In the next lesson, I’m going to get more specific about exactly what kind of business we’re going to build, but first we need to get past a fork in the road.
You’ve decided that you really do want to make money on the internet, and now there are two paths set before us…
(Watch this video…)
Main points:
Self employment vs. Business ownership. For many years I didn’t understand the difference. It will be beneficial for you to understand it before embarking on this business venture.
Cashflow Quadrant by Robert Kiyosaki: Employee, Self Employed, Business Owner, Investor
Each of these four quadrants make money in different ways.
Employees… You get paid for your time. You’re trading hours for dollars. You’re working for someone else, and in return they give you a paycheck.
Self employed people work for themselves. Like employees, they often trade their hours for dollars. Or perhaps they work for a fee or a commission. There are many examples of self employment, such as construction contractors, consultants, realtors, and even doctors in many cases. They’re not working for someone else, but their income is primarily dependant on themselves doing the work.
Business owners use leverage to make money. Most commonly, they hire people and leverage other people’s time. That way, the business owner doesn’t have to do the work and they can scale their business larger. The benefits of being a Business Owner rather than self employed are generally more freedom and ultimately more wealth.
Investor’s let their money do the work. They put their money to work making more money.
MYTH: You’re not making enough money. FACT: You need to be a better investor.
the Investor quadrant is for everyone.
If your goal is to never work, then ideally you need to end up in the Business Owner quadrant, not the self employed quadrant.
Virtually any self employment situation can be turned into a business owner situation if you know how.
The business model I’m going to teach you is really a combination of the self employment and business owner quadrants. And it’s going to be up to you if you want to fully leave the self employment quadrant and hire people to do the work that I’m going to be teaching you how to do.
Action steps:
1) If you haven’t read Cashflow Quadrant, read it. You can most likely pick it up at your local library for free, otherwise you can pick up a copy of it here on Amazon.
2) Determine which quadrant(s) you are currently in, and which one(s) you WANT to be in.
There’s no right or wrong answer, because it’s really a matter of personal preference regarding how you want to spend your time and how you want to make money.
As always, you are welcome to post your questions and comments below.
Have a great day!
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Add Your Comment
Hi Eric,
Will you be publishing all your lessons on a DVD, such as a video library.
It is not for certain, but I most likely will be releasing them on DVD or DVD-ROM when they are all done.
Eric…releasing your teachings on DVD or DVD-Rom is a GREAT idea….I’d diffently make a purchase and let others know about it!
We Give You 120 Individual Turnkey Websites With Your Paypal ID On Each
http://www.Instant-Paysites.com
Eric, I want to read the book but I’m broke.
Do you think theres is a place out there on the
Internet to get at least the part of the book I need to read?
Hi Eric, i’m really enjoying your down to earth and friendly approach. your a great coach!!!
I’m a complete beginner at running an on-line business. i bought the x-site pro V1 last year to build my wesbite and Joel Comm’s re-sale templates DVD’s just a couple of wks ago. So your lessons will definitley help me get it all together. its like learning a foreign language that you are making easy to learn.thanks Eric.
Alison,
You sound like you are in the same position I am. I am curious, how do you intend to use the re-sale templates? I bought them too and am trying to decide just how I want to use them.
Jim
There’s a lot of ways to use them, but one of the best ways is to resell them on their own, or in conjunction with other products (ie. use them in whatever niche you’re in)
In case you hadn’t seen it, here’s a tutorial I made to show IRT customers how to get setup…
http://irthelp.com/
For those of you who don’t have time to read a 250 page book, a summary of Cashflow Quadrant is available at http://www.bizsum.com
They offer a FREE one month trial membership.
Just a side note as well: You can get all three classic books on CD together in a bundle for around $29. This includes Cash Flow Quadrant,Rich Dad Poor Dad and Investing. Its a real time saver and you can listen to then while driving.You should be able to find them in the audio section at your local book store.
I’ve read both “rich dad, poor dad” and the “cashflow quadrant” and have personally attended a few of the rich dad seminars. Although I didn’t buy anything, I did learn enough from attending to save me quite a bit of money and had a better understanding of investment in property. But this isn’t where I want to make my fortunes, I’m not passionate about real estate.
I am passionate about helping others and I am looking forward to your next chapter in moving forward towards my own goals.
Kay
the Marriage Mistress
http://www.MarriageMistress.com
I know a great barber. Interested?
Great work Eric! The link above will take you to a 10 Chapter Summary of Cashflow Quadrant… the action step Eric encourages in this lesson. While you should read the whole book this summary will give you the basic overview and keypoints, this will Help you stay on pace with Eric for lesson #7(as the book is over 200 pages). Eric has approved the link I am posting for you..so thank him and leave your comments here before you read the summary:) Thanks Eric! Pura Vida! Nico
This link went directly to the summary not to bizsum… didn’t have to sign up for any trial
Nico, That’s just a sneaky way to redirect people to your forum. I thought this was going to be about ethical internet marketing. Eric, did you really approve this?
Yes I told Nico it was OK. The forum was not my idea, but I’m cool with it as long as it doesn’t detract from the lessons.
Eric
Thanks once again for shedding more light, I’ve always said it is better to be a “General of the Army, than to be a soldier in the trenches”
Regards
Dola
http://www.finddebtelimination.com/
Dude, the hair’s great! Don’t touch it.
Actually I got my hair cut real short a couple weeks ago on my wife’s request… maybe I’ll post a pic sometime
LOL….short like mine? Lets see a pic Eric!:)
Eric this is getting better with every lesson keep going I’ll be here.
Enjoying your video series Eric. I hope you have a section about how to POST videos to a website (other than through YouTube).
I’ll make note of it and I’ll try to make sure it’s included somewhere in the series. Thanks
It is about time that someone came thru with their promiss to teach a step by step lessons.
Great start, keep up the great work. Thanks
Great stuff Eric. I cannot thank you enough for all of the effort you put into these daily lessons. Very generous of you.
I live right down the road from you in Arvada - Bill
hey Bill, glad to hear you’re enjoying it! E
Once again another winner! Thanks Eric. BTW, Robert Kiyosaki has a book called “Rich Dad’s Guide To Investing” in case others here want to check it out. I haven’t read it yet though.
Be Well…
Its an excellent book as well…one of his 3 classics! All his books come on CD format as well.
Hi Eric,
A bit of Jim Rohn advice …
“To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence.”
Probably every major player both online and offline (Kennedy, Brian Tracy, Kiyosaki … etc.) listens with extreme intent when this man speaks.
Oh, a little dig, Eric … he’s an MLM man.
Also, Kevin Hogan of Coffee with Kevin Hogan gives a bit of a different story particularly in reference to investing.
If your readers would like to read it - after you have - I think it will impress upon them the difference between an “investor’ and a “good investor”.
the only reason I bring this up is because of a personal friend of mine who retired a couple of years ago at the age of 57 with a net worth of approx. 10 mil. with the recent stock market problems vis-a vi the housing industry, he dropped 60% of his net worth - almost overnight. I won’t mention the name of the financial house involved - most can figure it out.
He made good money and was a good investor but got lazy and let someone else care for his portfolio.
What did our founding fathers (USA) say?
The cost of freedom is eternal vigilance.
I think eternal vigilance is what makes a good investor. How true!
anyway, Kevin Hogan leans much more towards business ownership than investments and shows the correlation with some neat facts and drawn conclusions from the US government’s end of year report for 2007.
Here’s a quote and then a link to it on one of my website pages. I think you’ll find it VERY Interesting.
“The answer to your security over the next 1,3,5,10,20 years isn’t in an “investment plan,” it isn’t in your “retirement account,” your 401K, in fact, that false sense of security very well could be the undoing of MOST people’s financial future.”
http://www.never-refuse-money.com/greatest_net_worth_strategy.html
Good comment, thanks!
Hi Eric,
Yet again another clear & concise lesson and the importance of knowing which quadrant we belong or want to belong to. Ive also read a few of Robert Kiyosaki books which are brilliant.
It’s so true what you said about being a smart investor and you have to learn by educating yourself….and as yourself I’ve made some great investments & not so good.
Hopefully my teenager will take on some of the financial info I have to share.
Unlike other options given, investing, rightly pointed out by Eric works for everyone.
Reading Kiyosaki’s books gets you in the right mindset to make your money work for you.
But there is just one BIG problem to making money from investing. Do you know what ?
Its finding the right opportunity at the right time and price !
About 2 years ago, I stumbled on an exciting way to get access to some of the best investment opportunities by a team of 21 top grade analysts to do all these grunt work.
I make full time income on this.
I invest , place stop loss to protect downside risk and rake in the profits !
Nothing could be simpler. Just requires some amount of patience to wait for your investment to reach the expected profit level.
For more info contact: jeffmiles1968 @ yahoo.com
I was an employee for 5 years and have changed my life to be self-employed since 1987. Your explanation is very clear and precise. People definitely welcome your explanation.
Edward Han
http://www.yaintech.com
Hi Edward,
What has enabled you to be self employed for the past 20 years…what line of work do you do! Just asking for the inspiration!
Great lessons! I have read Kyosaky’s books but never applied them! You give me the boost to do a clear action on my job. Thanks
Good stuff Eric. Thanks! I look forward to more of the lessons.
I’m go the audiobook first. Most libraries carry it. Robert Kiyosaki reads it to you himself. AAA+++ rating. Then later, purchase the book.
Thanks again,
Mike
Mike
Hi, Eric!
Great informations!
I have a question - is it a good idea to invest in
well established online website?
Will you please tell me your opinion.
Thanks
Best regards
Frank- there’s a lot of variables there, so it just depends. If you’re a newbie, then no I don’t think you should buy an established site. I think it’s better to build your first online business from scratch and figure out how to make it successful. Otherwise, you could end up investing a lot of money in an existing business, only to watch it go downhill because you don’t know what you’re doing.
On the other hand, if you KNOW HOW to run a successful online business, then it could be totally worthwhile. There are many scenarios…
-You could take a site that someone is tired of and simply add an income stream to your overall business.
-OR you could “flip” sites… buy ugly sites (that have good business fundamentals)… fix them up and sell them for a profit.
-OR you could buy an existing business and scale it (hire people and grow a $100k website into a million $ website). The big companies do this too. Google and Yahoo are often buying million and multi-million dollar established websites and scaling them to the next level.
This was more into Rich Dad Book Lesson
Hi Eric,
Actually we have some knowledges of today lesson, but to be self employed or business owner this is something that we need to learn.
May your lessons put us in the right track to success on this business.
Ths, regards
Mohd
Hi Mohd,
Just hang in there…I believe Eric will be showing detailed instructions on how to eventually be self employed. Just work hard,focus and apply each lesson.Best of luck to you!
Hey Eric,
You caught my eye a few months ago. I got the impression that you might be a person of ethics after reading some of your material.
I want to thank you for this series and for your positive infuence on others. I am a classic study in paralysis by analysis.
I am glad to report than I am experiencing a little bit of movement and feeling in some of my extremeties. lol
Thank ya , thank ya very much.
I ask the God of Abraham to bless you in your missionary efforts as I am sure He will.
I am loving the lessons, Eric. My only complaint is that they are not arriving fast enough! Is there any way to complete these lessons at my own pace rather than having to limit myself to one lesson per day?
Thanks
Best regards
I’m currently still making the lessons, and releasing them almost as fast as I can
Hi Eric, this is great. I will call the library to get the other book. I read, “Rich Dad…” I would love to have the opportunity to work first, self-employed, and then have my own business in the same field. This is the type of information I need. God has blessed you. My blessings are on the way. Sandra
Hi Eric, Enjoying the lessons.
Ray
KinsaulPhotography.net
ProInternetStore.com
nothing beats making your own hours and being 100% responsible for your success or failure>>>
I 100% agree with you! Best of luck!
Hey Eric, Every day I sit and watch your videos & listen to the wealth of information you offer. Now every morning I’m checking my email for the next Lesson. So keep them coming.
Till the next time.
Thanks Eric.
Thank you, I have enjoyed every lesson.
Hi Eric,
Thanks so much for your lesson. It is fantastic and now finally i have understood which quadrant my online business have fallen into. Thanks once again!
James
This is excellent stuff.
And I want to say thanks to Nico for posting the summary and also to Jim Cook for the link… both of which I’ve bookmarked. Interestingly, I have a foot in E (financial) have a plan for moving fully into S (I’m a copywriter who enjoys writing) and my intention is to move to B then I, then be in SB and I.
The CFQ actually helps clarify things for me really well.
Hey Eric,
Thanks for the tips.
Great, i’ll getting the book soon to read it up.
Thanks
http://www.blueunicornhosting.com
Eric, thank you so much for these videos. I look in my email each day to make sure I listen. It’s helping me to focus….as they say “how do you eat an elephant?– one piece at a time”
Hi Eric,
Great lesson on fundamentals.You have shown lot of clarity between the different quadrants.I enjoyed reading cashflow quadrant.I am an employee and i want to be a business owner.
Thanks for sharing.
Bets Wishes,
Kannan Viswagandhi
http://www.growing-self.blogspot.com
Hi ,
Eric .
Good work , keep on writing o money making methods on internet as every one wants financial freedom .Im also trying to built a website on info products . Website on cost reduction methods for manufacturing industries .
Thanks a lot once again
http://www.factory-costreduction.com
good coach…thanks a lot
love your stuff but what happened to lesson 6?
it stops at myth 1 please help I would like to finish the lesson thank you sean
The whole thing is there. Perhaps try closing all the programs on your computer. Clear your internet cache. Then come back and try again without other programs running…
Hi Eric Good Lesson again.I am surely starting out as a business owner.Thanks again
Hi Eric,
I have recently purchased the IRT and came on your site. It is very informative. I have been trying to do Internet Businesss for the past two years but havent received such a DOWN TO EARTH REVIEW>.. Thanks and keep up your good work.
thanks for the support
regards
Julius
Eric,
Good Lesson…and would like to see a lot of more of you
thanks
Julius
http://www.communicatetoriches.com
You are truely an inspiration. Your tips really help weed out the good from the bad and I Thank you for that.I am looking forward to your tips.
Have a great day Eric,
Gary
Great post Eric.
I took the time to read Rich Dad, Poor Dad and Cash Flow Quadrant, both good books for those who want to increase their financial intelligence. Funny how many people still think of paying a mortgage as having an asset - even with the current meltdown in the US.
Currently moving from self-employment to business owner, the bridge appears long but getting there! Yes, I did use Kiyosaki’s advice of moving from one stage to the next and went from employee to self-employed. Since I also read The E-Myth Revisited, now is the time to make the next step, self-employment is too dang hard!
Hello Eric,
I am a little behind I am reading all the lessons. Just learnt the difference between Self employed and Business Owner. Thank you so much. I want to be a business owner not self employeed. Thank you.PEACE. Chipo
Hi Chipo,
Just work at your own speed…thats the beauty of it! Eric is planning on leaving the lessons up permanent.Best of luck to you!
Dear Eric,
Thanks Eric for the valuable info.Keep digging new infos and I’m glad to be one of your tips’ readers.
Thanks
Nik
If you want to start your own easy arts and crafts business online, visit http://www.easyartscraftstips.com.Use Eric’s tips to start your own online business.
Knowing or not knowing, that’s us but your lessons is whats everybody required. You have gone through details that could give us more things that we have to know.
Ths, regards.
Hey Eric,
Another great vid. Big fan of Roberts work as well and have read the books. Just need to revisit more often.
Go the short hair! I used to have long hair and now own the pair of clippers and love getting up and not having to touch the hair!
Cheers
Rich Muir
http://www.companiesnow.com.au
making registering your new company easy
Hi Eric!
Knowledge has an edge, knowledge is real power.
The only thing i regret is how it came late, after all the stuff i bought. Anyway!
Thank you for sharing.
Braveheart
Hi!, I viewed the material but there are too much thinks that I can not understand because is not good my english. I hope is it possible translate this material?. Thanks.
Eric,
Thanks! Really happy that you alerted us on the XSite Pro Webinars.
I’ve been looking at it to replace my DW MX. It appears that XSite Pro is made with the IM’er in mind. Less time building Thanks again
…and more time on the core business, i.e. marketing, sales, writing copy, etc. Am I close? If so, (even if one already has the html, css, background) would you still recommend it?
Thanks again,
Mike
Hi Eric
I really would like to Thank you from the bottom of my heart.
All the information youve given has been so helpful.I am very new to the internet Marketing and i have been struggling to make money on line for about a year.
I tend to loose focus, but you have woken me up and created more confident and motivation with all the tips you haven given in your videos.I have read most of Robert Kiyosaki books.They are very Aspiring
Thank you Eric for Giving your Time and Energy to making this educational Video, which will help alot of Newbie,s OUT THERE
GOD BLESS
JULIE
to help so many New
Eric,
When I signed up for your Template CD… Paul Smithson said there were
exclusive templates for XSitePro2… can you tell me how to tell which is which?
Is there a way to integrate the templates I think I’ll use into the XsitePro
folder so I won’t have to use the CD everytime?
Enjoy your holiday and answer when you get a chance,
Sid Frasier
Eeach of the 100 niche templates includes an XSitePro version of the template.
Yes you can copy them onto your local hard drive into one folder. Just drag the XSE files off the CD and into the folder of your choice.
Hey Eric,
Thanks for recommending “The Cash Flow Quadrant” to everyone. I’ve read most of Kiyosaki”s books. Anyone who hasn’t, should.It can open you up to a new mindset that can help you achieve the success you want for yourself. You’re truly giving us a wealth of information.
Aloha and Mahalo,
Melina
Get Your Introductory Product or Service Directly Into The Hands of Current,Active Buyers in Your Market!
http://www.SeminarSwagBag.com
Hi Eric,
These lessons are just what I needed.I love how they are in plain english..They are really helping me alot.I have been studying online marketing for about 6 months.When I first started I had no computer experience,or office skills.I’m a truck driver I understand DOT,and Detroit engines.My back ground is construction,truck driving and mechanics.I’m not your average truck driver though.I found out that women in the construction/truckdriver world have be very smart,work like a mule,and look good while your doing it.so I had an offer to come in the office part time and drive part time last year.It took me a while because I truely love to drive,but that gave me the office experience I needed to get my internet business rolling.I did get scammed the first time,but that was a blessing,cause I didn’t give up.It just made me want to do it even more.My computer and I still fight but not as often as before.I have done everything that can be done to computers,but I was lucky cause that was at the company I worked for.I called 1-800 hey ya’ll I did it again,then they would fix it (well sometimes I just needed all new equipment)but I learned so much from tearing the company equipment up,that soon my boss would just call me to fix her computer,if I couldn’t figure it out or after I pushed every button I could,I would call the 1-800 come fix it guy.I quit my job 2 weeks ago,and devoted myself to my internet business full time.I worked to many hours to even take my studying for my business any farther.I thought I have nothing to lose..I have a clean driving record,trucking driving jobs are literally a dime a dozen.I really believe in my heart I can do this.I was learning so much,and so many different words,that I thought my brain was gonna explode.EX: html….
I put this class off for a week cause I just knew it was gonna be so complex I just couldn’t do it right now.well then i pulled my head out of my butt,and took the first class…yeah..I feel so stupid now,because when I actually sat down and took that first class and found out the meaning of html.I was disgusted with myself.I tend to think if it has anything to do with the computer then it has to be complicated.I have found at least over the past year IT”S ALWAYS SIMPLE…It’s just me making a big deal out of it.OH yeah….I did find out that it’s never good to fill the modem up with water,and it’s really not good when it’s sparking like the 4th of july.So this has not only been alot to learn for me but also an adventure..I love it..I thank you for your lesson’s and I love that they are in english..thats all just english.I don’t have to have a computer dicionary with me when your talking.
thanks a bunch,
Hi Eric, I’ve just listened to lesson 6. You have great style which I find easy on the ear and informative - thanks very much. Quick question, if you or anyone has any ideas: a physical product has fallen into my lap.. How can I advertise it cheaply and effectively worldwide? & Is it worth doing?
Thanks David. As far as advertising something cheaply and effectively, the internet is the way to go. As far as the details of how to do it, and whether it’s worth doing… that’s a question with too many variables to answer.
It’s worth doing if it will bring an acceptable ROI for your time and effort.
As for the details of online marketing, that’s what these lessons are all about, so stay tuned
[…] Holmlund presents Self Employed or Business Owner? posted at Eric’s Tips, saying, “This lesson draws on principles taught in Robert T […]
It s a wonderful opportunity
i would like to stay with you and ern more and more
I want to learn more to improve
How can I eard doing like this
Eric,
So glad to have stumbled on this Site. Your tips are invaluable! I’m also in a startup state with several items that I am going to be using to re-sell.
Hey, Eric-
Just a question. I did buy Joel Comm’s resale templates as well, but I don’t think he set up a “reseller template” in his package. Could you kindly send me a link to your reseller package? I’d like to purchase that as well if the package I’m getting doesn’t have a reseller template included. That way I can go “turn-key” ASAP.
Hi Eric~
Thanks for the info. In lesson #6 you said your working on becoming an investor, well I Think you will like this, Have a look => Click Here!
Thanks Erik for the lessons
Nilufer
IT IS start to be intresting,Eric. I think it is better to start from employee. After better understanding of this bussines,next step,selfemployee itc.