Some people work their hands to the bone just to survive, and some people kick their feet up and live in luxury.It seems really strange, but we’re used to this idea by now.
Sometimes people speak about things like a “millionaire code,” or other ideas for making money that don’t require years of work and investments.
But what’s going on here, really, that makes things so easy for some people, and so hard for others?
Well, before we get going talking about it, there is one thing you will need above all else:the will to make money without doing work.
We’ll talk more about that in a second, and why it is so important, but make sure you really want to make the money easily first!
The “Secret” to Making Easy Money Without Doing the Actual Work
First, let’s go for an example of where people get their foot in the door.
First, you take a basic desire that people have.
Like say getting a room in their house painted.That’s a desire that a lot of people have, but very few people will actually motivate to do themselves.
That’s where you come in to capitalize, doing something simple like this:
– First, find a painter. Hopefully they’ll have a good reputation, since the quality of their work is going to affect the quality of your business. Pay them a good wage, like $20 an hour, and take them in as a contractor. Offer to pay for all their materials, because details like that are important.
– Find a student with web design skills who is growing their portfolio. If you’re lucky, you can find someone to design your webpage for free in the name of growing their portfolio, but even if not, you can get student labor very cheap. Have them design a website where you can take contracts for your painter. Put up the rates and such, and try to stick with a simple one-page design (maybe two pages if you want to add an FAQ.)
– Set a rate which is considerably higher than your painter’s wage. If you’re paying the painter $15 an hour, charge $35 an hour. If you’re paying $20 an hour, charge $50 an hour. These rates are a little steep, but for this example, you’re not trying to sell your service to students. Your potential customers are seasoned homeowners or long-term renters who aren’t afraid to drop a few hundred dollars on your services.
– Set up a system that notifies your painter about when they have been assigned a contract. You could do it yourself, or you can automate it. Then either you or the painter will contact the customer and arrange the actual performance of the service.
– After the job is completed, you’ll be paid at the rate you charged. Since you charged more than you had to pay your employee, everything you aren’t paying out to your employees is pure profit. It is recommended to reinvest the profits into improving your business, of course, because the better your service is, the more profit you can make.
So this seems like a pretty simple version of running a business, right?
Well, it is simplified for sure. But don’t be misled, this is truly similar to the strategies that people use when they begin a business.
“Business” is really a key word in this conversation, because business is where the true money is.
Your Steady 9-5 Paycheck is Keeping You Poor!
When you work as a laborer, there is only one place you can get your money from: your employer.
And your employer is only going to pay you what they want to, which means a consistent, but limited, source of income.
Entrepreneurs and “homegrown millionaires” are looking at a bigger picture, which is getting income from lots of different sources.
The secret to capitalist success is not to labor, but to create systems of income for yourself.
That means hiring laborers, being the employer, and reaping the full benefits of the capital system.
Your money and your systems become your leverage, and now you’re making money on OTHER people’s time.
Making money when you’re not strictly working is the key secret.
Of course, you could think of a thousand different types of business off the top of your head.
There are mechanics, retail business, restaurants, real estate… The list is endless, but it all boils down to the same concept: people are working for someone because they want to get paid. But the person at the top is paying them only a portion of the money that they’re making.
Passive Income: a Source of Easy Money for Anyone
For the sake of being thorough, though, let’s look at an example that doesn’t require you to have any employees. Employees are the keystone of any successful business, of course, but it is cheaper and easier to get started if you are your only employee.
So let’s talk about creating a source of online income.
Passive streams of income from an online source are a great way to build up residual capital.
The hypothetical painting business up above could hypothetically balloon out and grow into a huge source of income, but the online income is a smaller, more personal way to do it.
Perhaps the most simple way to get started with making money online is by utilizing affiliate programs.
An affiliate program is as simple as it sounds. You’re making an agreement with a company to help direct customers to them, and you’re earning a commission for doing so.
Let’s say you’re a “gym rat” who is familiar with exercise equipment.
There is probably an exercise or sporting goods company out there that is offering an affiliate program that might involve posting links to direct customers to the company, or maybe even writing an article about them.
The hypothetical process would be something like this:
– Find an affiliate program. Go to the company website and look to see if they have an affiliate program. If they do, it will probably involve you spreading your own unique link to redirect customers, and receiving a commission on each sale.
– Customers click the link to go to the product’s sales page.
– Promoting your affiliate link. If you’re crafty, at this point you will do something to emphasize your link. A good way to do this would be to write an article about the company or product, with the link included at the end. An article about the new Superbike 3000 that links to the same product is a lot better way to advertise than an article about gardening tips that links to an exercise bike. The only thing to be careful of here is making sure you don’t sound too much like an advertisement. There is a fine line between objective writing and a “shill,” and you’ll get the most product purchases by treading between the two.
– Passive income starts. Now once you’ve hosted your article, it’s up for good. That means that the work you’ve put into this article now will equal out to benefits for as long as the page still draws views. If it’s a product like this hypothetical sports bike, that’ll probably continue to bring in views for the remainder of the bike’s market lifetime. Not bad for a few hours’ work, huh? The amount of people who will actually buy the product after following the link is small, maybe only equaling out to a single customer a month. But if you’re picking up a nice commission- like $30-$50 per purchase, even one customer is pretty nice. Now imagine you stack up the links following that same behavior, and the money goes up substantially.
This is a prime example of the money-making systems we were talking about earlier.
What would you have to do to make $50 this month?
For some of us, that might be a whole day of work, for some it is only for some of a day’s wages, and for others still, it’s more than a day’s worth of wages.
The plan here is that we can line up 30 or more systems, each making $50 each, and now those labor wages are much less important.
Once you have excess capital, you can invest into new systems which net higher gains.
Of course, a system with higher gains usually has higher risks of failure, so keep that in mind if you have a long-term plan for investing.
As the market currently stands, having a monetized blog is a very big potential earner with low investment risks.
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