THE
PARABLE OF THE
PIPELINE How Anyone Anyone Can Build A Pipeline Of Ongoing Residual Income In The New Economy
BR!E HE"#E$
You Can Become the Millionaire Next Door! Dear Reader: One hundred years ago, it was virtually impossible for for the the aver averag agee pers person on to beco become me a mill millio iona nair ire. e. Take a look at these lifestyle statistics at the turn of the 2th century. !n "#, the average wage in this country was 22$ an hour. hour. The average average worker worker earned earned between %2 and %& a year, well below the poverty line at the time time.. Only Only '( of all all )mer )meric ican anss had had gradua graduate ted d from from high school school.. *ife *ife e+pecta e+pectancy ncy was was & years years old. Only "&( of the hom homes es had had a bathtub. bathtub. There There were -, cars in the nited /tates and only "&& miles of of paved paved roads. roads. ntil 00!, the average )merican fam family ily sp spen entt - -( ( of thei theirr inco incom me on the the basi basicc necessities of food, shelter, and clothing. !n a word, " years ago, there were basically two econo economi micc classes classes:: Th Thee rich. rich. )nd the rest. rest. Only Only one in " families was upper class or middle class. 0hich means that in "#, #( of the people in the ./. would have been classified as poor.
%iddl iddlee Clas Classs $&ill &ill Li'i Li'ing ng Payc Paych hec ec( ( &o Paychec( 1lash forward " years to 2". The median median family family income today is is %&,. There are are more more cars cars in this this coun countr try y than than peopl people. e. o ost st families families own own at least two two T3s. T3s. *ife e+pec e+pectanc tancy y is l4. Today, day, average average people have have more disposabl disposablee incom ncomee5m 5mo ore leis leisur uree tim time5a e5and more ore career reer options than ever before. 6et most of the nation7s 2 million families are still livi living ng from from pay paychec check k to paych paychec eck. k. Take away away e8uity in the family home, cars, and furniture, and the average average family family has 9ero assets. assets. ;RO< ;RO< 0hile 0hile family income is up, so is family debt and hours spent working. What’s wrong with this picture?
A)e *o *ou Plugged P lugged in&o &he +)ong $ys&em, $ys &em, 0hat7s wrong is that too many people have bought into into the wrong wrong plan. plan. They hey7re 7re plug plugge ged d into into the wro wrong syst system em.. )nd they hey lack ack a fun und dame amenta ntal understanding of how wealth is created and accumulated. !7m going to make a bold statement that may shock you ou.. =ut =ut it is abso absolu lute tely ly,, un une8 e8ui uivo voca call lly y true true.. Ready> The simple, unvarnished truth is that today, becoming a millionaire is a matter of choice, not chance! That77s righ That rightt ? toda today y, virt virtua ually lly any anyon onee earn earnin ing g a middl iddlee clas classs inco incom me can can beco becom me a milli illion onai aire re.. !mpossib !mpossible> le> @ot at all. all. )ctually ctually,, it7s it7s really really 8uite 8uite simple. ii
!f you want to become a millionaire today, all you need to do is follow these three steps: "A 2A CA
nderstand how wealth is created and accumulated Bopycat proven systems of wealth creation =e consistent over time.
That7s it ? that7s all it takes for average people to accumulate a million dollars in assets: nderstanding. Bopying. )nd consistency.
What You Will Learn In This Book !n this book you will learn proven strategies that average people can follow to create true financial freedom for themselves and their families. These strategies are simple to follow and time tested. )ny they have created millions of millionaires over the last 4 years< 1olks, becoming a millionaire is no longer a matter of good fortune. Or good luck. !t7s merely a matter of learning and following proven strategies for wealth creation. !n the words of the bestselling book, The Millionaire Next Door, EThe large maFority of millionaires are not the descendants of the Rockefellers or 3anderbilts. More than 80 are orinar" people who have accumulated their wealth in one generation.G Think about that ? Eore than -( Hof millionairesI are ordinary people.G This statistic iii
proves what ! said earlier ? toa", becoming a millionaire is a matter of choice, not chance! y goal in writing The #arable of the #ipeline is to teach you the strategies the wealthy have used for centuries to create and accumulate wealth. These strategies were once reserved for only the privileged few. ;ven if you knew these strategies back in "#, most likely you wouldn7t have had the cash or the contacts to take advantage of them. That7s not the case today. Today, by virtue of improved technology5 an increase in middle class wages5 and an innovative business model ! call EecompoundingG5virtually any middle class person with a high school education or above can leverage their money, time, and relationships to create personal and financial freedom. =y following the strategies outlined in this book, you, too, can become the millionaire ne+t door. 0elcome to the neighbourhood< 6ours Truly, =urke Jedges
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THE
PARABLE OF THE
PIPELINE
v
The Parable of the Pipeline Jow )nyone Ban =uild a Kipeline of Ongoing Residual !ncome in the @ew ;conomy<
Bopyright 2" by =urke Jedges L /teve Krice
)ll rights reserved under !nternational and Kan )merican copyright conventions. 0ritten permission must be secured from the publisher to use or reproduce any part of this book, either in print, video, audio, or digitally via the !nternet, e+cept for brief 8uotations in reviews and articles. Krinted in the nited /tates of )merica 1irst ;dition Manuary 2" !/=@: "-#"2#4+ Kublished by !@T! Kublishing Tampa, 1* Bover Design: Bherry Design *ayout: =ayou Nraphics
vi
"E"ICATION
To everyone who has the wisdom to become a pipeline builder5and the willingness to share that wisdom with others.
vii
AC!NO+LE"#E%ENT Discipline, determination, focus, and patience are the words that come to mind when ! think of Dr. /teve Krice, who was the backbone to the successful completion of this manuscript. /teve, you7re e+tremely talented and relentless in seeing a proFect through from beginning to end. ! appreciate you, and in my eyes, you7re truly a EKricelessG partner. !7m forever grateful to atherine Nlover, Kresident of !@T! Kublishing. atherine is a leader e+traordinaire, and her input and attention to the details throughout the creation and development of this book were invaluable. ! want to thank Donna orrison for the outstanding Fob she did in creating the easytoread layout. Donna, you7re always a pleasure to work with. ) great big thanks to *i9 cherry and her creative team for their wonderful cover design. Bherry Design hit a home run in conveying the awesome power of residual income. )ny acknowledgement ! make would not be complete without thanking everyone at team !@T!: /andee *oren9en makes !@T! operations run like a /wiss clockP Dee Narrand designed and oversees five of the best websites in the industryP Bindy Jodge not only runs the warehouse efficiently, she does it with a smile on her face and laughter in her voiceP Mewel Karago, B1O, is a computer e+pert and accounting whi9 rolled into one Qwhat would we do without you, Mewel>A.
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*astly, ! want to thank my father for stressing to me when ! was a teenager that in life, pipelines are my lifelines. Thanks for your patience and timeless wisdom, Dad.
i+
BOO!$ B* BR!E HE"#E$
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Who $tole the %merican Dream?
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&ou 'an’t steal $econ with &our (oot on (irst!
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&ou, )nc*
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'op"cat Mar+eting 0
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-ea an .row -ich
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Dream/i1*com
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CONTENT$
+i
FRO% THE "E$! OF BR!E HE"#E$
Your Pipelines Are Your Lifelines!
It7s been 24 years since my father passed away. =ut ! can still remember our early evening chess games like they were yesterday. ! remember helping my father set up the chess board on the verandah of our beach house overlooking the Kacific Ocean off the coast of ;cuador. ! remember watching the waves breaking against the white sand beach. ! remember the fragrance of hibiscus floating on the saltwater mist. ! remember watching the soft yellow sun sink below the steelgrey hori9on. 0e7d play chess until dark. y father would talk. ! would listen. E@ever take anything for granted,G ! remember him saying many times as he ga9ed at the hori9on.
"
F)om P)ince &o Paupe) in One "ay 2Ne3er ta+e an"thing for grante*4 y father was referring to "#4#, the year Bastro took over Buba. Krior to the revolution, my father was one of the richest men in Buba. )ccording to an article in time maga9ine, my father was worth more than %2 million Qwhich would calculate to at least %2 million in today7s dollarsA. Je owned "2 different businesses, including cotton mills, retail stores, a te+tile mill, a chemicalmanufacturing plant, and commercial real estate.
0hen Bastro took over, my parents escaped to Mamaica with Fust the clothes on their backs. y father7s businesses and bank accounts were confiscated for what the communists called Ecrimes against the people.G y father7s only EcrimeG was being successful5 and then taking that success for granted. !n hindsight, he should have moved some of his assets out of the country. Je took it for granted that Bastro would never be able to overthrow the government. y father was wrong. )nd it cost him his fortune.
A P)emoni&ion of Pipelines y father did his best to rebuild his dynasty. =ut a bad economy and a bad heart conspired to prevent his comeback. Je wasn7t bitter in his final days. Je was Fust disappointed that he had run out of time. /o as we played chess, my father did his best to teach me the key principles that enabled him to amass a small fortune while he was still in his &s. 2
y father often lectured me on the importance of owning your own businesses. Ownership meant independence and control. )s far as my father was concerned, the more businesses you had, the better. 2&our pipelines are "our lifelines,4 he would say. ! took my father7s lessons to heart. ! opened my first business when ! was only 24 years old. Today ! own several fastgrowing businesses.
!ronically, one of my companies, ;8uibore, is a pipeline business ? literall"! ;8uibore, installs the underground conduit that EOld ;conomyG utility companies use to house their gas and water pipelines. E@ew ;conomyG telecom companies use the conduit for their fibre optic cables, the pipelines of the future.
%y Rich "ad. His Rich "ad y father was a big believer in diversification. That7s why most of his "2 different businesses were in different industries. E!f you7ve only got one pipeline, then you7ve only got one lifeline,G he7d say as he captured one of my chess pieces. EThe more pipelines you7ve got, the better.G ) few months ago ! came across an audio tape by Robert iyosaki titled, What M" -ich Da Taught Me %bout )n3esting* iyosaki tells a brief story about two young men who were hired to deliver water from a lake to their village a mile away. One of the young men used buckets to carry the water. The other young man built a pipeline. Over the long run, the young man who built the pipeline fared far better than the bucket carrier. C
iyosaki7s audio reminded me of the lessons my father taught me 24 years ago. That evening ! went home and Fotted down " pages of notes for a new book e+plaining the parallel between pipelines and lifelines and urging readers to diversify their income streams by building both shortterm and longterm pipelines. ! titled the book, The #arable of the #ipeline. Three months later ! handed my publisher the manuscript to the book you7re holding in your hands.
Building *ou) Own Pipelines Over the years !7ve taken my father7s advice and built several profitable pipelines. ! don7t own "2 businesses like he did. )nd !7m not worth %2 million yet. =ut !7m working on it. Kipelines are designed to take the worry out of people7s lives by putting profits into their pockets. =ut most of all, pipelines are designed to give people personal and financial freedom and lifelong security. !n short, pipelines are lifelines. y father had his lifelines taken from him by a dictator. )nd he never recovered. Keople in this country are blessed ? we7ll never have our lifelines taken from us by a dictator. Only we can take the lifelines from ourselves. Jow> =y not taking the initiative to build them< Take a lesson from my father ? don7t take it for granted that tomorrow will be Fust the same as today. =ecause it won7t< The only security is the security of a pipeline. ! urge you to start building your pipelines today5so that you7ll have your lifelines tomorrow< &
INTRO"CTION
The Parable of the Pipeline "-", valley in central !taly
O @B; KO@ ) T!; *O@N, *O@N )NO, two ambitious young cousins named Kablo and =runo lived side by side in a small !talian village. The young men were best buddies. )nd big dreamers. They would talk endlessly about how some day, some way, they would become the richest men in the village. They were both bright and hard working. )ll they needed was an opportunity. One day that opportunity arrived. The village decided to hire two men to carry water from a nearby river to a cistern in the town s8uare. The Fob went to Kablo and =runo. ;ach man grabbed two buckets and headed to the river. =y the end of the day, they had filled the town cistern to the brim. The village elder paid them one penny for each bucket of water. 2This is our ream come true!4 shouted =runo. E! can7t believe our good fortune.G
=ut Kablo wasn7t so sure. 4
Jis back ached and his hands were blistered from carrying the heavy buckets. Je dreaded getting up and going to work the ne+t morning. Je vowed to think of a better way of getting the water from the river to the village.
Pa/lo. &he Pipeline %an E=runo, ! have a plan,G Kablo said the ne+t morning as they grabbed their buckets and headed for the river. E!nstead of lugging buckets back and forth for pennies a day, let7s build a pipeline from the river to the village.G =runo stopped dead in his tracks. 2% pipeline! Whoe3er hear of such a thing?4 =runo shouted. E0e7ve got a great Fob, Kablo. ! can carry " buckets a day. )t a penny a bucket, that7s a dollar a day< !7m rich< =y the end of the week, ! can buy a new pair of shoes. =y the end of the month, a cow. =y the end of si+ months, ! can build a new hut. 0e have the best Fob in town. 0e have weekends off and two weeks7 paid vacation every year. 0e7re set for life< Net out of here with your pipeline.G =ut Kablo was not easily discouraged. Je patiently e+plained the pipeline plan to his best friend. Kablo would work part of the day carrying buckets and then part of the day and weekends building his pipeline. Je knew it would be hard work digging a ditch in the rocky soil. =ecause he was paid by the bucket, he knew his income would drop at first. Je also knew it would take a year, possibly two, before '
his pipeline would start to pay big dividends. =ut Kablo believed in his dream, and he went to work.
Pipeline in Progress =runo and the rest of the villagers began mocking Kablo, calling him EKablo the Kipeline an.G =runo, who was earning almost twice as much money as Kablo, flaunted his new purchases. Je bought a donkey outfitted with a new leather saddle, which he kept parked outside his new twostory hut. Je bought flashy clothes and fancy meals at the inn. The villagers called him r. =runo, and they cheered when he bought rounds at the tavern and laughed loudly at his Fokes.
$mall Ac&ions E0ual Big Resul&s 0hile =runo lay in his hammock on evenings and weekends, Kablo kept digging his pipeline. The first few months Kablo didn7t have much to show for his efforts. The work was hard ? even harder than =runo7s because Kablo was working evenings and weekends, too. =ut Kablo kept reminding himself that tomorrow7s dreams are built on today7s sacrifices. Day by day he dug, an inch at a time. 2)nch b" inch it’s a cinch,4 he chanted to himself as he swung his picka+ into the rocky soil. !nches turned into one foot5then " feet5then 25 "5. 2$hort/term pain e5uals long/term gain,4 he reminded himself as he stumbled into his humble hut e+hausted from another day7s work. Je
measured his success by setting and meeting his daily goals, knowing that, over time, the results would far e+ceed his efforts. Eeep your eyes on the pri9e,G he repeated over and over as he drifted off to sleep accompanied by the sounds of laughter from the village tavern. 26eep "our e"es on the pri1e7*4
Completed pipeline The P)i1e
$ $
The Ta/les A)e Tu)ned
Days turned into months. One day Kablo reali9ed his pipeline was halfway finished, which meant he only had to walk half as far to fill up his buckets< Kablo used the e+tra time to work on his pipeline. The completion date was advancing faster and faster. During his rest breaks, Kablo watched his old friend =runo lug buckets. =runo7s shoulders were more stooped than ever. Je was hunched in pain, his steps slowed by the daily grind. =runo was angry and sullen, resenting the fact that he was doomed to carry buckets, day in and day out, for the rest of his life. Je began spending less time in his hammock and more time in the tavern. 0hen the tavern7s patrons saw =runo coming, they7d whisper, EJere comes =runo the =ucket an,G and they7d giggle when the town drunk mimicked =runo7s stooped posture and shuffling gait. =runo didn7t buy rounds or tell Fokes anymore, preferring to sit alone in a dark corner surrounded by empty bottles. -
1inally, Kablo7s big day arrived ? the pipeline was complete< The villagers crowded around as the water gushed from the pipeline into the village cistern< @ow that the village had a steady supply of fresh water, people from the surrounding countryside moved into the village, and it grew and prospered. NO YE
$ $
Once the pipeline was complete, Kablo didn7t have to carry buckets anymore. The water flowed whether he worked or not. !t flowed while he ate. !t flowed while he slept. !t flowed on the weekends while he played. The more the water flowed into the village, the more the money flowed into Kablo7s pockets< Kablo the Kipeline an became known as Kablo the iracle aker. Koliticians lauded him for his vision and begged him to run for mayor. =ut Kablo understood that what he had accomplished wasn7t a miracle. !t was merely the first stage of a big, big dream. 6ou see, Kablo had plans that reached far beyond his village. #ablo planne to buil pipelines all o3er the worl!
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Rec)ui&ing His F)iend &o Help
The pipeline drove =runo the =ucket an out of business, and it pained Kablo to see his old friend begging for free drinks in the tavern. /o, Kablo arranged a meeting with =runo. E=runo, !7ve come here to ask you for your help.G =runo straightened his stooped shoulders, and it pained Kablo to see his old friend begging for free drinks in the tavern. /o, Kablo arranged a meeting with =runo. E=runo, !7ve come here to ask you for your help.G =runo straightened his stooped shoulders, and his dark eyes narrowed to a s8uint. EDon7t mock me,G =runo hissed. E! haven7t come here to gloat,G said Kablo. E!7ve come here to offer you a great business opportunity. !t took me more than two years before my first pipeline was complete. =ut !7ve learned a lot during those two years< ! know what tools to use. 0here to dig. Jow to lay the pipe. ! kept notes as ! went along, and !7ve developed a system that will allow me to build another pipeline5and then another5and another. E! could build a pipeline a year by myself. =ut that would not be the best use of my time. 0hat ! plan to do is to teach you and others how to build a pipeline5and then have you teach others5and have each of them teach others5until there is a pipeline to every village in the region5then a pipeline to every village in the country5and eventually, a pipeline to every village in the world< EMust think,G Kablo continued, Ewe could make a small percentage of every gallon of water that goes through those pipelines. The more water that flows through the pipelines, the more money that will "
flow into our pockets. The pipeline ) built isn’t the en of a ream* )t’s onl" the beginning!4 =runo finally saw the =ig Kicture. Je smiled and e+tended his callused hand to his old friend. They shook hands5and then hugged like longlost friends. Pipeline ")eams in a Buc(e&2Ca))ying +o)ld
6ears passed. Kablo and =runo had long since retired. Their worldwide pipeline business was still pumping millions of dollars a year into their bank accounts. /ometimes on their trips through the countryside, Kablo and =runo would pass young men carrying water buckets. The childhood friends would pull over land tell the young men their story and offer to help them build their own pipeline. ) few would listen and Fump at the opportunity to start a pipeline business. =ut sadly, most bucket carriers would hastily dismiss the notion of a pipeline. Kablo and =runo heard the same e+cuses over and over. E! don7t have the time.G Ey friend told me he knew a friend of a friend who tried to build a pipeline and failed.G EOnly the ones who get in early make money on pipelines.G E!7ve carried buckets all my life. !7ll stick with what ! know.G E! know some people who lost money in a pipeline scam. @ot me.G !t made Kablo and =runo sad that so many people lacked vision. =ut both men resigned themselves to the fact that they lived in a bucketcarrying world5and that only a small percentage of people dared to dream pipeline dreams. ""
PART 3
e Li"e in a Buc#et$Carr%ing orld
"2
ho Are You & a Buc#et Carrier' Or a Pipeline Builder' E=runo, ! have a plan,G Kablo said the ne+t morning as they grabbed their buckets and headed for the river. E!nstead of lugging buckets back and forth for pennies a day, let7s build a pipeline from the river to the village.G =runo stopped dead in his tracks. 2% #ipeline! Whoe3er hear of such a thing?!!4 =runo shouted. from The #arable of the #ipeline
+ho are you>5) bucket carrier>
Or a pipeline
builder> Do you get paid only when you show up and do the work, like =runo the =ucket Barrier> Or do you do the work once and then get paid over and over again, like Kablo the Kipeline =uilder> !f you7re like most people, you7re working the bucketcarrying plan. ! call it the ETimeforoney Trap.G 6ou know the drill: "C
One hour7s work e8uals one hour7s pay. One month7s work e8uals one month7s pay. One year7s work e8uals one year7s pay. $oun familiar?
( )ime$for$Mone% )rap The problem with bucket carrying is that the money stops when the bucket carrying stops. 0hich means the concept of a Esecure FobG or a Edream FobG is an illusion. The inherent danger of carrying buckets is that the income is temporary instead of ongoing. !f =runo woke up one morning with a stiff back and couldn7t get out of bed, how much money would he earn that day> ero< @o work, no money< The same goes for any bucketcarrying Fob. Once bucket carriers have used up their sick days and vacation days, if they can7t continue to carry buckets, they won7t continue to get a paycheck. Keriod.
% No Buc#ets
(
No Pa%
"en&is& Can4& Ca))y Buc(e&s Anymo)e Jere7s a reallife e+ample. y previous dentist was the best dentist !7ve ever had. /he was a complete professional ? a great chairside manner. Nreat personality. Nreat technician ? every visit was "&
virtually pain free. Klus, she loved what she did, and she set her own hours Qher office was open only three days a week so she could spend fourday weekends with her familyA. /he pulled down more than %", a year working three days a week in a Fob she loved. This was a bucketcarrier7s dream Fob if there every was one. One problem. =efore the age of &, she developed arthritis in her hands and couldn7t work anymore. Today she teaches at a local university earning one third of the income she earned as a dentist. Through no fault of her own, her dream Fob disappeared. @ow do you see why ! say there7s no such thing as a secure bucketcarrying Fob> Ban you see how vulnerable bucket carriers are> The problem with the timeforoney Trap is that if you can7t trade the time, you don7t get the money< Kablo the Kipeline an recogni9ed the limitations of bucket carrying early on ? and he set out to create a system whereby he could continue to get paid whether he put in more time or not. Kablo understood that there7s no security in bucket carrying. Je understood that a pipeline is your lifeline. +ha& +ould Happen &o *ou If *ou Couldn4& Pu& in &he Time,
0hat about you ? what would you do if your income stopped tomorrow> "4
0hat would happen if you got laid off>5 0hat would happen if you got sick or disabled and couldn7t carry those buckets anymore> 0hat if a medical emergency ate up your savings> 0hat if your nest egg evaporated overnight> !f your income stopped tomorrow, how long could you pay the mortgage>5make your car payments> 5or pay for your kid7s schooling> /i+ months> Three months> Three weeks><<<<
*ou) Nes& Egg months?
9 months?
9 wee+s?
Kicture missing
!f disaster strikes, do you have a lifeline that would protect you and your family> Or are you gambling that bucket carrying will continue uninterrupted for as long as you need the income> 0hether you push a broom5push paper5or push a profession5, you7re still trading one unit of time for one unit of money. 0here7s the security in that>
Pipelines Pay +hile *ou Play )s Kablo said, 2There must be a better wa"!4 1ortunately, there is. "'
!t7s called a pipeline ? ongoing residual income ? income that keeps coming in whether you put in the time or not. The only way to build true security is to do what Kablo did ? build a pipeline while you7re still carrying buckets< Kipelines are lifelines because they enable people to escape the Timeforoney Trap. 0hen you build a pipeline, you do the work once, but you get paid over and over again. Kipelines are open 2&SSC'4. 0hich means pipelines can pay you while you sleep. Or while you play. Or while you7re retired. Or while you7re sick and disabled and can7t work. Or during emergencies. That7s the power of residual income. That’s wh" ) sa" "our pipelines are "our lifelines!
Pipelines ( Lifelines *esidual +ncome % %
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e Li"e in a Buc#et$Carr%ing orld E0e7ve got a great Fob, Kablo. ! can carry " buckets a day. )t a penny a bucket, that7s a dollar a day. !7m rich< =y the end of the week, ! can buy a new pair of shoes. =y the end of the month, a cow. =y the end of si+ months, ! can buy a new hut. 0e have the best Fob in town. 0e have weekends off and two weeks7 paid vacation every year. 0e7re set for life< Net out of here with your pipeline.G from The #arable of the #ipeline
) doctor driving his fouryearold daughter to daycare left his stethoscope on the car seat. The daughter reached over and started to play with it. Eay daughter wants to follow in my footsteps,G the doctor thought to himself. EThis is the proudest moment of my life.G The child arranged the stethoscope around her neck and held the sensor in front of her like a microphone. ,elcome to McDonald-s. Ma% + ta#e %our order'/
This cute story illustrates why we gravitate to bucketcarrying Fobs ? it7s called Emonkey see, "-
money do.G The little girl had been to cdonald7s so often that she mistook the stethoscope for a headset and copycatted the way the employees talked to customers. *ike the little girl, most people mistake bucket carrying for pipeline building. 0e observe that ##( of the people carry buckets. /o we naturally assume that bucket carrying is the only way to get what we want in life. Buc#et Carriers "s. Pipeline Builders
35
##(
:i3ing #a"chec+ To #a"chec+
;ngoing -esiual )ncome
That7s why =runo had such a tough time understanding the power of pipelines ? Kablo was the first pipeline builder =runo ever knew< =runo reFected pipelines because they were different. To =runo, pipelines were unproven. To =runo, pipelines were radical and risky. The vast maFority of people think like =runo. 0e grow up surrounded by broke bucket carriers, so we figure that7s the way of the world. !t reminds me of the bumper sticker ! saw recently: 00,000 lemmings can’t be wrong! Keople think the same about bucket carrying ? 00 million buc+et carriers can’t be wrong! Well, "es, the" can*
"#
Lemming Mentalit%
Kicture missing
Buying in&o Buc(e& Ca))ying
*et7s face it ? there are a lot more bucket carriers in this world than there are pipeline builders. 0hy> =ecause bucket carrying is the model that our parents followed and the one they taught us to follow. The bucketcarrying model tells you that in a bucketcarrying world, there7s what you have to do to get ahead: No to school and learn how to carry buckets. 0ork really hard. ;arn the right to carry bigger buckets. Resign from =ucket company ) to work for =ucket Bompany =, which lets you carry even bigger buckets. 0ork longer hours so you can carry more buckets. Kut the kids through bucketcarrying college. Bhange careers from carrying metal buckets5to carrying plastic buckets5to carrying digital buckets. Dream of the day you can retire from bucket carrying. ntil then, carry those buckets. Barry those buckets5 0hat do all those bucket carriers earn for their efforts> /urprisingly little. 2
)ccording to #arae maga9ine7s annual E0hat Keople ;arnG survey, the average worker in )merica earns %2-,4 a year. /ubtract almost 2( for ta+es, and that leaves %22,4 to live on. *et7s face it %22,4 takehome pay isn7t enough money to cover the basic needs for a family of four. 0hich means the vast maFority of people are desperate for more money< Buc(e& Ca))ie)s4 A'e)age Pay
6 789.:;;
Buc(e&s on Pa)ade
/o what do bucket carriers do when they need more money> =ecause they have a bucketcarrying mentality, they come up with a bucketcarrying solution ? if you need more money, you7ve got to carry more buckets< 2)’ll get a secon
Today, @orth )mericans work the longest hours in the world, even more than the workobsessed
2"
Mapanese. !s the earnmoremoneybycarrying morebuckets plan working> !n a word, E@O
Bonsumer debt is at a record high. Jousehold debt in the ./. has more than 8uadrupled in the last " years. The average household today has #4$ of debt for every dollar of disposable income.
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The proportion of women working to support their families more than doubled over the past 2 years, from "#( in "#- to &'( today.
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ore and more people are taking second and third mortgages on their single biggest asset ? their homes ? to pay bills.
•
Kersonal bankruptcies have increased every year to ".&million in the year 2 ? even though the economy is booming<
=ello/o/o/o! 0hat7s wrong with this picture> The fallacy of Ca))ying Bigge) Buc(e&s
=ucket carriers reason that bigger buckets mean bigger paychecks. /o bucket carriers tell themselves that everything would be okay if they could Fust get a Fob carrying bigger buckets. =ucket carriers are forever wondering how much other bucket carriers earn. The ./. =ureau of *abor statistics keeps track of the hourly wages of hundreds of different occupations. Jow does your hourly wage compare to other Fobs> 22
Hou)ly +age Qfrom ./. =ureau of *abor /tatisticsA Fast-food cook ………….…….. Gas station attendant ………... Janitor …………………….…… Retail Salesperson …………… Secretar! ………………………. Roofer ………………………….. "ar #ecanic …………………. %r&ck dri'er ……………………. Fire-fi)ter ……………………... +ail carrier …………………….. ,oan officer ……………………. "o#p&ter pro)ra##er ……….. "e#ical en)ineer ……………. !sicist ……………………….. ,a!er …………………………. /entist ………………………….. !sicians0 S&r)eons …………
$ 6.29 $ 7.34 $ 8.44 $ 9.2 $ .86 $ 3.63 $ 3.97 $ 4.(8 $ *.63 $ 6.39 $ 2(.(* $ 2*.67 $ 29.44 $ 33.23 $ 36.49 $ 44.4( $ 49.(*
)ssuming most people get paid for & hours a week Qeven though they probably wor+ at least >0 hours a wee+7 or more! and get two weeks7 paid vacation each year, here7s the annual income for five of the above occupations:
Annual Income . 2. 3. 4. *.
"ook ……..………….……… Retail salesperson ………... +ail carrier …………….…… ,a!er………………………. !sician ……………………
2C
$ 30(83 $ 8097( $ 340(9 $ 7*0899 $ (20(24
@ow, if you were a cook5 or a retail salesperson5 or a mail carrier, you might look at the annual income of a lawyer or physician and think, E0ow, if ! made that kind of money every year, !7d be financially free< @o more lying awake at night worrying about paying the bills
<=!
3;8!
89! A'e)age Pe)son
Lawye)4s Income
"oc&o)4s Income
True, the physician7s bucket is a lot bigger than a cook7s bucket ? about " times bigger< =ut that doesn7t mean the physician is financially independent. Je7s Fust as dependent on his bucket carrying Fob as the cook or the mail carrier. 0hy> /imple ? professionals make more than the average worker. =ut they spend more< Truth is, the doctors or lawyers making si+ figures a year are spending most of their income to support their lavish lifestyles. Must compare an average worker7s e+penses to a professional7s: The average worker drives a %4, used car. The doctor or lawyer drives a %&4, *e+us. The average worker sends their kids to free public school. The doctor or lawyer pays for private school. The average worker owns a %4, home. The doctor or lawyer owns a %C4, home. 2&
The average worker eats at Ki99a Jut once a week. The doctor or lawyer takes the family skiing in 3ail every year. The average worker plays golf at a public course. The doctor or lawyer belongs to an e+pensive country club5 or two. 6ou get the picture. Keople envy doctors and lawyers and accountants because they get to carry huge buckets. True, the physician7s bucket may be " times bigger than the cook7s. =ut the physician spends " times more, so they both end up in the same predicament ? living paycheck to paycheck< Doctor7s !ncome
Doctor7s Outgo
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Buc(e&s E'en&ually ")y p
Thomas M. /tanley and 0illiam D. Danko, authors of the bestseller The illionaire @e+t Door, observed that carrying big buckets is not the same as creating wealth. The authors came to this reali9ation by surveying people who lived in upscale neighborhoods, assuming that people who drove e+pensive cars and lived in e+pensive homes were wealthy. OOK/< ? wrong assumption< /tanley and Danko came to this startling conclusion about wealth creation: 24
2Most people ha3e it all wrong about wealth in %merica* Wealth is not the same as income* )f "ou ma+e a goo income each "ear an spen it all, "ou are not getting wealthier* &ou are
!n other words, buckets, no matter how big they are, will eventually dry up. Kipelines, on the other hand, are selfsustaining. =ut pipelines re8uire a sacrifice. Kipelines don7t build themselves. 6ou have to take the time and make the effort to build them. E"entuall% All Buc#ets Dr% 0p
Kicture missing
A'e)age Income
Lawye)4s Income
"oc&o)4s Income
Pipelines !eep Pumping
A Bigge) Buc(e& +on4& $ol'e &he P)o/lem
2'
;verybody would love to increase the si9e of their bucket. @o one7s going to turn down an annual raise or a better Fob with more pay. !f bucket carrying is your only source of income, they ! say carry the biggest bucket you can. That7s only common sense. =ut the fact remains that carrying buckets is never going to make you financially free. Barrying buckets will never make your family safe and secure ? no matter how big your buckets< 0hy> =ecause as long as you carry buckets, you have to show up and do the work in order to get paid. The day you stop carrying buckets, that7s the day the money stops coming in< • • •
Illness o) In>u)y Layoffs Re&i)emen&
an7s bucket carrier has gone from the Emillionaire ne+t doorG to the Ebankrupt guy ne+t doorG because he neglected to build pipelines while he was carrying buckets. 0hen his bucket dried up, so did his lifestyle. EKipelines are your lifelines,G my father used to say. )re you beginning to see why>
2
PART 2
Your Pipelines Are Your Lifelines
2-
)he Po1er of the Pipeline =ut Kablo was not easily discouraged. Je patiently e+plained his pipeline plan to his best friend. Kablo would work part of the day carrying buckets and then part of the day and weekends building his pipeline. Je knew it would be hard work digging a ditch in the rocky soil. Je also knew it would take a year, possibly two, before his pipeline would start to pay big dividends. =ut Kablo believed in his dream, and he went to work. from The #arable of the #ipeline
This is the tale of two polar opposites ? a bigtime baseball player and a small town elementary school teacher. They couldn7t be more different ? one was a young man and one was an elderly woman. One was paid millions a year and the other never earned more than %<,. One lived his life in the spotlight. The other lived her life in a small town in assachusetts. =ut these were only small differences compared to the personal and financial choices each made. 6ou see, one of the people you7re going to read about built pipelines and retired a multimillionaire. The 2#
other stayed a bucket carrier and, as ! write this, is teetering on the brink of bankruptcy. The stories are about two very different people, but that7s not what7s important. 0hat7s important is the choices they made and the lessons you can learn from those choices. )fter you hear these two tales, it should be crystal clear why building pipelines is the only way to create true security and true financial freedom.
Your Choices 1rustration
1reedom
The Ballad of &he Ball Playe)
*et7s begin with the tale of the famous baseball player. Over the years, this talented athlete has made some bad choices, both personally and financially. Jis personal choices have led to a broken marriage, alcohol abuse, and drug addiction. That7s bad enough. =ut his financial choices have been Fust as bad, for he7s also broke. !7m sure you7ve heard of this athlete. Je7s been in the spotlight for almost 2 years now. Jis name is Darryl /trawberry. Jis story is a cautionary tale for what you should @OT do in order to achieve financial freedom. Darryl /trawberry has been playing professional baseball for almost half of his life. The C-yearold outfielder broke into the maFor leagues when he was C
still a teenager and was immediately hailed as the Ene+t Ted 0illiams.G /trawberry has made a fortune during his career ? somewhere between %2 and %4 million a year. )nd that7s Fust from playing baseball. )dd another couple million a year from endorsements, personal appearances, speeches, and autograph signings, and he7s earned %4 to %" million before his & th birthday. $&)aw/e))ies "on4& Field Fo)e'e)
) guy making that kind of money ahs to be set for life, right> 0rong. )ccording to a local newspaper report, E/trawberry has no income or savings to support his current wife, Bharisse, and their three children5G %" million and not a thing to show for it. 0hat happened> Je spent it. ;+pensive houses. ;+pensive cars. ;+pensive lawyers to defend his runins with the law. ;+pensive divorce. ;+pensive drug and alcohol rehabilitation clinics. )s ! write this, /trawberry has been suspended from playing baseball. 0hich means he has no income coming in. the only thing still coming in are the bills. )nd they come in day after day, month after month, as steady as the rain in a monsoon.
C"
Kicture missing
=ig !ncome
=igger Outgo
How &o Become &he %illionai)e Ne?& "oo)
The second tale has a much different ending. !t7s the tale of a small town teacher named argaret O7Donnell, and it proves that you don7t have to carry big buckets in order to build big pipelines. s O7Donnell taught school for more than 4 years. 0hen she retired in her s, she was making around %-,4 a year. 0hen she died at age ", she left almost %2 million to " different charities, including her church, schools she attended, and a =oy /cout troop. Jow could a woman earning less than %", a year accumulate a small fortune> /imple. /he built a longterm investment pipeline by making regular monthly investments in 8uality stocks and allowing them to compound over time.
Building Long$)erm Pipelines toc#s2 Bonds +n"estments
@ Little +ncome
( Prosperit%! Pipeline
C2
Eargaret enFoyed stocks,G said her broker, =ob 0olanske. EThe first time ! met her, she threw three papers on my desk and said, U0hat should ! do with these dogs>,7 referring to some stocks that weren7t doing well.G Over the ne+t 2 years, argaret7s portfolio bloomed to include a collection of blue chip stocks, ta+e+empt bonds, and utility stocks that she held luntil her dealth. /he rarely touched any of her investments, enabling her retiremnt pipeline to grow lyear after year aafter year. $mall $ac)ifices. Big Resul&s
@ow, in case you7re thinking that argaret was one of those pennypinching spinsters who clipped coupons and saved used tea bags, you7d be wrong. /he ate out often with friends. Drove a latemodel =uick. )nd fre8uently flew to ;urope to enFoy long vacations. /he didn7t deny herself the pleasures of life. =ut she also showed discipline and restraint in her spending. )nd she saved and invested each and every month, even in retirement. 6ou see, argaret was the classic e+ample of a longterm pipeline builder. /he started saving and investing in her early 2s. and she continued right up until her dealth at age " Qas you7ll learn in the coming chapters, pipelines grow higger and bigger over timeA.
CC
#)owing *ou) Pipelines """ yr.
4 yr.
" yr.
24 yr.
4 yr.
*ike Kablo, pipeline builders may not have much to show for their efforts during the first few days or even years. =ut consistent, disciplined efforts over time can transform small contributions into huge dividends. Pipelines !eep Pumping Af&e) Buc(e&s Run ")y
@ow do you understand what ! mean when ! talk about the power of the pipeline> Darryl /trawberry has carried a huge bucket for years. )nd what does he have to show for it today> @othing but bo+es of cancelled checks< /trawberry has had 2 years to build pipelines. !f he had taken Fust "( of his earnings and put the money to work by building an investment pipeline in the stock market, he could7ve had a lifeline worth between %2 million and %" million by now. =ut he didn7t. Missed Opportunit%
No Pipeline Means No residual +ncome
/trawberry assumed his big bucket would never dry lup. 0rong assumption. =uckets don7t automatically replenish themselves, no matter how C&
big they are. That7s because the bucket carrier has to lug the bucket to get it refilled. 0hen he stops lugging ? either through retirement5or illness5or inFury5or burnout ? the bucket starts drying up. Kipelines, on the other hand, keep pumping profits long after buckets run dry. That rule holds true for big bucket carriers, Fust as it does for small bucket carriers. )s ! said, it7s not the si9e of the bucket that counts. Keople with lbig buckets tend to be big spenders. The key to financial freedom is to adopt a pipeline building mentality ? and then to put lyour pipeline plan into action<
Big Bucket Model
Big 3uc#et
Big expenses
mall assets
The $malle) &he Buc(e&. &he Bigge) &he Need fo) a Pipeline ;arning a lot of money doesn7t guarantee financial independence. Only pipelines can do that. !f you don7t adopt a pipeline strategy, your bucket will eventually dry up< ! tell you the story of Darryl /trawberry to e+aggerate a point ? namely, if a bucket as big as Darryl strawberry7s can dry up, what about yours>
C4
Think about it. /trawberry lived from paycheck to paycheck. What about "ou? /trawberry acted as if his bucketcarrying days would never end. What about "ou? /trawberry foolishly spent money and wasted time lwhen he could have been using it wisely to build a lifeline. What about "ou?
hat A3out You'
/ure, /trawberry made some bad choices that cost him a lot of money. =ut his worst financial choice was his failure to build pipelines. That7s unforgivable< 0hat was he thinking> argaret O7Donnell, on the other hand, had the wisdom to build pipelines while she was still carrying buckets. 0hen her bucketcarrying days came to an end, her pipelines kept pumping and the cash kept flowing. I&4s *ou) Tu)n &o Choose
@ow ! ask you, which financial situation would lyou rather be in ? Darryl /trawberry7s> Or argaret O7Donnell7s> !f the answer is argaret O7Donnell7s, then you need to start building your pipelines right away< C'
Kipelines are lifelines because they7re self sustaining. They may need priming from time to time. )nd repairs. Kerhaps even rebuilding. =ut pipelines can keep pumping profits year after year.
Your Choice Kicture missing
,Your choices2 not chance2 determine %our destin%./
=oth Darryl strawberry and arget O7Donnell had a choice. Darryl /trawberry chose buckets. argaret O7Donnell chose pipelines. They made their choices. @ow it7s your turn to choose.
C
LE$$ON FOR
Le"erage4 )he Po1er Behind the Pipeline One the pipeline was complete, Kablo didn7t have to carry buckets anymore. The water flowed whether he worked or not. !t flowed while he ate. !t flowed while he slept. !t flowed on the weekends while he played. The more the water flowed into the village, the more the money flowed into Kablo7s pockets< from The #arable of the #ipeline
Leverage is an awesome concept ? a civili9ation altering concept. !n fact, without leverage, you wouldn7t be holding this book right now< *et me e+plain. !n "&&, a young Nerman entrepreneur named Mohannes Nutenberg converted a wine press into the world7s first commercial printing press. Je printed "- copies of the .utenberg ible and sold them all within a few days. Nutenberg7s printing press was an immediate success. 0ithin decades, printing presses had sprung up all over ;urope. =y the mid"'s, there C-
were eight million printed books circulating in ;urope, which was " times the number of books that had been produced during the previous thousands of years combined<
Boo(s /y Buc(e& Ca))ie)s 's Pu/lishing /y Pipeline Builde)s The Nutenberg press shattered the booksbybucket carriers paradigm. Krior to Nutenberg, books were handcopied by scribes and monks. One hand written book could take years to produce and were so e+pensive that only royalty could afford them. Nutenberg changed all that. 0ith the printing press, the printer set the movable type once5 and then could easily produce thousands of e+act copies. The printing press leveraged the printer7s time and money, thereby dramatically increasing productivity. !n the booksbybucketcarriers model, there7s a onetoone ratio between efforts and results. One hour7s effort produces one hour7s result. !f it took one scribe one day to hand copy one page, then it would have taken him " days to turn out " pages. Boo(s /y Hand %odel
;nter the printing press ? the pipeline building model. *et7s say it took a "'th century printer one day to
C#
/et the type for one page, so that by the end of the day, he would have produced Fust one printer7s proof copy. =ut look what happened in day two: The printer came into work and 5 hour ( 566 pages pressed " copies< !n other words, a printer could produce in two days what it would have taken the scribe " days to produce. That is the power of leverage<
Printing Press Model
!n the pipelinebuilding model, the ratio between effort and result is no longer ":". 0hen we use leverage, the effort remains the same, but the result can be " times greater5 ", times greater5 or even millions of times greater< Two !inds of Le'e)age Time and %oney
The root word for leverage ? le3er ? comes from an old 1rench word meaning Eto make lighter,G which is an apt description of the power of leverage. =y employing a lever, a big load can be made so light that a child could easily move it.
0hen we apply the principle of leverage to time and money, the same thing happens ? the results are compounded. &
1or e+ample, in the case of leveraging time, one hour7s effort can result in " hours of production. One week7s work can result in one year7s production. 3;; hou)s Resul&
3 h) A E ff o )&
!n the case of leveraging money, each dollar invested over time can compound until it grows to many times the initial investment.
Kicture missing
7566 *esult
75 +n"estment
Classic E?amples of Le'e)age
The printing press is an e+ample of how people can leverage their time, money, and efforts. *everage shatters the e8uation of one unit of time for one unit of money. *everage allows people to work smarter, not harder, and it7s the power behind every pipeline. Le'e)aging Time Jiring employees is a classic e+ample of how people can leverage their time. *et7s say you want to open a restaurant. !t would be impossible for you to act as the host5 waiter5 chef5 dishwasher5 and bookkeeper and still run a profitable business. 6ou can only be in one place
&"
at a time, so you fire people to perform certain tasks. !f you pay your "person staff an average of %" per hour, you7re paying out %" an hour in wages. !f your restaurant takes in an average of %", per hour in revenue, the difference after e+penses goes into your pocket.
Le"eraging )ime in a mall Business 3; hou)s o) mo)e
3 ho u)
Le'e)aging %oney ) classic e+ample of leveraging money is investing in the stock market. @o doubt you7ve heard of 0arren =uffett. Je7s a living legend on 0all /treet and the second or third richest man in the world. Je built his fortune the oldfashioned way ? he leveraged other people7s money and made himself and his investors rich in the process.
Jow rich> Bheck this out. !f you had invested %< , in =uffett7s =erkshire Jathaway stock back in "#'4 and left it where to grow year after year, by "##- your investment would have been worth ? hang on to your hat @> million! 0ow< Jow would you like to own that pipeline><< Thirtyfive years ago, one share of =erkshire Jathaway stock cost only %"#. =y the end of "##-, that single share was worth about %,. 0hich means that you could have leveraged a %C &2
investment in nbelievable<
"#'4
into
%"
million
today<
Le"eraging 7 in Ber#shire 8atha1a% Kicture missing
75 million *esult
7966 +n"estment
toc#
Pipelines A)e +o)&h Building
@ow do you understand the power of leverage> =erkshire Jathaway stock is living proof that with leverage, the results are disproportionate to the effort< Think about it ? how much effort would it have taken to accumulate %C back in "#'4> Two or three days7 work5 maybe a week7s work at the most. Must imagine ? one the %C was invested, you wouldn7t have to do any more work because your pipeline was already built. The only other work you7d have to do is check the stock prices in the newspaper every now and then. )sk yourself ? wouldn7t it be great if you could turn %C into %" million without having to lift a finger>
&C
Ban you see how the wise use of leverage can multiply a little money or a little time a thousand times over> Doesn7t it make sense to find a mechanism whereby you could leverage %" into %">5 or one hour into " hours> 0ouldn7t it be great to do the work once and let leverage do the rest< 1olks, if you7d like to enFoy the benefits of leverage, then you need to do what pipeline builders such as Kablo and 0arren =uffett did ? find a mechanism to leverage your time and money today5 and enFoy a big reward tomorrow<
Resul&,
*ou) Time %oney
Your Mechanism'
&&
LE$$ON FIDE
Mone% Le"erage4 )he Palm Beach Pipeline EMust think, think,GG Kablo conti continued nued.. E0e E0e could could make a small percentage of every gallon of wate waterr that that go goes es thro throug ugh h thos thosee pipe pipeli line nes. s. Thee more Th ore wate waterr that that flow flowss thro throug ugh h the the pipelines, the more money that will flow into our our pockets. pockets. The pipel pipeline ine ! built built isn7t isn7t the end of a dream. !t7s only the beginning
Legend has it that one of the ancient emperors of Bhina fell in love with a new game called Echess.G The emperor decided to reward the game7s creator. Je summoned the inventor to the royal palace and announced to the court that the inventor would be granted one wish. E! am hono norred, ed, 6our Jig Jighness ness,G ,G the invent vento or muttere muttered d humbly humbly.. Ey wish wish is that that you grant grant me me one grain of rice.G startled ed empe emperor ror 2Aus 2Austt one one grain rain of rice rice?4 ?4 the startl asked. E0e E0ell, ll, Fust Fust on onee grai grain n for for the the firs firstt s8 s8ua uare re of the the chessboar chessboard,G d,G the inven inventor tor said. said. EThen EThen doubling doubling to to two grains for the second s8uare5 four grains for &4
the third s8uare5 and so on until the single grain has been doubled doubled for the entire chess board. board. That is my simple wish.G The emperor emperor was well pleased. pleased. E! have have been given such a wonderful game at such a cheap price,G he thou though ghtt to himsel himself. f. Ey Ey ances ancesto tors rs have have sm smil iled ed upon me today.G today.G E!t E!t is done< done
) graph missing
The onlookers laughed and nudged each other as the first row of eight s8uares was filled5 "5 25 &5 "'5 C25 C25 '&5 "2- grains grains of rice. =ut the giggles soon gave way to gasps by the middle of the second row, for small piles of rice soon doubled to small bags of rice5 which doubled to mediumsi9ed bags of rice5 which doubled again to big bags of rice. &'
) graph missing
=y the end of the second row, the emperor knew he had made made a huge huge mistake. mistake. The grain grainss owed to the the inventor totaled C2,'- ? an there were B8 s5uares remaining! The emperor stopped the game and called in the land land77s wise wisest st math mathem emat atic icia ians ns.. Th They ey tosse tossed d the the beads of their abacuses and made made hasty markings on slate boards. )fter much fussing, the mathematicians mathematicians reached a unanimous conclusion: ) grain of rice doubled for every s8uare on the '& s8ua s8 uare re ches chesss bo boar ard d woul would d calc calcul ulat atee to 8 million trillion grains of rice C a 5uantit" e5ual to all the rice in the worl multiplie b" 0! The emperor halted the demonstration and made the inventor an offer he couldn7t refuse ? if the emperor were released from his word, the inventor would receive a country estate with hundreds of acres of fertil fertilee rice fields. fields. Th Thee invento inventorr gladly gladly accepte accepted. d. ;very ;v eryone one toaste toasted d the invent inventor or and congr congratu atulat lated ed him on his wisdom and and cleverness. cleverness. )nd he happily happily retired to his estate, enFoying many, many years in splendid comfort. The "ou/lin "ou/ling g Concep& Concep& Eigh&h Eigh&h +o +onde) of of &he +o)ld &
The story of the emperor and the inventor teaches us the power of the doubling concept. This concept has been around since the first bank paid the first wealthy merchant interest on a deposit, so it7s time tested and proven. The inventor and the emperor7s mathematicians may have been the first people to recogni9e the power of duplication, but they certainly weren7t the last. Benturies later another famous mathematician named )lbert ;instein recogni9ed the awesome power of duplication, or Ecompounding,G as it7s sometimes referred to, calling it Ethe eighth wonder of the world.G The doubling concept has become such a cornerstone of wealth creation that ! call it Gthe Kalm =each Kipeline,G named after the rit9y city in 1lorida where hundreds of the world7s richest heirs own sprawling estates overlooking the )tlantic Ocean. The rich people in Kalm =each don7t have to work for money. The" ma+e mone" wor+ for them! Jow> They invest large amounts of inherited money in pipelines that churn out huge profits year in and year out, whether the investors work or not. Kalm =each Kipelines are fueled by the doubling concept, which means the lucky heirs can enFoy a fabulous lifestyle5 while they get richer in the process< That7s what ! call having your cake and eating it, too.
The Rule of <8 The Rule of &he Rich
&-
To better understand how rich people get richer, let7s take a look at EThe rule of 2,G a mind boggling wealthbuilding concept that the world7s top investment brokers teach their rich clients. The Rule of 2 is a simple formula for calculating how many years it would take for an investment to double. Jere7s the way it works. "ou/ling Concep& o) Rule of <8 "A Determine the annual interest rate on your investment 2A Divide the interest rate into 2 CA The result is the number of years it takes for your investment to double
1or e+ample, let7s say an heiress invests %", in a stock that pays an annual return of "( per year. Jere7s the Rule of 2 in action: Rule of <8 in Ac&ion /tep ": /tep 2: /tep C: Krofit:
%", original investment "( annual return 2 divided by " .2 years %", would become %2, in .2 years
!f the heiress didn7t spend the profits or her principle, the original investment of %", would double to %2, in .2 years5 to %&, in "&.& years5 to %-, in 2".' years5 and %".' million in 2-.- years5 and on and on. )s you can see, the longer the money is allowed to compound, the bigger the si9e of the pipeline.
=y leveraging the power of compounding, people who inherit milliondollar fortunes can live like &#
royalty and still leave an even bigger fortune for their children< The magic of compounding is the reason that thousands of heirs named ennedy5 DuKont5 1irestone5 1ord5 Rockefeller5 and Netty can continue to live a life of lu+ury without their fortunes drying up. !n effect, their bucket never runs dry because the pipeline keeps pumping year after year, for decades, or in the case of the Rothschild heirs in ;urope, for more than two centuries< !ids and %oney
1ortunately, pipelines built by leveraging money aren7t reserved Fust for rich people. )verage people can take advantage of the doubling concept, too, as we learned from the story about argaret O7Donnell, a lowpaid school teacher who amassed several million dollars by leveraging her money in the stock market. /o, how do average people leverage their money to create a longterm pipeline> The best way to answer that is to tell you about a powerful little book called 6is an Mone" by ichael M. /earls. )ctually, the book could be titled Keople and oney, because the principles outlined by /earls apply to young and old alike. /earls, a former power broker on 0all /treet and father of four, recommends a simple system to teach kids to manage their money more responsibly. Je suggests that parents get three plastic Fars and label Far one Espend L give,G Far two Esave,G and Far 4
three three Einvest Einvest.G .G 0hen 0hen paren parents ts give their their childr children en their allowance for the week, they divide the money e8ually into the three Fars.
:ids ; Mone% %stem 7
7
$pend #i'e
7
$a'e
In'es&
The Espend and giveG Far is for immediate spending ? bubble gum, baseball cards, etc. !t7s !t7s also money to be used for tithing and charity. The Esav The EsaveG eG Far Far is for for sp spen endi ding ng on bigg bigger er tick ticket et items, such as a new BD or video game. The EinvestG Far differs from the first two in that it7s not for spending. ;ver. ;ver. /earls calls this Far E5the mos ostt impo import rtan antt comp compon onen ent, t, beca becaus usee if we do don7 n7tt have something to put away for a rainy day, the threat of debt will always hover above our heads.G )dults )dults who are seriou seriouss about about buildi building ng longt longterm erm investment pipelines need to start managing their money according to a threeFar system. =ut instead instead of putting their money into Fars, they should put it into bank and brokerage accounts.
Adults ; Mone% %stem 7
74"
7
$pend #i'e
$a'e
Monthl" Expenses Bar payment 1ood L housing 1un ;tc.
Ma
• • • •
In'es&
•
•
•
•
•
•
•
•
#ipelines /tocks L bonds !R)s Real estate ;tc.
Pay *o *ou)self Fi)s&
The key to leveraging your money like rich people do is to Epay Epay you ours rsel elff firs firstG tG by maki making ng regu regula lar r monthly mon thly contribu contribution tionss into investme investment nt accounts accounts ? and then leaving the money to compound< The best way to fund your investment pipelines pipelines is to take some money out of your income bucket each month and deposit it into your pipelines.
Building a Long$)e Long$)erm Pipeline Kicture missing
How A'e)age People Become %illionai)es
Too bad we weren7t able to choose rich parents ? then then we woul wouldn dn7t 7t have have to worr worry y abou aboutt Efor Eforce ced d savings plansG and automatic payroll deductions. =ut the truth is, the vast maFority of millionaires in this country country didn7 didn7tt inherit inherit their fortune fortunes. s. /tatistics /tatistics 42
show that four out of five millio lionaires never inherited more more than %",. =ut what they did do was copy the investment strategies of the Rockefellers Rockefellers and the ennedys. )n a wor, wor, self/mae millionaires millionaires le3erage their mone" to buil their own #alm each #ipelines! Jow> =y using using the Ethree Ethree Far systemG systemG ? instead instead of of spending every dime they make, they put aside a big chunk of their income in the Einvest Far,G and let it compound year after year.
Typically, millionaires save "4( to 2( of their gross income and invest it wisely in assetbuilding pipelines, such as stocks, bonds, closelyheld businesses, rental property, property, commercial real estate, pension funds, funds, and the like. That7s why most millionaires don7t hit the million dollar mark until they7re in their 4s or 's ? it can take decades before compounding really kicks into high gear. gear. Ten thousand dollars dollars at "( doubles doubles to %2, after seven years5but in 4 years it will double seven times, which calculates to almost @*9 million!
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If *ou "on4 "on4&& Ha'e Ha'e &h &hee %one %oney y. +h +ha& a& "o *ou Ha'e &o Le'e)age,
0ouldn7t it be great to be a millionaire> 6ou can, you know. )nd you you don7t have to win the lottery to do it. 4C
The illionaire7s Blub used to be a very e+clusive club. 6ou had to be born into the right family. No to the right schools. That7s not the case anymore. Today, average people can Foin the illionaire7s Blub, too. !t7s open to anyone with the discipline to invest a regular portion of their income and let it compound over time. =ut let7s face it ? not everyone has the patience to spend & or 4 years building their retirement pipeline. )nd not everyone has the money to build a Kalm =each Kipeline overnight. 0ouldn7t it be great if there were a 4year pipeline plan whereby average people could create ongoing residual income without having to invest a small fortune> 0ell, there is a 4year pipeline plan available. =est of all, you don7t need lots of money to build this pipeline. =ecause instead of leveraging your money5 "ou le3erage "our time!
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LE$$ON $IG
)ime Le"erage4 )he People-s Pipeline 0hile =runo lay in his hammock on evenings and weekends, Kablo kept digging his pipeline. The first few months, Kablo didn7t have much to show for his efforts. The work was hard ? even harder than =runo7s because Kablo was working evenings and weekends, too. =ut Kablo kept reminding himself that tomorrow7s dreams are built on today7s sacrifices. Day by day he dug, an inch at a time. from The #arable of the #ipeline
There7s an old )ppalachian e+pression that sums up the difference between money leverage and time leverage. !t goes like this: There are two wa"s to get to the top of a giant oa+ tree* &ou can sit on an acorn an wait* ;r "ou can climb it*
0hen people leverage their money over decades to build pipelines, they7re choosing to sit on an acorn and wait. ! call this the E46ear Kipeline Klan.G This is what compounding is all about ? waiting patiently while your money doubles again and again over the years. 44
There7s no 8uestion that the 46ear Kipeline Klan works. Remember how argaret O7Donnell7s pipeline transformed her from a underpaid teacher to a multimillionaire><<< *ike argaret O7Donnell, !7m also a big believer in building longterm pipelines. Over the years, !7ve leveraged a portion of my income to build EKalm =each KipelinesG in everything from pension funds5 to stock market accounts5 to !R)s5 to real estate. !t7s called diversification. !t7s called building lifelines.
<6$Year Pipeline Plan 7
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ut )’m also a big belie3er in climbing oa+ trees!
! call climbing oak trees the E46ear Kipeline Klan.G !t accomplishes the same goal as the 46ear Kipeline Klan ? financial independence and security. ut it onl" ta+es 0 of the time! That7s why !7ve spent time, money, and effort in building several fastgrowing businesses. !nstead of having to wait 4 years to get to the top of the tree, ! can build a business that gets me there in two to five years.
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<$Year Pipeline Plan Independen& Business Owne)
Time Le'els &he Playing Field
The beauty of time leverage is that we7ve all been given the same amount of time. 0hich means time levels the playing field between rich people and average income earners. 0hether you7re Donald trump5 or Donald the dump truck driver5 everyone has been given the same amount of time each day. That7s why ! call time leverage the EKeople7s Kipeline.G Time is available in e8ual amounts to everyone, whether they7re rich or poor5 man or woman5 black or white5 college educated or high school dropout5 young or old. 6ou can7t say that about money, now can you> Think of it this way. 0ouldn7t it be great if you and everyone else could start every single day with %",&& in your personal bank account> The money would be yours and yours alone and no one could tell you what to do with it. 6ou could spend it5 invest it5 blow it5 burn it5 give it away5 leverage it5 or waste it, knowing that the ne+t morning, you7d wake up with another %",&& in your account. !f everyone could start off every day with %",&&, it would be a better, more fair world, wouldn7t it> =ut as we7re all well aware, that7s not the case. 0hen it comes to money, life isn7t fair. /ome people are born with a silver spoon in their mouths. 4
/ome with a plastic spoon. /ome with nothing but their own thumb. 1air> aybe not. =ut as the song says, EThat7s *ife.G 0e don7t all start every day with %",&& in our bank accounts ? that7s for sure. )s for time ? that7s a different matter. We D; all start e3er" a" with ,BB0 minutes in our time account Q2& hours a day times ' minutes an hourA. /ince we all get the same amount of time, the difference between people who live paycheck to paycheck and people who are financially free is how they use their daily allotment of ",&& minutes<
Personal )ime Account D)T; TO Each day
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*ou4'e #o& %o)e Time Than *ou Thin(
/ome people put off building their pipelines because Gright now is a bad time for me.G Nuess what ? right now is a bad time for everybody< 0e7re all stressed. 0e7re all busy. 0e7re all putting out fires and dealing with une+pected emergencies. There7s a word for these bad times. )t’s calle life!
/ome people waste their lives waiting for the Eperfect timeG to do +, y, or 9. 0ell, they7ll die waiting, because there7s no such thing as a perfect time. !f someone told you he7d give you %" million if you7d sit in a corner and knit for two hours every 4-
day for a year, you7d find the time to knit, wouldn7t you> !t wouldn7t matter if your son broke his arm on the playground or your car wouldn7t start after work. Rather than forfeit %" million, you7d find the time to knit for two hours, perfect time or no perfect time. Jumorist )rt =uchwald put it this way: 4Whether it’s the best of times or the worst of times, it’s the onl" time we got*4 /adly, most people take time for granted, especially small amounts of time. 0e7ve been conditioned to measure time in days and weeks and years, instead of minutes and hours. 0e work # to 4, onday through 1riday. 0e plan our lives according to a monthly calendar. * 0e celebrate our birthdays and anniversaries once a year. =ut the ama9ing thing about time is how a few minutes here and there every day can add up to huge chunks of time< 1or e+ample, did you know how much total time the average person spends eating during their lifetimes> 0ould you guess a year> Two years> The answer is si+ years< !sn7t that ama9ing> Jere are some other short daily tasks that ass up to huge blocks of time:
To&al Time +e $pend on $mall "aily Tas(s "u)ing Ou) Life&ime ' years 5555... eating 4 years 5555... waiting in line & years 5555... cleaning house C years 5555... preparing meals 2 years 5555... trying to return phone calls " year 55555 searching for misplaced items - months 555... opening Funk mail ' months 555... sitting at red lights
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=ut my tally, that7s close to 22 years out of your lifetime< 0hich goes to prove that "4 minutes here5 half an hour there5 two hours there5 can add up to huge blocks of time< A Few Hou)s Can Tu)n in&o a Few %on&hs
Must think for a moment what we could accomplish in our lives if we used a couple hours each evening and on the weekends to do something purposeful, like building a pipeline. !f you set aside two hours each workday ? let7s say one in the morning before work and one in the evening ? and three more hours on both /aturday and /unday, you could add "' hours of productive time a week to your schedule< /i+teen hours a week over 4 weeks a year comes to - e+tra hours a year5 which calculates to " eighthour days5 or three months and " days of e+tra eighthour workdays each year< )nd all you had to do was set aside a couple of hours a day to get three e+tra months of productive time each year. )ma9ing, isn7t it>
Producti"e =ree )ime Q2 hoursSdayA + Q4 daysA " hoursSweek QC hoursS/at. L /un.A ' hoursSweek total e+tra time:
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Time is %oney
@ow, !7m going to let you in on a little secret ? using free time productively is one of the keys to why successful people have more, do more, and get more in life< Do you think =ill Nates comes home at 4:p.m every day and watches seven hours of T3 like the average )merican male does> ! don7t think so5. ) recent article in the Wall $treet Aournal states that the top "( of earners in @orth )merica work an average of 42 hours a week, whereas those in the bottom "( of earners work only &4 hours a week. @ot only do the top "(ers work longer ? the" wor+ smarter! !n other words, they don7t trade their time for dollars. 6ou won7t walk into a convenience store and see ichael Mordan behind the counter selling customers lottery tickets and 8uarts of beer. /uccessful people in every line of work value their time, and they week every opportunity to leverage their time< +as&e No&. +an& No&
Keople often ask me why they should take the time and effort to build pipelines when things are going so well right at the moment. They tall me they deserve to rela+ after a hard day at the office. They reward themselves by learning back in the *a =oy recliner and watching T3 until bedtime. E*ife is good,G they tell me. ENot a good Fob. Not a few bucks in the bank. ids are doing well in school. @o need to rock the boat.G That7s when ! tell them that there7s no better time to build your pipeline than when things are going '"
great. 0hy> =ecause when the tide turns, it may be too late< Than ! tell them this old Foke: ) man was on the Cth floor of fancy hotel overlooking Bentral Kark in anhattan. Je pulled back the shades and threw open the window to enFoy the view. )s he leaned out the window, he was startled to see a man falling past his room. EJow you doing>G he asked the falling man. 2(ine C so far,4 came the reply. The point is that there are lots of bucket carriers in this world who are doing fine ? so far. =ut they can7t stay in a freefall forever. )s long as people trade time for dollars, there7s no safety net in their lives. 0hy> =ecause when they can7t put in the time due to illness5 or inFury5 or layoffs, their paychecks will stop. 1or bucket carriers, no paycheck means no security<
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)s ! write this, consumer confidence is high. nemployment is low. !ncomes are rising. Jome sales are at record highs. Bar sales are booming. *ots of people are fine ? so far* '2
=ut we can7t fall into the trap of mistaking Eso farG for Eforever.G ;verybody knows that life goes in cycles. /o does the economy. Right now the business cycle is nearing its 9enith. 6our personal life cycle may be at an alltime high, too. =ut what goes up, must come down. )nd when people start coming down, some of them are going to crash into some hard realities: *ayoffs. Bareer changes. Bredit card debt. edical emergencies. @ursing home care for elderly parents. /mart people understand that the best time to feather their nest is while business is booming. /mart people erect safety nets before a recession starts, not during< That7s why ! tell people that today is the best time to build their pipelines, not when the economy hits the skids. !t7s like the fable of the ant and the grasshopper. The ant was a pipeline builder. Je spent part of his summer days storing away grain for the coming winder. Je enFoyed the summer, too. =ut he had the wisdom to spend some of his time building his pipeline. The grasshopper, on the other hand, was a bucket carrier. Je spent all of his money as soon as he got it and wasted all of his time playing in the sunshine. Je ignored the coming winter. 0hen the cold winter came, he had no pipeline in place. )nd he starved to death. Pay %e Now O) Pay %e La&e)
Do you remember the famous advertising slogan, EKay me now5 or pay me later>G The same goes 'C
for building pipelines. 6ou can Epay a little nowG by investing some of your time and money to build your pipelines today5 or you can Epay a lot laterG by struggling to survive on a small /ocial /ecurity check when you7re in your 's and s. Must think ? if your pipelines are in place, instead of having to pay later5 "ou’ll get pai later! 0hat a concept<
Pa% No1 Plan
Pa% Later Plan vs.
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/ocial /ecurity =enefits Kay to % $mall. mon&hly social $ecu)i&y chec(
Time Le'e)age The People4s Pipeline
Remember ? time levels the playing field< 0e all DO @OT have the same amount of money to leverage. =ut we all DO have the same amount of time< =y leveraging some of your leisure time wisely, you can build a pipeline that will continue to pay for years< 0e7re lucky to be living in an age when virtually anyone can leverage their time to build pipelines. That hasn7t always been the case. )t the turn of the 2 th century, only the very rich had the lu+ury of leveraging their time. !n "-#, the vast maFority of people worked " hours a day as laborers. They were too busy trying to stay alive to think about leverage. '&
=ut today more people have more free time than ever before in history. )nd time is the great e8uali9er< Time enables the little guy to compete with the big boys. Rich people don7t get &- hours a day while poor people get "2. they both get e8ual amounts of time ? 2& hours a day, days a week, C'4 days a year. The #)ea&es& Time2Le'e)aging Tool in His&o)y
Today, pipelines are no longer the province of the rich. )nyone with a little time5and a lot of drive5 can leverage their time to build a Epeople7s pipelineG in two to five years that will flow for years ? or even decades< !n fact, we have right at our fingertips the greatest tikeleveraging tool in the history of the world< This timeleveraging tool has created more millionaires in less time than any other single invention in history. ! call this ama9ing tool the Eepipeline,G and it7s the ultimate tool for time leverage. 6ou probably know the epipeline by a different name ? a name that is flashed across newspaper headlines and T3 screens 2& hours a day. That name> The !nternet.
>reatest )ime$Le"eraging )ool in 8istor% 3;; hou)s 3 ho u)
In&e)ne&
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e$compounding4 )he 0ltimate Pipeline Kablo the Kipeline an became known as Kablo the iracle aker. Koliticians lauded him for his vision and begged him to run for mayor. =ut Kablo understood that what he had accomplished wasn7t a miracle. !t was merely the first stage of a big, big dream. 6ou see, Kablo had plans that reached far beyond his village. Kablo planned to build pipelines all over the world< from The #arable o the #i eline
p to this point, we7ve talked about how people can leverage their time and money to build pipelines of ongoing residual income. The 8uestion is, 2What is the most powerful an proucti3e pipeline in the New Econom"?4 The answer is the !nternet, a breakthrough technology ! call Ethe epipeline of the @ew ;conomy.G 1olks, the !nternet is transforming the way the world lives, works, and plays. !n a word, the !nternet is the future ? an the future is now! !n this chapter !7ll show you how you can take advantage of the greatest leveraging tool in history ? the !nternet ? to create a pipeline of ongoing '
resiual income that "ou can buil in two to fi3e "ears, instea of >0 "ears! The In&e)ne& Re'olu&ion Is us& Beginning
The !nternet )ge is revolutioni9ing the world, that7s for sure. Mack 0elch, B;O of Neneral ;lectric, told The Wall street Aournal that the !nternet was the greatest change in business in his lifetime ? and 0elch was born in "#C'< )ndy Nrove, the Bhairman of !ntel, was even more direct in his assessment: E!n five years, every company will be an !nternet company ? or they won7t be a company at all.G I&4s a +i)ed. +i)ed +o)ld Af&e) All
0hat makes the !nternet pipeline so powerful> 0ell, think for a moment what the !nternet really is ? it7s millions of people all over the globe5 each connected via a computer or cell phone5 able to instantly communicate with ? or sell to each other 2&SSC'45 all for the price of a local telephone call. )t’s min/boggling! The !nternet is as fast as the speed of light5 costs a few dollars a day to use5 is always on5 has limitless applications5 and interconnects the world. Oh ? and " million people were wired to the 0eb in less than half the time it took to build the =rooklyn =ridge. =y 2C, more than one billion people will be online5 purchasing %" trillion of products and services via ecommerce. That7s not hype ? that7s a global revolution< '-
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5 Billion People Online e$commerce ( 75 )rillion ? a Year
The P)o/lem wi&h &he In&e)ne&
The !nternet is truly revolutionary ? but it7s far from perfect. !n fact, the !nternet has a problem. ) =!N KRO=*;< The !nternet7s biggest strength is also its biggest weakness ? it7s too big< Too crowded. * Too confusing. Too competitive. Too hitech. 0here do you shop> Jow do you buy> 0ho do you trust> )t’s o3erwhelming! )ccording to the e+perts, ecommerce sites are facing three maFor challenges: "A They need more traffic. 2A They need more sales. CA They need more repeat business. The In&e)ne& Needs Loyal Cus&ome)s
!n a nutshell, most ecommerce sites are hurting for customers ? loyal customers. =y EloyalG customers ! mean people who have a reason to buy from an ecommerce site week after week and month after month, instead of once in a blue moon.
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0e hear a lot of talk about how many EhitsG a website gets. =ut hits don7t bring in revenue. Jits are like the members of walking clubs who meet every morning at the local shopping mall. They use the mall to e+ercise, not to shop. They have no intention of shopping. Once their walk is over, they Fump in their car and go shop somewhere else< *ikewise, hits on a website are Fust people going out for a stroll on the !nternet. Jits don7t bring in revenue. /ales bring in revenue< )nd the truth is, most ecommerce sites are hurting for sales. 0hy> =ecause at most sites, shoppers have no incentive to make weekly and monthly purchases. !nternet users have no loyalty because most e commerce sites are more concerned about offering the lowest price than they are about building long term relationships<
+nternet-s Biggest Pro3lem
li&&le loyal&y
Rela&ionships &o &he Rescue
0hat7s the secret to creating customer loyalty in the !nternet )ge> Relationships ;stablishing real, rocksolid, longterm relationships with real people Qas opposed to hitech relationships with EeyeballsG and EhitsGA is what will separate the successful ecommerce sites from the hasbeens.
6ou see, the hitech of the !nternet needs the hi touch of persontoperson relationships. )s Mohn @aisbitt observed 2 years ago, EThe more hitech we have, the more hitouch we need.G That7s why today, more than ever, people seek out and need the warmth of the human touch to counterbalance the cold environment of dotcoms and digits. Think for a moment ? did you choose the last movie you saw from a website7s banner ad> Doubtful. ost likely a friend or coworker recommended the movie. /ame goes for your favorite websites ? most likely they were recommended by someone you knew and trusted, as opposed to your falling for a slick T3 commercial or clicking on a rotating banner ad. Truth is, wordofmouth recommendations have always been the most effective form of advertising. That7s especially true today. 6ou see, people like dealing with people. Keople trust and value hi touch relationships. Don7t you> )nd relationships solve the !nternet7s biggest problem ? a lack of loyal customers. That7s where you come in. 6ou recommend products and services all day, every day, for free. )nd people shop and buy based on your recommendations. 0ouldn7t it be great to get paid for it> 6ou can< =y leveraging your time and relationships, you can create loyal customers for relationshipdriven e commerce sites5while creating a pipeline of ongoing residual income for yourself< "
!t7s a winSwin. The ecommerce site gets more loyal customers. )nd you get paid for recommending products and services you use and enFoy. ! call it the ltimate Kipeline. )nd it7s Fust waiting to be tapped5 =6 6O<
0ltimate Pipeline e$commerce 1ins More lo%al customers
You 1in 777 for referrals
*ou Tal( They Tech
=asically, here7s how the ltimate Kipeline works: 6ou and an established ebusiness enter into an affiliate partnership. 6our role is to EtalkG ? you direct people to the company7s ecommerce site. !n return for your recommendations, the ebi9 pays you a commission on all the products pruchased by your referrals. The ecommerce company7s role is to EtechG ? they provide the website5 take the online orders5 ship the products5 process the credit cards5 and handle the accounting. !n return for paying out referral fees, the company gets loyal customers who return to the site again and again. )s ! said, it7s a winSwin< The company solves its biggest problem ? lack of loyal customers. )nd you build a pipeline of ongoing residual income. 6ou talk. They tech. !t7s simple ? brilliantly simple<
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0ith the ltimate Kipeline, you don7t need any special skills. 6ou do what you do every day ? you talk to people< 6ou help people cut through the clutter of the !nternet5 and you get paid for it< Jow much can you earn from your ltimate Kipeline> That7s up to you. The sky7s the limit< The more people in your referral network, the bigger your residual pipeline. !n fact, it7s not uncommon for people to receive residual income from tens of thousands of referrals5 even hundreds of thousands of referrals< Jow could one individual personally recommend products to tens of thousands of people> EThat7s impossible
Do you remember the earlier story about the Bhinese emperor and the inventor of chess> The inventor only wanted one grain of rice for his compensation, but he wanted it doubled for each s8uare on the chess board. The total ended up being " times more rice than there was in the entire world< The story illustrates the ama9ing power of compounding, also known as the doubling concept. Must imagine for a moment what would happen if you took the concept of compounding5 and somehow combined it with ecommerce. The result would be Eecompounding.G
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Po1er of Compounding
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Must think of the potential of ecompounding ? the e+ponential growth of compounding5 combined with the reach and speed of the !nternet. 0O0< 0ell, that7s why ! call ecompounding the ltimate Kipeline ? you get paid to compound your time and relationships via the !nternet< Must think, with ecompounding, you can get the results of the Kalm =each Kipeline without having to invest a fortune. !nstead of leveraging your money, you leverage your time and relationships to built your own ltimate Kipeline< @ow it7s time to find out how:
Le"eraging the 0ltimate Pipeline 7777 7777 7777
T im e
e2compounding
e2Compounding %a&h J3@3K ? 38 6 BOO%
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Do you think it7s possible to find Fust one person each month to Foin you in your new ecompounding business> Must one partner who7s interested in more financial security5 more freedom5 more recognition5 and more happiness>5 One good person a month ? that7s all it takes.
e$compounding MON)8 5 *ou *ou) Pa)&ne) 3
Once you partner with that new person, you become his or her coach. 6ou teach him how to form affiliate partnerships with his friends and ac8uaintances, while you partner with a second person. /o, by the end of month two, you would have two affiliate partnersP meanwhile, your first partner has also brought a new person into your affiliate network.
e$compounding MON)8 @ *ou *ou) Pa)&ne) 3
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@ow you have a group of four ? you and three others, isn7t that correct> Q6ou can build your e compounding network faster by partnering with more people each month, but let7s assume you take the slow and steady course.A Then you keep repeating the process. =y the end of the first year, you would have personally partnered with "2 people ? one new person each month. )nd let7s assume that each one of them has partnered with one new person each month, as well. This is where the magic of compounding kicks in. =y the end of "2 months, your network could compound to &,#' affiliated independent business owners<
e$compounding MON)8 5@ 6ou 3 8 M : = < 9 e&c 3 8 M : = < 9 e&c To&al M.;= people
@ow, here7s the really e+citing part ? the ecommerce company pays you a percentage of the sales volume of your entire affiliate network. !f you have &, people buying an average of %" worth of products each month, the total product volume is %&, ? ) O@TJ< !f your ebi9 partner pays you "( to C( of that volume, you7d be earning %&, to %"2, a month<
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e$compounding
issing picture
@ow do you see why ! call ecompounding the ltimate Kipeline> !t combines the e+ponential growth of compounding with the convenience and the reach of ecommerce. * @ot only does the ltimate Kipeline keep pumping out profits, but, like Kablo, you grow your pipeline by leveraging your time, instead of your money< No special $(ills Re0ui)ed
The beauty of ecompounding is that you don7t need a lot of money to get started. !t only takes months or a few years to build, as opposed to decades. )nd you don7t need any special skills. 6ou Fust do what you do every day ? talk to people< 6ou help people cut through the confusion and clutter of the !nternet ? and you get paid for it< !f you can talk5 and point and click5 then you can leverage your time and your relationships to build the ltimate Kipeline. The ltimate Kipeline lets us learn from the Kalm =each Kipeline people ? we copy the concept of compounding. =ut instead of compounding our money, we compound our time and relationships. )s a result, we can get the results of a Kalm =each Kipeline at a fraction of the money ? and in a fraction of the time<
That7s why hundreds of thousands of average people all over the world are busy building ltimate Kipelines ? they can enFoy the same benefits the rich enFoy with their Kalm =each Kipelines, but instead of having to leverage a ton on money, they leverage their time< !nstead of having to wait 4 years to receive the benefits of their pipeline, they can start enFoying profits in months< )t’s a no/brainer!
@ )%pes of Le"erage Rich People Le'e)age %oney
A'e)age People Le'e)age Time
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New Business %odel fo) a New %illennium
Nary Jamel, author of the bestseller :eaing the -e3olution, says that in a hitech world, EOnly those companies that are capable of creating industry revolutions will prosper in the @ew ;conomy.G Jamel argues that today, companies will compete not in products and services but in the ability to devise ideas for innovative businesses. Je goes on to say that creating better business concepts is nothing new. Jenry ford7s breakthrough concept was to make a car that any working man could afford. 1ord originally built one car to fit everyone7s needs ? E6ou can have any color odel T you want so long as it7s black,G was 1ord7s response to re8uests for more variety. -
)lfred /loan at Neneral otors improved on 1ord7s concept. Je understood that the customer is king, and he sought ways to meet individual needs and tastes. /loan7s nowfamous slogan was E) car for every purpose and purse.G =ecause of /loan7s better business concept, N vaulted past 1ord. Today N is the biggest revenueproducing company in the world. New and Imp)o'ed %odel
*ike N, ecompounding is an improvement on the original ecommerce concept, a better way of attracting new customers and fostering their loyalty. ;compounding reminds me of The (amil" 'ircus cartoon where fiveyearold Dolly e+plains to her younger brother where butterflies come from: E=utterflies are new and improved caterpillars,G she says. 0ell, ecompounding is new and improved e commerce< 0ithout wordofmouth marketing5 referral fees5 and the power of compounding, ecommerce would never have broken out of its cocoon.
e2comme)ce *acks loyal customers
e2compounding vs.
*ots of loyal customers
=ut ecompounding offers a new and improved way for ecommerce to sprout its wings and fulfill its potential. )s a result, referralbased !nternet companies are flourishing while hundreds of deep discount etailers are drowning in debt.
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=ut instead of a car for every purpose and purse, ecompounding is a pipeline for every purpose and purse. 6our purpose may be to earn enough money to afford an e+tranice Bhristmas. Or your purpose may be to escape from a deadend Fob and build ltimate Kipelines that will circle the globe. )nd your purse may be to earn a few e+tra dollars a month. Or your purse may be to become a millionaire many times over. ;compounding is the ltimate Kipeline. Jow big you build it is up to you. hich 0ltimate Pipeline Do You Prefer'
issing picture
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LE$$ON EI#HT
"o *ou P)efe) &he :;2*ea) Plan, O) &he Fi'e2*ea) Plan /adly, most bucket carriers would hastily dismiss the notion of a pipeline. Kablo and =runo heard the same e+cuses over and over. !t made Kablo and =runo sad that so many people lacked vision. from The Karable of the Kipeline
Here7s
an old Foke that teaches two important lessons about pipelines: ) man named Moe worked for years in a lowpaying Fob he hated. =ut Moe was determined to retire rich. /o he scrimped and saved every penny he could and worked nights and weekends in a second Fob to fuel his investment pipeline. )fter 4 years, his discipline and sacrifice paid off. Je was finally financially free< Moe decided that now that he was years old, he was going to live it up< Je decided it was time to indulge his lifelong dream of scuba diving all over the world. Moe spent thousands of his hardearned dollars on lessons and diving e8uipment. Je flew -"
first class to Jawaii, where he had reserved a suite at the Rit9 Barlton. The ne+t day he headed out to dive Jawaii7s most beautiful reef. Jis dream had finally come true< Je felt a sense of pride as he suited up in his e+pensive e8uipment ? custommade wet suit5 specially built aluminum o+ygen tanks5 Nerman engineered underwater cameras5 waterproof pen and underwater pad for writing notes. Moe was ready< Moe savored every moment as he swam down toward the rainbowcolored coral reef. Je photographed the e+otic fish as he descended. Jis first dive was everything he had dreamed about. Je had spent tens of thousands of dollars on his new hobby, but it was worth every penny< EThis was worth the wait,G Moe said to himself. EThis is perfect
The man grabbed the pad and wrote, 2)’m rowning!4
I’m Drowning!
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Lo&s of People A)e ")owning
The first lesson we learn from this Foke is that things aren7t always what they seem< Moe thought the guy was enFoying a leisurely dive. =ut the truth was much different ? the guy was drowning< )ppearances can be deceiving when it comes to finances, too. Keople who wear Role+ watches and designer clothes appear to be financially independent ? but many of them are drowning in debt< 0hen Thomas M. /tanley and 0illiam D. Danko, the authors of The Millionaire Next Door, started researching their book, they sought interviews with people who had a net worth of a million dollars or more. )ssuming that the richest people lived in the most e+pensive houses, the authors surveyed people in upscale neighborhoods across the country. =ut the authors soon discovered that many people living in big homes and driving e+pensive cars hadn7t accumulated much wealth. 0hy> =ecause they were spending their money to support lavish lifestyles instead of putting a portion of it aside to build pipelines. /tanley and Danko adopted a folksy Te+as saying to describe these megaconsumers: E=ig Jat, @o Battle.G The cowboy metaphor paints a pretty vivid picture, doesn7t it>
Big 8at2 No Cattle Kicture missing
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The Powe) of &he :;2*ea) Pipeline Plan
The second lesson that we learn from the diving story involves Moe7s plan to become financially independent. Moe7s 4year pipeline plan is a classic e+ample of the good newsSbad news scenario. *et7s look at the good news first. The good news about the 4year pipeline plan is that it works< /aving and investing small amounts of money in the stock market on a monthly basis over time is a surefire way for people of modest means to become financially independent. The key to longterm investing is to make regular deposits over a long period of time and then let it compound year after year. !f people start early enough and stick to their pipeline plan, they can become millionaires by saving Fust %" a month< !mpossible, you say> The following chart tells the tale:
How &o Accumula&e 73 million /y Age =: )ssuming a "2( annual interest rate /tarting )ge
Daily /avings
onthly /avings
6early /avings
6ears !t Takes To =uild %" illion
24
%
C.4
% "#
% ",C&
& years
C4
% "".C4
% C&4
% &,"&&
C years
&4
% C-.2
%","4
%"C,-#
2 years
44
%"4'."2
%&,&#
%4',#-&
" years
from The Wise )n3estor b" Neil E* Elmouchi Bonsidering that the stock market has averaged ""( over the last years and 24( over the last decade, "2( is a fair and reasonable rate of return.
-&
!t7s ama9ing to learn that it7s easy to become a millionaire if you start building your longterm pipeline early enough. 3irtually anybody living above the poverty line can do it< )ll anyone needs to do is to invest %C.4 a day, every day, in a mutual fund returning "2( interest, and let it compound for & years. !nstant millionaire< Q0ell, maybe not EinstantG ? but definitely a millionaire Don7t you wish someone had pointed that out to you when you were 24 years old> ;ven at C4 and &4, it7s still possible for the average household to build a millionaire pipeline. =ut people who wait until they7re 44 to start saving for retirement are facing a steep mountain, that7s for sure<
The Bigges& )is( Is NOT In'es&ing in &he %a)(e& any people still think it7s too risky to invest in the stock market. )nd, yes, some stocks go down. )nd sometimes the entire market goes down, as it did in the crash of "#2#. =ut all of the wi9ards on 0all /treet say that over time, investing in the stock market is the easiest and -4
surest way to build a profitpumping pipeline. The facts support the e+perts: During the 2plus years the @ew 6ork /tock ;+change has been in business, stocks have averaged going up two out of every three days. /ince 00!!, the stock market has gone up "fold, despite nine recessions during that 44 year span. )ccording to Meremy /iegel7s book $toc+s for the :ong -un, in the "#4 years from "-2 to "##, a dollar invested in gold would have grown to Fust %"".". That same dollar invested in stocks would have compounded to %.4 million<
3<
39;8
7< %illion
7 3
toc# Mar#et
The point is that building a 4year pipeline has its place, no doubt about it< ost people have several 4year pipelines under construction. Their home is one longterm pipeline. /ocial /ecurity is yet another. nfortunately, all too many people stop at these two pipelines.
Most People-s <6$Year Pipeline Plan
%
%
/ocial /ecurity Their Jome.
-'
/mart people, on the other hand, continue to build additional longterm pipelines through investment portfolios5 pension plans5 !R)s5 and the like. )ll of these are great longterm pipelines, and they7re available to anyone with the good sense and the discipline to build them over time.
mart People-s <6$Year Pipeline Plan issing picture
"ownside &o &he :;2*ea) Plan
Okay, ! Fust told you the good news about the 4 year pipeline plan ? virtually every working family can build a milliondollar pipeline if they start saving monthly and allowing their investments to compound over time. =ut the bad news is that most people want to enFoy the benefits of a pipeline today ? instead of having to wait 25 C5 &5 or even 4 years< ! admit it ? ! want to enFoy the finer things in life today, not half a century down the road< 6es, ! believe in building longterm pipelines. ! have several under construction. =ut the truth is, !7d rather spend money than save it. ! like the things -
money can buy. ! e+pect you feel the same way, too. ! enFoy a great meal in a firstclass restaurant. ! like taking my family on ski vacations and cruises ? we7ve created some of our best memories during vacations. ! love the smell of new car interiors. ! like driving a big ercedes more than a small a9da. ! want to use my cell phone any time of the day, not Fust evenings and weekends when the rates are cheaper. )nd !7d rather spend %2 going to a hit movie as soon as it7s out, rather than waiting three months so ! can rent it for three bucks. Jere7s the bottom line: *ongterm pipelines are essential for people who want to enFoy a worryfree retirement. That7s why everyone should build 4 year pipeline. =ut let7s get real ? do you really want to wait 4 years to enFoy the benefits of a pipeline> @ot me< !7m willing to make sacrifices to build my retirement pipeline. =ut ! don7t want to have to live like a monk for 4 years in order to do it< ! want to live my dreams right now, while !7m still young and the kids are at home. ! don7t want to wait until !7m '4 or to start living my dreams ? like the scuba diver in the opening story. !7m sure you feel the same. Ha'e *ou) Ca(e and Ea& I&. Too
)s ! said earlier, a longterm pipeline should be at least one of the pipelines you build. =ut not the only pipeline you build. Must as you shouldn7t put all your eggs in one basket, you shouldn7t put all your profits in one pipeline. --
0ell, with the 4year pipeline plan, you can not only diversify your portfolio of pipelines, but you can dream big dreams and start living them right away, instead of when you7re in your 's or s. 6ou can have your cake and eat it, too< Think about it ? wouldn7t you rather be financially free in five years instead of 4 years> Of course you would. 0ho wouldn7t> That7s why ! recommend you build your 4year pipeline while you7re building your 4year pipelines<
@ )%pes of Pipelines Long2Te)m :; yea)s
$ho)&2Te)m 8 : yea)s
The ltimate Kipeline ? ecompounding ? can be built in two to five years, instead of 45 and it can start pumping profits within months instead of decades. 6ou can start building your ltimate Kipeline parttime, in the evenings and weekends, until gradually, it pumps enough profits for you to begin building it full time< Must think ? the ltimate Kipeline can get you to the top of the oak tree in a fraction of the time that it would take a 4year pipeline. )nd best of all, you don7t have to save or invest a truckload of money to build your 4year Kipeline< )ll you need to do is leverage your time and your relationships< 7777 7777 7777
Time L Relationships
e$compounding
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Li'e fo) Today Plan fo) Tomo))ow
6ears ago my father gave me some great advice. Je said, E*ive for today, plan for tomorrow.G !7ve never forgotten those words, and ! repeat them regularly to my four children. =uilding a 4year pipeline while you7re building your 4year pipeline empowers you to follow my father7s sage advice. 6ou see, the ltimate Kipeline plan ? the 4year pipeline ? enables you to live for today because you can start enFoying the fruits of your labor within months< The 4year pipeline plan, on the other hand, allows you to plan for tomorrow. That7s why ! advise people to build both longterm and short term pipelines<
Pipelines Are Your Lifelines issing picture
% /ecurity
%
1reedom
%
Jappiness
%
Bontrol
0hen my father advised me to E*ive for today, plan for tomorrow,G what he was really saying was EKipelines are your lifelines. /o become a pipeline builder, not a bucket carrier.G Nreat advice, Dad. Nreat advice.
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CONCL$ION
)he Para3le of the 0ltimate Pipeline &ear F00, $ilicon Galle", H
%$O @B;
KO@ ) T!; 3;R6, 3;R6 R;B;@T*6, two ambitious young cousins named Kaul and =ruce worked side by side as middle managers for Bistern !nternational, a multinational conglomerate that owned electric and water utilities all over the world. The young men were best buddies. )nd big dreamers. They would talk about how some day, some way, they would become totally financially free. They were both bright and hard working. )ll they needed was an opportunity. One day that opportunity arrived. The company decided to appoint the two friends as senior managers in Ucistern7s worldwide software division. Their monthly salary was double what it had been. EThis is our dream come true
#"
)t the end of the first "hour day, Kaul7s back ached and his finger tips were sore from customi9ing software. Je was in charge of 4 employees, most of whom were uncooperative and unmotivated. Je loathed the idea of traveling to foreign offices for weeks at a time. Jis boss at Bistern was moody, rude, and demanding. Kaul dreaded getting up and going into work the ne+t morning. Je vowed to think of a better way of living and working. Paul. &he Pipeline %an
E=ruce, ! have a plan,G Kaul said the ne+t morning before they settled into their cubicles and booted up their servers. E!nstead of trading our time and talents answering to a tyrant of a boss and managing unmotivated employees in e+change for a weekly paycheck, let7s leverage the !nternet to create residual income. EJaving a Fob is like carrying buckets,G Kaul continued. EOne bucket of work e8uals one bucket of pay. =ut if the work stops because of illness or layoffs, the paychecks stop.G
A o3 7
Time
5 Buc#et or# ( 5 Buc#et Pa%
E0e need a career that will create ongoing residual income. Residual income is like building a pipeline ? we do the work once and get paid over and over #2
again. =ruce, we need to start thinking and acting like pipeline builders instead of bucket carriers.
Pipeline *esidual +ncome
E) former employee of mine is helping me build a pipeline on the !nternet. Je calls it the ltimate Kipeline because it combines the power of e commerce with the power of compounding. The ltimate Kipeline is my business ? ! own it. ! work from home. There7s no overhead. @o employees. @o payroll. @o inventory to speak of. !t7s lean. !t7s mean. !t7s webbased. )nd it offers a way to create ongoing residual income.G
0ltimate Pipeline e$compounding • • • •
@o boss /ecurity 1reedom !ndependent business owner
• • • •
@o employees @o payroll /mall inventory @o overhead
=ruce stopped dead in his tracks. 2% pipeline on the )nternet! Whoe3er hear of such a thing!4 =ruce shouted. E0e7ve got a great Fob,G =ruce said emphatically. EDon7t rock the boat< 0e7ve got Fob security with great benefits. E0e have weekends off land twoweeks7 paid vacation every year. 0e7re set for life< Net out of here with your ltimate Kipeline
=ut Kaul was not easily discouraged. Je patiently e+plained the ltimate Kipeline plan to his best friend. Kaul would work part of the day at his salaried Fob and then use his evenings and weekends to build a pipeline on the !nternet. Kaul also knew it would take a year, possibly two, before his ltimate Kipeline would be big enough to start pumping big profits. =ut Kaul believed in his dream of owning his own business5 and owning his own life. Je was determined to make it work. $mall Ac&ions E0ual Big )esul&s
0hile =ruce sat in his *a=oy recliner on evenings and weekends, Kaul kept building his ltimate Kipeline. The first few months Kaul didn7t have much to show for his efforts. The webbased pipeline business was new to him. Je had to learn a new system and teach it to others. Je talked daily to his mentors and attended weekend trainings to improve his businessbuilding skills. Je read personal growth books and listened to tapes recommended by his mentors. Day by day, Kaul improved his businessbuilding skills. Je learned how to engage people in conversations. Jow to get people to talk about their dreams. Jow to handle obFections gracefully. Jow to coach people to bring out the best in them. Nradually, he began to believe more and more in himself5 in his opportunity5 and in his new business partners. This was new territory for Kaul. =ut as his knowledge and confidence grew, so did his !nternet pipeline. #&
Kaul kept reminding himself that tomorrow7s dreams are built on today7s sacrifices. Day by day he built his ltimate Kipeline, one conversation at a time. 2)f m" ream is big enough, the facts on’t count,4 he chanted to himself as he picked up the phone to call another prospect. 2$hort/term in3estment e5uals long/term rewars,4 he reminded himself as he set his daily and weekly goals, knowing that, over time, the results would far e+ceed the effort. 26eep "our e"es on the pri1e,4 he repeated over and over as he drifted off to sleep while listening to a training audio by a successful elbi9 builder. 26eep "our e"es on the pri1e74 The Ta/les A)e Tu)ned
Days turned into months. One day Kaul reali9ed that his epipeline was pumping enough profits to e8ual half his monthly salary< Kaul continued to work hard at his day Fob, but he used his spare time even more productively. Je knew it was only a matter of months before his parttime pipeline income e+ceeded the income from his fulltime Fob. During his lunch breaks at Bistern, Kaul would watch his old friend =ruce scurrying from cubicle to cubicle. =ruce7s bucketcarrying Fob was beginning to take its toll. =ruce was looking more and more stressed by a demanding boss5 unrealistic deadlines5 and daily rumors of layoffs.
#4
On weekends, =ruce would write do9ens of resignation letters. =ut he never mailed them. Je had bills to pay. Je needed his paycheck too much to 8uite. Je felt trapped. Je felt empty inside. The waste basket in his office wasn7t empty, however. !t was filled to the brim with wadded up resignation letters5 Resigning f)om His o/
1inally, Kaul7s big day arrived ? his monthly e pipeline check e+ceeded his monthly salary at Bistern< Jis wife made color copies of his check from Bistern and the check from his new ebusiness and framed them side by side. Jis new pipeline partners cheered as he held up the framed checks. Bameras flashed. )nd Kaul7s eyes glistened with Foy.
One Da% in the =uture 6
% Pipeline +ncome
%
%
o3 +ncome
Kaul was the only worker at Bistern who wasn7t intimidated by his boss. =ecause of his ltimate Kipeline, Kaul was free< That knowledge gave Kaul confidence. Kaul handled his boss7s outbursts calmly. Kaul s8uared his shoulders and looked right in his boss7s eye during his tirades. E!t7s not necessary to shout,G Kaul would say firmly. E!7m standing right here in front of you. 0ouldn7t you agree we7d be more effective if we discussed this calmly>G
#'
Kaul7s coworkers began calling him the *ion Tamer for the way he handled his boss. =ut Kaul understood that he wasn7t taming his boss. Kaul was only standing up to him because he no longer had the power to control Kaul7s life. One evening Kaul sat down in his homebased office and wrote the following letter: Dear r. =oss: ! am writing to inform you that effective immediately, ! am resigning from Bistern international. ! have enFoyed my time at Bistern, but ! regret to inform you that the company can no longer afford my services. 6ours 1reely, EKipeline KaulG
Kaul felt a surge of freedom as he folded his resignation letter and inserted it into an envelope. Je looked forward to the future with hope and optimism. Kaul understood that what he7d accomplished with his !nternet pipeline was only the first stage of a big, big dream. 6ou see, Kaul had plans that reached far beyond the walls of Bistern !ndustries. #aul planne to buil )nternet pipelines all o3er North %merica C an e3entuall", all o3er the worl!
Rec)ui&ing His F)iend &o Help
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Kaul7s webbased business continued to flourish. Je had never been happier5 or more fulfilled. =ut the same couldn7t be said for his former coworkers at Bistern. The company was moving more and more of their business online, which meant Kaul7s old department was downsi9ed. =ecause of his big salary, =ruce was the first to go. !t pained Kaul to see =ruce begging his friends for consulting work on their outdated KBs. /o Kaul arranged a meeting with =ruce. E=ruce, !7ve come to ask for your help.G =ruce straightened his stooped shoulders, and his dark eyes narrowed to a s8uint. EDon7t mock me,G =ruce hissed. E! haven7t come to gloat,G said Kaul. E!7ve come to offer you a great business opportunity. !t took me two years before my !nternet pipeline was pumping enough profits for me to resign from Bistern. =ut !7ve learned a lot since then. ! know how to build ltimate Kipelines. Jow to talk to people. Jow to build teams. Jow to grow a business by growing people. !7ve learned a proven system that will empower me and my partners to build another ltimate Kipeline5 and then another5 and another.
Pipeline Building %stem
Boo#s
)apes
Meetings
E"ents
#-
Products >oals
E! need pipeline partners,G Kaul continued. E!7ll teach you everything ! know about building web based pipelines5 and ! won7t charge you one red cent for it. )ll ! ask in return is that you learn the system ! teach you and then teach it to others5 and have each of them teach it to others5 until there are ltimate Kipelines in every city in @orth )merica5 and eventually, ltimate Kipelines in every household in every city in the world.
Paul Bruce
(
Others EMust think,G Kaul continued. E0e could make a small percentage of every online purchase that goes through our ltimate Kipelines. The more volume that goes through our online pipelines, the more money that will flow into our pockets. The ltimate Kipeline ! built isn7t the end of a dream. !t7s only the beginning
6ears passed. Kaul and =ruce had long since retired. Their worldwide !nternet pipeline businesses were still pumping millions of dollars a year into their bank accounts. The old friends had time to travel and visit e+otic places all over the world. One day, =ruce asked ##
Kaul to meet him for lunch. Je had some e+citing news to share. EKaul, years ago you gave me a very special gift by sharing a webbased business opportunity with me. That gift changed my life forever. !7ve been racking my brain for years trying to think of a way to repay the favor. That7s why ! invited you here today. Jere7s my gift to you.G =ruce slid an envelope toward Kaul. !nside were two firstclass tickets to !taly.
@ )ic#ets to +tal% Round&)ip Tic(e& &o I&aly
R ound&)ip Tic(e& &o I&aly
E6ou don7t have to5,G Kaul started. =ut =ruce cut his friend short. E*et me do the talking for right now,G said =ruce. E;ver since we were little kids, our parents have been telling us that our families emigrated from !taly. 0ell, with the help of the !nternet, !7ve been able to trace our family roots back to two cousins who lived in a small village in central !taly. EKaul, this is my gift to you,G =ruce continued. E0e7re going to return to that village. 0e7re going to walk to the town s8uare where our greatgreatgreatgreat grandfathers and all of the other villagers met to fill their buckets from the town cistern. )nd we7re going to get down on our knees and thank our forefathers and Nod for "
building a pipeline of blessings that has flowed freely into our lives.G Coming Full Ci)cle
Kaul stared at his cousin in stunned silence. Then he reached over and held both of =ruce7s hands firmly in his. E! only have one re8uest,G Kaul said 8uietly. EBan you change the departure date from ne+t week to tomorrow>G Q Q Q
Two wee+s later7
The airport in Rome was packed. Kaul and =ruce were returning to the states after two wonderful weeks in !taly. They7d walked the streets of their forefathers. )nd dined in the homes of do9ens of longlost relatives. !t was the trip of a lifetime, and both men felt renewed and reconnected by the visit. They sat side by side in the terminal, reading copies of the same book. ;very now and then one of the men would lean over to his friend and point out a passage from the book. 2Hh/h/h/h, N;! C not again4 cried a man across the aisle. 2M" flight has been cancele C %.%)N! )’ll ne3er get out of here!4
EThat7s our flight, too,G said Kaul motioning to the monitor suspended above them. EBanceled. @ow what>G Kaul looked over to his old friend. =ruce returned the look ? and then they Fust smiled. E6ou thinking what !7m thinking>G grinned Kaul. ""
2:oo+s li+e we’3e got to sta" another wee+!4 they shouted in unison as they Fumped out of their seats to high five each other.
The man across the aisle gawked at the two friends as if they were aliens. E0hat are you guys so happy about>G he asked incredulously. E!7ve been stuck in this airport for two days. ! missed my daughter7s birthday party for the second year in a row. !7ve been in so many time 9ones during the past month that ! don7t know what day it is. !f that7s not enough, !7m going to miss my numbers for the year because my client got greedy and refused to settle.G E0e7re sorry,G said =ruce. E0e can sympathi9e. 0e used to react the same way, didn7t we Kaul>G E/ure did,G said Kaul. E/tressed out. Tapped out. =urned out. 0orn out. 6ou think of an Uout,7 and we had e+perienced it. That was way back in the prepipeline days, right =ruce>G E0hat do you mean, Uprepipeline days>G asked the stressed out stranger. E0hat7s that all about>G E*ove to e+plain,G Kaul said happily. E=ut my fiend and ! have to scoot over to the car rental desk. Nive me your business card, and one of us will call you when we get back to the states.G The stressed stranger handed Kaul his business card. !n e+change, Kaul handed him his book. EJere, read this while you7re waiting for your flight,G Kaul said. E0hen ! call you, the book will give us something to talk about.G Kaul patted =ruce on the back and steered him toward the rental car desk. Je paused long enough to read the stressed stranger7s business card. "2
Bob Bruno, Esq )TTOR@;6 )T *)0
329;;2$E2THE%
E=ob =runo, )ttorney )t *aw,G Kaul said. E!7d say r. =runo would welcome the opportunity to build a pipeline, wouldn7t you>G E=runo. =runo.G =ruce slowly pronounced the name. EThe name =runo sounds awfully familiar.G E1or some reason, =ruce, !7ve got a good feeling about this guy =runo,G Kaul said. E/ame feeling ! had when you Foined me in the business. ! think our new friend =runo is going to be one fine pipeline builder
"C
