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…)

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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. Laura Hart

      Hi Eric,
      Thank you so much for the great tips. I read this book quite a while ago and I find I often have to remind my self of my goals to move from the quadrants on the left to those on the right.

      Keep up the great work and celebrate your success,
      Laura

      Reply
    2. Stanley Rhea

      Eric….you’ve been asked this before but…Do you have all your tips in one publication or file?
      I’m 80 years old but am enthralled by the IM model.
      However, I might not live long enough to get thru all 100 tips!>:)
      Thanks for your answer
      Stanley

      Reply
    3. Bob McCormack

      Hi Eric, Thanks again for a ver interesting topic. I especially enjoyed the breakdown of the worker to business owner relationship. I have owned over the past years 3 companies and have always wondered where I stood in relation to the business and the labour involved in the sucess of the business, so I found the breakdown and relationship very interesting. Sounds like the meat portion of the training program is about to begin. I am looking forward to the next and actually all of the upcoming lessons.Bob

      Reply
    4. Stanley Rhea

      Micah…tnx but your link only covers the last few lessons in the course.
      Stanley
      I just keep changing the lesson number and get them all that way.
      Thanks for responding.

      Reply
    5. leland

      can I access your training as right now I have some free time but that changes as for now I still rely on a job for money,but am desparate to change that.I hate relying on others for my livelihood or at the moment lack of.

      Reply
    6. Karen

      Disappointed with the link to the chapter summary. Couldn’t find the summary on the forum.

      Reply
    7. Mik

      Hi Eric,

      I just bought the RealGuysRealMoney including the upgrade package. I’ve been following your tips recently and would like to thank you for the good content you deliver.
      I hope soon I’ll be able to make my first money online.

      Best regards,
      Mik

      Reply
    8. Dwight

      Hello Eric,i am really enjoying these short videos very informativelooking forward to the next lesson, just now starting to get the picture wish i had connected with you sooner .

      Reply
    9. Prue

      Hi Eric,

      Thanks again for the great tips you are giving. Also, I’d like to thank you for the link you sent me recently about the memebership site.

      What I’d like to know though, is the type of niches that’s offered. Also, would you recommend this system to sell the product I just bought from you guys?

      I am unemployed at the moment with very little money and need to get going real fast. Is this system the right investment for me at this point.

      I just want to be sure I am investing wisely. I really want to download the product and start earning some money.

      So sad to learn about the fire that destroyed your friend’s property. I am glad you were not affected. Thanks again, and keep up the good work. God shall surely reward you for the investment you make in others. To be frank, that is what ‘The Kingdom’ is all about.

      Kind regards,
      Prue

      Reply
    10. Pudjo

      Hi Eric – I am telling you here my story:
      I am retired and I have been doing time in all those 4 quadrants in the past, starting out as an employee.
      I am a risk-taker by nature and when I was on the business-owner quadrant, in combination also as an investor, and a self-employed person – I made a stupid decision.
      Having made that uncalculated risky decision, 3 yrs ago (I was being scammed heavily), as a result of that – I lost 85% of my assets. My objective in learning to do an online business from home is precisely and simply this : “to recover what I have lost”! But, frankly speaking – I can tell you this, that I haven’t reached my goals yet. I am currently still a struggling online marketer, earning monthly 2-3 figures.
      I am still persistent & consistent with what I am doing online though and I am convinced that somehow, I will achieve my goals with your help, in the not too distant future – simply by following what you are saying.
      Cheers & Greets – Pudjo.

      Reply
    11. Micah

      Hello Prue,

      What product did you purchase? I’m having a little trouble locating your purchase.

      Please contact our help desk with your receipt, so we can best help you, or point you to the right support desk:
      http://www.ericsupport.com/

      Reply
    12. Darminto

      Hi Eric, thanks for the explaining….yeaa, in which quadrant are we currently in business online? It seemed it forces everyone to choose one or two or three of those four options, moreover if they are creative people and business makers, too. An interesting question to answer!

      Reply
    13. Derek

      Hey, first off these videos are sensational! Quick question: Is there an easy way to navigate thru all the videos? Like a main page I can save in my bookmarks to access all the videos rather than having to scroll thru pages in order?

      Reply
    14. claudia

      Hi Eric, your videos are really great. Is there a way I can work through them a little faster, rather than receive 1 per day?

      Reply
    15. Micah

      Hello Claudia,

      Thank you for your question. The next lesson will soon be completed and will be sent to you soon thereafter. You can also visit EricsTips.com to see the latest lesson updates and revisit earlier lessons:
      http://www.ericstips.com/tips/category/lessons/

      Here is the direct link to the latest lesson:

      LESSON #82: Social Media Implementation (Facebook, Google+, Twitter, Linked-In, S.U.)

      If your email happens to block some of the lessons, we recommend that you view this tip on whitelisting an email address:

      How To Add a Sender to Your Whitelist (Safelist)

      Reply
    16. aida suarez

      Eric, good lesson#6 today! The book about the Quadrants is superb! The first books Kisoyaki wrote are eye-openers. While I was reading his books i was also studying commodities investing with GBE. I still have my nose on it. I am engage with internet marketing too see if can get out of money miseries faster. But, the problem is… you need to invest money to make money.
      Like yes, I would like to go also with you guys the 3 Counselors, but… another fix bill every month is already driving me uneasy. Because I am on a fixed money retirement. I will continue taking your tips… and so far… i am learning a lot from your reasoning about businesses. I already purchased the InstantProductEngine. And wao! What a surprise! Lets see what happens after a read the Tutorials. Whish me luck!

      Reply
    17. Khalil Arabi

      I am thoroughly enjoying the lessons and finding real nuggets to help me focus my attention. I am not a nubie by any means but I am learning a lot. Thanks

      Reply
    18. Anonymous

      When I click 0n your lessons, 6 up to now it is just blank and never plays even after a wait of 5 min
      Is there a problem with the lessons.

      Reply
    19. Marija

      Hi Eric,
      I like the lesson which calls my attention to the fact that well versed in online business is necessary.
      I hope to get a good start and step by step business education. Thank you! Marija

      Reply
    20. Heidi Schell

      OK Gary, you have aroused my curiosity more than once now with your website. Does this truly work? If it’s on Eric’s training, I would imagine he is OK with it. Please let me know. Thanks, Heidi

      Reply
    21. Eric Matson

      WOW!! I think that’s awesome that you talked about Robert Kiyosaki and his CASHFLOW QUADRANT. I love his unconventional approach to business and life itself. I’ve read quite a few of his book, including Rich Dad, Poor Dad and The CASHFLOW QUADRANT. I wish there were more Robert Kiyosakis’ in the world. Thank you for sharing that lesson with us.

      Reply
    22. Larry King

      Great! Im in the self empoled. Cant wait to Start the next TIP

      Reply
    23. Randine

      At this stage in the game, it seems I am self-employed and employed quadrants at this time but ultimately, I want to be in the position of business owner and investor. I have plans to invest in my business, commercial properties, land, etc.

      Thanks for this tip!! Can’t wait for the rest.

      Reply
    24. KarenB

      Sharon,
      Free is not on the internet, you can find this book at your local library, just sit down for a half hour and read the chapters that pertain to Erics lessons. Or go to Barnes and Noble get a cup of coffee and read the necessary chapters.

      Reply
    25. KarenB

      Hi Eric, I am a displaced employee looking to move to the self-employed mode. Thanks so much for the tips, especially the “stop buying stuff” …alittle late…but I am with you all the way…..off to read Cash Flow Quadrant.
      Thanks for sharing your knowledge,the lessons have been a breath of fresh air. I am hoping your education directs me to dollars because the last path did not, I had only mixed up strategies that left me struggling.

      Reply
    26. Mark Lewis

      Hey, Eric, thanks for breaking that down. I now have a better understanding of where i want to be.

      Looking forward for the next lesson.

      Makr

      Reply
    27. Brenda McFadyen

      Hi Eric, I appreciate your lessons very much. Thank you I do have one question, I’m sure you’ll be getting to it. I am within a few days of going in to a biz. How does one start to get a list to mail to. I can’t figure it out. Join a paid list? a freebie or what
      Thanks,
      Brenda

      Reply
    28. Joan

      Hi Eric, I just wanted to say thank you for your lessons. I’ve had a dream to be an online business owner for over 10 years now but never seemed to have the time to make it work or was paralysed by too much information. I even dabbled in forex trading for a while but discovered that wasn’t for me. I’m currently an employee and am sick and tired of living paycheck to paycheck. I finally broke down and prayed to God for ideas and helpers and he sent me you. My steps are definitely ordered. I will follow the lessons step by step till the end.

      Reply
    29. Lewis Hathorn

      Well, I agree that the self employed, Business
      owner is the best concept for me. Ifeel it will
      always be both these two, but I favor leaning
      heavier toward being a business owner in time.
      Also, nothing wrong with good investments later.

      Reply
    30. Susan Geleng

      Thank you so much for your honesty and showing your true integrity of who you really are Eric. You saved me money, I wish I met you a lot sooner. I don’t have the money to just throw away. Every penny counts on improving my life. I live on Soc.Sec. trying to find a plan B.

      Reply
    31. BARBARA

      Hi Eric,
      I am a self employed business owner, who used to have employees. Scaling down now to retire.
      I wish I had invested more wisely…that is why I am still working.
      It is good for people to undestand the difference between all four areas. I think I will get Kyosaki’s book anyway. He is such a good teacher.
      Thanks
      Barbara

      Reply
    32. Don B.

      I read several of Robert Kiyosaki’s books many years ago. While I found a lot of advice on what to do, I don’t remember seeing very much advice on how to do it. Perhaps I will read the quadrant book again to see if there was more to it than I saw the first time.

      Reply
    33. Ben

      I am disappointed too. I did not find the summary either. This happens many times when I click on a link on this blog. Am I doing something wrong? Should I just ignore all those links? I am just so excited to follow all the lessons (Is it really 100 or 120?). The past 6 lessons have been amazing for me. Thanks a million, Eric.

      Reply
    34. Ben

      Hi Eric,

      I have just finished reading all 200 plus comments in this blog and while many of them are useful, they do take up too much time away from the lessons. I am now off to Lesson 7 and so in a hurry to get through all of them.

      One thing I would like to mention: It seems to me that many are forgetting your one big edict of NOT BUYING MORE STUFF at this point. Too excited and in a hurry to earn money right away? For me, I need to avoid any distraction that would take away my focus.

      Thank you so much for sharing everything. You and your family are assured of all the blessings from the Lord.

      Reply
    35. Janice Bowles

      Hi Eric,

      I saw this quadrant some while ago and as so often happens when we are overloaded with information, I had filed it away in the back of my mind somewhere. So thank you for speaking about it and also for explaining it so clearly. This is I believe such a vitally important point to remember because it’s all too easy to remain in the ‘self-employment’ mentality. We may look at ‘business owners’ as the Richard Branson’s and the like, as if they are ‘over there’ in another group. We may aspire to it but unless we feel successful it may not become part of our belief system. Therefore this is so important from a mindset perspective. I am looking forward to the goal setting lesson 🙂 Thanks again.

      Reply
    36. Calin Farcas

      Hi Eric,
      Recently I bought your product NCIS.
      I have a question about Weeble Host.
      Do they offer upload capabilities?
      Do they have ftp server(s)?
      I want to use FileZilla to upload
      my objects off my hard drive(html pages,
      images, other files…
      Thanks,
      Calin Farcas

      Reply
    37. Eric Post author

      Thanks for your business. Weebly does not have FTP access. That’s one of the reasons we only recommend it as a way to get started with no cash, and then to get your own domain when you can afford it. Paul Counts is more of a weebly expert than me, so if you have any questions about it feel free to ask for him at Jeff’s helpdesk: http://www.layoffyourbossmarketing.com/support

      Reply

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