LESSON #6: Self Employed or Business Owner?

By | June 17, 2008

In the next lesson, I’m going to get more specific about exactly what kind of business we’re going to build, but first we need to get past a fork in the road.

You’ve decided that you really do want to make money on the internet, and now there are two paths set before us…

(Watch this video…)

Join my coaching club

Main points:

  • Self employment vs. Business ownership. For many years I didn’t understand the difference. It will be beneficial for you to understand it before embarking on this business venture.

  • Cashflow Quadrant by Robert Kiyosaki: Employee, Self Employed, Business Owner, Investor

  • Each of these four quadrants make money in different ways.

  • Employees… You get paid for your time. You’re trading hours for dollars. You’re working for someone else, and in return they give you a paycheck.

  • Self employed people work for themselves. Like employees, they often trade their hours for dollars. Or perhaps they work for a fee or a commission. There are many examples of self employment, such as construction contractors, consultants, realtors, and even doctors in many cases. They’re not working for someone else, but their income is primarily dependant on themselves doing the work.

  • Business owners use leverage to make money. Most commonly, they hire people and leverage other people’s time. That way, the business owner doesn’t have to do the work and they can scale their business larger. The benefits of being a Business Owner rather than self employed are generally more freedom and ultimately more wealth.

  • Investor’s let their money do the work. They put their money to work making more money.

  • MYTH: You’re not making enough money. FACT: You need to be a better investor.

  • the Investor quadrant is for everyone.

  • If your goal is to never work, then ideally you need to end up in the Business Owner quadrant, not the self employed quadrant.

  • Virtually any self employment situation can be turned into a business owner situation if you know how.

  • The business model I’m going to teach you is really a combination of the self employment and business owner quadrants. And it’s going to be up to you if you want to fully leave the self employment quadrant and hire people to do the work that I’m going to be teaching you how to do.

    Action steps:

    1) If you haven’t read Cashflow Quadrant, read it. You can most likely pick it up at your local library for free, otherwise you can pick up a copy of it here on Amazon.

    2) Determine which quadrant(s) you are currently in, and which one(s) you WANT to be in.

    There’s no right or wrong answer, because it’s really a matter of personal preference regarding how you want to spend your time and how you want to make money.

    As always, you are welcome to post your questions and comments below.

    Have a great day!

  • 309 thoughts on “LESSON #6: Self Employed or Business Owner?

    1. George

      Hi Eric Good Lesson again.I am surely starting out as a business owner.Thanks again

      Reply
    2. Julius

      Hi Eric,

      I have recently purchased the IRT and came on your site. It is very informative. I have been trying to do Internet Businesss for the past two years but havent received such a DOWN TO EARTH REVIEW>.. Thanks and keep up your good work.
      thanks for the support
      regards
      Julius

      Reply
    3. Gary

      You are truely an inspiration. Your tips really help weed out the good from the bad and I Thank you for that.I am looking forward to your tips.
      Have a great day Eric,
      Gary

      Reply
    4. Georjina

      Great post Eric.
      I took the time to read Rich Dad, Poor Dad and Cash Flow Quadrant, both good books for those who want to increase their financial intelligence. Funny how many people still think of paying a mortgage as having an asset – even with the current meltdown in the US.

      Currently moving from self-employment to business owner, the bridge appears long but getting there! Yes, I did use Kiyosaki’s advice of moving from one stage to the next and went from employee to self-employed. Since I also read The E-Myth Revisited, now is the time to make the next step, self-employment is too dang hard!

      Reply
    5. Chipo

      Hello Eric,
      I am a little behind I am reading all the lessons. Just learnt the difference between Self employed and Business Owner. Thank you so much. I want to be a business owner not self employeed. Thank you.PEACE. Chipo

      Reply
    6. Gary

      Eric…releasing your teachings on DVD or DVD-Rom is a GREAT idea….I’d diffently make a purchase and let others know about it!
      😉

      We Give You 120 Individual Turnkey Websites With Your Paypal ID On Each
      http://www.Instant-Paysites.com

      Reply
    7. mohd ariff

      Knowing or not knowing, that’s us but your lessons is whats everybody required. You have gone through details that could give us more things that we have to know.

      Ths, regards.

      Reply
    8. Lorena Velasco

      Eric, I want to read the book but I’m broke.
      Do you think theres is a place out there on the
      Internet to get at least the part of the book I need to read?

      Reply
    9. Richard Muir

      Hey Eric,

      Another great vid. Big fan of Roberts work as well and have read the books. Just need to revisit more often.

      Go the short hair! I used to have long hair and now own the pair of clippers and love getting up and not having to touch the hair!

      Cheers

      Rich Muir
      http://www.companiesnow.com.au
      making registering your new company easy

      Reply
    10. Bounama

      Hi Eric!
      Knowledge has an edge, knowledge is real power.
      The only thing i regret is how it came late, after all the stuff i bought. Anyway!
      Thank you for sharing.
      Braveheart

      Reply
    11. Blanca I. Vargas

      Hi!, I viewed the material but there are too much thinks that I can not understand because is not good my english. I hope is it possible translate this material?. Thanks.

      Reply
    12. Gary

      Just a side note as well: You can get all three classic books on CD together in a bundle for around $29. This includes Cash Flow Quadrant,Rich Dad Poor Dad and Investing. Its a real time saver and you can listen to then while driving.You should be able to find them in the audio section at your local book store.

      😉

      Reply
    13. Gary

      Its an excellent book as well…one of his 3 classics! All his books come on CD format as well.

      🙂

      Reply
    14. Gary

      Hi Edward,
      What has enabled you to be self employed for the past 20 years…what line of work do you do! Just asking for the inspiration!

      😉

      Reply
    15. Gary

      Hi Mohd,
      Just hang in there…I believe Eric will be showing detailed instructions on how to eventually be self employed. Just work hard,focus and apply each lesson.Best of luck to you!

      😉

      Reply
    16. Gary

      Hi Chipo,
      Just work at your own speed…thats the beauty of it! Eric is planning on leaving the lessons up permanent.Best of luck to you!

      🙂

      Reply
    17. Mike

      Eric,

      Thanks! Really happy that you alerted us on the XSite Pro Webinars.

      I’ve been looking at it to replace my DW MX. It appears that XSite Pro is made with the IM’er in mind. Less time building Thanks again

      Reply
    18. Mike

      …and more time on the core business, i.e. marketing, sales, writing copy, etc. Am I close? If so, (even if one already has the html, css, background) would you still recommend it?

      Thanks again,
      Mike

      Reply
    19. Julie

      Hi Eric

      I really would like to Thank you from the bottom of my heart.
      All the information youve given has been so helpful.I am very new to the internet Marketing and i have been struggling to make money on line for about a year.
      I tend to loose focus, but you have woken me up and created more confident and motivation with all the tips you haven given in your videos.I have read most of Robert Kiyosaki books.They are very Aspiring

      Thank you Eric for Giving your Time and Energy to making this educational Video, which will help alot of Newbie,s OUT THERE

      GOD BLESS
      JULIE
      to help so many New

      Reply
    20. Sid Frasier

      Eric,

      When I signed up for your Template CD… Paul Smithson said there were
      exclusive templates for XSitePro2… can you tell me how to tell which is which?

      Is there a way to integrate the templates I think I’ll use into the XsitePro
      folder so I won’t have to use the CD everytime?

      Enjoy your holiday and answer when you get a chance,

      Sid Frasier

      Reply
    21. Eric Post author

      Eeach of the 100 niche templates includes an XSitePro version of the template.

      Yes you can copy them onto your local hard drive into one folder. Just drag the XSE files off the CD and into the folder of your choice.

      Reply
    22. Melina Crisostomo

      Hey Eric,
      Thanks for recommending “The Cash Flow Quadrant” to everyone. I’ve read most of Kiyosaki”s books. Anyone who hasn’t, should.It can open you up to a new mindset that can help you achieve the success you want for yourself. You’re truly giving us a wealth of information.

      Aloha and Mahalo,
      Melina
      Get Your Introductory Product or Service Directly Into The Hands of Current,Active Buyers in Your Market!
      http://www.SeminarSwagBag.com

      Reply
    23. melissaa

      Hi Eric,
      These lessons are just what I needed.I love how they are in plain english..They are really helping me alot.I have been studying online marketing for about 6 months.When I first started I had no computer experience,or office skills.I’m a truck driver I understand DOT,and Detroit engines.My back ground is construction,truck driving and mechanics.I’m not your average truck driver though.I found out that women in the construction/truckdriver world have be very smart,work like a mule,and look good while your doing it.so I had an offer to come in the office part time and drive part time last year.It took me a while because I truely love to drive,but that gave me the office experience I needed to get my internet business rolling.I did get scammed the first time,but that was a blessing,cause I didn’t give up.It just made me want to do it even more.My computer and I still fight but not as often as before.I have done everything that can be done to computers,but I was lucky cause that was at the company I worked for.I called 1-800 hey ya’ll I did it again,then they would fix it (well sometimes I just needed all new equipment)but I learned so much from tearing the company equipment up,that soon my boss would just call me to fix her computer,if I couldn’t figure it out or after I pushed every button I could,I would call the 1-800 come fix it guy.I quit my job 2 weeks ago,and devoted myself to my internet business full time.I worked to many hours to even take my studying for my business any farther.I thought I have nothing to lose..I have a clean driving record,trucking driving jobs are literally a dime a dozen.I really believe in my heart I can do this.I was learning so much,and so many different words,that I thought my brain was gonna explode.EX: html….
      I put this class off for a week cause I just knew it was gonna be so complex I just couldn’t do it right now.well then i pulled my head out of my butt,and took the first class…yeah..I feel so stupid now,because when I actually sat down and took that first class and found out the meaning of html.I was disgusted with myself.I tend to think if it has anything to do with the computer then it has to be complicated.I have found at least over the past year IT”S ALWAYS SIMPLE…It’s just me making a big deal out of it.OH yeah….I did find out that it’s never good to fill the modem up with water,and it’s really not good when it’s sparking like the 4th of july.So this has not only been alot to learn for me but also an adventure..I love it..I thank you for your lesson’s and I love that they are in english..thats all just english.I don’t have to have a computer dicionary with me when your talking.
      thanks a bunch,

      Reply
    24. David

      Hi Eric, I’ve just listened to lesson 6. You have great style which I find easy on the ear and informative – thanks very much. Quick question, if you or anyone has any ideas: a physical product has fallen into my lap.. How can I advertise it cheaply and effectively worldwide? & Is it worth doing?

      Reply
    25. Eric Post author

      Thanks David. As far as advertising something cheaply and effectively, the internet is the way to go. As far as the details of how to do it, and whether it’s worth doing… that’s a question with too many variables to answer.

      It’s worth doing if it will bring an acceptable ROI for your time and effort.

      As for the details of online marketing, that’s what these lessons are all about, so stay tuned 😉

      Reply
    26. Pingback: Carnival of Financial Learning #10 | Financial Learn

    27. Baburaju

      It s a wonderful opportunity
      i would like to stay with you and ern more and more

      Reply
    28. Erin

      Eric,

      So glad to have stumbled on this Site. Your tips are invaluable! I’m also in a startup state with several items that I am going to be using to re-sell.

      Reply
    29. Erin

      Hey, Eric-

      Just a question. I did buy Joel Comm’s resale templates as well, but I don’t think he set up a “reseller template” in his package. Could you kindly send me a link to your reseller package? I’d like to purchase that as well if the package I’m getting doesn’t have a reseller template included. That way I can go “turn-key” ASAP. 🙂

      Reply
    30. cody

      Hi Eric~

      Thanks for the info. In lesson #6 you said your working on becoming an investor, well I Think you will like this, Have a look => Click Here!

      Reply
    31. roman

      IT IS start to be intresting,Eric. I think it is better to start from employee. After better understanding of this bussines,next step,selfemployee itc.

      Reply
    32. Cesar

      Hi Erick! Greetings You’all!
      It is 2:57 am and I don’t know how to get in my bed. Why? Because I’m still in the employee cuadrant. Hoping to get out of it but struggling with my lack of marketing and computers technical knowledge. Waiting for every lesson like my little Chihuahua wait for a bit of her favorites chews. I know, I know… persistence !
      Thanks for share your success with us!
      Cesar

      Reply
    33. Robert

      Hello Erick,

      Great lesson.

      You have mentioned that you learn how to invest wisely. Could you share any tips or recommendations on that subject?

      Reply
    34. Eric Post author

      I will not be covering that topic until close to the end of the lessons. But in the mean time, if you’re interested you could start learning how to invest in the stock market using my Trading System

      Reply
    35. Robert

      Thank for answering.
      I saw a pilot video about your system and it looks very interesting but for now I am going to concentrate on an online bussines.

      Reply
    36. Frederick Herzman

      Eric i am 55 yrs young had a computer 4 2yrs and really want to start making some money instead of loseing it on the internet, got injured at work 2yrs ago have been out of work since June-08 you are my last hope at making it on the net,Like your lessons and am sure i will learn the missing parts i need to suceed as i am sure i will,

      Reply
    37. Robyn

      Hi Eric and other readers,
      I love Robert Kiyosaki’s work and had the pleasure of meeting Robert and Kim a few years ago. That man has helped so many people move their lives into a new dimension. I am sure most of you have looked up Robert’s website. He also has a friend who is a fantastic mentor in mindset and related topics that not so many people have heard of – Keith Cunningham. I thought I would mention his website, as people might be interested in checking it out as well.
      http://www.keystothevault.com
      After all we are all here to grow in many ways.
      Thank you for a fantastic series, Eric.
      Regards,
      Robyn

      Reply
    38. tiffanylyn

      Eric,
      Thank you! You validated an idea regarding becoming a business owner. I’ve been stuck in self-employment mode for years. I found a product, a business plan & vendors/”employees” as I would like to call them. I just needed to put my skills in there to become the business owner, not just a direct sales person working to push someone else’s product.

      Reply
    39. Dan and Deanna

      What good information that you give to us, Eric. We are also glad to be able t read all the other comments that are made. Thank you to all of you. We learn a lot from the comments that are made here. Thank you again.
      Dan and Deanna

      Reply
    40. Rich M

      Eric, your tips are great but we need to receive more than 1 per day. I’d like to go through all your tips before beginning an Internet business. The last tip rec’d was dated 1/28, today is the 30th. If we could get the tips all at once that would be fantastic. Thank you.

      Reply
    41. Rene

      To all, I am an up and coming business owner. I am focusing on the extreme sports area. would you guys/gals say that Eric’s teaching works with any business type? Which lessons would anyone recommend. Any suggestions on research material in this area?

      Thanks to all.

      Rene

      Reply
    42. Eric Post author

      That will be possible at some point, but I’m still creating the lessons currently 🙂

      Reply
    43. vijay

      Hi Eric

      This is Vijay from India. My aims are moderate. Me and my wife are willing to work 50hrs a week and earn 3$ per hour. Being in India allows us to wrk for that pay. Please guide us on an immediate online business or allow us to work for you. We have a workstation and 2 laptops to use. Also a 1000sqft office space that our family owns. Please help.

      Reply

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    The maximum upload file size: 50 MB. You can upload: image, audio, video. Links to YouTube, Facebook, Twitter and other services inserted in the comment text will be automatically embedded. Drop file here