The Proven Formula To Generating More Income

Millie Leung lighter white copyIf you are looking to achieve Financial Freedom, one of the first things you will need to learn is to generate income.

Once you master that, the next thing you should do is to put a System and a Team in place so that you can turn that process into something that runs on its own – in other words, turning your “Active” income to “Passive” income.

When your monthly passive incomes (money that comes in without you doing much work) exceed your monthly total expenses, you are Financially Free!

You no longer “need” a job and you are now free to live your life the way you are meant for.

Today, I would like to focus on the first step of this process and explain to you exactly how YOU can generate more income, no matter what profession and location you are at – there is actually a proven formula for it and it is simpler than what most people think.

 

Your Income Is Determined by The Value You Deliver

“You will get all you want in life if you help enough other people get what they want.” – Zig Ziglar

The first thing you need to understand is that your income is determined by the Value you deliver.

The reason you pay anyone any money is because that person is providing you with something of value.

Conversely, the reason anyone is willing to pay you any money is because you are providing something of Value to him.

So if you would like to generate more income, you need to focus on delivering more Value.

In fact, there are 3 strategies that you can increase your value (and your income).  Let’s take a closer look at each strategy below.

 

Level 1 Strategy – Working Longer Hours

Consider this scenario: There are 2 workers – Worker A and Worker B.  Each creates the same value of $10 per hour.  If Worker A worked for 12 hours a day and Worker B worked for 4 hours a day, who would generate a higher income?

Obviously, Worker A would.

Why?

Because Worker A spends more time to create more value.

As you can see, Income is a function of Value and Time.

When I was at university, I used to tutor other junior students in Mathematics.  I charged $10 per hour back then.

I normally tutored 5 hours a week since I was still a full-time student.  When I needed more money, I would just look for more students to tutor or ask my students to increase their tutoring hours so I can earn more money.

At that young age, it was the only way I knew how to make money – by increasing the hours I work.

This, in fact, is one of the primary strategies used by most people.

Have you ever met people who are working 2 or 3 jobs because they need to make more money?

I have nothing against people working hard – in fact, for those who know me, they would know that I’m very passionate about what I do and I work quite hard as well.  But, no matter how hard you are willing to work, everyone only has 24 hours a day.

There is a limit as to how many hours you can physically work.  Moreover, are you really willing to work 24 hours a day for the rest of your life to sustain your lifestyle?  More importantly, should work be your SOLE purpose in life?

As you can see, there must be a better way.

 

Level 2 Strategy – Upgrading

As I was growing up, I was taught that we should “study hard, get good grades, go to university, get a good job so that you can live a comfortable life.”

As you can see, in our Society, one way to achieve higher income is to obtain higher qualifications – obtaining a bachelor degree, a master degree, a doctoral degree or may be graduating from one of the top business schools in the world generally gives you a higher chance to earn higher income.

Why would someone pay you more just because you have higher qualifications? It is because your Employer believes that you can provide more value than someone who does not have that qualification.

I’m a true believer in upgrading and continuous learning.  I have a Bachelor degree and a Master degree and I’m constantly attending seminars and workshops to learn more, so that I can provide more value to others.

Unfortunately, most people are stuck at this Level 2 Strategy.  Most people think that once they upgrade, they will be paid more income and therefore lead to a more comfortable life.

This may be true for some, but for most people, when they continue to climb the Corporate Ladder, they have more responsibilities, more stress and end up working longer hours and have less time left for themselves and their families.

Do you know of anyone who makes a lot of money but are so busy with work that he doesn’t have time for his spouse, children, family or friends?   Or perhaps you fall into this category yourself?

After working in the Corporate world for many years, I was making a comfortable income but found that I have little time left for anyone – including myself.

To me, time is precious.

If you lose all your money, you can start over again.  But if you lose your time, you don’t have anything left.

I cherish my time.  And even more so, I cherish my time with my children.  And that was why I decided to explore other options that would allow me to earn income with less time involved.

 

Level 3 Strategy – Expanding Your Reach

By studying many wealthy people, I found that there is another strategy that generates income – A strategy that most people are unaware of or are not applying at all.

Once again, let us not forget that your Income is determined by the Value you deliver.

So if you were able to deliver your value to more people, you should receive a higher income!

Most people in the world provide their value through Level 1 Strategy (Working Longer Hours) and Level 2 Strategy (Upgrading) only, but Level 3 Strategy is what Wealthy people have all mastered!

Let me give you a few examples below.

At one time, J.K. Rowling was struggling to earn a living as a single mother.  When she wrote “Harry Potter and the Sorcerer’s Stone”, it became such a mega hit and royalty checks came pouring in.   Within just a few years, this 35-year-old mom had become the highest earning woman in Britain, grossing about US$ 30 Million in passive income each year.  Today, her books are still selling well and her ideas have turned into movies and other spin-off merchandises.  I love the Harry Potter movie series and it has provided awesome entertainment to millions of children and adults all over the world.

If you are a speaker, teacher, performer or artiste, think about how you can reach a larger audience at any one time.  It is all about positioning and marketing.  For the same number of hours you work, you can magnify your value drastically.  Just think of Anthony Robbins – he earns over US$500,000/day by delivering value to massive audience.  And I’m sure you have heard of people like Oprah Winfrey, Madonna and many others.

Network marketing leaders provide support, training and mentoring to their downline distributors; and in return, get a percentage of what all their distributors produce.  Leaders who have spent the time on personal development and the effort to serve, support and groom leaders can build huge organizations over time and make 6, 7, or even 8 figures per year.  Top income earners in the Network Marketing industry are often true leaders who are well respected and have inspired and changed many lives around the world.

I’m sure you have heard of Mark Zuckerberg, who has started Facebook from his dormitory and now became one of the wealthiest people on earth.  The Internet is one of the most powerful media today that allows any original people to magnify their value on a global scale.  There are many millionaires being created each year all over the world because of the power of the Internet.

And… I can name you many more examples of how people can increase their value (and therefore, their incomes) by expanding their reach.

By expanding your reach, you will be able to generate a type of income that you could never ever be able to achieve by simply increasing your working hours and/or by upgrading.

 

The Income Generation Formula

There you have it!  Simply put, the formula for generating income is:

Income = Value x Time x Reach  

So next time when you want to increase your income, instead of just thinking about working longer hours and upgrading, think about how YOU could expand your reach as well.

Ultimately, it is the VALUE you provide to the world that dictates your income.

The more people you help, the higher your income.  By focusing on delivering your value to the world, the money will follow.

So go ahead, follow your passion, follow your heart and deliver your talents and gifts to the world!

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With lots of love,

Millie Signature

About Millie Leung

Millie Leung teaches people how to Escape the Rat Race, Work Anywhere and Live a Life They Truly Love. Click HERE to get her FREE eBook 'Lifestyle Entrepreneur' (US$27 value).