8/3/2019 The Power of Income Layers (The Intrepid Way)

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The Power of

Income Layers

by Matthew S. Chan

(Excerpt from The Intrepid Way)

Every day someone enters a retailstore to buy a snazzy big-screen television, abank approves a loan for someone to buy ahouse, or a car dealer approves a new leaseon a new car for someone to drive. In thesecases, people understand the power ofborrowing and credit - where you receive

the product today but pay over time.The power comes from allowing

you, as an individual, to buy something thatis worth more than what you currently haveaccess to. In essence, you are buyingsomething today with tomorrows income wherever that income may come from.You accomplish this by making smallermonthly payments to a lender.

I wonder how many people actuallystop to think about why large companies are

so willing to accept small monthly paymentsfrom so many people year after year? Andyet, why is it that individuals always seem towant ALL their money at once instead ofsmall streaming payments?

The answer is because companies arefocused on ongoing business and cash flow by creating huge numbers of streamingincome from their customers! Thesecompanies understand the power offinancing. They will receive more money

over a span of time rather than if they triedto get all of the money from you at once.And there is definitely no shortage of peoplewilling to pay more than the purchase pricefor the privilege of paying over time!

Once a sale is made, the companycontinues to make money off of you formany months and even years to come.

Done on a grander scale, this equates to amassive accumulation of thousands andmillions of income layers that will foreversustain the company.

For example, America Online has

thirty million subscribers in its network.This equates to nearly thirty million incomelayers, at $22+ per subscriber. AmericaOnline does not try to collect an annualsubscriber fee. They are much more contentwith receiving the small $22 per month fromyou. They know that more people arewilling to pay $22 per month rather thancoughing up a lump sum payment of $264each year. You can do the math to see howmuch they receive per month its

staggering!My cell phone company charges amonthly fee instead of an annual fee, despitethe fact that I have agreed to a one-yearcontract. My rent is collected on a monthlybasis and not a yearly basis. These one-yearcommitments allow the companies to createa strong likelihood to receive apredetermined amount of dollars per yearfrom me while they make it financiallyeasier for me by only asking me to pay once

a month.I mentioned that people understandthe power of borrowing and credit because itallows them to get something today by usingtomorrows income. The power comes inmaking it affordable through their monthlypayment to the financing company.

It should be noted that one personsexpense is another persons income.

Person A Expense >>>> Person B Income

The more expenses you have, themore income you are providing to someoneelse. That is the essence of how an economyworks whether it is the local, national, orworld economy.

Conversely, to increase your income,you have to encourage others to spend

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money on your products and services whileproviding good value.

What keeps most employeesgrinding away are the things they focus on.Most employees can see the value of having

expense layers to get what they want today.However, they cannot see the power andvalue of having income layers to get whatthey want in the near future.

Using expense layers to get what youwant reduces your personal wealthand freedom.

Using income layers to get what youwant increases your personal wealthand freedom.

Instead of looking for ways to createincome layers to get what they need toimprove their lifestyles, most employeeslook for ways to create expense layers!

Matthew S. Chan is theauthor of several businessbooks including The IntrepidWay, The TurnKey Investor

Series, and The TurnKeyPublisher Series. In additionto being an author, Matthew

currently oversees the management of hisInternet business, property managementcompany, and publishing firm.

Matthews educational background includes aBachelor of Science in Business Administrationfrom University of Central Florida and a Mastersof Business Administration from WebsterUniversity. Matthew can be found atMatthewChan.com and AscendBeyond.com.