So, what can you do to protect yourself against this New Reality?
Let’s have a look at a few options:
1 – Win The Lottery/Lotto?
Come on, it’s not going to happen is it?
In the US the odds of winning the lottery are about 175 million to one, 45 million to one in the UK and 140 million to one to win the Euro lottery!
If you are seriously relying on winning the big one you may as well resign yourself to the status quo.
2 – Somebody’s going to leave you a fortune in their will?
Do you know that for a fact or is it just more wishful thinking?
It’s wishful thinking isn’t it, you know it is and it’s just not going to happen!
3 – A nice man will send you a fortune if only you’ll give him your bank details!
Yes, we’ve all seen this one and yes, once you’ve given over your bank details you’ll be skinned alive!
I hope nobody has fallen for that one!
4 – Start a business?
Well at least this is somewhere along the lines of better thinking……start a business.
How about some options and realities:-
A – Brick and mortar corner shop/mom and pop store:–
Here are some realities to consider:
You’ll probably have to buy/lease the store and buy/start the business.
Then buy the stock/inventory, buy insurance, take care of red tape, keep records, stay open all hours, pay bank charges and accountancy fees, etc., the list goes on and on.
Then you have to take on staff and deal with their tax, insurance and pensions, (if you don’t take on staff you just bought yourself a job with hardly any time off).
Cost: Probably hundreds of thousands of pounds/dollars before you open your doors and thousands of pounds/dollars each month ongoing!
Do you have that sort of money available to you, probably not?
Potential: After you’ve paid for the mortgage/lease/rent, the stock, insurance, fees etc., and all the staff costs and wages, maybe you might have something left to pay yourself!
And if you don’t have enough left over guess who doesn’t get paid…..you!
Also, if your turnover is less than your costs how long until the bank thinks about calling in their loan/s?
That’s scary isn’t it?
B – Buy a franchise:-
Have you seen the cost of a decent franchise?
I mean one where making money is more or less guaranteed because the brand name is well known in it’s field?
For example, in the UK, a globally known Fast Food Franchise can cost up to £800,000 (over a million US dollars) to set up plus the ongoing monthly fees to the Franchisor!
Granted, it will make you a good income but do you have that sort of cash?
Plus, you still have plenty of the other headaches and ongoing costs associated with the more traditional business model as at “A” above.
Ok, you could go for a much cheaper franchise if you don’t have that sort of money but you get what you pay for.
You can still expect to pay out several or tens of thousands of pounds/dollars just to join up, you will still have lots of the above headaches and you just bought yourself a job!
To be honest, I’ve seen adverts every week for years for the so called lesser cost franchises and I haven’t even heard of most of them, so where does brand awareness come in there?
You would basically be starting from scratch with a lot of them, trying to build their brand with your money and efforts.
And you still just bought yourself a job.
C – Join a Network Marketing/Multi Level Marketing Opportunity:-
Over the past 50 years or so there have been literally hundreds of these type of companies that have come and gone and a huge amount of people have lost their shirt stockpiling inventory/stock of products that they never had any hope of selling at the retail price to their friends, family or neighbours.
The law in a lot of countries doesn’t allow individuals to spend more than about £200 (around $250 US) to join a reputable NWM/MLM company but that doesn’t mean that you might not make a mistake.
Join the wrong type of company and you could find that once you’re in you’re pressurised by your “upline” to invest thousands to “buy in” at a higher discount level in order to maximise your retail profits.
That’s a danger sign of an illegal pyramid scheme.
Legitimate MLM/Network Marketing Companies:
There are a number of well established, international and entirely legal NWM/MLM companies that act in an ethical manner but even then the drop out rate is huge and the success rate tiny.
Because despite the rhetoric about royalty type recurring income for the rest of your life, it’s actually very hard work spread over many years.
Also, many newcomers to the industry can find themselves falling out with family and friends whilst trying to get them to join their fledgling business -not recommended really!
Plus you’re constantly under pressure (either your own or your upline’s) to sell more product and recruit more people into your network.
Even though the cost to get involved is minimal in comparison to a corner store or a franchise, the chances are that, due to the high drop out rate, most people will still lose money over their period of membership of the network.
There are some exceptions and you could come across plenty of people espousing the lifestyle benefits of being a success in the industry but they are very few and far between in comparison to the many thousands of people who don’t make it.
Not looking too good is it?
But if you do carry on as before, here’s another saying to consider:
“If you keep on doing what you’ve already done, you’ll keep on getting what you’ve already got”.
Yes of course it’s a cliche but true nevertheless.
How can you expect a better outcome to your life if all you ever do is the same as before?
It makes no sense does it?
Again, thanks for taking the time to read through this page.
If I can be of help to you please feel free to drop me a comment below and I’ll reply as soon as I can.
Founder of Extra Income For Life