Are You Creating Income or Wealth?

Dan Kennedy, the best small business to start at

What is the Best Small Business to start ?

When asked recently what was the best small business to start Dan Kennedy had an interesting notion about building a business: “One of the lessons I learned slowly and painfully has to do with income versus wealth.”

So what’s the difference? According to Dan, sales and profits are important, and that’s what most business entrepreneurs focus on. However sales and profits are not wealth they are income.

Wealth, he says, comes from creating valuable assets, that produce income. You can either work all your life creating income, or you can work on building wealth such as a business assets so that your income eventually takes care of itself. That he said, is the best type if business to start.

For example, opening your own little cafe creates income, but creating a system, such as McDonald’s that can be ‘duplicated’ and ‘scaled’, now that creates wealth.

Today

Many sport and entertainment superstars, successful business owners, entrepreneurs and even lottery winners, may have a big income today, but they easily fall into the trap of wealth ‘simulation’ instead of wealth ‘creation’. When they are focused on creating income they tend to spend money on the trappings of wealth, living a wealthy lifestyle, simulating wealth by dissipating cash.

I personally know because I spent the first 40 odd years of my life focused on wealth ‘simulation’ with beautiful houses, exotic cars, wives, expensive friends and other things, that gave the appearance of wealth but when the income stopped – they all disappeared. If I had instead focused upon creating wealth rather than earning money, things would have been very different.

Wealth Creation

Focusing on wealth creation means, using income to build or acquire assets that generates income to acquire more assets, until income takes care of itself. Your personal income should not be used for living a luxurious lifestyle, but instead, used to create assets from which you can eventually live a wealthy life. Most truly successful wealth creators understand this principle implicitly.

the best small business to start at

Warren Buffett

JD Rockefeller - the best small business to start at

John D Rockefeller

Warren Buffet still lives in the modest home he bought in the 1958 and the late Sam Walton drove an old pickup truck, these are both examples of wealth creators living well below their means. John D Rockefeller and J Paul Getty are examples of wealth creators whose use of this principle has ensured that their legacy lives on, generations later.

Internet Marketing

Now, let’s take this income versus wealth theory into the realm of internet marketing and see what happens:

Let’s say you are an online marketer and you create your own information product and you sell it. You can make a lot of money doing this, but then before long you’re working on the next new product and maybe it’s different every time. If you’ve got no real system then it’s a seat-of-your pants kind of operation so you are continuously working every time you create and launch a new product.This is creating income.

However, if you were to develop a ‘system’ for creating and selling profitable information products then that’s wealth. With your system, you can now plug writers into the process, tell them what to do, and then hand it over to your copywriter, webmaster and affiliate manager to make the profits for you.

With this type of ‘system’ in place, you could launch a new product every month, every week or even every day if you scaled it up.

Imagine being in 15 different niches, launching a product in each niche twice a month, could you create wealth by doing that?

Absolutely and if you could systematize the process for picking product topics, you could even go to some island somewhere, lie on the beach and sleep while you team does it for you. 

It sort of boggles the mind, doesn’t it?  

(To see more about Entrepreneurial types creating multiple businesses see this post here)

Systematization

Here’s a challenge for you for the next month: See how many of your current activities you can systematize. For example, checking your stats, if you do it whenever you think of it, it’s not a system. If you do it at say, 9.00 a.m. each Monday morning so you can compare it to the same previous periods each week, then now you have a system.

The more systems you have in place, the easier your work will become. When you’re ready, you’ll be able to hand off work to a virtual assistant simply by showing them exactly how each system works and what to do. It’s no different than training a new employee at McDonald’s how to make a Big Mac. There is a system, the system works and now you can outsource that work to someone else.

Selling your Business

the best small business to start atAnd when and if you decide to sell some of your business assets, they will be worth far more because anyone, ANYONE, will be able to plug themselves into your systems and do exactly what you do with the same level of success.

This could actually quadruple the value of your business, sort of like selling a McDonald’s franchise. But then if it making income while you are asleep on your island – why sell it?

Building an online Business

If you want to get involved in affiliate marketing and build long term wealth, I recommend Wealthy Affiliate as the place to start and /or complete your online education. This is where anyone can build a beautiful looking, revenue ready website in less than 30 seconds and get the education they need to be a successful long term, online marketer and profitable website business owner.

You not only get a great education and advanced knowledge about website construction, traffic generation, Search Engine Optimization (SEO), indexing in Google, adding images, keyword research, content creation and lots of support and answers to all your questions from within the WA community. Because building the website is the easy part, whereas building a successful online business is not.

Wealthy Affiliate’s is a straightforward, honest, down-to-earth membership program, created by online marketers for online markets and best of all it’s free.

If you are already a member, awesome, you already know the value of what I am talking about.

Now for something interesting that all affiliate marketers may want to know…

Which Countries Have The Highest Conversion Rates?

If you are an affiliate marketer and selling affiliate products or more specifically, ‘Click-bank’ products, do you know which countries are the most profitable to target? Imagine if you could do advertising that targeted only the highest converting countries. Well, now you can, by using Facebook advertising. Click-bank has recently revealed these rather interesting conversion rates of the top 10 countries and here they are;

the best small business to start atClick-bank Conversion Rates by Country:

  1. Australia – 21.6%
  2. Switzerland – 19.8%
  3. Norway – 19.6%
  4. New Zealand – 17.9%
  5. United Kingdom – 15.2%
  6. Germany – 15.1%
  7. Canada – 14.5%
  8. United States – 14.2%
  9. Ireland – 11.4%
  10. South Africa – 10.1%

Following closely behind South Africa and quickly rising are Singapore, France and The Netherlands

So what are the best days to promote products based on conversions?

Again according to Click-bank, the difference between days isn’t all that great. In fact, the highest converting day is less than 1 percentage point better than the worst converting day, which should tell us something, that sending out your offer on ANY day is far better than never sending it at all.

It’s also important to keep in mind that these numbers are for ALL offers. Some niches will no doubt convert better on weekdays than weekends. Your best bet, as always, is to test, test and test some more.

the best small business to start atHere is the breakdown from highest to lowest given by Click-bank:

  1. Saturday – 11.13%
  2. Sunday – 11.08%
  3. Tuesday – 10.62%
  4. Monday – 10.50%
  5. Friday – 10.42%
  6. Thursday – 10.39%
  7. Wednesday – 10.32%

Why is any of this important?

Because according to Dan Kennedy, even though sales and profits are important and the above information from Click-Bank may help you improve your income. Remember that income on its own doesn’t produce wealth.

You can work to create an income, or you can work on creating a valuable online business, so that eventually the income will takes care of itself. And what better small business to start at than an online business as an affiliate marketer.

To learn how to make money as an affiliate marketer or to get an online education, you can get started with Wealthy Affiliate and take advantage of the best online internet marketing course you can start for free right now!.

Are You Creating Income or Wealth?

If you enjoyed this article “Are you creating Income or Wealth” please feel free to share socially or leave a comment below on this ‘Google Page One ranked post’  (yes it’s true!! – thanks to people like you reading it) 

If you want to know how to get page one rankings you might like to see my posting about how, here.Video Marketing Made Easy

Oh… and if you do leave a comment, I will reward you with a free copy of my latest 60+page ebook; Video Marketing Made Easy – So please accept my bribe and leave a comment. The book is awesome! as are you for leaving a comment – Thanks!

About Peter

An International Speaker, Writer and Internet Marketer, living in Shanghai, China, teaching Business / English at a Chinese University and making a difference to the world, bringing you great information and recommending awesome products that will make earning online while living internationally - a breeze. http://onlineaffiliatewealth.com

20 comments

  • Janet Street

    Hi Peter,
    Very informative website, with many excellent articles! I especially liked this post about creating income vs. wealth, and the importance of building a system that can be duplicated or scaled. Wouldn’t it be great if people learned these concepts and skills at an early age? It seems that many of us have learned (or not learned) the hard way, trying to find our way without the right training or mentors to guide us. Thanks for sharing your expertise on so many topics. I ordered your new ebook and look forward to reading it soon.
    Cheers,
    Janetto

    • Hello Janetto Thank you so much for leaving a comment. Yes the world would indeed be a wonderful place if more people had these skills. Just think of the possibilities if more people have wealth and time freedom. wow!! What could be achieved? I hope you enjoy the ebook – Thanks again 🙂

  • Tom

    Hi Peter- Excellent article which I will take to heart. I am not to the point yet of sending articles/e-mails to my base of customers because I do not have any yet, still working on writing content. I especially like the paragraph on systematization and will work to that end. This article however puts things into perspective, and I will follow your advice. Great job!

    All the best-Tom

  • Edmund Ilski

    Enjoyed this article as well Peter.
    Interesting stats.
    Thanks.

  • Dave

    Great way to look at it. I am learning to look at the big picture but forgot there is mini steps to take every day to get there.
    I am trying to kick coffee, a 40 year habit, so I get up and juice a lemon and wait 1/2 hour then make one cup of coffee, today I did not even drink it. Just having it there helped but it did not taste good for some reason. The big goal, better health, mini goal, stop drinking coffee all day, it kills me when I work outside in the sun. After a week the urge for the get up and make coffee thing is fading and the lemon juice is getting to taste better.

    Thanks for the article.
    Cali

  • Gordon

    I’m a Dan Kennedy fan myself. And he’s dead on in seperating wealth and income, and tagging wealth as the most important. Freedom means time freedom as well as financial freedom, and freedom by that definition can only be built through creating automatic income. And you do that by acquiring assets that spin off that auto income.

    Good post.

  • Emma

    Hi Peter,

    This is a great read, It has given me a lot to think about! I know the value of Wealthy Affiliate and can vouch for it.
    I most definitely want to create wealth, rather than an income! Thanks for your wonderful tips!
    Keep em comin’!

    Emma

  • Loes

    Great question Peter, Are You Creating Income or Wealth? I create a pleasurable life 🙂 My work doesnot feel as “work” because I enjoy every minute doing what I do. That’s the kind of wealth I embrace. It would be nice to get a normal income from it, but I think that is a logical follow up. I believe in the Law of Attraction. Loes

    • Hello Loes and thank you for visiting another post and again leaving a comment. Pleased you liked reading my writings. Thank you 🙂

  • Marith

    Very informative and helpful article Peter.
    I have also noticed that my sales are up in the weekends and always try to do my campaigns Saturday and Sundays as you point out in this post.
    I have trouble wrapping my head around the part about throwing your hard earned money away on luxury and expensive “friends” To me that is pure stupidity, sorry…..
    As a fresh member of Wealthy Affiliate I already see some money coming in, and I will use your tips here to make that income increase. Thank you, your insight is very appreciated.

    • Thank you for your comments and I’m pleased to help. Yes, when it comes to spending money when you ‘have’ it you tend to do things that only appears stupid afterwards. 🙂

  • Andrew

    Great site Peter, excellent information and useful stats …well done

  • Loretta

    Peter… this has got to be your best YET. Terrific, inciteful, intriguing, and valuable information. Keep it coming.

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