I have discovered something about myself that I find quite interesting. I’m really passionate about creating residual income. I’ve figured out that it’s one of my core beliefs.
As a core belief, it is also something that I strive to persuade my friends into achieving.
I think that most people in this world go about their lives content to earn a salary. They might earn $30,000 a year, or maybe a lot more, like $85,000 (insert your salary here). They spend a good portion of their lives going about this, but probably around 2,000 hours each year.
I haven’t been able to create many streams of residual income yet in my life, but I’m working on a web application that could become my primary means of income if it is popular.
The point of this post is really an observation: If you typically spend about 2,000 hours in a year generating a paycheck, what would happen if you devoted 10% of that time to building something that you could sell over and over again?
Let’s imagine you put 200 hours into building a widget. Let’s imagine that your widget can be reasonably sold to 1,000 people over the course of 5 years. If your widget made you $100 each time you sold it, you would have made an extra $100,000. Not a bad return on investment for 200 hours.
Taking this one step further, for all of you people who are stuck in jobs doing things for other people. Isn’t it about time that you stopped and invested some time back into a project of your own? People have GREAT ideas every single day yet they never invest the time to actually make them a reality.
I’m more than guilty of doing this myself. I get stuck in the middle of projects for clients (and don’t get me wrong, I love it! I get to learn about all kinds of businesses, and expand both my business acumen as well as my technical skills making web sites). But I never forget that I’m building their business. Not mine.
Who’s business are you building?