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