If you’re looking to raise capital, get financial backing or borrow debt from a lender – you’re going to need a successful track record proving your model and business plan for the deal assuring any partners that you & they have a high likelihood for success.
To get good at one thing and establish that requisite confidence among your investors, requires one obvious thing.. focus. If you are too spread out, it’ll come through in how you spend your time & energy. You’re better off focusing on 1 or 2 asset types when first getting started and building your portfolio of income producing assets. As an example, on my favorite shows, Shark Tank (ABC Friday 8 pm), Mark Cuban and the other sharks often ask the hopeful entrepreneurs if they are committed to their venture full time or if they still have day jobs or other ventures and interests. I have yet to see an investment in one of the entrepreneurs who has another company or day job.
Once you establish yourself in one segment, you can repeat & multiply that success within the same field or related fields. As an example, if you have gotten very good at assessing residential real estate for investment purposes, the natural progression would be to start looking at multi-family deals for investment. The principles are similar to single family homes and individuals condos while the players and tactics start to bleed into commercial real estate and corporate real estate.
As always, just remember to continue your forward progress, even in the face of failure or adversity.
There are dozens of ways to make money on the internet; you could use adsense like this site does, offer memberships, even develop & sell an app on the App Store for Apple or Android. The key is to find a predictable source of recurring income, i.e., income that you can reasonably predict the following month. Let’s say for example that you have an adsense site that does $100/month (roughly $1 per click, 100 clicks, roughly 1% CTR = 10,000 page impressions = approx 5,000 visitors a month = approx 166/day). Very doable, requires a good niche and proper execution, but very doable. With this approach, as long as your traffic stays somewhat consistent, you know that every month you’ll make $100 plus or minus. Grow the traffic, grow the income. As an alternate example, let’s compare a high paid general contractor. The GC could easily make $100-200k/year in most parts of theUS, assuming he or she is busy with projects and good at bidding projects and fees. The problem with this fee for service approach is the lack of knowing what next month or year will bring. The contractor can control how long he works, how hard he works, who he networks with, but ultimately unless he is consistently “winning” jobs, he is potentially subjected to a loss of income entirely.
Back to internet income and our main strategy of building income producing assets. The website owner has both monthly recurring income as well as an asset growing in value each month. The contractor has a skill set, unique to him or her that cannot be sold if say he decides to move toSpainor retire altogether. SO, focus on building assets and streams of income that are somewhat predictable month to month. There will always be things outside of your control, but if you stay on top of your metrics and continue to look for opportunities for improvement, then you are sure to grow your income streams nicely over time.
Monthly Recommendation: The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime.
MJ DeMarco illustrated that the road to wealth is not an event, but a process. Even entrepreneurs who sell their websites for huge sums of money only got themselves into that position because they put in the work and created a business model or system that leveraged large amounts of users or website traffic or income. It’s all about designing systems that generate revenue, can be replicated and scaled, ie – income producing assets. I can’t take credit for this approach, as millionaire fastlane is truly an awesome book that illuminates the foundation of how to create a money tree.
Basically in order to make millions, you have to reach millions by harnessing the power of a powerful distribution system: the Internet, Amazon.com, print media with widespread- yet targeted readership.
The system must be need based and offer something that your competitors don’t. Yes, there will be competition, but unless you are competing price (don’t do it), you must compete & win on your better offering or USP.
There’s no magic bullet for creating a successful or viable money system, but with the right approach and needs based philosophy it is completely possible to harvest the fruits of your labors for a long time to come.
Your search for income producing assets should never stop. Everyone has a different perspective on investment opportunities and places to find leverage in their lives. An accountant in South Florida has access to different, most likely more stock based opportunities, than say a truck driver in Kentucky. While the accountant may be able to digest and analyze financial statements of publicly traded companies and invest his discretionary funds into the stock market, the truck driver may have the opportunity to start his own trucking service or purchase some ownership in the company he works for giving him both ownership, equity, and ultimately making him a better employee for his current boss.
Websites are a great option for building income producing assets, but it is vital to understand that there are a lot of very smart people out there competing nationally & globally while trying to do the same things. With that said, it is very possible to make money online, but it takes a significant amount of time and great deal of effort. All of the low hanging fruit has been picked (10 years ago). The best option to take a domain name and build it into an income producing asset is to pick a monetization model (AdSense, product based, affiliate, etc.) and follow an already proven model until you have learned what’s worked and what hasn’t worked.
Income producing assets are the key to truly building wealth through equity and diversification. By creating &/or acquiring assets that generate income, you are actively pursuing the most proven strategy to attaining the lifestyle that most only dream of. In today’s digital age, many are making fortunes by making money online with income producing websites via a number of different web based strategies. Some examples include: membership websites- where clients pay for access to discounted products or perhaps unique content and information; there’s also a huge amount of websites targeting a single idea, phrase or product and collecting fees with an advertising based model (google adsense, amazon, or clickbank all pay referral fees for sending traffic & buyers). Through a combination of SEO & hard work, anyone can build a page 1 website on Google for a niche that they truly know & love. Once you’ve created or discovered a successful model that works for you, simply replicate and continue to build those income streams.
Market Samurai is an amazing SEO keyword tool. It has an unparalleled interface which shows and tracks your site vs the first page results of Google. You can monitor your websites and targeted keywords over time- tracking the increases & decreases in your serp rankings. Market Samurai also helps you evaluate keywords, analyze seo competition for ANY keyword, search for available domains based on keywords, further monetize your site with affiliates and adsense & find related content & backlinks.
There’s a free 12 day trial &/or you can buy it for $97 ( I bought it after trying it for about 2 hours) Click on the banner
1) Create Your Vision- what is your ultimate goal? If you could write your own future, where will this business/venture/_______ be in x months or x years
2) Establish a short list (between 2 and 6) of Priorities for that vision
3) For each Priority, develop Action Steps- Each action step should be able to be worked on in 15-30 minute increments
4) Think about and work to understand your Natural Work Flow- when are you the most effective and efficient? Not everyone reaches their full capacity between 9 am and 5 pm, I know I don’t.
5) Once you’ve identified your Natural Work Flow- Embrace it- Hustle when you are inspired and fresh, and when you’re dragging- have action strategies that you can work on
VISION->PRIORITIES->ACTION STEPS->NATURAL WORK FLOW
“Think about planning the same way you would describe a sports game. First, you identify the game and the general theme of the game (the mission statement and general objectives). Now, you have to tell people what the object of the game is; these are the company’s goals. Then, describe the series of plays that will get the team to the goal; these are the strategies the company will use to reach its goals. Finally, lay out the sequence of steps that will be needed to execute plays; these are the tactics that implement the plan…break down the general objectives into manageable accomplishments and show how the organization intends to achieve its objectives.”
Tags: business planning