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The Residual Income Equation

Residual Income Equation

Most people nowadays give into the notion of the Internet being a source of “push button” wealth.

And in some regards, that’s true because it makes it “push button” easy for the person selling those magic beans to get your money.

Now that doesn’t mean that there aren’t shortcuts out there. You can run several paid advertising campaigns across multiple platforms, do a few solo ad mailings and even run mobile advertising campaigns to maybe reel in a sleeping critter or two. But given how smart people have become over the years unless you have a high converting sales page and a good enough “Ad copy” to drive prospects to that sales page, it would be not much different to fishing in your own bathtub.

Wealth, whether online or offline is the result of seeds sown meticulously and strategically over a long period of time.

And if the game of “wealth” were to be summed up into one deliciously frothy recipe, it would go something like this:

Wealth = Value x Leverage x Trust x Reach x Per Capita

Value = A prominent heart surgeon earns significantly more than a general physician, simply because of the value they bring to the marketplace. That’s because most “normal folk” place more of an emphasis on how well their heart functions than a runny nose.

Reach = These surgeons also see more zeros on their paychecks as a result of the value they provide. But as the surgeries themselves are a little more complex they do require more time than the time that it takes to change a lightbulb or two. And that means there’s only a handful of surgeries they can perform each week if they also want the patients to survive.

But for a General Physician, it’s the complete opposite. That’s because with many of the Patients all they have to do is check their pulse to see if they’re alive, shine a flashlight up their noses to see if there’s anything crawling about and then write up a quick prescription.

Trust = Would you buy your prescription drugs from the back of a Van even they were selling them for half price? Maybe not. And that’s because you don’t trust em as much.

Now, you might buy a different kind of drug from there but definitely not the stuff that’s supposed to help you get “better”.

So, credibility is what separates the Champs from the Chumps. And the more people know you, recommend you, say good things about you (in the form of testimonials and reviews), the more Business you’re able to generate.

Per Capita = The next factor that determines wealth is the Per Capita of a City or State (or even a marketplace). A higher per capita just means that people there have no problem paying a hundred bucks for a chewing gum if there was ever a serious shortage of them.

That also means that a heart surgeon or any professional (excluding drug dealers, bank robbers, and serial killers) would have no problem setting up shop there and charging their true worth.

And if you do all your marketing online, think of the term “Per Capita” as finding prospects with a greater buying power.

Leverage = The influence or reach of a Professional usually extends to about the reach of their fingernails or go as far as their voices can carry. So the only way to soar above that is to find a way to leverage those skills in such a way that they can serve others without you having to be there.

For instance, Dr. Mehmet Oz is not only a well known Surgeon, but he’s also an Author and TV Show Host (among other things). And Dr. Oz has managed to leverage his skills and abilities through numerous books, CDs, and DVDs, that generate a considerable amount of residual income when he’s in the shower or just staring at his own forehead.

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