I’m actually going to share some pretty
intense, pretty mind blowing stuff, especially for those who haven't been
exposed to the entrepreneur world and who have been raised up with the
traditional view of go to school, get a good job, work all your life, then
maybe retire. I might challenge some of your views, I might challenge
a little bit of your understanding. But I hope that after this blog post you
will walk away much wiser, and with a different kind of view and in a different
way of seeing how money is made, how you can make more money and how actually
the business works in comparison to a job.
Okay, so I'm going to go through about seven concepts with you today, seven ideas to really help you shift your mind-set and then maybe even you might want to share this blog post with some people who are still stuck in the coin operated employee mentality where you know that they could do so much better in their life for themselves and for their families.
The first concept that I want to talk about is in your job. So I don't know what do you do for a living because many of you are reading this, some of you are doctors, some of you are accountants, some of you work in a factory, some of you drivers and so on and so on. And also I don't know how long you’ve been working in your job. Some of you been working for a year, two years, three years, five years, etcetera, different scenarios.
But imagine if I asked you this question, in your job at the end of this month, at the end of May, how much will you be paid for the work you done one year ago, two years ago, three years ago? How much will you be paid at the end of this month? Now for most of you if you are in the job environment, this question doesn't make any sense, does it? Because how could you be paid at the end of the month for the work you did four years ago?
Well, for the work I did four years ago, I got paid and that was it. You wouldn't pay get paid anything at the end of this month and that's right, in a normal job environment. That's exactly right. That's how it works. It doesn't vary much from that. However, it that's not how it works in the business. When people ask me, they say, “Oh Gediminas, when you first joined your business eight years ago, how much did you earn in your first month?” And I always say the truth, I say, “I don't know. Because I haven't finished collecting all of that money yet.” And people go, “What? That doesn't make any sense. How does that work?” Well, in my business, when I first started eight years ago, I got pretty excited so I've introduced a couple of people into the business. They all bought some products, and they introduced few other people and at the end of the month, for all of that, for the fact that I introduced these people into business, they bought some products, they introduced some other people, I got paid, hey, great, it works.
But then next month, the same people that I invited last month, went and bought even more products, and introduced even more people and I got paid again. But what did I have to do to earn that money? Well, nothing, because I did the work last month, and I got paid for the same work again. And now, eight years later, at the end of May, at the end of this month, I will not be paid for what I did this month. Well, at least not only for what I did this month, I'll get paid for what I did over the whole of eight years.
So at the end of this month, I'll get paid for what I did eight years ago because the people that I've introduced eight years ago, they're still in the business, they're still ordering products, they're still introducing other people. So I'll get paid today at the end of this month, for the work I did eight years ago. That's passive income guys.
Now show me a job where I can get paid for the work I did eight years ago. Try and go to your work tomorrow, go to your boss and say, “Hey, I did a lot of overtime like six months ago, could you pay me some extra at the end of this month too?” see what they say. They might give you some counselling and some psychological help, for sure. So that's the first concept to challenge your mind-set, to challenge your employee mentality if you have one. I know a lot of you who are in my lives, you are entrepreneurs, you are business owners, and you work from home and that's totally cool, but this is not just for you, this is just to cover some concepts. So that's number one.
Number two, is another concept that is super powerful. Imagine, if you recommend your friend to go and shop at your local supermarket, at your local grocery store. Imagine if you recommend, so you've got a friend and you go, “Hey, this grocery store, this local supermarket, they're really great. They have awesome food there. Why don't you go and shop there?” And imagine your friend goes and does their shopping at your local supermarket, they spend 100 pounds or dollars or 200 pounds of dollars and then the supermarket calls you up and goes, “Hey, because you recommended this person to come and shop at our supermarket. We're going to give you a percentage of their shopping. So here's $10 for you, here's 10 pounds for you.” How would that be? That'd be pretty awesome. Now I know your local supermarket will never pay you for recommending people to them, right?
Like the people you recommend to your local cinema, like the people you recommend to go to certain stores, you never get paid for those recommended, but just let's imagine, wouldn't it be sweet if you recommended your friend to go to a local supermarket to buy food and you got paid the percentage of what they spent? Would be pretty cool right? Now let me make it even sweeter. What if from then on every time your friend goes to do the grocery shopping, you’d get paid on their shopping for the rest of your life, how would that feel? That would be pretty awesome. You’re getting paid and every single month on their shopping and you only did the work once, you only introduced him to the supermarket once right? Let me make it even sweeter for you.
What about if you get paid on your friend shopping for the rest of your life but what about if that friend introduced some other people, but if your friends introduced their friends say go and shop at the supermarket, and you'd also get paid on that friends’ friend’s shopping, grocery shopping? What if those people introduce somebody to go to the supermarket and you get paid on those people shopping too and it would carry on until infinity no matter how many people they would ever introduced to the supermarket every single person who goes to shop there, you'd get paid? How would that be? That would be pretty awesome, for the rest of your life. It'll be incredible! Well, I've got some good news and some bad news. Which one do you want first?
Well, I'll give you the bad news first. The bad news is that your local supermarket, your local grocery store, your local cinema, your local restaurants will never do that for you. You can carry on recommending like you've always done all of your life but that's you’re doing that for free. Because they keep the money; your friends go shop there, spend money at the restaurant, go to the cinema, they make the money from that, not you!
The good news is in a home based business and network marketing that’s exactly how it works. Every single person that you recommend to go and shop at your network marketing company, the company will pay you a percentage on their shopping and if they introduce other people you will get paid on their shopping too and if those people will introduce other people, you will get paid on their shopping too. And you will get paid for the rest of your life. How about that? That's passive income guys, where you do the job once and every time people shop or introduce other people etcetera, you keep being paid month after month, year after year? That's the second concept.
And again, in a normal job that doesn't happen. What your company it does. Imagine if you - let's take a security system salesperson or alarms things salesperson. So you go to a house and you go “Hey guys do you want to get robbed? No! So by our alarm system.” So you install the alarm system, and the company pays you once for doing that job. But guess what, that person is going to be paying the alarm company for many, many years, but you will not see any of that money. So the company pays you once for doing the job but they keep getting the passive residual income, it’s just you never see that. And that's in most jobs; you get the customer or you serve the customer, or you enroll the customer for the company, and the company gets paid but you never see that because that's a job. They just pay you for the job. So that's something to bear in mind. But when you in your own business, when you network marketing, you actually get the residual income. So that's concept number two.
Concept number three, is based on a quote I saw a long time ago. And that quote is by a guy called Warren Buffet and Warren Buffet is one of the richest people in the world billionaire investor, etcetera, and genius guy. And I saw his quote, and his quote said; unless you find a way how to earn money in your sleep, you will work until you die and I thought, hmm, isn't that interesting? Now, clearly, I didn't want to work until I die. So I didn't want to work until I die and so I thought, “How can I make money in my sleep?”
And guess what? The home based business that I'm in right now the network marketing company that I'm with right now, I live in UK, but I have team members in Indonesia, I have team members in USA, I have team members in Australia, I've got team members in Africa, and its different time zones, right? So some mornings actually, most mornings, I wake up open my back office, and I see this new people in the team. I see there is more points more volume in the business. This basically means I just made money while I was asleep and that is pretty cool. Guys, I tell you know many things in life beat that.
So again, think about can you get that in a job? Can you actually make money in a job while you sleep? The likelihood is not I don't know, most jobs here in UK, you get paid per hour. So you do the work and you get paid you do five hours, you get paid for five hours, you do 10 hours, you get paid for 10 hours, and so on, there is no way for you to earn money in your sleep in a job. And that's why most people will have to work until they die. Not until they retire because a lot most people nowadays, they can't even afford to retire. They have to keep working because their retirement income is like a third of the salary and they just can't keep up with that they can live on that. So they have to just have to continue working. So that's the third concept; earning money in your sleep, earning the passive income while you sleep.
The concept number four, I'll need to get my trusty whiteboard for that because this is also super powerful. And again, I've learned about this pretty earlier on in my personal development journey in my home based business journey and it's served me very, very well in again, explaining to people how the world of money works. So this concept is actually called the cash flow quadrant and the guy who came up with it is called Robert Kiyosaki. Again, super wealthy person. He wrote a book called Rich Dad, Poor Dad and Cash Flow Quadrant, he's an investor is a real estate investor and is very wealthy. And he teaches this concept that every person in the world falls into one or few of the four quadrants.
So the first quadrant is E, which stands for an employee and that's when you have a job when you work for somebody else, you're an employee. The second quadrant is S, and S stands for self-employed. So for example, let's say somebody is a dentist, and they were working in a clinic and they were an employee, the clinic was paying them a salary but then they decided, you know what, I want to open my own dentist office, my own clinic. So they open their own dentist clinic, and now they're working with clients. So now they’re being paid an S income, self-employment income. So in E the quadrant, they had a job in the S quadrant, they own the job. So that's S self-employed. The third quadrant is B and B quadrant stands for business owner.
So a business owner is somebody who actually employs other people. So let's stick with the dentist example. So imagine if you open the clinic, where you're not the dentist, when you open a clinic, you hire four or five dentists, and now they work in your clinic. So at the end of the month, you are making money off their work. So you employ those dentist, you provide the clinic; you provide the equipment and everything, you provide the Secretary and all of that and at the end of the month, you pay the salary to your dentist, you pay the electric bill and all of that, and you have money left over, that is business income, because now you don't need to be there to make the money, you have a leverage.
The leverage in the quadrant is other people's time. So you’re using other people's time in order to make money. So other people's time is making you money and if you have a job right now, the chances are that the company is leveraging your time, right? So that's B. And then the fourth quadrant is I which stands for investor and that means basically, money is making more money. So investors might invest in stocks, in shares and bonds, in real estate, in currencies and many, many other things. That's when you've been basically making your money work for you and make more money.
Now if I asked you, where are the most people which quadrant or quadrants are the most people? What would your answer be? Where do you think most people in the world will fall into which quadrant? Okay, so most people in the world will actually fall into E and S quadrants. That's it. That's the idea, so 95% of people will fall into E and S quadrants and they’re basically exchanging time for money. If you want to earn more money as an E or an S, what do you have to do, do more overtime, work more days, work more hours, that's the only way for you to make more money is to spend even more of your time as an employee or as a self-employed.
Now that of course, it can be done and to some extent, but at the end of the day, you end up living at your job, and you don't actually have much time with your family or doing things that you want to do because you're always working. And that's what most people do; only 5% of people are actually in the B and I quadrants. Now, if we look at their wealth, at the money, 95% of money is actually on the right side of the quadrant and only 5% of money is on the left side of the quadrant. So even though most people are on the left side, most money is actually on the right side, most money made is on the right side. So let me ask you a question. Which side of the quadrant would you like t be on? Would you like to be on the left side of the quadrant or would you like to be on the right side of the quadrant? Now, if you're like most people, you're probably going to answer, of course, I'd like to be on the right side of the quadrant and be making all of that money.
But there's a challenge, for most people is a challenge to go from left to right. Do you know what that challenge is? Do you know why most people will never go from left to right, why they will always stay in the left side of the quadrant? The reason for that is that it most of the time, it requires money to go over to the right side of the quadrant, it requires capital, if you wanted to start a restaurant, if you wanted to start a dentist practice, if you wanted to start a taxi company, if you wanted to start any business, most of the time, in order for you to go into the right side of the quadrant, in order for you to start your own business, it will require most likely hundreds of thousands of pounds of dollars, sometimes you can get away with investing maybe $30,000, $40,000, $50,000, but it costs a lot of money. You know, for a typical franchise, for example, like McDonald's, it can be anywhere from half a million pounds to up to a million pounds, so it requires a lot of money to get there.
Same applies to the I quadrant. In order for somebody to become an investor, they already have to have a certain capital in order to invest if you want to buy stock, shares, property, real estate, whatever it is currencies, you need to have money in order to get it started, in order to get it going. And guess what, most people haven't got a spare 50,000 or 100,000 or more laying in the bank account, just free to start playing around and starting the businesses etcetera. Plus, especially with the B quadrant, there is a huge risk, because let's say you decide to start your own restaurant, you have to get the premises, get all the equipment, get all the tables and tablecloths and cutlery and everything. Hire the boss, hire the waitress, hire the chef, and all of that, start advertising, hire the accountant and do all of that, before you even know if it's going to work, before you even know if it's going to make money and very often, unfortunately, doesn't.
They say about 95% of businesses go out of business within the first five years. So it's a huge risk. Because guess what, if you didn't have the money, guess what most people do? Then they borrow the money. So most people don't have the money to start a traditional business. So what do they do? They go to the bank and borrow the money, borrow the 50,000 or 100,000, or half a million pounds. And guess what happens if your business doesn't work out and he goes out of business. The bank doesn't go, “Hey don’t worry about it, stuff happen, I understand, and just don't worry about it.” No! They got to go we want the money, we don't care that your business didn't work out, we want the money back. So now you haven't got a business and you minus 50,000 or minus hundred thousand or minus half a million pounds. Not a great place to be in.
So for most people, they'll never get into the right side of the quadrant because they haven't got the money to invest. But there is one other way how to get into the right side of the quadrant. And that's again, a home based business, a typical network marketing business, you can get started with like hundred or 200 pounds or dollars, that's like a couple of Chinese takeaways, you don't need to spend thousands and thousands and thousands of pounds, take a huge risk, take huge overhead, high offices and things like that most people start the home based business, most people started the network marketing business out of their living room. So you don't need to go and get a lease on an office building. You don't need to hire staff, you don't need to get all of these overheads and risks and borrow this money in order for you just start your own business, you can actually get it started with like a couple of hundred quid, and that's mostly just to get some products so you can use them and have something to show other people.
But what happens in both the B and I quadrants, you start receiving what is called passive income. So you no longer have to work every day in order to earn income, because like we said, in the B quadrant, you are leveraging other people's time, in the I quadrant you’re leveraging your money and in both ways you don't need to be there to make the money. Now, it's very important distinction in network marketing, in order for you to be in the B quadrant, you have to be a team builder. Because as you may know, in home based business, in network marketing, you can make money in two ways; you can either make it by selling the product, or you can make it by building a team or do both. But if you only sell products, you actually haven't got a business; you just became self-employed because when you sell products, you make money. But if you don't sell products next month, then you don't make any money.
Actually, you're not a business owner, you just a self-employed person, you got yourself another job. But if you start building a team, if you start sharing the opportunity with other people, then you cross over to the B quadrant because now you're leveraging time, you're cloning yourself if you like. So if you work on your own, if there's only you, it's your 24 hours in a day so it's just you. But if you recruit somebody into your business, if you get somebody to come on with join your team, now there are two of you. So now it's no longer 24 hours a day, now you have 48 hours in a day, because there is two of you. What if another two join, then it doubles again, and so on. So the more people you have in your team, the more hours you actually have. If you have 100 people in your team, that means you got 2400 hours in a day, not just 24 hours, can you understand that? Can you understand how powerful that is? Leveraging the time? Multiplying yourself, it is insane. So that's the fourth concept.
The next concept that I wanted to talk about is their income and expense. Example, so again, this is -- have you heard a saying the rich get richer and the poor get poorer? Well, I'm going to show you why. So if you're interested, just stay on for a minute. Okay, so there are four concepts that you need to understand in this example. The first concept is income. The second concept is expense. The third concept is asset and the fourth concept is liability. So I'm going to tell you the difference between the poor, the middle class, and the rich. Okay. So if you ever heard of saying the rich get richer, and the poor get poorer, I'm going to show you the reason why. So the first group of people and by the way, before we get into that, let's explain these four concepts. So income is, of course, the money that comes into your bank account. Expense is the money that goes out of your bank account like the bills you pay, the mortgage, the rent, or whatever the car payment, and so on.
An asset is something that makes you money, every single month. Liability is something that is costing you money every single month. Okay, so let's have a look how different people behave with their money. You could also call this what wealthy people buy on payday. Okay, so the first group of people are poor people. Now poor people, what happens is, the money comes in into the bank account as an income and most of it or all of it straight away, goes out to the expense column. So they pay the bills, the mortgage, the rent, etcetera and whatever is left over, they buy stuff, and they justified it by saying, “Well, it was so cheap, it only costs a pound, we went to the pound land, we went to the car boot sale, we went there, it's so cheap, so we just spend it and they buy stuff, if you go into their homes, it's cluttered with all the cheap junk they just keep buying and keep buying and the money never stays in the bank account. As soon as he comes in, it goes out and that's why the poor keep getting poorer because they just spend all their money.
The second group is the middle class. Now the middle class is what most people mistakenly think, are the rich, because they try to look rich. So middle class, again, the money comes into the bank account and they usually make a little bit more because they have better jobs, maybe that professionals and things like that. And some of that money, of course, straightaway goes out of the expense column because they also have to pay the bills and everything. But with the money that is leftover, what the middle class does, they go and buy liabilities.
So because they want to look rich, they want to keep up with the Joneses, they will start buying liabilities and remember what the liabilities, something that's costing you money every single month. So they'll go and splash out on a brand new sports car to show off in front of people who they hate anyway. They'll go and buy a Rolex watch on a credit card, they go and buy a holiday or vacation on a credit card and all of those things start adding up and they start costing them money every single month. So they start draining the money from their bank account, every single month, and they'll buy all of these things, you don't need to pay anything for three months, and just buy, nothing, no money down, no deposit, and they'll just keep buying and buying and buying that stuff because they want to show off that they are rich, they want to show off that they are wealthy, when in reality they're not.
And what happens is, they start getting more and more frustrated and stressed, because now all of this money is being drained out of their bank account, all these liabilities are costing them money every single month, they have to work even more hours and even more hours and even more hours to keep up with all of these liabilities draining money from the bank account and they’re just getting more stressed, they’re getting more depressed and that’s the middle class.
Now the final group are the rich. Now the rich also the money comes into the bank account. They also like everybody else; they have to pay the bill, so some of the money straight away goes out to the expense column, because they also have to pay the bills. But with the remaining money, what the money is leftover, and what the rich do they buy assets. And remember what an asset is? An asset is something that is making you money every single month. So they'll go and invest into things that are going to make them more money. And there again, might be different things they might buy stock, shares, currencies, gold, invest in real estate, whatever I'm not an investment advisor, and I'm not going to advise you to invest.
But one of the things that rich people invest in, they invest in a passive income businesses. You heard me mention Warren Buffet earlier on, you know how Warren Buffet's Buffet started out, he bought a pinball machine and he put that pinball machine in a pub, in a bar. People come put some coins in pay, play pinball, people come put some coins in play pinball. Once he's earned enough money from that pinball machine, guess what he did, he bought a second pinball machine and put it in another pub. And again, now there's two pinball machines making money for him. Once those two pinball machines made enough money, he bought a third one, and so on, and so on, and so on. And this is a passive income business because it's making money for him every single month.
Now, guess what network marketing business is also a passive income business. And network marketing businesses also passive income business. So what it does, then, because it's an asset, it starts putting money back into your account. So you make more money then you can buy more assets that makes you more money, more money comes into your bank account. So now instead of your money being drained out of your bank account every single month, now the money is coming into your bank account, every single month, which is pretty cool, if you think about it. So that's a concept number five.
The concept number six I want to share with you guys is the way that the structure of the company's works. So some people they want to go and climb the corporate ladder. So imagine that the typical company organization and a typical company organization are like a triangle, like a pyramid, so at the top, you have the CEO or the owner of the business, and then just below the owner of the business, you have the directors, the vice presidents and so on. Then under them, you have the managers, a little bit more people, then under them, you have the supervisors, even more people and then the bottom is the workers, all the worker Bs, which is the most people so usually it looks like a triangle.
It starts with the CEO at the top, and then it goes less directors, a bit more manages a bit more supervisors and there's loads of people at the bottom. So if you choose to go that route, if you choose, I'm just going to get a job and I'm going to climb my way up. There are few challenges with that. First challenge is that you have to start at the bottom. And then you have to climb all the way to the top from the bottom right. The second challenge is that if you think about that corporate structure, every job is already taken, every position is already occupied. So that means for you to get that supervisors’ job or for you to get that managers job or for you to get that directors job, somebody has to die or leave the business, leave the company in order for you to get their job. How exciting is that? Waiting until somebody dies, so you can get their job or somebody retires. That might be a long wait; you understand what I'm saying.
So not only that, you have to start at the bottom and climb to the top, you also have to wait because the places are taken. So you can just go and grab that job, because it's already being occupied with somebody else. Now, let's zoom out to a business example. When you start a business, well, there's nobody there, right? So it's you, and you start at the top. But because you're the owner, you're the CEO of your business and instead of you starting at the bottom and working your way to the top, you start at the top, and you build the company, you build the structure, you understand what I’m saying. So you don't have to start at the bottom and work your way at the top, you can start at the top and build it up. And the other thing that's positive in home based business and in network marketing is that no positions are taken. What do I mean by that, in a typical company and in a typical business, there can only be one CEO, there can only be a few vice presidents and presidents.
But in a home based business and in a network marketing company, there's no limit by how many diamonds there can be. There's no limit by how many top leaders that can be, they can be as many as you want. It's not crowded at the top actually it’s the bottom that's crowded, you know what I mean? So this way, you're not fighting and pushing and trying to get somebody off, and whatever. Actually, everybody supports everybody because the only way you progress in your business is by helping other people, which I think is much cooler than waiting for somebody to die, or for somebody to retire or get fired in order for you to get their job; different energy, different feeling to it. So that's the concept number six.
Now, the last concept number seven that I want my share with you today, guys, is about your mind-set again, and a lot of you who are reading this blog post be sitting there thinking well, it’s all very well were you saying it to me, and it's all sounds exciting. But I'm not a business person, our employee person, I'm a job person, I just get a job, I just do my job. And that's it. But what you don't realize or you might have not realized is that you're in business, you want it or not. The difference is whether you're in business for yourself, or you in business for somebody else, but you're always in business.
What do I mean by that? Well, if you have a job, and your employer is paying you 10 pounds an hour, guess what your employer is making probably 20 pounds an hour on your time. That's how they can afford to pay you 10 pounds an hour and still keep running the company. So they give you a fraction of what you are worth, a fraction of what you’re making, and they keeping the rest of themselves because you are an employee, because you have a job. But when you get into business, when you get into working for yourself, then you get to keep the whole money because nobody's taking a share of that. So you are keeping all of the money instead of giving some of it to somebody else, because they are leveraging on your time. So this way you can multiply what you're earning, you can multiply by two, by three, by four, by five, and so on. Because now you're in control of your time and you are being paid what you deserve. You get what I'm saying.
That’s my training and tip for you. Hope you got value some value in this blog post, if you did, feel free to share it with other people. If you would like more amazing trainings check out “Network Marketing Success Training” group http://titaniumsuccess.co.uk/successtraining.php. There are 10 amazing lessons in this training course that will help you get the breakthrough in your business!
Yours in success
In : Personal Development
Tags: mind set concepts in business