Turning Value into Income

So how does one generate income from creating and delivering value? Can’t you run into a problem of creating and delivering lots of value and making no money from it?

As it turns out, making money is the easy part. If you can create and deliver value to people, the income opportunities will literally come to you. People will practically line up with ways for you to make money. I’m serious.

Here’s how this works.

If you get good at creating value, you can connect with other people who are good at delivering value. They deliver your value, such as by selling it, and they pay you a royalty, commission, or licensing fee.

For example, Hay House offered me a book deal last year, so I wrote a book and it was published in September. I received an advance for the book, and I’ll also receive ongoing royalties based on sales. I might even receive royalties from this book for the rest of my life, especially since the content is timeless. Also, writing a book has lead to other opportunities, such as paid speaking engagements. So in this case I created the value (the book), but others deliver it.

Now suppose you get good at delivering value. In this case you can generate income by plugging other people’s value into your delivery system. For example, my blog is great at delivering value. It’s a very efficient medium for that. But since I give my value away for free, it doesn’t generate income directly. However, I can generate plenty of income by promoting other people’s products that I like. Then I split the profits from sales with the publisher. I earn six figures a year just from doing that. The product publishers come to me. I get way more offers for this sort of thing than I can handle. It doesn’t require a lot of work to do this. Once you have a system for delivering value, you can plug other people’s value into it and generate lots of extra income.

If you have the means to create AND deliver strong value, you’ll have so many opportunities it will be totally ridiculous. First, you can plug the value you create into other people’s delivery systems, so you can earn ongoing royalties and such. This is easy residual income. I’m still getting checks every month for deals I entered years ago.

Secondly, you can plug other people’s creative value into your own delivery system. You pay them a royalty on the sales, or they pay you as an affiliate. Once again you generate ongoing residual income. As long as you’re selective about the products you promote, doing your best to ensure that they provide strong value, everyone is happy, and everyone wins.

Thirdly, you can plug your value into your own delivery system. Strangely, this is something I haven’t done yet with my blog, although I used to do it all the time with my computer games business. This is something I intend to explore in 2012. It simply means that I could create and sell my own products direct. Many other bloggers have already done this with great success, releasing e-books, audio programs, DVDs, etc. They create the value and sell it directly to their visitors.

A big chunk of the income I received in 2011 was from work I did in previous years. I could do no work for all of 2012 and just live off the residual income I know is coming. That’s a nice situation to be in. It’s no accident though. Years ago I decided that this is how I wanted to set up my financial life, and then I focused on creating and delivering value to make it work. There’s no reason you can’t use the same strategy. It isn’t trademarked.