How can you put in small efforts but
get back big returns?
Well, the formula is to use other people’s
time, money and effort – or SOMETHING
because it’s not limited to only people.
In short, it’s called, “leverage”.
And that IS my secret to wealth. All of
my m0ney making activities use leverage-
otherwise I will be working round the
clock and also, it will not generate
huge returns.
There are three ways of making huge
income which allow you to use leverage.
You SHOULD BE USING ANY OF THEM in
your life today and if you’re not, then
you’re missing out the best part of
creating wealth.
The first one is real estate.
You can own a $200,000 property with
just $20,000 in your pocket because you
can LEVERAGE on the banks to give you
the fund.
Different countries will have different
m0rtgage loan terms but the point is, you
don’t need to have a lot of m0ney to
make huge income in return from properties.
If you have $3,000 in your hand, then look
for $30,000 property to invest (Assuming
you can get a 90% m0rgage loan).
The next one is stock trading. But to be
more precise, it’ll be options trading
simply because you can earn 10 fold in
return from the profits gained.
Here’s a laymen explanation– assuming
you might own an option that’s worth $0.50.
Option’s price will depends on the
stock’s price.
Like, there are Intel stocks and also
Intel options which you can purchase.
If a stock increase from $1.50 to $1.80,
you’ll earn 20% profit, which is $0.30
per stock. But for options, you don’t
earned 20% but it could be 100% or more
depending on the price of the options.
This email is not for the purpose to provide
complete explanations about options trading
because it’ll take a book or seminar to teach.
The point is, the result can turn out to be
many times fold by leveraging on options.
The final one will be internet.
To be more precise, building an internet
business. The obvious leverage is that you’re
able to reach globally which traditional
businesses are unable.
A hair saloon can only have clients in its
neighborhood or city. Where else an online
business selling an ebook about hair care
or hair style will have the potential of
reaching prospects all around the world!
This also means that the internet allows
you to be in business 24 hours a day because
different countries will have different
time zone.
If that’s interesting enough, let me tell
you another powerful leverage you can get
with an internet business:
To set up a hair salon, you’ll spend tens
of thousands. The shop, equipments,
advertising and so on. Not only that,
imagine months of preparations – renovations,
business registration, hiring hair stylist,
bank loans, etc.
And to worsen the situation, you might
end up being ‘stuck’ in the business
because you’re cutting hair or need to be
present in the shop to greet clients.
An internet business?
You could be up and running in less than
a week. Fully operational as little as $20
(or less) to get started.
But the thing I like about internet’s
leverage is I don’t have to be ‘present’
at all. I don’t need to greet prospects or
to cut hair. As a mater of fact, I don’t
even need to be present to take money!
“What is the best leverage among these 3?”
I don’t think there’s any way to classify
which is the best because they all of them
excel greatly based on each individual’s
preference. For me, I use ALL OF THEM.
But the one that I would ALWAYS suggest to
my subscribers or customers is to leverage
on internet business.
The reason is simple – you cannot get ‘burned’
financially even if you messed up big time.
For real estate, you’re taking a bank loan
as a leverage. If you mess up by buying a
bad property that cannot be rent or sold at
a good price, you’ll still have this huge loan
for you to pay each month- even if you apply
a ‘no m0ney down’ strategy.
Options trading can be a risk if you don’t
know how to trade wisely. You see, you’re using
money to make money and you’re always subjected
to lose your money if done incorrectly.
And if you don’t know what you’re doing,
you could end up being in ‘negative’ situation
with options trading.
In options trading, you’re allowed to ‘short sell’
where you can sell options that you haven’t
purchase yet. By doing that you get to leverage
of ‘owning’ the options without any money down
but if your prediction that this will make money
is incorrect, then you need to BUY the options.
When I start making money on the internet,
I’ve also detailed out the steps.
The two ‘secrets’ how I do this is to sell
information products so that I’ll have
ridiculously high profit margins and to
sell in niche markets with minimal competition.
Here’s my story and how do I it:
I like to sum up this- you need to use a
leverage to generate massive income. Trading
your time will never help you to achieve this
goal unless you’re some sort of a high paying
brain surgeon or something along that line.
I’m sure I don’t have that kind of talent.
You “Chan” Do It,
Patric Chan
–
Absolutely. I just wrote an article on my blog which looks at leverage from a slightly different angle, a customer’s viewpoint – i.e. why people buy information products.
One of the reasons is that customers like to leverage their TIME. Instead of spending hours and days researching a topic, they want it all on a plate by someone who’s done the research for them.
So businesses can help other people to leverage their time.
Thanks for the thought-provoking post.
Paul