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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