How To Magnify And Multiply Your Wealth
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Finance > Wealth Building
Nov 22, 2007
ayrhaven
How To Magnify And Multiply Your Wealth
Let me give you an example. Let's compare a doctor and Madonna. Now who creates more value? Who creates more value per person? I would say a doctor because a doctor can save your life, a heart specialist. Madonna can only make you feel good about yourself by listening to music. But why does Madonna make, a million times more than a heart specialist? Why? Because Madonna has this thing called scalability or leverage. Now, let's talk about magnification. For a doctor, he spends 3 hours on a patient but he can only save one patient. But for Madonna, in those 3 hours of singing in a concert, 5,000 people hear her songs so her value is magnified. For myself, when I was starting out my mobile disco business, how did I magnify myself? By running disco parties so by playing that one song, I reach out to 200 of my friends magnifying my value versus just selling stationery. That is how you magnify your value. Right now, for the training sessions I conduct, one training session is about a hundred to 200 people so our value is magnified The next thing is multiplication. How can you do something once and you're paid again and again and again over and over again? Back to the Madonna example, Madonna may spend 3 hours to record an audio CD and she just has to spend that 3 hours But every time the CD is sold, she's paid again and again and again and again for the next 20 years. But for the doctor who spends those 3 hours on the heart patient, he only gets paid once. So that's where you must learn how to create incomes such that it multiplies. And I would say that there are a couple of ways. The first way is to leverage on intellectual property. Your intellectual asset, Coming up with an idea, a patent, an invention, you can license it to someone and each time that product is sold, you get paid again and again and again. Let me give you an example here. There was this gentleman that came up with this idea. It all started with a problem. He bought a bunch of batteries. And he was frustrated because he didn't know whether the battery was flat or was because his tape recorder didn't work. So what he did was he took a metal device to put it at the ends of the battery, to test the energy of the battery. And he found that he the batteries still had energy. And he said, wouldn't it be cool if every single battery that was sold came with this battery tester? It was not a difficult invention. It was a matter of putting these 2 diodes together to measure the electricity. So he approached, Duracell and said, you know guys, I got this fantastic invention. It's a small piece of metal that allows people to test the power of the battery when they buy and use the battery. And you know what? I am not going to sell you this invention. I am going to rent it to you. If you use my invention, just pay me 3 cents for every battery you sell. Now 3 cents may not be worth a lot but imagine if Duracell sells millions of batteries a year worldwide. And this guy gets 3 cents for every battery. This guy gets millions of dollars a year in royalties again and again and again. What could be your idea? If lets say you are a fantastic cook, you're a fantastic chef, could you come up with an idea for a recipe and for example, license that idea to a food manufacturer who sells frozen food in the supermarket and get paid a royalty or a license every time? Like Sarah Lee for example, everytime you buy her cake, she gets paid a percentage of that. These examples illustrate the power of scalability, leverage, magnification and multiplication. How can you apply it for yourself? Think about it, the rewards can be potentially huge.
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus CD '6 Ways To Achieve Anything In Life' at Paving The Way To The Top.
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