Monday, 4 July 2016

Millionaires are millionaires because...


And there is a lesson in this for all of us... Even if you don’t want to be a millionaire but would like to be financially secure.

We can show you how… doing what you are already doing...

This knowledge was passed on to me from a dear friend but originally came from, Chad A Wade, who unfortunately passed away a few years ago. But his wisdom still lives on.

Chad said, "Millionaires become millionaires because they find multiple ways to make money doing what they are currently doing."

At first, this advice might seem simplistic, but let's think about this for a minute...

What Chad went on to explain was that our time is limited. If you always see yourself trading time for money, then you will run out of hours, and will run out of the ability to make more money.

So in order to create wealth, you want to find more ways to earn income during that same 24 hours in a day that we all have. And the more that income is based on you trading time, the harder it will be to amass any real wealth.

Our economy is based on the average person earning one income. So what we pay to live is based on the average person's ability to pay. If it were any other way then our economy wouldn't function.

Those who earn more than one income have a better than average life... it is that simple!

That was a 

You see, when you think of a regular job, like back when I used to be a barman at a restaurant, it took every bit of energy for me to work those hours. How could I possibly be earning more money in those same hours?

But, when you look at the owner of that restaurant, he earns money from my labour, the Chef and the other employees plus he owned multiple restaurants, earning money from all of them, often while he wasn't even there.

And this was just the beginning of the paradigm. To truly understand this concept, let's talk about something I like to call the "Inception Effect".


Building a Business, within a Business, within a Business...

Let me ask you a few questions.

Is McDonalds in the Hamburger business or it a Real Estate business?

Are Movie Theatres in the Movie business, or the Concessions business.

Is Dr. Dre in the rap business, or the business of producing rappers?

The answer to all 3 of these questions is BOTH.

But then, it goes even deeper...

Take Dr. Dre for example:

1) He is a rapper, where he trades time and skills for money to build his personal brand.

2) He is a producer, where he leverages his time for more income from overrides on the time and skills of other rappers.

3) He is an investor, where he leverages his money and branding into BIG business opportunities to amass wealth far beyond what he could trade his time for.

Dr. Dre is well on the way to becoming the first billionaire rapper, but does that money really come from his rapping?

You see, Dr. Dre found multiple ways to make money doing what he was already doing.

He was already in the rap game. But he had a business mindset. So rather than just trade time for money as a rapper, he decided to start producing other rappers, and he became more of a talent scout. He was building a "team" that he could override. Similar to many business models you might be aware of.

He had to review thousands of potential artists, just to find the handful that would be hits. He had to take risks on people, many of which didn't pay off. He had to gamble away his time, with the chance that he wouldn't find any talented artists at all.

But, his calculated risks paid off. He found artists like Snoop Dogg and Eminem, which he produced and earned a massive residual override from.

Then, he was smart enough to leverage his business mindset even further, by getting his branding involved in commercial product endorsements where he would get a piece of the company if it ever took off.

Now, he is on his way to become the first billionaire after positioning himself in deals like Beats by Dre, and others.


Let's go back to the movie theatre example.
How much profit do you think they make on the sale of an actual movie ticket? Not much when you consider the cost of producing a movie plus the cost of advertising it and the theatre screening it, wages, lease on the building, and so much more.

The movie business would be a tough business to be in if it weren't for the business within a business.

Think about it. How much profit is made on a bucket of popcorn? How much profit do you think is made on a cup of soda? A TON right?

It's basically just sugar water, and post mix is just a few cents per cup. As well as ice, which is essentially free. The most expensive part is probably the cup itself, which is super cheap as well.

But... Once you are inside the movie theatre, you have zero options. You are not allowed to bring in your own food or drink. And you don't want to sit through a movie without any refreshments right?
So they have effectively driven you to the concession stand to buy their marked up products that have huge profits.

They make so much profit on concessions that it's worth LOSING MONEY just to get you into the theatre, because they would still be profitable.

They rely on the movie production companies to spend the money to drive people to the theatres, and that's why they give up so much of the money on ticket sales.

But their real business only begins AFTER you have bought your ticket and you are inside.

And in the McDonalds example, if you research their history you will actually find that Ray Croc was STRUGGLING to be profitable until one of his employees, named Harry Sonneborn, and actually convinced Ray Croc that the REAL money in their business was in Real Estate, not hamburgers!

It's a true story.

Sonneborn came up with the idea to take out mortgages to buy the land and the building for each franchise, and then LEASE them back to the franchise owners at a 40% increased premium!

What's even crazier is that the better the franchisee did with their business, the more they would have to pay in lease fees!

Based on this model, McDonalds went on to become one of the largest real estate investment companies in the world, under the corporate name: Franchise Realty Corp.


I began looking for opportunities to find businesses within businesses so that I could really open my mind and expand the possibilities I could have in my personal life.

Sure enough, examples were everywhere.

For instance, I love golf. It's one of my passions. So I started looking at Tiger Woods. Sure enough, it became clear as day.

Everyone knows Tiger Woods as one of the best golfers in the history of the game. And he wins MILLIONS for each tournament he takes 1st place in.

But then you start to see the REAL wealth and where it comes from.

Tiger Woods made $83 Million last year, and he has now earned $1.3 Billion in his career. Golf Digest reports $71 million came from off course endorsements, and the rest was from his tour winnings.

Did you catch that?

So, he made $12 million last year from his tournament winnings and $71 million from his "other" business within his business. And what business is that?

Sponsorships and Endorsements.

Wow, think about it. Are golfers in the "golf business" or in the "endorsement business"?
Well the answer is, both. But where is the "REAL" wealth generated? It's in Endorsements!

How much does a Nascar winner receive if they take 1st place in a race? Not much, but how much more do they receive from sponsors if they wear their logo on their clothing, or put their logo on their car? The answer is MUCH MORE!

You might think that Shaquille O' Neal is a rich basketball player, and perhaps one of the best. But did you know that he owns 40x 24-Hour Fitness clubs, 155 Five Guys restaurants, a jewellery and clothing line, nightclubs, and more!

And there are hundreds of examples that I could continue to put in this post.


How can YOU find more ways to make money doing what you are already doing?

How can YOU find ways to leverage your time, your skills, your money, your resources, and everything else in order to multiply your wealth rather than just add to it?

We all network every day. We network for business and for our social life. It is human nature to want to socialise. We are networking when we share a Facebook post or a Twitter or when we tell a friend about a new App for our phone that we have found useful.

Every time we meet someone new we are looking to interact with that person in some way. Are they like us and will they like us?

Network marketing is a business that uses this principle. It simply provides a business basis for that association and the very nature of network marketing is that you cannot benefit from that relationship unless you provide benefit and help that person in some way. You won’t succeed in network marketing if your intent is to use people. You succeed by helping them succeed.

As you can see there is also good reason to consider having multiple income streams from that network that you are building.

My main point I am hoping to drive home today is that wealthy people tend to find multiple ways to make money, doing what they are already doing, and that my good friend made an impact when he shared that information with me.

I hope that this post impacts at least one person, and that it helps steer you towards a more efficient path for wealth creation and abundance in your life.

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