Evan Wynn Kosiner: Take a cue from billionaires: get residual

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Take a cue from billionaires: get residual

Posted on Thursday, November 26, 2009

Written by Evan Wynn Kosiner

http://www.theeyeopener.com/articles/4355-Take-a-cue-from-billionaires-get-residual

I’ve hung out with a few billionaires in my day and I always drive the conversation to “How did they make money?” The answer, summarized: residual income.

What the hell is residual income? It’s your best friend that you didn’t know you didn’t know. It’s money that takes something to setup and will payout, residually. What’s the benefit?

Most university students that I know have two things going for them. One, a perspective on money, like “money is scarce.” Second, a relationship to money that their time equals money at a one to one ratio. Like, “every hour I work, I make $12.” (Notice some of you saying right about now, “wow, $12, I wish.”)

This is the way most people operate, including many executives, professors and more than likely you. There is nothing wrong with it, except if something comes between you and your labour.

The way I’ve set myself up is residually. It can be as simple as purchasing one stock and getting a $3 dividend quarterly. Or setting up a company and letting it run without you. Multi-level marketing companies usually only deal with residual income.

Having a residual income means that you could barely work or not work at all in a month and bring in sufficient income to support yourself. You can focus on working on your terms once you’re set up. Then once you have sufficient cash flow, reinvest it in additional residual opportunities that will create even more money.

It’s how my dad retired at 36 and it’s how every billionaire I met made their billions. Money no longer is a barrier, especially if you slowly but surely diversify the residual opportunities in your personal portfolio of opportunities. If one buckles, you’ve got income coming in from other sources.

So how do you do it? Seek opportunities that will make you money without you being there. Start a company and pay people on commission and have them do all the work. Create a business that makes an ongoing return perhaps through technology instead of labour.

One of my companies has invested into research and development for a new technology that has paid for itself in under four months. We receive a cheque for what we created every month.

Look for opportunities that are a utility. Like your phone, hydro or other stuff that once your clients signs on, they aren’t likely to get rid of.

Although I still have difficulty taking in all of the aspects of Multi-level Marketing (MLM) companies, some are great. Google “MLM” and see what pops up. The beauty with MLM companies is that even if you don’t sign up, the format of their company and how it operates will teach you a lot about how you could operate your own venture.

I’m a few years off from retiring. By retirement, I mean having sufficient income that I don’t need to work and my financial life runs without me. Does it mean I’ll sleep all day and everyday? No. I love working due to the loving the projects I create.

Homework: Give up the meanings you’ve created about money. Look at what’s “real” for you about money, and then ask yourself, does a billionaire see this the same way? Be a billionaire and work backwards.

If you have any questions about running your own business or have feedback for Evan, send an email to ekosiner@ryerson.ca

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http://www.kidk.com/news/local/70585147.html

Network marketing on an international level

Story Published: Nov 19, 2009 at 7:22 PM MST

Story Updated: Nov 19, 2009 at 7:22 PM MST

By Danica Lawrence

IDAHO FALLS - It starts with building a team of consultants and hosting house parties- that's what network marketing is- creating a line of independent agents and a hierarchy of different levels of consultants- and making people extra money.

"It wasn't until I got pregnant that I was all of a sudden looking for a plan B, I didn't really know how compatible my job as a flight attendant was going to be with having an infant at home, and I was like you know if I could just earn $600 a month then I could get rid of half my shifts," says regional vice president of Arbonne International, Janna Van Witbeck.

Regional Vice President for Arbonne International, Janna Van Witbeck, admits selling her company's products directly from her home has turned from a part time job just making couple hundred dollars a month up to a full time business now making around $5,000 a month! She started almost 4 years ago and then her husband lost his job two years later.

"We were just able to not lose everything even though we were totally unprepared for his income to go from bread winner to zero."

Despite what the consultants say about the products, this particular party is about educating these women to become business partners.

Local hair stylist, Jen Jennings just started her home based business with this multi-level marketing company- and she's making a couple hundred a month, she says it works for her because it takes up little time.

"It's not a 9 to 5 job, which I think is very appealing to a lot of people, no one tells you you have to go to work but no one is going to give you a paycheck if you don't go to work... It was just another avenue, another outlet, another part time job but it's been bringing in income with little to no effort," says hair stylist, Jen Jennings.

As the recession continues and people are filing for unemployment by the hundreds of thousands, the idea of network marketing has turned into a part-time job for people across the world and brought in that cash flow these women had lost.

So if you're thinking of a few ways to earn that extra income, consider a business straight out of your living room.

There are many forms of home-based, multi-level marketing, just be sure to check with your local Better Business Bureau to see if the company you want to work for is legitimate.

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Action13

Is direct sales right for you?

Wednesday, November 18, 2009

Patricia Lopez
More: Bio, abc13.com News Team

HOUSTON (KTRK) -- The number of women taking advantage of direct sales business opportunities has spiked in this down economy. But it's not easy.

Direct sales sounds like a great concept, whether it's Tupperware, beauty products or jewelry, you can earn up to 50 percent commission, work from home and be your own boss. But before you dabble into this industry, there are some things you should know.

University of Houston student Christina Gemellaro is a sales representative for Mark.

"Mark is a beauty and fashion brand. You can mix any two products that you like," said Gemellaro.

On this day, she has set up shop at the U of H book store. Gemellaro will make 30 percent of what she sells, and says she'll use her profits to pay for books and bills.

Across town, Georgette Duane is busy booking a party for Cookie Lee, a company that sells trendy jewelry. The mother of three says last year she had to find another career after losing her job at a car dealership.

"It's been a blessing ever since, I really, really enjoy it," said Duane.

Duane usually sets up nine parties a month, making an average profit of $200 for each party.

"If I worked a job making $8 or $9 an hour, I probably bring in a week's time what I bring in a day's time," said Duane.

Financial expert Marilyn Logan is known around Houston as "the money lady." She's such a believer in direct sales that she began selling Arbonne, a line of skin care products.

"Right now, the three things that are not suffering are alcohol, tobacco and skin care," said Logan.

She has been so successful with Arbonne that she's being rewarded with a white Mercedes from the company. But be warned: She says direct sales is not for everyone.

"If you don't like people this is not the business for you," said Logan.

Tori Johnson, CEO of Women For Hire, says before you consider a direct sales company, keep a few things in mind. First, the start up costs. Some can be pretty low. For Mark, it's just $20. But Cookie Lee's start up fee is $250. And Arbonne's initial investment is $1,100.

"I am a huge supporter of direct sales for a couple of different reason one is that it's a chance to make money, but even for a lot of people it's a chance to force yourself to get out there," said Johnson.

The next thing to consider with direct sales is how much time are you really willing to put in?

"You make as much money as you are willing to work for, so the more hours you put in the more money you make," said Johnson.

Next, are you willing to do what it takes? That means approaching anyone as a potential client.

"When your mouth is open, your business is open," said Johnson.

Finally, Johnson says if you really want to make your business venture successful, align yourself with a mentor within the direct sales company.

If you're still not sure if it's for you, consider that the worst thing that can happen is you lose your up-front money. So what exactly does that up-front fee pay for? With some companies like Arbonne, the $1,100 gets you a line of products for display and sampling. But with Mark, the $25 simply pays for your entrance fee.

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Entrepreneurship in a down economy

By AMBER KROSEL - akrosel@nwherald.com

http://www.nwherald.com/articles/2009/11/04/r_jli3vni4q2mg91ijgpbo_q/index.xml

Algonquin resident Barb Waller of BW Accessories sets up a table full of jewelry and accessories for sale for an open house Saturday with Rebecca Woodward, 8, at Vicki Revere's home in Huntley. (Jason Chiou – For the Northwest Herald)

Goodbye, door-to-door encyclopedia sets. Hello, Pampered Chef parties.

Locally, there is no shortage of the ever-evolving home-based business. From selling skincare products to posting handmade crafts on popular sites such as Etsy.com, starting out on one’s own might be gaining popularity as traditional full-time jobs continue to be scarce.

At the Illinois Small Business Development Center at McHenry County College’s Shah Center, local estimates show a 20 percent to 25 percent increase in interest from budding entrepreneurs.

“A lot of that is, ‘I’m unemployed, I haven’t found a way to be successful,’” ISBDC coordinator Mary Margaret Maule said. “Our classes have been full every month.”

Benefits to operating a home-based business include the flexibility of creating your own schedule, but – depending on the type of job – also come with the pressure to succeed at selling and time management.

“One of your big challenges is, you are your own boss, your timekeeper, your everything,” Maule said. “And it’s easy to get distracted by the other roles in your life.”

However, several McHenry County residents – including a trio of Huntley women running their own shows – have found ways to manage.

Stay-at-home mom LeeAnn Klopp began working as a Pampered Chef consultant in August to bring in a little extra income for the family. Although she puts in only about 10 to 15 hours a week hosting or preparing cooking demonstrations and catalog shows, she said she’s done well.

And when things come up, she can easily push it temporarily aside.

“Now with my son being home sick, if I had a full-time job and had to take time off, there’s no way that they would be as flexible,” Klopp said this week.

Friend Vicki Revere got into selling Arbonne beauty supplies as a side job in addition to her full-time gig as a figure-skating director in West Dundee. She discovered the all-natural products after she was introduced to them a year ago by her hairdresser and immediately became hooked.

She carries samples with her wherever she goes, mostly because her business survives through word of mouth.

“You have to put effort into it,” Revere said, adding that she’s served 50 clients. “It is a repeat business because it’s consumable.”

Consulting jobs such as Klopp’s and Revere’s are examples of multi-tiered marketing, Maule said. Equivalent to operating a franchise in that the person is “buying into” a larger corporate structure, someone else already has done the main promoting.

“You have a much larger marketing nut to crack if you’re a home-based business and also a private business,” she said, such as personal organizers or home-based health care workers.

However, any home business takes self-discipline, responsibility, and an upbeat personality and passion, rather than a specific skills set.

Megan Adam juggles being a stay-at-home mom of four with ventures in selling Scentsy candles and her own jewelry line. She’s been making popular bottle-cap necklaces for years, but began the consulting job after the economy faltered.

Both enable her to work around her families’ needs while earning money, she said, usually taking up at least five hours a day.

“It’s very easy to sell something that you love,” Adam said. “I’m constantly researching new ideas.”

But to those interested in starting home-based businesses, Maule warns that it’s “not the fallback position,” compared with an outside job.

“It’s tough work,” Maule said. “You’re wearing multiple hats. You will work harder than you’ve ever worked at anything else.”

Starting a home-based business? Read these tips, first:

• Make a plan for how much time you are willing to commit to your business and how many clients you want to see. Create a unit of measurement to show your progress.

• Become educated on your obligations as a business owner, such as taxes, insurance and potential liabilities.

• Understand what you don’t do well, and find someone who can do it for you in a way you support. For example, if you excel at sales, you might not be so good at billing or collecting.

• Make sure you collect. Get comfortable with being strict on billing, including notifications of late payments and service charges. Take delinquents to collections, if needed.

• Study and understand sales cycles. They often make or break a business.

• Network. Work with local chambers of commerce and create your own small group of trusted business allies. They can be an idea sounding board and help you view things from a different perspective.

• Take a class through a local Illinois Small Business Development Center for a low fee. Session topics range from taking advantage of tax changes to understanding how to use Quick Books. Information and more McHenry County resources can be found at www.shahcenter.mchenry.edu.

Source: Mary Margaret Maule, coordinator for the Crystal Lake-based Illinois Small Business Development Center

Moms Fuel Home-Based Business Boom

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Moms Fuel Home-Based Business Boom

Bay Area Moms Show How to Roll in the Dough

Reporting
Sue Kwon
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SAN FRANCISCO (CBS 5) ―

http://cbs5.com/consumer/home.business.moms.2.1282193.html

Ali Krebs works on her business from home.

In this economy, women are starting businesses at double the rate of men. Many Moms are starting businesses in the home to supplement the family income. Some are cooking up a lot of dough.

Sasha Nichols couldn't find interesting looking bows that stayed put in her daughter's hair. So the homemaker took out the glue gun and made her own.

"Everywhere we went people would say 'Where did you get those adorable bows I love 'em.' I thought 'maybe I'll give samples to friends,' which I did... they came back and said, 'You've gotta sell these.'"

From a little workstation in her garage, her business Bow Bijou bloomed.
She started selling bows in local boutiques.

"The first few minutes I brought the product in, they started selling in first 5 minutes," Nichols said.

According to hybridmom.com, a resource for entrepreneurial homemakers, women are fueling a boom in home-based businesses. Whether it's to start a college fund, in Nichols' case. or to supplement family incomes in a down economy.

Moms are finding inspiration and business ideas through their children. Ali Krebs came up with the idea for necklaces for mothers.

"I wanted to wear something hip and stylish that had my kids names on it," Krebs said.

But it's not just a hobby for Krebs. When her real estate staging work suffered during the recession, she needed Swank Mommy Necklaces to make money. The kitchen turned into the office. A team of neighborhood moms became her employees.

"Marketing at first was word of mouth. We wore it and people thought they were cute. Ladies at preschool would want one," said Krebs. But the mothers took their gift of gab and took it all to a higher level with technology. "Twitter and Facebook has been phenomenal. Social networking - I can't say enough about it. The number of people on the web are unbelievable and the percent of those who are mothers is crazy."

And once celebrity Mom's started wearing the handmade bling, the kitchen- based business started to cook up sales - $30-50,000 a month. Krebs is now working full time, and the business is expanding with a corporate distribution partner.

Nichols chose a different growth plan. She prefers to work a couple hours a day, so she can focus on the primary tasks of being a mother and homemaker. But even being a part time entrepreneur can pay. When Nichols first started Bow Bijou a year ago, she put in $500 of her own money for supplies. These days she makes that much per week.