“Never lose money.”
This famous quote by Warren Buffett is probably one of those laws that hits like a sledgehammer.
Investing in companies that you don’t buy from, don’t work for, and don’t really care about other than their future potential to increase in value is what he means by that phrase.
When you buy a hamburger from McDonald’s you lose money, even though you get some food out of it. But it is gone in a few short hours.
When you buy stock in McDonald’s you own a piece of the company that you can keep for yourself for a long time, and the more you buy, the bigger the piece of the company you own.
That is what Warren Buffett does. He buys majority stakes in companies and thus has controlling power over them. In fact, through his investment, the local company here known as “Fruit of the Loom” has flourished since he took over.
Why did he buy “Fruit of the Loom”? He bought it because of the price per share was at a penny stock price of $3.00 per share back in the day. He knew that the number one most difficult thing for a company to achieve is to establish a brand that is a household name. Here was a company that all it had left was its name, but it is a worldwide well-known brand name and he bought it basically, for nothing. All they had to do is make good underwear and get it to market at a reasonable price. That isn’t hard to do when your brand name is already established.
So, when you buy stocks in an established brand that is too big to fail, like a Fortune 500 company, you may “lose money” from time to time, but you actually don’t lose it until you sell it.
In affiliate marketing, you earn commissions when you sell something and logic would dictate that you sell something that is of real value. Your stake in a given company isn’t as an owner of it, but as a representative of it. You will lose money in affiliate marketing if you don’t make sales.
That is the bottom line. However, the commissions are the key, right?
What did we learn from the “Wolf of Wallstreet”? Brokerage companies neither own stock nor are they a company that creates a product, they simply facilitate the transactions. So, a guy working for a brokerage makes money whenever a stock is bought or sold, whether money is lost by the client or gained. It is all about commissions, just like any other brokerage. Real Estate, car sales or any other commissioned based reward system.
With affiliate marketing, you are a broker of sorts. People come to you to make a purchase for a program they want or need, either to use the product or to use also as an affiliate commission machine.
Why is being an affiliate a good thing? Because of freedom. You can work for yourself, help other people, support good companies and products and last but definitely not least, it has the highest commission rates in the world.
In a way, you are buying “stock” in a company, but it IS NOT AN INVESTMENT. When you are a member of their products you get to see what the company is like. You “own” your product and you can multiply it as big as you want. But, just because you purchase a product or join, there is nothing about it that can guarantee you a return. That you have to do by marketing, advertising and selling the product. You are a marketer and a salesperson, not an investor.
The great thing about it is, you can do both. You can invest in companies, you can also be a broker if you want, and you can be an affiliate marketer. But, you have to be clear with each thing, what they are.
The main thing is that you work with quality all the way around and that you are a person of integrity.
So, is $100 a lot of money. Yes, it is. But, you want to make a lot of money, right? If $100 makes you nervous, how are you ever going to make $100K, $1 Million dollars?
In writing this post I am brainstorming for myself because I have to redefine my life and my criteria are FREEDOM, PROSPERITY, and CREATIVITY. Also, I want to make money, every single day, regardless of how it is done, as long as I am in control.
What are the types of things that I can do to make money every day and still be free? This is just brainstorming…
- Sell residual affiliate products every day.
- Invest in stocks, bonds, CDs, that pay out dividends or interest every day of the year.
- Buy real estate that is paid for by tenants and creates a positive cash flow every month.
- Make some of the real estate an Airbnb property, or whatever works best.
- Buy RVs and rent them out.
- Drive for Uber or Lyft or both.
- Teach lessons.
- Write books and sell them.
- Do seminars, workshops, about whatever.
Now, you can’t start all of these things at the same time. You have to do one and then add as you become proficient.
The point being that $100 is a lot of money, and if you can make that every day of the year you are earning $36,000 a year. Is that a lot of money, well yes, if it is done without the necessity of your physical presence at any certain time. If you can make $100 a day, then you can make 2 times that, or 10 times that.
Whatever it is that you do, “Never lose money.” The other side of this coin is always going to be “Always make money.” As you can see above, there are many ways to do that.
The fastest way to achieve it is to sell an Internet-based product that creates a residual commission of $100 for every day of the month. That is 30 sales on automatic pilot.
Each sale is worth $1,200 per year, automatically.
Let’s use Real Estate as an example. You could make $3,000 a month, IF and WHEN you earn a commission on a property that costs $200,000 at a 6% commission. Remember the commission is split 4 ways. That sounds good, but a lot goes into that sale, not the least of which it usually takes 3 months for a property to close, or until you ever see a commission check. Trust me, I know. Real Estate is a pain as an agent. Being a broker is better, but being an investor is the best, and there are Real Estate Investment Trusts you can invest in, to get started, but I’d have to look into it more to actually recommend it.
Anyway, I think the real primary goal is to get to $300 per day for 365 days a year, by any means possible.
Again, the fastest way to that is through automatic residual affiliate commissions.