I've read Robert Kiyosaki's book Retire Young Retire Rich, a present from Jaslinah to my wife during our JABS seminar. A very good book for those who would like to quit from the makan gaji and move on into entrepreneurship. Whether you want to become a Unit Trust Consultant, Insurance/Takaful Agent or other Network Marketing business, it does not matter. What is important is the experience that you will go through doing your own business. The good thing about joining the business above is that they will give you the time as long as you wish and the capital required to join is usually very low
and sometime it is even FREE like our unit trust
company. Therefore the risks are minimal or close to ZERO.
The difference between earned income and passive income is that:
Earned Income
- active income which mean you have to be present doing the job
- you work you get pay. No work no pay
- you get paid only once
Passive Income
- income that you will get even when you are not there
- no work still get paid
- you work hard in the beginning and get paid over and over
If you are given a chance assuming everything being equal. Let say you are fresh graduate. You have been given RM2000 per month enough for your food online casino etc for 12 months. If you go for earned income, you work for corporate with RM2000 per month. At the end of month 12, your income will be RM2000 per month.
Now if you choose to build your passive income, let say you join unit trust industry. Your first 3 month income is about RM2000. This is still the earned income. But for the next three months your income will be RM2000 (your active income) plus with RM500 (your passive income based on your own sales as well as your downline sales). To cut short the process your passive income will grow exponentially over the time. Therefore ultimately the percentage of your passive income will surpass your active income to the extent of 90:10 ratio. That is why you see many of senior unit trust consultants or senior takaful agents or senior MLMers are not in
desperate to find new clients as well as new agents.
Imagine the CEO salary of RM70,000, if they quit or retired, they won't get that RM70,000 over and over. But for unit trust consulants that have created many group agency managers, they will still received the money from the group sales even if they only produce minimum quota requirement. So that is a huge difference. Furthermore, the income can be inherited to your beneficiaries.
Thus, we encourage you all to start thinking of building your own PASSIVE income rather than other people passive income. You must aware that we are moving from industrial age to information age very rapidly. So does our thinking. If our thinking is still in the industrial age and don't want to change, we will be lacking far behind. This era is the era of entrepreneur or home-based business, where you see many people started to build their own business from the back of their house or domitory.
Every Saturday 11am to 12pm (about an hour) we conduct a FREE seminar on how you can switch from employee to small business mindset and further to big business mindset. Contact Biela 019-2260335 or register at www.myunittrust.com/seminar
HAPPY BIRTHDAY ARIF.
Thank you Zam.
Robert said that you must own the business (that is the business system) and not the business own you. Most businesses owners are owned by their business because they failed to create a system that gives them free time. They have money but not enough time.
UT is one way of creating free time through leverage. But to gain passive income through UT you need a system that you don’t have to do the work at all. That is, leverage other people’s time to do the selling and training under your own agency. Can it be done? Understand the small print first before you work hard. Don’t forget about sales quota! You need to produce and that’s active income (you still have to work) not passive income.
What happend if you die. That’s it! All gone unless someone wants to buy over your agency or someone in your family wants to continue your work. You skills die with you and there’s no guarantee your successor will succeed in running your agency. Still active income.
There’s many ways to earn passive income and UT may not be the one that match your skills and compentency. Be open-minded and you will see opportunities with your mind.
Agreed with you Tong. We have business and we think we own the business. But actually the business own us. We cannot take leave, we must be present, then the income will come.
As Robert says, for us to change our quadrant (the cashflow quadrant), first we need to change our mind. One of the best way is to start joining any of businesses that can give you the education, skills, mental and leadership for you to create your own system. It doesn’t change overnight.
Another thing is that we must do things that we have passion in it. Even Robert says that he tries to retire, but after sometime he go back to work. That is active income.
I am actually developing a system for:
1. recruiting
2. training
3. coaching
4. attracting clients
5. retaining clients
May be you can advise on how to do it faster…
When you write to me like this also is an active things… I can say that UT can give you some pseudo-passive or semi-passive income initially because there is still human touch needed for you to see your clients and your agents.
If you have created many Group Agency Managers (GAM), then you already earned a truly passive income as you don’t have to know their training or recruiting or prospecting for clients. Therefore I am cracking my head to develop a system where when my unit trust consultant become GAM, they can run their agency by following the template that we have developed.
If one GAM can contribute to you say RM500 to your total income, doesn’t it a passive income. You don’t have to ask your tenant to pay timely. It will just come to you. As if you have a rental property that give you monthly RM500 without maintenance of the house, without worrying that the tenant cabut tengah malam, without knowing many things. Imagine if you have 10 GAMs or 50 GAMs.
Agreed that there is pro and cons of many things. We cannot satisfy our lust, our desire…