Category: Business Models


I’m thinking about getting a job.

Financial gurus and new-wave monetization experts are not supposed to admit to jobs. Jobs are evil. Jobs are addictive. Jobs are for suckers.

Actually, that’s mostly true. If you’re taking a job because you’re too frightened to start a business, or because you think it’s the best or safest way to make money, it’s probably a bad idea. And for most people, it’s probably safe to assume that they’re getting a job for that reason.

But jobs do have uses. They are one of the quickest ways to get money. And depending on the job, they can be one of the cheapest education sources around — I don’t know of any other school that will pay you.

The fundamental question is, are you doing this because you want to impress someone? Because you think it’s a smart way to make money? Because you are afraid to tell your friends that you’re unemployed?

Or because you’ve examined your situation, and you’ve decided that having a job would be greatest help for your current monetization mix?

The Point Is, Do It On Purpose

Planning your monetization is something we’re never taught in school, partially because they assume you’re going to get a job, and partially because our school system was designed — if you trace it back to its source — by military leaders who didn’t want their subordinates to learn bad habits like thinking for themselves. So we’re taught to act like we don’t have control over our financial lives, that we’re at the mercy of our boss and the economy.

And it’s true, of course, that outside forces can affect your monetization capability. That’s why the first step of annual planning is examining the external situation. But you can then — and this is the bit most people miss — choose what you’re going to do in response to those external circumstances.

Monetizing yourself is anything that causes you to get money, whether it’s a business, a job, a website, or panhandling on the street. In Freakonomics, the authors discuss successful gang lords and drug dealers, who — it turns out — run their gangs as businesses, keeping records, handling customer relations, improving distribution, and so on. And I recommend that you run yourself as a business, regardless of what monetization method you’re currently using.

In an earlier post, I discussed changes in the economic environment that affect your monetization options. Even if you have a job, it makes sense to think of yourself as a business with one employee, leasing yourself out for 3-5 year contracts.

What do you do now?

What is your current monetization mix? Does all or most of your income come from one source? What are you providing of value to acquire that income?

What do you want to do?

What can you provide of value? What would it take to monetize those things? What will you need to do to get those skills and capital?

If getting a job will help you acquire skills, capital, or some other benefit to achieving your goals, by all means go for it. My boyfriend and I are considering consolidating our two-part-time jobs into one full-time job, freeing the other person to work on their business full-time.

Just remember that you’re using it to achieve your goals, not because you’re destined to stay in one job or one industry for the rest of your life.

“…E’s and S’s [employees or self-employed] work for money….B’s and I’s [business owners and investors] work for assets.” — Robert Kiyosaki, Increase Your Financial IQ

First of all, let’s define what that even means. Robert Kiyosaki defines an asset as “anything that puts money in your pocket.” That is, there are things you can own (like shares in a corporation, or rental real estate, or royalties on a hit song) that just give you money.

But that makes the distinction seem kind of trivial. I mean, an asset is something that gives you money. So if you work for an asset, you get money. Sounds a lot like working for money, eh?

Ah, but here’s the important difference: an asset is permanent. When you stop working, it keeps putting money in your pocket (as long as the corporation makes money, people rent your real estate, or people keep buying your song). Whereas a job, as I’m sure most of you know all too well) is a one-shot, but-what-have-you-done-for-me-lately kind of deal.

Simplified Example

Suppose someone came up to you and said, “I’ll give you $1000/month for the rest of your life.” Would you take it?

    Obviously, yes

Suppose they said, “If you give me $10,000 right now, I’ll give you $1000/month for the rest of your life.”

    Assuming your life expectancy is greater than 10 months, you’d obviously take it

Suppose they said, “If you give me $10,000 right now, and do 80 hours of work, I’ll give you $1000/month for the rest of your life.”

    Still good. It might take you a few weeks to get your 80 hours in, but it’d be worth it

Suppose they said, “If you give me $10,000 right now and do 80 hours worth of work, I’ll give you $1000/month for 10 months out of the year, for the rest of your life.”

    Now you’re going to have to be a little smarter…. you don’t know which two months you won’t get the money, so you’ll want to be careful about how much you spend month to month. But it’s still obviously a great deal.

Suppose they said, “The work I need you to do is pretty technical, and it will take you several years to learn how to do it; I won’t pay you for that time. But if you

  • learn how to do that work
  • Do 80 hours worth of work
  • give me $10,000

I will give you $1000/month 10 times a year, and I will make this deal as often as you want.

    …?

What Rich Dad, Poor Dad wants you to know is that the last example is a pretty accurate model of reality. If you learn how to value real estate, how to spot a good deal, how to make offers, assess rent potential, raise funding, find a good property manager, etc, you can buy a house or condo or duplex that you can rent out for $1000/month. You don’t get paid for the time you spend learning, and you have to put in time to find the good deals, negotiate prices, etc. But thereafter you get “passive income” — income that happens whether you’re at your desk working or on a beach in southern France.

Or you could spend a couple of years learning how to make fantastic websites with lots of traffic, how to write content, where to host a website, some html, how to make an RSS feed, how to build a newsletter list, who has the best affiliate programs, how to build an e-goods store, and so on. Then build a website with thousands of visitors per month and an average monetization of $1/visitor. You wouldn’t even need $10,000 down.

That’s what working for an asset means: having money come in even if you’re injured, or too old to work, or just don’t feel like coming into the office today.

Is it worth the effort? Only you can decide. It is a lot of work. But it still sounds like a good deal to me.