Factors Leading to My Serious Involvement in Internet Marketing

Having given you all an insight into some of the longer term influences leading to my embarkation upon this journey, I will continue to set the scene immediately prior to starting this programme on the pathway to success.

(By the way – for anybody who is REALLY interested in true-life epic sagas of ordinary folk, more explicit details on the development of my circumstances will be found in another of my blogs currently under development – working title “My Life – and Other Spectacular Human Achievements”. This is currently not available on line and has been slightly back-burnered to concentrate on this programme. Keep watching THIS blog for further news on THAT blog!!)

So, by means and occurrences related elsewhere I had deteriorated from a middle of the road, doing OK, professional and managerial post holder to a financially challenged, thrice divorced, aching, aging and (probably) depressed van driver. Life was severely pressurising me and constantly reminding me of my inadequate pension provision, lack of job fulfilment, and total waste of the talents and qualities I knew I still possessed. The physical aspect of my manual job was causing real anxiety as to the potential longevity of my creaking, failing joints.

I KNEW my only real solution was to work for myself. A lifetime of experience has taught me that I am not the best of employees – except for the few employers and managers I was able to come to respect – and in any case, what employee truly has absolute discretion over what they do, when they do it, and how they do it? And the unfortunate ageism which exists in our society, whether official dogma recognises it or not, can make it extremely difficult to land the ideal job – as I found out through many rounds of interviews with fresh faced newly graduated HR afficionados!

I identified many years ago that the key to financial security for most of us is RESIDUAL INCOME (which I will now abbreviate to “RI”). For those of you new to this term it may be useful to think of RI as being generated from “Do It Once, Get Paid Forever” situations. I suppose the easiest form of RI to visualise is royalties – a rock star cutting a hit record will continue to receive a percentage of the sales proceeds from that product for as long as sales continue to be made. Of course, that is always supposing that their manager was canny enough to get them the best deal at the outset!!

Many network marketing opportunities have the potential to generate residual income, both through continuing sales to your own customers (so long as you have a viable product) and through the sales of your growing team or downline – so long as you have it set up properly!

(Again as an aside, I am personally a strong supporter of the network marketing concept and am involved in a network with what I consider to be an unbeatable product range. However, that is for another place, not THIS blog.  Suffice to say that it forms part of my overall strategy to develop multiple income streams and avoid having all my eggs in one basket.  Anybody IN UK ONLY (this one is not currently available elsewhere) who is interested in learning more please drop an email to [email protected] for more information.)

In the good old days of high interest rates (somewhat ameliorated by the accompanying high inflation) it was possible to generate a substantial residual income simply by accumulating a sufficient amount of capital and placing it on deposit at the bank.  With an interest rate of 15%, one million units of any currency generates an annual interest income of one hundred and fifty thousand units. I am sure most of us could have a decent lifestyle on £150,000 or $150,000 a year? The capital could come from savings (pension fund perhaps), inheritance or sale of assets – property or a business for instance. Unfortunately in the current economic climate things are very different. Could you sell a $1,000,000 property and then rent and live on $5,000 a year at 0.5% interest? Of course, you could always earn more by speculating on the stock or currency markets with your hard earned $1,000,000 – but you could also lose the lot!

In many ways, the vast range of potential income opportunities in the Internet Marketing field are perfect for setting up that  residual income stream to replace your “piss-poor-pension”. I still advocate utilising more than one such stream but a successful product launch could generate that capital sum you seek – and multiple successful launches just add to the pot and the resultant long term income. Membership sites or shopping websites have the potential to endure and produce income streams beyond your lifetime. A successful website could sell for hundreds of thousands and boost that pot of capital. But there is another factor to consider in generating real lasting wealth – leverage.

Consider this situation – you spot a real estate opportunity where a neglected home is up for sale in a decent, desirable, popular neighbourhood. Similar properties in good order are selling for $300,000. You reckon you can get this one at auction (its a repo) for $120,000, and it will cost you $80,000 to renovate to the standard of its neighbours.

Scenario 1 –

  • You invest $120,000 of your own cash at auction to purchase the home
  • Over the next 3 months you invest a further $80,000 of your own cash to complete the renovations
  • In month 4 you sell for $300,000

Scenario 2 –

  • You invest $40,000 of your own cash at auction as deposit
  • You borrow $160,000 from the mortgage company to fund the remainder of the purchase and renovation costs.
  • You spend $80,000 of the mortgage company’s cash to complete the purchase
  • Over the next 3 months you spend the remaining $80,000 of the mortgage company’s cash to complete the renovations
  • In month 4 you sell for $300,000 and repay the mortgage company $160,000 plus interest accrued (for argument’s sake say $5,000)

For the purpose of this illustration all other charges, fees and expenses can be ignored because:

  1. They should be identical in both scenarios, and
  2. I am just making a point, not a business proposal!!!

So, under Scenario 1

  • You invested $200,000 of your own money, thus not only putting that amount at risk but losing the use of it for pursuing other opportunities over a period of 4 months.
  • In month 4 you realised a profit of $100,000

Under Scenario 2

  • You invested $40,000 of your own cash, putting it at risk for 4 months but retaining $160,000 to be available for new opportunities.
  • In month 4 you realised a profit of $95,000.

Scenario 2 is an illustration of leverage – the use of someone else’s cash, assets or time to support a profit making project of your own. I hope it makes sense.

This is simply leading me into another reason why Internet Marketing forms a major part of my personal strategy for success and income development. The concept of leverage drives the Affiliate Marketing system. From the Product Creator/Owner’s point of view, using affiliates gives product exposure to all of their affiliates’ contacts, almost infinitely multiplying the exposure their product gets with proportionate increases in sales. From the Affiliates’ point of view, for the cost of investment in compiling a list of contacts they get to participate in the profits generated by others’ creations. Win Win in my view!!

So for me, all the indicators were that serious involvement in various aspects of Internet Marketing had excellent potential to provide many of the income streams I was seeking – I had to find the way to make it work for ME.

My next post will talk about what I actually did next – and how I came to decide on the mentoring route and choose my mentor…………………stay tuned – or better still, click here!

 

 

 

 

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