The purpose of this article is to go over a few key points that are important if you are serious about adding new sources of income.
This information is an EXTRACT from the content of the Optima Business Archives from 2002. Still relavent today!
IF YOU ARE A BUSINESS OWNER, you need to add new sources of income personally — and also within your business. We have found that most businesses rely on one primary source of revenue, and if you look across your industry, you will find that most business within the same industry follow the same pattern.
HOT TIP: Look at the ways other business from different industries find new customers, and sources of revenue. Ask yourself this question: “How could I apply the same method to my business?” Don’t say to yourself (like most people do) “that will never work for me, my business is different.” You would be surprised at how this one thought, can get in the way of new money-making ideas!
If you keep an open mind, you will discover new ways of marketing, and new sources of income that you had previously never considered before. And here is the best part — most other businesses within your industry won’t be doing it that way! So you will gain an instant advantage.
Here are some additional sources of revenue for you to consider for your business:
- Direct Mail
- Special events for your customers
- Social Media events
- Direct Sales
- Host Beneficiary
- Celebrity endorsements
- Joint Ventures
- Licensing techniques or technologies
If you are thinking, “oh, I have tried some of these and they haven’t worked,” the best question to ask yourself would be this one: “how could I get them to work? is there something that I don’t know, that I need to find out?”
HOT TIP: The key here is in the questions you ask. For example, if you look at a brand new building for your office and say to yourself “I can’t afford it” — then you are right. However, if you ask yourself this question: “how can I afford it?” you will find that your mind will begin to come up with lateral ways of doing it, ways that you couldn’t think of before.
HOT TIP: Study sales and marketing, because you have very little downside risk, and virtually unlimited upside potential. Here is an example: It cost you the same amount to run an ad that generates 10 sales, as it does to run an ad that generates 20 sales. If by changing the headline, you can double your sales — then you have doubled your return on investment. What if you could get that same ad to generate 100 sales? Your risk is the same, and yet your upside potential is virtually unlimited!
Once you get an ad that works (by testing one ad versus another, or one headline versus another) you can then repeat it over, and over. Why stop doing something if it is working?
If you have tried advertising before, and found that it didn’t payoff for you, perhaps you should consider testing different approaches? Getting an advertising specialist to help you?
How can you apply this same concept to the other sources of income that are listed above?
Train your mind to see opportunity everywhere, by asking the money-making questions…
FOR EMPLOYEES, don’t rush out and quit your job! You have to get some experience first. Experiment with adding first one additional source of income, then a second, then a third. When you finally have enough passive income to cover your current lifestyle — then you are in a position to quit.
What most people do is they get so excited about the freedom of their own business that before they have the basics handled — they cut off their primary source of income! This throws them straight into emergency, and makes them very desperate. I don’t know about you, but when I am desperate — I can’t think, and I end up making unwise decisions that are short term.
Build your sources of income, get some experience, then you can decide in your own time — if and when you want to resign from your job. THIS IS TRUE FREEDOM!
HOT TIP: One of the fastest ways to get experience is to find someone who has already mastered what you want to learn, and go study with them, go ask them to teach or mentor you. Most people would be flattered by your interest. Just be careful not to abuse their generosity. Be respectful and appreciative.
Time spent learning from masters — is possibly the best investment you can make.
HOT TIP: Always get clear on what the exchange is — before you begin. If you are asking people to support you to; come up with ideas, write a business plan, help you raise money, do research, mentor you etc. Always agree on what the exchange is — right up front.
HOT TIP: When you agree on an exchange, it doesn’t have to be money. It could be for goods, services, holidays, time, contacts, knowledge etc. Money is only one of many methods of exchange.
HOT TIP: If you exchange a product, or service (in return for what the other person is going to do for you) that costs you say $1,000, and the retail value of the product/service is $5,000 — you could exchange it for say the equivalent of $4,000. The other person gets a product/service valued at $5,000 for $4,000 of their time (or whatever they are giving you) and you are getting their support (or whatever they are giving you) valued at $4,000 for the equivalent cash value of $1,000. If you had paid them cash, it would have cost you $3,000 more!
This is why exchanging money, can often be more expensive than exchanging products or services.
The key here, is to think of alternatives and to train yourself to look for opportunities to make money, and to save money.
OTHER SOURCES OF INCOME FOR EMPLOYEES: In addition to the sources of additional income listed for business owners, here are some additional ones for you to consider:
- Art (like painting, writing poetry, pottery etc.)
- Royalties from licensing your ideas to others
- Buying and selling a product or service
- Exchanging your time and skill for a profit share, share holding, revenue participation or a fee
- Commissions on connecting people, or on making sales
- Commissions or a share holding for helping people raise capital
- Licensing patents, and selling the patent
- Acquiring the rights to new technologies, and on-selling them
- Acquiring the rights to new products and finding distributors
- Publishing information, articles, reports or books
- Plus, many, many more…
HOT TIP: There are only two things to focus on, when considering which product, or which potential idea you want to pursue:
- How does this make others more money.
- How does this save others money.
The key idea here, is that people will spend money to make money, and they will spend money to save money. Most people never stop and think of what the end result your customer gets from buying from you. Once you can clearly identify what the benefit is, and can explain it simply in terms of saving money, or making money — you will get much faster results.
If you want to get a pay rise, think in terms of how you can make more money, or save more money for your employer. They will then be happy to pay you more money! There is no exchange in simply asking for more money…
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© Goldzone Education. All rights reserved.
We have all heard it before. When a relationship fails, it is often stated that money problems caused the failure.
In many cases this is true, one partner loses their job or runs up unknown debts, which leads to relationship disharmony and eventually breakup or divorce. But what if there were a rarely discussed, often avoided cause that preceded the symptoms and was in fact the “real” culprit?
We all know that if you address symptoms and do not fix the cause, the problem won’t be resolved and it will continue… often from one relationship to another. Kind of like a silent serial killer that lurks in the shadows undetected, only to pounce at the most inopportune moment and wreak havoc.
After working one-on-one with thousands of couples from all walks of life, I have come to the conclusion that relationships are one of the most challenging areas of life for most people — and yet they have an enormous impact on one’s quality of life. If you sit down with any couple, it doesn’t take long to notice patterns of behavior that either add to or take away from the relationship.
Many money problems first manifested themselves in one’s relationship dynamic (which includes all relationships — home, work, family, etc.) which then shows up tangibly in the money dynamic. So if money problems are often (but not always) the symptoms, and relationship disharmony the cause, then no amount of focusing on money and finances will solve the money problems.
You won’t succeed in keeping a leaky boat afloat if all you do is grab a bucket and bail out the incoming water! What is required for sustainable, long-term success is to first bail the water out, then plug the holes in the boat to prevent more water from coming in. Yes, this sounds logical and easy, and yet, how often do people do the logical and reasonable thing when it comes to money?
So if your money dynamic isn’t flowing the way you would like, perhaps you could look to your relationship dynamic for some other causes of the problem? And at the end of the day, your relationships all reflect the most important relationship of all… the relationship you have with yourself.
© Goldzone Education. All rights reserved.
“It is unwise to pay too much, but it is unwise to pay too little. When you pay too much, you loose a little money; that is all.
When you pay too little, you sometimes lose everything. Because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It cannot be done.
If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better.”
– John Ruskin 1819-1900
This article describes a common cause that’s behind some of the largest corporate collapses we have seen in history. Corporate collapses, particularly those caused by massive financial losses, are not often the result of a single action or cause, but rather a combination of factors. This complexity can often cover up the most significant aspect of what went wrong. A thorough investigation by people who know what to look for can often reveal lapses in standards, honesty and ethics long before the entire collapse of the organization.
These lapses often (but not always) begin at the top – with the leadership, and then filter down throughout the organization.
The Lower Truth Phenomena
We are writing here about businesses and organizations, however, this same scenario plays out in interpersonal relationships with a similar effect.
Whenever you work for or with a person who operates at a lower level of truth, honesty, values and standards than you do, you will be pulled down to their level of lower truth, honesty, values, and standards.
This does not happen overnight, it occurs slowly and insidiously over time.
Here is an example of this mechanism in operation:
Let’s say you are a high standard, high truth person who values honesty and you enter into a business partnership with another person. This can also occur when you work as an employee for lower standard management. In the following example, we are using a partnership where each partner has equal say. In situations where management has more say and power over you, this phenomena is greatly exaggerated.
Your partner purports themselves to be the same as you. They say they value honesty, have high standards, etc. On the surface, this appears to be true and you believe them.
Taking them at face value you proceed to invest a significant amount of money, time and energy in the venture. In the course of doing business, you make a lot of promises and agreements on behalf of the partnership.
When things are going well, everything is flowing and proceeding to your satisfaction. And then one by one, things begin to go wrong. There is no apparent explanation for the small failures, so you proceed forward regardless of the “taps on the shoulder.”
As things deteriorate, and more and more stress comes into the project and the partnership, you are unable to keep all your agreements and promises. This does not happen overnight, it occurs one small thing at a time. A supplier doesn’t get paid on or before the date promised. A client doesn’t get the exact order as promised. A team member’s salary is a few days late with no communication. A deposit is made late. A check bounces, etc.
Slowly but surely your high standards and ideals have been compromised and you find yourself out of integrity with yourself. This causes you to feel ashamed which can be very painful.
In order to deal with the pain of violating your high standards and ideals, the first thing you do is lower your standards and justify these lesser ideals. These lowering of standards come through your language as justification statements that sound like this: “Oh, you can’t do such and such in this business and be successful anyway,” or “Everybody has this problem in this business,” or “In this country, it is normal to pay a few days late and nobody takes any notice of it, so it is no big deal,” or “It is my intention that matters. I am not deliberately misleading people,” etc.
Eventually, a few days late on payments becomes 30, 60, 90 days, etc. If the cycle continues unchecked, you will even justify not paying people at all, in order to pay others. This is often called, “robbing Peter to pay Paul.”
The next thing that occurs is that you don’t get paid on or before the date promised. A supplier doesn’t get you the exact order as promised. A payment to you is a few days late with no communication. A deposit is made late. A check bounces on you, etc. In other words, what you have done to others comes back to be done to you…
For you, as a high standard person, you take all this very personally. Your partner appears upset too, however, is more aligned with these lower standards anyway, and will lower their standards further in order to “make it work.” This leads to conflict between you and your partner over keeping agreements and maintaining high standards of conduct and honesty.
At first, you take full responsibility that it must be your problem and your partner reaffirms this. Your partner somehow convinces you to be the front person as your standard of responsibility is higher than theirs. So they will naturally tend towards blaming you and abdicating responsibility to you.
As your standards continue to decline, it becomes more and more painful.
In order to deal with the pain, you lower your standards more and deny that you had higher standards in the first place. Before you know it, you are operating at a very low level of truth, honesty, and standards. You are much reduced in your power, charisma and confidence to the point of giving up.
It is often at this point that the entire project fails and you experience a paradigm crash. Everything stops working.
To recover from a situation like this takes personal courage to review what actually happened and to reclaim your level of truth, honesty and high standards.
To maintain high standards, it is imperative to connect, work and associate with people of similar or higher standards than you.
© Goldzone Education. All rights reserved.
With the financial crisis deepening, many of our worst fears are being realized. With the Waves of Impact continuing to wash over us, we are being confronted by financial losses on a never-before-seen scale. Entire industries are at risk of being wiped out. Previously invulnerable mega-corporations are being brought to their knees. Hidden weaknesses are being exposed.
As individuals, we are being faced with the complete loss or at least dramatic reduction in the value of our retirement accounts. It can feel like we are being confronted on all sides. How do we cope with the uncertainty?
Now is an excellent time to consider the meaning of the word CONFRONT. Most people don’t think about their ability to confront and what can be done to confront difficult situations more easily, more effectively, and with less stress.
Here is the definition of “confront”:
CONFRONT: n. 1. An action of being able to face without flinching or avoiding. 2. The ability to be there comfortably and perceive.
So, confront means to be able to comfortably see what is there without flinching, wanting to withdraw or running away. Often, to fully understand a word, it is easier to look at the opposite. What does “non-confront” mean? It simply means the inability to see what is there. It is an inability to face something. Why can’t we confront something? Because to confront means PAIN. It is too painful to view, so we withdraw and refuse to look at the area.
Notice that the definition describes confront as an ability? It isn’t something you do, it is an ability that we develop over time. The ability to see more and more of the truth.
There is also what is called “low-confront” which is when a person can confront a little, can see a little of the truth of what is there… but not all of it.
How do you improve your ability to confront? The same way you improve any other ability – focus, attention, and practice, as well as dealing with the pain that had you not confronting the area in the first place.
As you can see, the ability to confront is directly connected to the ability to handle change. If a person can’t confront the future or the unknown, then they will stay in their comfort zone…and remain stuck in the past.
© Goldzone Foundation. All rights reserved.
I noted an interesting statistic today. The most popular post on this BLOG relates to dealing with stress. This has got me thinking… Since October 2008, what is on most people’s minds is the financial crisis and how this continuing crisis is going to impact our companies, our investments, our finances and our personal lives.
What does financial stress have to do with leadership? Everything! If you are feeling nervous, anxious or even outright terror at the thought of not making ends meet, the first person for you to lead is yourself. It is very difficult to be creative, resourceful and confident when you are dealing with the various mind-numbing hormones we experience as fear.
So how do you lead yourself?
Often (but not always) our mind speculates as to what could happen and we conjure up images of the worst case scenario, which in most cases turns out to be worse than reality.
Leading yourself requires objectivity. If you consider the worst case scenario versus the best case scenario, first figure out ways you can live with the worst case. Then from this place, you can calmly consider possible courses of action that you could take to avert the worst case. And in most cases, reality tends to be somewhere in between the worst and the best case.
On the other hand, if you avoid the worst case, pretend it won’t happen (denial), and go on as if nothing is going to happen… you have a very good chance of going through the worst case scenario in reality!
So accepting the worst case allows you to let go of the fear and to think calmly of what can be done with the resources at hand. Once you have a number of items that you can take action on immediately, a strange thing happens. Fear turns to confidence… confusion is replaced with clarity.
Having a plan – any plan – is far better than no plan at all. At least with a plan you have certainty of what you can do. And if it does not work, you can at least be confident in the knowledge that you succeeded in finding out what does not work. Then you can try another approach, and another… until you succeed. Accepting the worst case and then having a plan will reduce your stress, especially when you take action on your plan.
Another possibility is to look at the financial crisis as an opportunity. This will empower you to make changes that you would not otherwise make. Oftentimes, when things don’t flow, we have an opportunity to examine why they are not flowing. Whereas, when the money is easily flowing, we would continue on unchanged and not question what we are doing.
So the financial crisis is an ideal opportunity to re-examine what is flowing and what isn’t so we can make different choices.
Over the next few days and weeks we will write more about stress, the financial crisis and how to cope with it. Stay tuned.