these seven principles of passive income, will
you become successful in your business.
Let's now look at the next four
principles...
PRINCIPLE 4 -- DISCIPLINE
to Stay the Course
Passive income requires that you think long-term. If you
want to drive from New York to Los Angeles you have to set a course. What
happens if you don't stick to the course? You'll probably never get there.
There are lots of distractions along the way, like Florida, Las Vegas, New
Orleans... etc.
The same goes for passive wealth. It doesn't come
instantaneously. The "trip" you take to get to passive wealth, requires
discipline. Too many times, people will get so close to true passive wealth,
but get distracted by another opportunity and have to start all over again.
This, alone, is the reason most people fail. They find a duplicatable
system that leverages their time but they don't stick it out long enough. Most
get started because of some desire... Desire is a start but if you don't have
belief (based on Knowledge and wisdom) and the ability to Take Action, you're
done.
I can’t make you stick it out. That part is up to you. But I
can encourage you with information, strategies and stories.
I know that
the BIGGEST reason for failure in home-based business is because people quit
before they are with it for one year. So I want to make sure you stick it out,
if that’s your goal.
"Winners never quit... and quitters never
win."
Think about it like this. If you told all your friends that you
were going to spend $30,000 and open up a small retail store, but you were only
going to give it 30 days to see if it works out, they would think you are
crazy!
You've got to give your home-based business more than 30 days
too. Commit to one year!
The next principle explains why it's so
important to stick it out.
PRINCIPLE 5 -- EXPONENTIAL
GROWTH (Geometric Growth)
Exponential growth is MAGIC.
In
the beginning of any passive income effort, you are expending time and not
receiving much income. But as time goes by, you begin to receive more income
without spending much effort at all.
For example, you may be saving and
investing $1000/month. You may have spent hours to earn that $1000 but all it
pays you in interest is less than .5% the following month. Your hard earned
$1000, just earned you four bucks! Big whoopee!
But keep earning,
investing and compounding that investment over the next 20 years and you'll see
that income grow exponentially to over $400,000! Now that money is working for
you.
This principle is also obvious in most home-based network
marketing businesses, but growth is usually more rapid.
Those who have
worked with one company, even part-time, for more than 5 years usually have a
very sizable passive income. But it's nothing to get excited about after the
first year. I know people who have lost money their first two years in a
home-based business, only to make six-figure incomes every year after their
third year. That's passive six-figure incomes!
Have you ever heard of
the rock group or actor that everyone cheers as an overnight success? They'll
tell you that it REALLY took years of waiting tables and living with nothing
before they made it. The same is true with passive wealth. It's not get rich
quick. But it is get rich! Stick with this system, we’ll be with you for
the long-term.
PRINCIPLE 6 --
LEADERSHIP
To have passive wealth and gain the freedom to live
your dreams you have to take risks, make quick decisions, and inspire people.
In short, you must become a leader.
This doesn't mean you have to be a
politician or a military general. You don't have to go to war. You don't have
to make a speech. But you do have to build your character.
A very wise
mentor of mine, Jim Rohn, once said, "Before you make a million dollars, you
must first become a millionaire". What he meant was that you have to
develop the mind of a leader. You must develop the habits of a millionaire to
earn a million dollars.
Here's a great test. Ask yourself, "Would a
millionaire want to do business with me?" If the answer is "no", then perhaps
you need to stop the Wednesday night bowling league, turn off the television
set, buy a new suit and get serious about your family’s financial future.
Remember, the effort will pay off, but you must pay the price that every leader
pays.
PRINCIPLE 7 --
MAINTENANCE
Ok, let's say you've made it. You built yourself a
passive income. You get a check in the mail every month, whether you work or
not.
Well, the truth is we live in a world of change and even passive
income requires some effort to maintain. If you built a true passive income
based on a solid, duplicatable system, there won't be much maintenance but
you'll still need to keep your eye on things.
You still need to be
involved with your team and still need to recruit. Just not like you did your
first year.
Passive income does not give you freedom from all
responsibility. In fact, it sometimes gives you more responsibility. But with
passive income, you become a leader. Someone who is in charge of their life.
Someone whose time is flexible. Someone who others look up to. |
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