From Zero To One Million Dollars A Year In Sales

I just got my dedicated server today, came in a huge box. Got it and drove down to Corvallis, and dropped it off at where it will be located. This bad boy is going to run my dedicated web 2.0 server, I can’t wait till it gets bogged down so I can upgrade to two servers, its going to be a strong foundation to build a blazing web 2.0 application on. If you have a strong foundation, you can go way way up.

I spent over $1,800 on this thing, just paid for it. You can rent them, but I’m passionate about hating to pay rent, why would I pay someone rent on someone else’s server so I pay off their server for them when I can afford to just buy it outright. Below are the specs on this guy, there are 4 hard drives in it, if one fails you can swap it in and out, called hot swap, even while its running. So if one crashes, the others are still going. The thing is pretty heavy and pretty long, I believe its noisy. Hosting is going to run about $125/month, I realize thats expensive, but I’m getting more than hosting, a lot of additional hands on support on call and stuff like that. Anyways should be good, I’ll be leaving on a plane to Ohio in 3 hours to visit family for the weekend, visit family when your able to.

(1)SDR-5015P-TRB

As someone who desires to be a sophisticated investor we should aim to have leveraged assets building, whether it is the leverage of other people working for you, leveraging other peoples’ money, leveraging other peoples ideas, or leveraging yourself with goals and deadlines that make you commit, the way to make fast is to increase your leverage. 

If your fortunate enough to have extra cash available it is wise to find a way to leverage your money.  A sophisticated investor should at least be earning 50-100% ROIs on their money each year.  5%, 10% are you joking? I have people who tell me they invested 10k into long-term cds at 3%, ok [I realize that every product can serve a specific need at a specific time] but if your below 30 years of age and trying to aggressively build your portfolio you should be aiming 15-20% and upwards.  15-20% is easy ROI, I can get a 20% ROI NET [calculating risk in it to] just online via PROSPER.  20% ROI is good for the noob, but crap for the sophisticated investor.

Aim for a much more leveraged, higher ROI, more tax beneficial and more cash flow. 

If you DO NOT have the cash, we need to BORROW it from someone else, and then invest it into something that PAYS MORE THAN WHAT WERE BORROWING IT FOR.

The reason I bring this up because I’m going to be in a cash bind before the end of the year to hit my goals, owning 3 houses, which means I have to buy 2 more with down payments is going to put me out of money.  I won’t have enough money to invest, it is good because my cash will be earning 50-100% ROI per YEAR utilizing up towards 500k of other peoples money for my own good. 

I may take out a personal loan of 10-20k via the internet, or a bank loan to fund my investment.  Did you know even if I paid 20% interest on 20k, I could still make a SIGNIFICANT amount of money paying a high interest rate.  INVEST OTHER PEOPLES’ MONEY AT A HIGHER ROI THAN YOU PAY IN INTEREST TO BORROW THE MONEY.

Thats the reason I don’t recommend paying off student loans immediately, they are LOW interest rates, 5%, why would you pay off a student loan at 5% when u can make 20% ROI somewhere else.  Think about it.  Put it like this.

If you have 10k student loans at 5% interest rate, if you paid that down, just think of it in your mind that paying it off is like investing YOUR 10k at a 5% interest rate.  Would you ever invest into something that pays you 5% interest?

If you had 10k in student loans, and just earned 10k and had decided to pay off your student loans at 5% interest, this would probably mean you don’t know how to make more than 5% ROI investing yourself. 

Take person A, has 10k in student loans at 5%.
And person B, has 10k in student loans at 5% also.

They both earned 10k cash in the summer.

Person A decides, WOW, I can pay off his student loans, pays off his student loans, he now has no DEBT, and also has NO CASH.

Person B decides, hey 5% interest, thats not crap.  I’ll take my 10k and invest at 50% interest.  After one year, person B has 15k CASH, he made 5k, and could still pay off his student loan whenever.  Year two person B has 20k CASH, and he made 10k so far, now just DOUBLED HIS MONEY, because instead of paying off his student loans at 5%, he was smart and invested his money into something that would pay him SIGNIFICANTLY MORE than the interest he was paying.

I hate all of the financial people that say get out of DEBT, cut up your credit cards. What a bunch of losers, seriously, cutting up your credit cards makes u feel miserable [I've done it before], and NOT ALL DEBT IS BAD DEBT.

here is the serious question to ask yourself.

Who is going to get richer, someone who waits to SAVE one million dollars, or someone who BORROWS NOW one million dollars at 10% interest and invests it at 50% interest.

Its like my friend, says he doesnt’ use credit cards. COOL MAN! what u gonna do, buy a house cash? By the time u save up 250k for a house, I’ll already have 10 houses because I borrow other peoples’ money.

So I like to say, “leverage it up!” I want to put my money in leveraged investment vehicles.

I should note, that there are good times to have a safe and slow plan, as the plan I’m currently advocating is a fast high growth, highly leveraged, financial return on an investment so an aggressive wealth building plan.  In this plan I’m advocating a highly leveraged, highly debt serviced investments, that means purchasing houses with, little or no money down thus owning an investment with as little cash as possible. 

• Leverage [wikipedia]
  
• In finance, leverage is using given resources in such a way that the potential positive or
  negative outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity.

Week 3, does time go fast or what? Pretty soon we’ll be dead…ly rich.

Ok here goes week three, just been rocking it, on avg work time ~12-16hrs/day for this week.

• Adsense: $69
• Proser: ~$23
• TLA: ~$13
• Kontera: ~$15
• BeaverRent: ~+-200?
• CPAEmpire: $246 [a 200%+ increase from last week]
• COPEAC: $4.75
• GetClicky: $19.99

Watch my affiliate income grow to $5,000/month next month. I’m way ahead on my 1, 2 and 3 month goals leading into november to be on my way to $10,000/month. I’m 150% confident that I’m going to reach my goals.

Goals AGAIN:$10,000/month by Jan 1st, 2009, 3 houses by Jan 1st, 2009. I might be deciding to be in San Fran on the Jan 1st 2009 also.

I’m going to be making several offers this week to purchase my second house. f yea. AM is crazy business. Much props to my mentor Gray Hat, this guy is awesome knows the business makes enough money to put him in the top 1-5% of US population. He has helped me out, and it is because of him, his help, and my determination and my big WHY that I will pull through and make things happen/

I may also add an additional goal to own a yellow ferrari F355 F1 Spyder in 2008, although I haven’t decided on it yet, but I will probably make a decision sometime soon. Goals, need immediate goals, and with mommentum to carry you through to the next level. After this month I’ll have the momentum of a train with 50 cars attached to the back of it. try stopping that train.

You know your in financial momentum when your cashflow and networth is steadily increasing at a faster and faster rate.

you’ve been working non-stop for 14 hours and your wrists now suddenly hurt EVEN with your ergonomic setup.  But you just have a little bit more work to do [8 hrs] and continue to work because you know your going to make bank the next day with your affiliate program.

If you ever want to get something, study it.

• If you want to be rich, study wealth.
• If you want to be influential, study influence.
• If you want to have happiness, study happiness.
• If you want to be good at seo, study it.

I’m building a very intensive web 2.0 application that will be targeted towards internet entrepreneurs, I have been trying to develop it for over a year now and have made 3 betas, and hired one programmer, threw it all away, and re-modified the business model, and programming myself now.

If your developing an intensive web application it is extremely important to make it secure, so study security. You want to know what you can do to make your web application secure, the last thing you want is someone to penetrate your website, steal your data, spam your users, sabotage or files or anything else. When you store someone else’s’ data and loose it, you will look extremely bad and it could be a potential fatal blow to your business.

Imagine if PayPal had several security breaches, I’m sure they would probably keep going, but loose massive customers because of security issues, and those customers would switch to something else if possible.  So make security a study when you are going to develop an intensive programmed piece of software yourself. 

Here is $90 in books I just ordered online to aid me in my studies:

• Linux Security Cookbook
• PHP Security Collection
• Linux Server Security, Second Edition
• Network Security with OpenSSL: Cryptography for Secure Communications
• Web Security, Privacy & Commerce, Second Edition
• Apache Security

For PHP Security, Chris Shiftlett is the man, he knows the guru at it. He has a blog, and you’ll want to read his book, Essential PHP Security [must read].

The pimp himself, Jon Waraas who makes alot of money at home I know studies SEO a ton, and it is by his studying, knowledge acquisition put to into action that he receives over 300,000 uniques visitors a month via organic and natural visitors from wherever.

$10,000/month, I study people who earn over $10,000/month, and have been studying affiliate marketing.  I’m excited to say that yesterday I was able to hit $63+ in commissions in a single day. Once I average it out to that on a daily basis that will be an additional $1,500 gross income towards $10,000/month. Affiliate Marketing is good money if you study the art of it.

If you want to get good at something, study it.

While I was down in San Francisco not doing much work, my affiliate income was hard at work.  I’m excited to say that I really truly believe I’m on track, of course!  What is needed this month is $1,000/month via affiliate income, which equates to $35/day.  On the 17th I pulled in $34 in affiliate commissions [gross], this is very good as it is half-way through the month and I’m right on the brim of averaging what is needed to pass the first deadline which puts me on track to reaching the big deadline, January 1st at $10,000/month passive residual income.

I just added 50k more keywords for my campaigns with Y! Search Marketing, MSN Adcenter, and Google Adwords to promote my affiliate page.  What is my affiliate page? I’m not going to show it on my blog because other people will just copy my hard work, but its out there.  Most affiliate marketers won’t show you most of their pages anyways, because they are easily copied and a lot of them are very secretive. 

On Track, Are You?

I’m in San Francisco right now, my future home, I haven’t been able to do work at all down here, but whenever I’m not at the computer, I’m reading my books, the 4-hour work week and PHP security [awesome].  I’m going to track down the 2nd week of income, I’m still short from my affiliate goal, the affiliate income this month needed is $1,000, which is $35/day, I’m at around $15/day right now so I’m half way there, and it is half way through the month.  On track it seems.

Income for second week of the month, towards $10,000/month

• CPAEmpire, $90 [a 80% increase from last week]
• Text-Link-Ads, ~$13
• Propser, ~$23
• Kontera, ~15
• Adsense, ~57.90
• Rental Income, 1625
• BeaverRent 200+-?

I have just officially got 100% pre-qualified to now purchase a home in Corvallis for business, so I’m now ready to purchase house #2, and my buddy is now back from  the military and we are getting rolling in 2 weeks on purchasing #3.  In order to generate $10,000 month I have a decided that at least $5,000/month will be needed to come from affiliate programs.  So I have set goals to reach $1,000/month.  [break down your goals into smaller goals].

My goal for the end of the month, September is $1,000 a month. In October, $2,500/month, and in November, $5,000/month.  In order to reach my first goal of $1,000 a month it breaks down into $35/day, I’m currently around $15/day, so I’m 50% the way there.  all I need to do is do what I did the first time, and double my income from affiliate programs.  This should be cake walk and if I’m unable to increase my income level to $35/day by the end of this month I’m not on track to making $10,000/month by the end of this year.  So this week I’m going to invest approximately 24-48 hours to generate an extra $15/day, that is about approximately how long it should take.

I think what I might do is run with this goal to reach $10,000/month by January 1st 2008, and own/co-own 3 building by January 1st 2008.  Immediately after completion, move down to Silicon Valley and build the web 2.0 company.  Earn $10,000/month enough to live on and then focus energy, build momentum building a high-scalable residual internet product in the heartland of the web 2.0 startups. [Take advantage of the resources available to you in your current environment, and then move on to the next place with some serious momentum], ie: establish my 3 pieces of property and income from Portland and not just move down to Silicon Valley, but move down to Silicon Valley with some serious business momentum to carry me through.

Tomorrow I’ll be in the car all day.

Do you have momentum, you know momentum is with you when you are steadily making progress every day towards your goals and momentum is building.  When every day is getting better, you just tell yourself, damn, man every day is getting better.  Are you in momentum? If not get in momentum, even if I’m headed in the wrong direction I’m still moving, I could be lost, but I’m moving fast always. 

I just dropped $4,200 on a programmer for my web 2.0 project, I wasn’t satisfied so I’m going to program it myself, momentum is in the works and things are moving together quicker and quicker every day.  I hope they are for you. If you don’t feel like your making progress, you probably aren’t.  To get different results we have to do different things. 

How to gain momentum, momentum is gained with focus on a specific project.  gain some momentum, once the online money train starts, you will be surprised at the end result.  When we don’t have any momentum we aren’t focused enough to get anything done, and aren’t making any progress. 

I just decided to post this, because I’m in a state of momentum and every day just gets better. To gain serious momentum one must put in tremendous activity, or else you will find negative momentum, we don’t stand still. either going up, or going down, there is really no sideways.  Life is good when you gain momentum, gain some momentum.

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While I’am waiting for some DNS changes on beaverrent [doing a huge update] I’ll go ahead and blog my progress on my goal of $10,000/month by January 1st 2008.

I’m going to make this pretty short because I have a lot of work I need to do: here is income so far this week [Sept 1st- Sept 7th]:

• Adsense: $79.26
• Kontera: ~$13
• Direct Ad Sale: $50
• Prosper: $23
• CPAEmpire: $52
• Credit Card Affiliate: $44
• BeaverRent: $300+
• Text-Link-Ads: ~$10

I’m not going to include any exact figures on BeaverRent, because it is a buisness with other parents and they might not to disclose information but it does make over $1000/month from sales, so I’m putting down $300 for the week.

What does it add up to? I don’t care, I’m short, my affiliate stuff has been increasing to $10+ a day, the goal is to get $1000/month through affiliates by the end of the month which will put me on track.

I almost bought a building this week to, it was a 6 bedroom house, the deal was ready to close accepted offer, and I went to check it out looked good, but found out we could not rent 3 of the rooms legally. So unfortunately I won’t be getting it, we almost had it pre-rented for $1850/month. Which I would have added to my gross income goal towards $10,000/month so unfortunately that fell through and I’ll be looking for another.

here was a picture on what I thought was going to be my 2nd house.  I’m holding 2 fingers with my hand to symbolize the 2nd house, but I won’t be buying it now because the rooms on the left of me, are 3 bedrooms and the city won’t let me rent them out as rented on the MLS.

back to programming.