If you were to ask me 6 months ago from writing this article, what is income, my response would have been, Money earned from time spent working.
What that meant was that if I was earning andpound;10 per hour and I needed andpound;100 for something I wanted, I would need to work for at least 10 hours to get that money.
Most people I speak to have this same impression. From growing up and living in a working class environment, the only way to earn money is by working for it.
What about those people that are rich? I look on social media and the wealthiest people appear to be spending most of their time fooling around buying expensive products. Surely, if earning money required them to work long hours, they would never have the time for anything but work.
I recently listened to an audio-biography on Warren Buffett's life called "The Snowball." Now for those of you that don't know, Warren Buffett is one of the richest people in the world who made his wealth by investing his money. Whilst listening, I had a lightbulb moment as the author explains how when Warren was a child, he purchased an old Pinball Machine on the cheap and got one of his friend's dad to fix it up. The pinball machine was then stood in a barbers shop and every week, Warren would go down to the shop and collect the money and split it with the shop owner who agreed to maintain the pinball machine. Once he generated enough money, Warren went and bought another pinball machine and put it in another shop. He repeated this process again and again.
It's fair to say that he was generating passive income. He didn't work for the money, all he did was collect the money every week. Just let that sink in.
Let me ask a couple of questions;
- Does that idea sound hard?
- Is it something that you could do yourself?
Generating passive income is all about having an idea and putting it into motion. One of the main reasons people don't do it is because of self doubt.
Now, that pinball machine is called an Asset. An Asset is something you buy which generates money and when you buy something that costs you money like a car, they are called Liabilities.
The golden nugget is all about how you spend your money. Do you buy a pinball machine or do you buy the nice car?
Have you ever noticed that anyone who seems to have money has a reputation of being as tight as a frog's arse? Well there is a reason for it and as I just explained, anyone with money understands the concept of buying assets and liabilities.
However for many of us, myself included, when I first started out, the problem I had was;
I have no money to buy assets.
I have no time.
Well, that's where I came across Affiliate Marketing. With Affiliate Marketing, you don't need money and you don't need a product to sell. All you need to do is sell other people's products for a commission... I can almost hear you all saying, "that's not passive because you're working for it."
Well that's the beauty with online marketing. I could go around telling people about this concept and once I have told one person then I would move onto the next and tell them. You soon begin to realise that I'm spending a lot of time going around telling people the same thing over and over again. But using the internet I have written this blog once and it will stay on the internet forever and more and more people will read it. Now this blog isn't earning me any money but if I was to market a product online, that product would be purchased again and again giving me a small income, time and time again for something I did once. Now, if you are selling something on a subscription basis and someone purchases a product from you once, they will pay a monthly subscription which also gives you an income. So you can earn time and time again off the same person for selling them the product once. Now with that said, this is the internet, so whatever product you decide to sell online will be marketed 24/7 even while you sleep. The more people that buy the product on a subscription basis the more money you earn. There is no limit to the amount of money you can make!
I didn't know anything about online marketing. I had heard this concept from another rich guy's book that I read. His name is Robert T Kiyosaki and he explained this in his book called the "Cashflow Quadrant". Because I didn't know anything about online affiliate marketing, I decided to learn about it. This is where I came across the Six Figure Mentors. They are an educational company that teach people how to become an affiliate marketer.
If this is something that you might find interested in investing in yourself, here is a link;