97% of the population is dead broke by the age of 65. Only 3% succeed financially. The way they are paid in life is very different from 97% of the population.
1. Paid Per Hour
The first way of getting paid is per hour. You’re getting x-amount of dollars for every hour that you work, or for every hour that you contribute your time.
For example, when you work at a fast food place. They pay you per hour to lift boxes. Usually, people that get paid per hour are lower income earners.
2. Paid Per Week
The second way of getting paid is per week, or per month. Its called a salary. You get a paycheck every single week, or two weeks, or every month.
What’s the problem with the first two ways? In the school system, they only teach you how to earn money with the first two ways. Pay per hour, or pay per week, or pay per month.
They never teach you the other five ways to make money. Rich people don’t get paid per hour, or per month. They get paid by these five other ways.
3. Paid Per Project
The third way you get paid is pay per project. For example, as a consultant, if you are charging your clients a two-month term, a three-month term. By completing the project, you get paid per an x-amount of dollars.
4. Paid By Recurring
Paid by recurring is the fourth way that you get paid, I love the recurring model. For example, a subscription model could be paid by recurring.
Netflix is a paid by recurring model. You’re paying them a monthly fee to have access to movies from the comfort of your own home. Your cable and internet are a recurring model because they are charging you a monthly fee. Using a data plan to your cellphone, or to watch TV is a recurring model.
The recurring model is so powerful because the most expensive sale you’ll ever make is to first sell. Once you acquire the customer, every single time they use the service or they don’t use the service, you get paid. It’s a very powerful concept.
A gym owner who runs a gym membership could oversell the capacity. Let’s say that the gym could only handle 500 people. But he could have a membership of 1500 people on recurring.
He knows most people buy the membership but don’t actually go there every day. Only a small percentage of the people go to the gym at any given time.
Some people might sign a one year contract, two-year contract. They go there for a few months, after that they get busy and they don’t go anymore. But the gym owner is still getting paid a recurring every single month.
5. Paid By Royalties
The fifth way that you’re paid in life is by royalties. For example, an author who has written many books, he could sell them on Amazon and on Audible.com.
Every single time someone goes there and buys a book, He gets a little royalty every single month from Audible or Amazon. Songwriters get paid by royalties. Movie makers, directors, movie stars, actor, actress, they are also paid by royalties.
6. Paid By Transactions
Every single time there’s a transaction that took place companies eBay, PayPal and Amazon get paid a little bit of money. Visa, Mastercard gets paid a little bit of that transaction fee every time you use or swipe your credit card. They’re not actually providing any service except convenience. That’s how they make billions of dollars.
7. Paid By Results
Entrepreneurs get paid by results. Even though they have an idea, they could spend months and years working on, but they don’t get paid until they produce results in the market place.
That’s getting paid based on results. For example, let’s say you’re working with a company that generates 10 million dollars a year and you want to help them grow to 20 million dollars a year.
You could negotiate a deal of generating an extra 10 million dollars in sales for them and get a piece of the action. Let’s say I get 5%. You could make 500K in that deal.
Rich people get paid based on the last five ways, not the first two. 97% of the population gets paid based on the first two ways. Because it’s not taught in school.
In school, they don’t teach you how to generate recurring income. They don’t teach you how to generate income based on royalties. It is designed to keep you a slave, it’s designed to teach you how to get paid per hour or month.
Getting paid on results means simply that if you don’t produce results you don’t get paid. If you don’t spend months working on a book, you don’t get paid, It’s delayed gratification.
Paid per transaction is the same thing, If you don’t have the skill to facilitate a transaction, you don’t get paid
For example, let’s say you’re a closer. If you can not close, you don’t get paid a transaction. You don’t get paid a commission fee. You need to develop that skill in order to do that.
The Same thing goes with Royalties, transaction and all different ways to make money, you don’t get paid if you don’t have the skills, and those skills are not taught in school.