How People Made A Fortune With “Fool Idea”

After exploring the mindset required to achieve financial freedom, are you eager to achieve financial freedom now but do not know how?

Or you have an idea but do not know whether the idea can achieve financial success?

Whatever ideas we have, the critical factor is “leverage”, simply means “the ability to generate more and more income with less and less works”. If the strategy is to get paid for our time, we are not leveraging.

For example, if we are in the business of beauty products and get an order amounting to 10,000 bottles of facial mask, we just need to call the supplier and order 10,000 bottles of facial mask. Then, we can happily count our profit to the bank because we are leverage on the supplier’s capital and time to make money.

On the other hand, if we are a home based facial therapist, we are so popular to have 10,000 customers lining up waiting for facial appointments. Most likely we have to disappoint majority of the customers and especially the last on the queue that she has to wait till the Monday at 12 noon, 3 years from now!

In this case, we are not leveraging because we are trading our limited 24 hours a day for money. There is just a limited of 24 hours max that we can serve the customers each day. What about hire more people to serve all the customers? In this case, we are leveraging on other people time to make money. People who don’t know how to leverage will work harder for those who leveraged.

Today, more and more leveraged tools are being created such as computers, internet, wireless and many more to help us generate more with less. If we want to keep up with the rich and be rich, we need to understand the power of leverage and use the leveraged tools that the rich are using. The average use fewer leveraged tools than the rich. People who do not learn to use leveraged tools like computers and internet will fall behind financially or work harder and harder just to keep up.

Let’s explore some of the latest leveraged tools and ideas to attain financial freedom…

1. Make Money Online

One of the latest tools to achieve financial freedom is leveraged on internet whereby we can practically work any time and any where.

Why internet?

Internet spending is growing significantly year over year. More and more people are buying or spending online. Currently, there are over 1 billion users all over the world and we can practically sell to every internet users without geographical restriction to a country or region. In 2006, there was a total of US$170 billion spending by the internet users and it is reported by Forrester Research recently that this number will grow to US$229 billion by year 2008.

How to leverage on internet marketing as a way to financial freedom? The most common way is generating huge traffic to market and sell our websites. To drive a huge volume of traffic to our websites, we need to have the right skills making the content interesting and running some advertisement campaigns. In return, we can make money by selling services and/or products (digital or hard goods) to the visitors. We can earn money by getting people to advertise in our websites for instance through Google Adsense. On top of that we can redirect the traffic to other’s people websites and earn referral fees and lots more other way through Ebay, Amazon.com, etc…

For someone who likes to write, we can even make money by creating blog with interesting and niche contents. The most profitable blog use a mix of affiliate marketing and Adsense type advertising to make money.

No doubt internet business needs more time and effort at the initial stage but which business does not have the same requirement? Once it is up and running, we just need a minimum amount of time to monitor and maintain this business. So, practically, it is a great passive income tool to make money while we are sleeping or on vacation.

2. Network Marketing

The rich look for building and leveraging on networks.

The average look for works.

At the same time, the rich believe in “Your networth is your network”.

What is so great about network then?

Network marketing is also known as multilevel marketing (“MLM”) which is a business model that combines direct sales with franchising. MLM functions by recruiting people to sell products through word-of-mouth and offers additional bonus or commissions based on the sales of people they recruited into their organization who are known as downline. A downline includes direct recruits, recruit’s recruit, and so on.

The beauty of MLM is leveraging on people and the power of networking to turn the organization into a million dollar MLM business. The business leverages on word-of-mouth advertising which is the easiest and cheapest way to generate sales through personal sharing of experience and recommendation.

The start up cost is usually low and we will be given an established business system, services and/or products to sell directly to end users. MLM is a flexible business model where training will be provided and we can choose when, where and who to work with.

Despite the potential of earning significant passive income by leveraging on network marketing, people are skeptical because MLM does not have a good image. After hearing a lot about MLM scams, people are doubtful because it is hard for those who don’t understand the differences to differentiate a legitimate MLM business against the pyramid or Ponzi scheme, which is illegal in most countries.

The key difference between a legitimate MLM vs pyramid or Ponzi scheme is the latter can make money solely from recruiting people and receive “sign up fees” WITHOUT delivering any product or service to new recruits. If there are greater incentives on recruiting people and no focus of selling the products, or if downline are required to buy more products than they can sell, it is likely an illegal pyramid or Ponzi scheme.

Will explore more in the next post...