Cash Flow in the New Economy

By
Services for Real Estate Pros
Starting a blog off with the word "Wow" is generally used to grab the attention of the reader really quick. In the case of this blog, I won't start it off with "Wow" but I do want to get your attention.

Here we go. "Cash Flow is King" is a phrase many of us have heard of. The truth of the matter is that it is king in the lives of those who have it. Those who don't have it just sit around wishing for a little cash to come their direction.

The economy is said to be getting better by some and getting worse by others. We can sit around all day and debate this issue but the reality is it does us no good if at the end of the day cash flow in our lives is like a drip from a faucet. Maybe you're like most people who want a flow of cash in their lives and not just a drip like from a faucet.

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Okay Ced, you're just talking loud just like the guys debating if the economy will get better or worse. Don't you have a solution Mr. Ced? Well, I'm glad you asked. I do.

When you look at goods and services and how they get to the end user we have to realize it's been an industry that's made it all possible. Yeah, there are several we could choose from but the one that I'm talking about is "advertising." You see it's advertising that helps us and prompts us to make the decisions we make.

The challenge today is that we have seen so much advertising that we are turning the channel when they show up. We flip the switch to off on our radios or we just lower the volume to not hear the same old commercial again. Here's what you don't know. The advertisers know you're tired of hearing their stale pitches and they have been searching high and low to find a new way for you to buy their goods and services.

I know, I know, you want me to get to the point. I will. But read this first. Advertising is how businesses get us to buy their goods and services. Without it, they would be up the proverbial "creek without a paddle." On the other side of things we would not know how to distinguish what's good and what's not. So we have to conclude advertisers need us and we need them.

Here's the bottom line. When advertisers finally realized that the old adage of "word of mouth advertising is the best form of advertising," the smart ones have begun to put their money into the hands of the ones who spoke highly of their goods and services to their friends, families and associates. We're not talking chump change, we're talking major money.

Here's how it works. Instead of spending money on traditional advertising like billboards, T.V. radio and even the internet, big businesses began looking for organizations with big data bases they could tap into and pay referral fees to these organizations when their constituents bought goods and services.

Now watch this. The deal gets even better. There is one profession that takes what the advertisers were wanting to do to an entirely different level. The advertisers want customers right? Well the profession I'm talking about not only has customers, they have customers who remain loyal for years because of the business model they're connected with. You see this business model pays them month in and month out to use the goods and services they prefer, recommend them to others and sponsor others to use and recommend the same goods and services.

Although the concept is not new, the advertisers do realize they have been running into a brick wall because the old method of advertising was just causing them to swap customers with their competitors every few months. The advertising war has come to the point where it's futile for advertisers to put all their ad budgets in traditional media.

So now imagine this with me. Company "A" comes along and has several hundred thousand loyal customers just waiting to spend their money with a great majority of the advertisers Company "A" recommends. The reason they are so anxious to spend their money is because they know they will be getting paid from Company "A". Here's the deal. Company "A" gets paid royally for every loyal customer they deliver to the advertisers. All the advertisers have done is restructure their ad budget and hold back a portion to pay out only after a loyal customer is acquired.

Corporate America and Network Marketing have finally crossed paths. This new way of doing business is here and is presently helping people all over the world earn money on the goods and services they presently use every month. Not only that they are earning money from recommending the same goods and services to others as well as sponsoring others to do what they do. This is absolute genius.

With all the good I've spoken of,the sad thing is that some people will look at this new way of doing business as a flute and not take it serious. Keep in mind the same thing was said of the stock market when it started, franchises when they started, big box stores when they started and just about every new way of making life more convenient. Can you see how cash flow has changed in our economy?

You owe it to yourself to find out more about this new way of doing business. Contact Ced Reynolds @ (888) 888-9802 extension 85141

Comments (15)

Rob Lang
At Home Kansas - Shawnee, KS
Local Expert in NE Central Kansas Real Estate Home

Thanks for the perspective.  I appreciate the long view of things.

May 16, 2010 04:20 PM
Tom Ramsey
Century 21 Northland - Traverse City, MI

Thanks for your post.  good information.

tom

May 16, 2010 05:46 PM
Donna Rattee
Coco, Early & Associates - Portsmouth, NH
Turning Dreams Into Reality

Very interesting...hmmm...

Thanks!

May 16, 2010 10:40 PM
Richard Strahm
American Foursquare Realty - Lansdale, PA
Lansdale and North Penn Real Estate

Um, what am I missing here?  And why/how did this get featured on ActiveRain?  This gentleman is not even in real estate!  He sells memberships in a "club" that gets you discounts. 

Someone fell asleep at the switch here!

May 16, 2010 11:36 PM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Donna, it is very interesting.  I said the same thing when I first heard of what's going on in our economy. As I have taken advantage of participating in the new cash flow economy, I've honestly been more than pleased.

Tom, glad you thought the blog was interesting.  Hope you picked up some new things to ponder on.

Robb, thanks for seeing the perspective from a long term point of view.  It's absolutlely rocking a lot of people's worlds.

Richard, I can understand you point of view.  No, I am not a Realtor. However I do work with people in the financial services field helping them leverage their professional relationships and create residual income.  As far as the membership I offer, it's basically an introductory piece to my business.  Thanks for your comments. I do encourage you to investigate my sites a little further.

May 17, 2010 03:53 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

There are a ton of companies functioning this way.  See Amway Global for example.

May 17, 2010 04:21 AM
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Cedric  This is not new, but it works for some people - those who are easily influenced

May 17, 2010 04:37 AM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

David, thanks for your obervation.  Amway Global is one of, if not the oldest business that functions this way. But believe it or not, most people still prefer to be consumers rather than become the middle man on their own transactions.  Choice is a powerful thing. It can also be profitable.  Thanks again.

Thanks for your comments Karen. You're right about it this not being new. Leaders who attract leaders are the ones who generally thrive in this  business not unlike any other business. Those who are easily influenced may get involved but they generally don't succeed on a big scale.

May 17, 2010 05:05 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Cedric, it is one of the many ways to market. I guess the way has to match the persons personality for it to work.

May 17, 2010 06:42 AM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Ted, your comments are well received.  Personality may have a part to play this sort of marketing working.  Although in my professional experience, I've seen all kinds of people with different personalities do quite well.  This sort of marketing is more about following a proven system which includes utilzing the support of those who are already successful.

May 17, 2010 06:57 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

Amway has revolutionized meaning there is no longer a middle man.  All products and paychecks are direct to the independent business owner.  Technology has greatly changed those types of businesses.  I think it's a great business model if you're willing to do the work. 

Multi level marketing is very popular and can be very profitable, but I still would like to know how any of this applies to real estate. 

May 17, 2010 10:34 AM
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

Nice introductory paragraph... I thought you were going to get into selecting real estate investment properties through time tested cash flow calculations and why the "Speculators" during the boom eventually got crushed...

Not sure... but I think we ended up reading about something that is residual income based...

 

 

May 17, 2010 11:11 AM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

David, great to see you your additional comments.  Very good points. You seem to have a good grasp of the profession.  In reference to Real Estate, there are a few Realtors and other professionals who have chosen this business model as a "Plan B" and are creating a long term passive residual income.  Some have even replace their primary income using this model.

 

Paul, I wouldn't be the guy to help you with Real Estate investment properties.  On the residual income side of things, I'm your might be your guy.  LOL.  Thanks for your response to my blog post.

May 17, 2010 12:21 PM
Emily Lowe
RE/MAX Homes and Estates, Lipman Group - Nashville, TN
Nashville TN Realtor

Several have approached me about MLM work, but I'm not interested - thanks for your point of view...

May 17, 2010 12:27 PM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Emily, I know what you mean.  I've been approaced over the years by some "not so professional people," so for a long time, I wrote off the profession because of their "needy" approach.  It wasn't until a professional friend of mine basically asked me some sensible questions that caused me to want to see what his offer was.  As they they, "The rest is history."  Thanks for reading my blog post.

May 17, 2010 12:56 PM