Are You Creating Income or Wealth?
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 the 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.
Many sport and entertainment superstars, successful business owners, entrepreneurs and even lottery winners, may have a big income 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 much of it 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 income, things could have been very different.
Focusing on wealth creation means, using the income to build or acquire assets that then generates income with which to acquire more assets. You continue to do this, until generating an income doesn’t require yourself to do the actual work.
Your personal income should not be used for living a luxurious lifestyle, but instead, used to create or acquire assets from which you can eventually live a wealthy life.
Wealthy People Understand
Most truly successful wealth creators understand this principle implicitly.
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.
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.
You Need a System
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 once a month. – Could you create wealth by doing that?
Absolutely, and if you could systematize the process for picking product topics, you could even live on some island somewhere, lie on the beach and sleep while your 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)
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
And 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 its 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 60 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.
|Take a closer look at Wealthy Affiliate here|
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;
- Australia – 21.6%
- Switzerland – 19.8%
- Norway – 19.6%
- New Zealand – 17.9%
- United Kingdom – 15.2%
- Germany – 15.1%
- Canada – 14.5%
- United States – 14.2%
- Ireland – 11.4%
- 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 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.
- Saturday – 11.13%
- Sunday – 11.08%
- Tuesday – 10.62%
- Monday – 10.50%
- Friday – 10.42%
- Thursday – 10.39%
- 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!.
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