(Time = Money) is a Bad Idea!

Last week, I heard this really simple but counterintuitive idea from the two guys who do the Internet Business Mastery podcast. They basically said that you have to stop thinking of time as being equal to money. That is, most people think that if they work longer hours at something that they will get paid more.  I know that when I think of how to earn more money I immediately think of consulting.

Their point was really that you need to find a way to bring in cash-flow that doesn't require your constant attention.  The way to do this is through automation.  Let's take this example: the problem you are solving is teaching people how to do bicycle maintenance.  One way to do this is to hire yourself out as a consultant; if you valued your time at $50 / hr you could probably replace the income from your present job if you worked 40 hrs/week.

This model is good, but there is a another way: if you were able to create a video or e-book that really showed people how to do this and priced that at $50 then you would be solving the same problem.  Your customers would be getting a better deal because a one time cost of $50 is much less than a few hours of $50/hr consulting fees.  You would be getting a better deal because your product will be making money for you while freeing you to do other things.

Essentially, this is the difference between owning a business and a  business owning you.  Under the second model, you will be earning income long after you have lost interesting in being a bicycle tutor.