Friday, March 14, 2008

Cash Flow Quadrant and how you earn money

Robert Kiyosaki's Cash Flow Quadrant shows that there are only 4 ways to earn money.


E - Employee - you exchange time for money

S - Self Employed - you work for yourn own self.


Both these methods means your income is determined by the number of hours you can put in, to derive the income


B - Big Business - you have leverage over others and earn money off their efforts

I - Investor - you use money to earn more money as in Investments and properties to name a few.


Both these methods above, means your income is unlimited, as you are not limited by the hours you put into your income generating efforts


So most people start off as an Employee and one day, decide they need more money and get into the Self Employed quadrant. Unfortunately, these people soon realise that they need to work harder and harder in order to earn more and more money. You have to open shop everyday or your money stops!


Robert says since most people don't have that much money to become an Investor, they can actually jump straight from being an Employee into the Big Business category, even with very little capital or time. And he recommends Network Marketing as a system to do that.


Even with millionaire's like Jim Rohn, Donald Trump, Brian Tracy & Robert Kiyosaki recommending MLM / Network Marketing, then why do so many people jump in to the Self Employed quadrant and do insurance, unit trust, will writing & real estate?

I may be biased as I am in the Big Business quadrant enjoying leveraged income from my Home Based MLM biz, my Bioslife Franchise and my Internet Marketing efforts.

Leveraged income is income earned long after the initial efforts are over, meaning income earned whether I am sleeping or travelling.

A Big Business in MLM / Network Marketing, Franchise or Internet Marketing, also allows you to earn income from a potential of 6 billion customers, versus the limited market in your Self Employed business.

Visit my 3 links above in blue to learn more and I wish you every success in your Big Business!

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