As usual Gordon, you're too modest...
 

Gordon,

Thank you for Vernon Howard.
I was familiar with his name through Guy Finley but never had a chance to meet him "in books".
I just ordered 8 of his books.
Thank you.

As for the "crossword puzzle"...

Here is the solution:

Traveler: Dien Rice

Objects:
Pumpkin: Dien's Chattel Business Project
Rock: Dien's Investment Project/Plan
Object3: Dien's SowPub Business
Object4: Dien's Projects in Physics
.......(you can continue the list - Dien's Plans/Projects are well documented in his posts)

They are all PROJECTS, not material things/possessions, requiring time.

Voices of the Villagers:
1. Abandon physics, go into business.
2. Abandon the Internet, go into offline mail order.
3. Abandon information products, start selling cars, computers...
......

Again, my point is:

Dien's stress is NOT about the number of the projects.

It's about his desire to focus on ONE of them.

I might be wrong.

If Dien finds a way to play/toy/juggle with them ALL without focusing, there will be no stress.

I think that his posts on this board about different books, plans, projects is one of the form of this "juggling".

As for "calling" - I just don't believe that "deal-making" is Dien's calling.

The caliber is too small to be called and experienced as Calling.

In the same vein I don't believe that golf or chattel is YOUR calling.

As for your (or Vernon's) metaphor/mental picture I still think it's treacherous.
For it presupposes that the "villagers" are right.
BTW, my picture is a sufi parable that just QUESTIONS the validity of the given advice.

Metaphors are like glasses.
Some of them are plain dangerous for the sight.

For instance the metaphor that compares business to a card game or horce racing and suggests you stack "odds in your favor".

There is nothing here that is "over your head".

Thank you for your reply.

Simon

Selling your time can put a limit on your income.... BUT it can also be lucrative! :)
 

Hiya Simon!

Thanks for your suggestions.... I see your style as being a bit like the wise sage in some of these kung fu movies.... There's wisdom lurking within.... :)

Regarding the projects I'm involved in, actually, I've narrowed the problem down to one which isn't making me too happy.... BUT I'm learning a lot for now, I'm just wary of being "trapped" by it getting stuck doing something I don't want to do.

I'm learning a lot from someone (offline), but I've realized now that it has pitfalls as well as bonuses, because he is selling his TIME, and that's something I'm trying to avoid. :) (I prefer to trade, or sell products, rather than sell my time....)

The reason why I'd *personally* prefer not to sell my time is because, time is a limited resource.

Everyone only gets 24 hours a day (or about 16 hours after sleeping), no matter how rich or poor you are.

So, if your money-making is dependent on you having enough time (eg. by selling your expertise), that puts an upper limit on what you can make. (Of course, you can employ people to make up for that, but anyhow, moving on for now....)

If you are making your money, however, from how much CAPITAL you have, there is no "natural" limit, unlike with TIME.

As an example, I purchase shares on the stock market (as I've mentioned before). Let's say I make a return of 30% per year. If I start with $10,000, that means I only made $3000 that year. But if I start with $1,000,000 , then I made $300,000 that year. However, the TIME to make that money -- whether $3,000 or $300,000 -- was the SAME, since the key to it is capital, rather than time. This is the type of busines I prefer....

Chatteling also falls into this category, in my view.... If you buy and sell skateboards, you might be able to make $10-$20 (maybe?) per skateboard. But if you buy and sell cars, you can make several thousand bucks per car....

The difference, again, is the capital you have to put into it.... While time is a small factor with chattel, the biggest factor is capital, rather than time.

Anyway, there are several ways to make money.... Being an EXPERT is one of them, but in most cases, making money by being an expert means selling your time. I prefer to try to avoid that in the long term, and sell products rather than my time if I can.... With a particular project, I'm worried about getting caught where it is hard for me to stop selling my time, rather than products....

I think that's the source of my anxiety, which has to do with a particular offline activity I'm involved in, which has the danger of trapping me into selling my time as an expert. I'd rather avoid that in the long term - but now I realize it can give me a nice source of cash in the short term, as long as I don't get trapped there forever. :)

So what I think I'll try to do is continue what I'm doing with that activity, and learn these skills of selling my time as an expert.... BUT also make sure I always have a way out. (Selling my time as an expert can be lucrative for me at this stage, as I build up my own personal capital reserves for further investment.... and do chattel trades when I see the opportunity....)

- Dien

This comes back to some things Robert Kiyosaki (Rich Dad Poor Dad) has written about....
 

To add to what I wrote earlier....

I think I only realized these lessons when I read one of those "Rich Dad Poor Dad" books by Robert Kiyosaki.... (I don't remember which one right now, they've kind of all blended into a whole in my mind.... :) )

He writes about the difference in being SELF-EMPLOYED versus being a BUSINESS OWNER.

The difference, as he puts it, is that being SELF-EMPLOYED means that you stop making money when you stop working. But if you're a BUSINESS OWNER, you keep making money, even when you stop working.

For example, doctors, lawyers, these people are all SELF-EMPLOYED. If a doctor stops working, he stops making money. This is true of most experts who are selling their expertise.... There may be exceptions (but I'd have to think about it)....

However, if you are a BUSINESS OWNER, you continue to make money when you stop working. In this definition, for example, owning a house which you rent out makes you a business owner -- the cash keeps flowing in (from the rent money), even if you don't work at it. (You can outsource everything, and let a real estate agent handle the tenants.... If you bought it at a good enough price, you can STILL make profits. While I don't do this myself, a good friend of mine does this, and he's now looking to buy his third house....)

Anyway, just thought I'd add that little note to round out what I wrote before.... :)

Cheers,

Dien

The EXCEPTION is....
 

I wrote:

> For example, doctors, lawyers, these people
> are all SELF-EMPLOYED. If a doctor stops
> working, he stops making money. This is true
> of most experts who are selling their
> expertise.... There may be exceptions (but
> I'd have to think about it)....

I think here's the exception (or at least one of them)....

Those experts who "capture" their expertise in some way then stop selling their time....

All the experts you see on Oprah are like that. For most of them, at some stage, they were selling their expertise by selling their time.... (Through classes or as consultants.)

However, by the time they appear on Oprah, most of them have some kind of product out -- whether it's a book or a video. Once you do that, then you stop selling your time, but begin selling a product....

I guess that's the exception to what I wrote earlier -- it's the way how to convert your situation as an expert to change from selling your time, to selling a product.... :)

- Dien

The Magic Word For Wealth Creation Is...
 

...LEVERAGE!

Again, some great points, Dien. See comments below.

> To add to what I wrote earlier....

> I think I only realized these lessons when I
> read one of those "Rich Dad Poor
> Dad" books by Robert Kiyosaki.... (I
> don't remember which one right now, they've
> kind of all blended into a whole in my
> mind.... :) )

** The one you're referring to is the "Cash Flow Quadrant." In my opinion, this book is like "Rich Dad, Poor Dad," on steroids!

My former business partner is actually good friends with Robert and interviewed him on her internationally syndicated TV show. Every time I think I have a solid grasp of his theories, he comes forth with another pearl of wisdom. A true genius, and I could not agree more that children should be educated about money from a very young age...

> He writes about the difference in being
> SELF-EMPLOYED versus being a BUSINESS OWNER.

> The difference, as he puts it, is that being
> SELF-EMPLOYED means that you stop making
> money when you stop working. But if you're a
> BUSINESS OWNER, you keep making money, even
> when you stop working.

> For example, doctors, lawyers, these people
> are all SELF-EMPLOYED. If a doctor stops
> working, he stops making money. This is true
> of most experts who are selling their
> expertise.... There may be exceptions (but
> I'd have to think about it)....

> However, if you are a BUSINESS OWNER, you
> continue to make money when you stop
> working. In this definition, for example,
> owning a house which you rent out makes you
> a business owner -- the cash keeps flowing
> in (from the rent money), even if you don't
> work at it. (You can outsource everything,
> and let a real estate agent handle the
> tenants.... If you bought it at a good
> enough price, you can STILL make profits.
> While I don't do this myself, a good friend
> of mine does this, and he's now looking to
> buy his third house....)

> Anyway, just thought I'd add that little
> note to round out what I wrote before.... :)

** You've hit the nail on the head. And I can tell that you're considering how to best implement the Business Owner concept into your own life, with your understandable concern of trading time for money.

Kiyosaki boils the entire concept of leverage and true business ownership down to the following question:

"If you left your business for a full year, would it be larger when you come back than when you left it?

This is a very powerful gut check for those of us who 'think' our business is automated, when it may not be fully so.

On a final note, one of the most common misconceptions I see propogating on the Net is that you have to have an information product or digitally delivered product if you wish to have an automated business. While these are indeed great models, and many people achieve great success with them, by no means are they the only option.

For example, one division of my company -- http://www.SearchEngineWebPromotion.com -- provides guaranteed Top-20 search engine placement service.

While we do offer monthly payment options to make it easier on our clients' cash flow situations, the total contract ranges from $1,800 to $2,982. I strongly prefer these 'high-ticket' sales because you don't have to sell hundreds or thousands of units to create a very lucrative revenue stream.

But more importantly, for MY intents and purposes, this division of the company runs exactly as a $39 ebook or info product. Reason being, other people in my company handle every single aspect of providing the service, from start to finish. My focus is on business growth, deal making, traffic generation, etc. The same exact things that digital business owners focus on.

Anyway, I hope that this has opened the spectrum for all of your own entrepreneurial endeavors!!

All the best,

-Jesse

> Cheers,

> Dien




A Highly Profitable, Automated Service Business...

Leverage is the key....
 

Hi Jesse,

> The Magic Word For Wealth Creation Is...
> ...LEVERAGE!

YES, I agree with you fully! Though I must admit I'm still working out the variety of ways in which leverage can be used.... There are many types of leverage. We should probably have a discussion about what some of the various types of leverage are.... :)

> My former business partner is actually good
> friends with Robert and interviewed him on
> her internationally syndicated TV show.
> Every time I think I have a solid grasp of
> his theories, he comes forth with another
> pearl of wisdom. A true genius, and I could
> not agree more that children should be
> educated about money from a very young
> age...

Yes, I feel the same way! Robert Kiyosaki really has a gift for teaching so that people *want* to learn. I also bought a copy of the game "Cashflow 101," and in my opinion it was worth it. It helps (particularly) with getting your mind around a good way to buy properties....

Using Robert Kiyosaki's approach, a good friend of mine is now looking to buy his third house in about 4 years! (Almost a house a year....) He's using leverage quite a lot....

The whole key he's using is to make sure that the rental income coming in from the house MORE than pays the bank what they are charging him for the loan + interest. (My friend asks the real estate agent selling the property for an estimate on what kind of rental income it would bring in, to make sure it will be enough to pay the bank.) That leaves some money left over to pay bills and to pay a real estate agent to handle the tenants etc.

My friend has even arranged it so that after everything is paid, there's still some of the rent money left over for himself! Each house he buys NOT ONLY pays for itself, but ALSO gives him an added regular income stream as well.... (And his interest payments are tax-deductible.) The more houses he buys, the more money he makes. And my friend just works a regular, average paying job -- nothing spectacular.

He told me that the hardest bank loan to get is the first one. He said that after they see that you are making a steady income from the property you bought with it, then they're happy to loan you more money....

Anyhow, he learned this from Robert Kiyosaki.... I see I've gone off on a tangent.... I guess it's related to leverage (by using bank loans). :)

> ** You've hit the nail on the head. And I
> can tell that you're considering how to best
> implement the Business Owner concept into
> your own life, with your understandable
> concern of trading time for money.

> Kiyosaki boils the entire concept of
> leverage and true business ownership down to
> the following question:

> "If you left your business for a full
> year, would it be larger when you come back
> than when you left it?

> This is a very powerful gut check for those
> of us who 'think' our business is automated,
> when it may not be fully so.

Thanks for sharing this, Jesse.... That's a great test!

> On a final note, one of the most common
> misconceptions I see propogating on the Net
> is that you have to have an information
> product or digitally delivered product if
> you wish to have an automated business.
> While these are indeed great models, and
> many people achieve great success with them,
> by no means are they the only option.

> For example, one division of my company --
> http://www.SearchEngineWebPromotion.com --
> provides guaranteed Top-20 search engine
> placement service.

> While we do offer monthly payment options to
> make it easier on our clients' cash flow
> situations, the total contract ranges from
> $1,800 to $2,982. I strongly prefer these
> 'high-ticket' sales because you don't have
> to sell hundreds or thousands of units to
> create a very lucrative revenue stream.

Jesse, THANKS for sharing your web site! That's a GREAT example of an alternative to info-products online.... It's an automated service -- I like it. :)

Software has the same advantage as info-products -- reproduction costs are very low, leaving you with a potentially very large profit margin. And some software can be quite expensive.... I know a guy who has the local rights to some advanced specialized billing software for medical clinics. If a clinic buys it, it costs them around $50,000 (including installation). He only needs to sell a few of these a year to make a great income....

And selling the services of some software is a good-looking model too.... :)

> But more importantly, for MY intents and
> purposes, this division of the company runs
> exactly as a $39 ebook or info product.
> Reason being, other people in my company
> handle every single aspect of providing the
> service, from start to finish. My focus is
> on business growth, deal making, traffic
> generation, etc. The same exact things that
> digital business owners focus on.

Jesse, thanks for sharing your example.... It's a great example to learn from.... :)

> Anyway, I hope that this has opened the
> spectrum for all of your own entrepreneurial
> endeavors!!

I really enjoyed your post, Jesse.... Sorry it took me a while to respond (the past couple days have been a bit hectic).

It'd be nice to talk a bit more about leverage.... I might try to write a post about this (near the top) later on, to see if we can get some further discussion going on this.... I agree with you, LEVERAGE is the big difference between a small business owner who is working like crazy and getting nowhere, and those businesses which just grow and grow....

Thanks Jesse, that was a great post. :)

- Dien

Let's Talk Leverage!
 

Hey Dien,

Thanks for your thoughts...Leverage is an absolutely fascinating topic, and I, for one, would be very interested in a larger scale discussion on the topic.

What makes Leverage of such paramount importance is that it is directly proportional to quality of life! It's really that simple. The more leverage you have, the more fulfilling life you're going to lead. Yet, as with money, it is a great fallacy that something so crucial is not taught anywhere.

Great example you gave of your friend looking to buy his 3rd property! I'd love to find out the specifics of how he's been able to succeed in that regard. Real estate is an area in which I am becoming increasingly intrigued...

Also, excellent example you give of software being a *highly leveraged* product to sell. I am flying to Florida in a couple of weeks to meet with one of our clients for whom we've been able to build a ridiculously high revenue stream selling financial software.

Software, in many ways, is like info products on steroids! It's no wonder that the infamous Bill Gates -- richest man in the world -- made his fortune selling software.

Thanks again, Dien, for your informative post. I'd be happy to discuss this topic in more detail any day!

Best,

Jesse

> Hi Jesse,

> YES, I agree with you fully! Though I must
> admit I'm still working out the variety of
> ways in which leverage can be used.... There
> are many types of leverage. We should
> probably have a discussion about what some
> of the various types of leverage are.... :)

> Yes, I feel the same way! Robert Kiyosaki
> really has a gift for teaching so that
> people *want* to learn. I also bought a copy
> of the game "Cashflow 101," and in
> my opinion it was worth it. It helps
> (particularly) with getting your mind around
> a good way to buy properties....

> Using Robert Kiyosaki's approach, a good
> friend of mine is now looking to buy his
> third house in about 4 years! (Almost a
> house a year....) He's using leverage quite
> a lot....

> The whole key he's using is to make sure
> that the rental income coming in from the
> house MORE than pays the bank what they are
> charging him for the loan + interest. (My
> friend asks the real estate agent selling
> the property for an estimate on what kind of
> rental income it would bring in, to make
> sure it will be enough to pay the bank.)
> That leaves some money left over to pay
> bills and to pay a real estate agent to
> handle the tenants etc.

> My friend has even arranged it so that after
> everything is paid, there's still some of
> the rent money left over for himself! Each
> house he buys NOT ONLY pays for itself, but
> ALSO gives him an added regular income
> stream as well.... (And his interest
> payments are tax-deductible.) The more
> houses he buys, the more money he makes. And
> my friend just works a regular, average
> paying job -- nothing spectacular.

> He told me that the hardest bank loan to get
> is the first one. He said that after they
> see that you are making a steady income from
> the property you bought with it, then
> they're happy to loan you more money....

> Anyhow, he learned this from Robert
> Kiyosaki.... I see I've gone off on a
> tangent.... I guess it's related to leverage
> (by using bank loans). :)

> Thanks for sharing this, Jesse.... That's a
> great test!

> Jesse, THANKS for sharing your web site!
> That's a GREAT example of an alternative to
> info-products online.... It's an automated
> service -- I like it. :)

> Software has the same advantage as
> info-products -- reproduction costs are very
> low, leaving you with a potentially very
> large profit margin. And some software can
> be quite expensive.... I know a guy who has
> the local rights to some advanced
> specialized billing software for medical
> clinics. If a clinic buys it, it costs them
> around $50,000 (including installation). He
> only needs to sell a few of these a year to
> make a great income....

> And selling the services of some software
> is a good-looking model too.... :)

> Jesse, thanks for sharing your example....
> It's a great example to learn from.... :)

> I really enjoyed your post, Jesse.... Sorry
> it took me a while to respond (the past
> couple days have been a bit hectic).

> It'd be nice to talk a bit more about
> leverage.... I might try to write a post
> about this (near the top) later on, to see
> if we can get some further discussion going
> on this.... I agree with you, LEVERAGE is
> the big difference between a small business
> owner who is working like crazy and getting
> nowhere, and those businesses which just
> grow and grow....

> Thanks Jesse, that was a great post. :)

> - Dien