Lessons From The Rich Dad CD

Rich Dad

This post was written by Alan LeStourgeon from Affiliate Confession, the winner of the Rich Dad CD contest.

I was fortunate enough to win a Rich Dad CD from John a few weeks ago and after listening to it, I think there are some valuable lessons for Internet marketers. Granted, Rich Dad is into investing and real estate, a much different niche than blogging and affiliate marketing, but the goal for any entrepreneur is to work towards financial freedom so it is worthwhile to listen to someone who has attained that.

The Rich Dad CD was 45 minutes long and even though much of it was a rehash of previous lessons learned about finances and real estate from reading Kiyosaki’s books, there were 4 points I think can relate to Dot Com Moguls.

Don’t Own or Invest In What You Don’t Control

This is why many affiliate managers get into affiliate marketing. They see how much people are making with some of the programs they manage, they think about their salaries and then decide to put their hat in the affiliate ring. They finally get the picture just like so many that want to work for themselves. If you are putting in time at a job to build someone else’s business, you are investing in what you don’t control. Your blog or your business can build your brand and give you more control over your financial destiny.

It is also important to eventually create products of your own such as John has done with TTZ Media, we’ve done with our Mostly Raw Vegan Meal Planner and others have done with ebooks, software, plugins and a whole host of other things. When you are marketing your own product, every time a customer looks at or uses it, you have the potential to brand yourself again and again.

Look For Trends

What this means for the affiliate marketer is to be aware of buying seasons, new products, industry news and the general happenings in the niches you’ve chosen to operate in. If you are aware of new products and buying trends, you can adjust your affiliate offers to meet the demands of an ever changing marketplace and earn substantial profits. An added benefit is that your customers will recognize you as an industry leader and continue to return to your site or blog so they can be informed on the latest happenings and products as well.

Know The Industry You Invest In

Do you read blogs, news and keep up with what is happening with affiliate marketing? Have you made it a point to read industry magazines related to the products you market. If you educate yourself on the merchandise you offer up to your visitors, you will be much more likely to be in tune with buyers of those products. Have you ever been to a web site where it’s obvious from the descriptions that the writer has never used the product? Does it make you feel like buying from them even if it’s a product you desperately want or need?

Do you have affiliate offers that are related to your hobbies, interests and passions? Why reinvent the wheel here? If you are into a hobby that’s hugely popular, take advantage of the knowledge you have already attained. You may not feel like an expert, but you can position yourself as one fairly easily from the knowledge you have in your brain right now.

Cash Flow Instead Of Capital Gains

A perfect example of this was reported by John Cow just a few days ago when he reported he had turned down an offer of $30,000 for his blog. That’s a lot of money for a 6 month old blog, but there’s a lot more potential in having the $3,500 per month reportedly coming in than a big wad of cash. First, you are likely to spend a large windfall such as this much quicker than if you earn it month by month and second, the Cow’s blog may be earning as much per month as the initial offer if he waits another year. Look what happened to this blog after only 1 year, what if Chow had sold out 6 months ago for $30K? If he had, I wouldn’t have won the Rich Dad CD and learned these lessons and you wouldn’t be reading this post.

29 thoughts on “Lessons From The Rich Dad CD”

  1. I agree about the branding. Pointless to build up the Google brand or the WordPress brand. I got the best brand though, the http://www.killstephenharper.com brand! 😈

  2. Sucker says:

    Good examples, those lessons really do apply to us! The first one really brings back memories of the books but all of them can really be effective when applied to any business venture.

  3. Nice info there, thanks for the response after you recieved the DVD.

  4. Blogosis says:

    Thank you for the advice. Looks like some bloggers may want to start looking into real estate. Haha

    Justin Dupre

    1. I have some real estate I would like to unload! Interested? I am getting out of the Real Estate market!

      1. Now isn’t the best time to be buying real estate, unless you have cash or can work a really low-rate financing deal. I just unloaded a spec home last Sept and lost a bundle.

        1. Sean says:

          What’s your logic??? To paraphrase: You lost a bundle and are now saying that it’s not a good time to buy… 🙄 The best time to be buying is when there is blood in the streets…

          1. Notice I said, “Unless you have cash.” You probably won’t be gaining any equity now, so you don’t want to be paying interest. If you have cash, you don’t have to worry about that.

          2. Steven says:

            I would have to say it depends. Typically when you buy real estate, unless you’re looking to sell quick or doing flips, you want to hold for at least 2 years (at least in the US with the exception of 1031 exchange) to avoid capital gains anyway. With that said, whether this is meant to be investment or residence, by 2 years time, you don’t have to worry about capital gains anymore.

            As far as rates and prices goes using the logic above, now is a great time to buy. Buy low with great rates and sell in two years. You could do rentals to offset the monthly payments if you’re investing and allow it to appreciate in value (in most cases), then sell after 2 years have past.

            It all depends on the situation and how you approach it. There are some positives and negatives so you can’t just say it’s a bad time to buy unless you have cash.

          3. Steven says:

            I want to note that the above is just an example and of course there are better investments to look at as far as ROI goes but for those looking to get into real estate (or in most cases any business for that matter), the situation is almost always going to be a “depends”.

          4. I can’t say I disagree with anything you said, I just didn’t think it was the right format to go much deeper so I generalized. Besides, I live in F.orida and we are still in a price slide.

  5. completely agree with the cashflow vs capital gains.

    30K invested at 4.5% is only a lousy $112 per month!

    a business that draws $3500/mo is typically worth $120K

  6. Bigrayvin says:

    I like Robert’s concepts and am actually reading a book that he did the forward on . The most important concept is the cash flow concept. This is when your money starts to work for you and not the other way around. As oppose to Capital gains where there is a one time payoff and that is it.

    1. Unless your cash payoff is really high, cash flow is the way to go. In the example I gave about John Cow, his blog will probaly be worth way more than the $30K he was offered because he’s still in the growing phase.

  7. justin says:

    Investment rules are the same whether in online business or real estate and this post is good example of that.

  8. WannaSmile says:

    That’s very promising that he’s speaking so highly about the blogging industry and promoting it. http://www.wannasmile.com :mrgreen:

  9. Way 2 go Affiliate Confession ❗ Nice win & quality post.

  10. Good post. To be really successful in any business one needs to have full control over it. That’s why one must strive to have one’s own product(s).

    1. Exactly, affiliate programs are great, but haviing your own product can’t be beat.

  11. Will says:

    that reminds me! i need to get this book and read it. I hear it is pretty good.

    1. Timon says:

      yeah i read it and its a good read hey…i recommend it…

    2. Read Kiyosaki’s Rich Dad, Poor Dad before you read anything else from him. It’s a basic read on understanding investing and how to look at wealth.

  12. Contest Beat says:

    Good post man, simple, but makes sense!

  13. David Chew says:

    Nice post. If you want to make a business especially when you want to earn big buck you will need to understand your industries, trend and know your ability.

  14. Timon says:

    yeah i agree…i read the book and its well worth it…

  15. The point about investing in something you can’t control is HUGE! It can be necessary for a time (working a day job while getting your business going etc) but if you have the opportunity, always invest in something you control.

  16. I think most of us started with the day job thing. I actually enjoyed what I did (parts of it) and you can certainly learn some valuable skills by having a job, but man it’s great when you get the chance to break free and finally invest in your own thing.

  17. Benny Ong says:

    Mr Robert Kiyosaki – My sister attended his seminar in Singapore about 3 – 4 years back. To financial freedom everyone!

  18. work at home says:

    John Cow had an offer of 30,000 dollars for his blog? I didn’t know that. That’s a nice piece of change, but he was already making money on it.

    work at home’s last blog post: Unique IP Class C Backlinks For Work At Home Bloggers

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