Multiple Streams of Internet Income by Robert G Allen – Book Review

Title and Author: Multiple Streams of Internet Income by Robert G. Allen

Synopsis of Content:

Allen’s thesis here is threefold: first, that you can make serious money on the internet, that it is the gold mine of the future; second, that in order to maximize internet opportunities you must exploit several of them, or what he calls multiple streams, and third, done right this is a fast way to make profits.

The strength in this book is the innumerable tips and tricks that a person new to internet commerce would not know but a veteran likely would. The important websites and internet resources alone are probably worth the price of the book if you are starting out on the web or even are fairly new to this. Another strength of the book is the myriad of ideas it suggests for you. You can and should return to this book time and again to mine from it the gems of information that can lead you to opportunities. This is not a detailed how-to manual. It is a great survey of the basic ways that people are making money on the internet.

The chief weaknesses of the book are that it makes assumptions that may not be valid for the inexperienced reader and it promises too much too easily. Typical of the Allen approach, he is short on the obstacles and limitations and long on the promise for wealth and ease of effort. For example he discusses how quickly you can generate rapid sales from a well written sales letter by email but fails to tell the reader that this only works when you have built up a very impressive email opt in list and that they take either a lot of money or a lot of time and effort to create.

If you can bear that caveat in mind and remind yourself that there are no get rich quick schemes (at least none that are legal) you can still benefit significantly from this book.

I have not seen an all around basic introduction into the many opportunities to make money on the internet that is better than this one or more comprehensive. If you want to see the opportunities out there and get excited about following one or more such “streams” this book is a great introduction and a good motivator. Just remember there is a whole lot of work and a lot more education needed to accomplish the kinds of income flows that Allen suggests are easy to do. This book may well be the start of your internet wealth library but only the start – it will take a lot more to get you there.

One principle that Allen teaches here however is worth a comment as it is very true and very important: it is critical to set up multiple sources or “streams” of income on the internet because you are not like to find any one source that is perfect or last forever. Many internet sales systems burn out over time and new “campaigns” need to be launched to capture more sales.

This book was written in 2001 and is therefore very dated. The internet and internet commerce is changing rapidly. When he wrote this there were no social media such as Facebook and very little use of video on the web. On a conceptual level Allen’s book remains relevant but on a technical level much has changed since he wrote it.

Readability/Writing Quality:

This book is easy to read. Allen writes clearly and makes it all interesting. He uses lots of sub titles and organizes the information well. He uses text boxes with supplemental information, many of which contain gems worth more than the regular text.

Notes on Author:

Robert Allen is an author who has written on wealth building for many years. He started out with a book called No Money Down about how to buy real estate for no money down. A great deal has been written over the years about the validity of Allen’s real estate theories. I will leave that to another time and place when we do an author feature on him. For now it is enough to remind the reader that Allen is long on motivation and promises of the possibilities and short on acknowledging what can go wrong, where the weaknesses are, etc. He is a great read if you want motivation and want to stimulate your wealth building imagination. He should never be the final word – to do your due diligence in building any kind of business you need more than a motivational introduction.

Three Great Ideas You Can Use:

1. Once you set up an internet money machine, that is an internet sales system, it operates almost on auto-pilot. It takes little daily attention and if it was done correctly and if you have built a sufficient opt in list your sales will flow in day and night without much effort on your part.

2. The key to building solid and sustained sales on line is to build a good opt in list and to continue to grow it.

3. Good copy – that is, well written sales pages, are the key to turning those potential customers on your opt in list into actual buyers. Practice and refine the art of good copy writing to maximize your sales opportunities.

It is difficult to narrow the list to three. Allen does have a lot of gems here that you need to know from some source if you want to make money off the internet. If that is your interest this book is an excellent introduction.

Publication Information: Multiple Streams of Internet Income by Robert Allen, Copyright: 2001 Robert G. Allen. Published by John Wiley & Sons, Inc.

General Rating:Good

Robert Kyosaki – Rich Dad Poor Dad Review

I happened to lift up this book due to its catchy name “Rich Dad, Poor Dad” plus its tag saying “What Rich educate their kids about the money – that poor & middle class men do not!” Possibly it had to do with my deeply depleted bank account and fact that book assured to educate something about the money, which my parent’s had not.

Robert T. Kiyosaki writes this book and he is fourth generation Japanese American. While serving in Marine Corps as helicopter gunship pilot at time of Vietnam War, he then took job with Xerox Corporation as salesman and this is when he invested in the real estate and some other commodities and finally started company that brought in nylon & Velcro wallets in market. Mr. Robert now runs business as well as education company, known as Cashflow Technologies, Inc.

Ralph H. Kiyosaki, father of Robert’s, was former manager of Education for state of Hawaii. Also he was highly educated man from Stanford University and he is referred as “Poor Dad” in this book. Man referred to “Rich Dad” is neighbor who has never done eight grades owned warehouses, construction company, chain of stores as well as three restaurants. Whereas “Poor Dad” advised Robert to work hard in education so that he can make money, “Rich Dad” have taught Robert how one can invest money with the intention that he will not be bound in constraints of nine to five job.

Book has all different lessons about money, which Robert’s adviser, “Rich Dad” has taught him. The “Rich Dad” was very rich and educated Robert how one can get rich as well as stay in that way. Contrast in the attitudes of rich and middle-class to money is more reinforced by teachings of the “Poor Dad,” which have typical middle class ideas about money. But “Poor dad” made sufficient to pay taxes and own house, despite of being highly educated as well as working for Government.

Mr. Robert says his main reason behind this book was teaching financial literacy to people who are not blessed to have “Rich Dad” to illustrate us how to put our money in investment properly. He also argues that present educational system makes us financially useless and, enables rich corporations and Government to use us for the money due to the lack of monetary literacy. He presents many precious insights in money management, which he got from his “Rich Dad” as well as from his personal knowledge.

Review of Robert Kiyosaki’s Book Unfair Advantage

As a member of Rich Dad World, I downloaded the online version of this book for a limited time offer only. This book offers many important financial lessons that will make you realize the importance of being in the B and I quadrants, which I like to summarise below.

The school system teaches students to be employees and does not equip them to make sound financial decision. The financial education in schools teaches kids to send money to the government and banks. These kids grows up and not knowing the difference between a good and a bad investment; a good and a bad advice. True financial education enables you to tell the differences and have people send money to you. Many of the billionaires in the top ten of Forbes list do not have a formal education like having a degree. They knew that school is not the place for them to be who they are today.

In the US, taxes is the highest expense for people from the E and S quadrants. Getting the correct tax advice from the right person is key. The right tax advisor should be able to help you reduce your taxes. With the money saved, it could be channelled into other investments to build your assets to generate income. There are three types of income that you pay taxes on:

• Ordinary income – This draws the highest tax rate, i.e. the harder you work for money as an employee or self-employed, you pay more taxes.

• Portfolio income (aka Capital gains) – This draws the second highest tax rate, i.e. the harder your money works for you, you pay less taxes.

• Passive income – This draws the lowest or zero tax rate, i.e. the harder other people’s money works for you; you pay the least or even no taxes.

I agree with Robert that savers are now losers as lower interest are given by banks to save money in the bank account. Ever since President Nixon took the US currency off the gold standards, money has ceased to be money and became debt. Countries race to devalue their money by printing lots of it to help increase their exports to other countries. This increase inflation thereby lowering your purchasing power, i.e. groceries have become increasingly expensive. So, if you are able to use debt to buy assets and put money in your pocket, that is really an unfair advantage. Many people have become poor because they used debt to buy liabilities that takes money out of their pocket, worst of all they think that the liability is asset.

Robert explains why the following pair of words are Oxymoron for those who are not financially educated. An Oxymoron are words that contradict each other. They are 1) Job Security 2) Saving Money 3) Safe Investments 4) Fair Share 5) Mutual Fund 6) Diversified Portfolio 7) Debt-Free. Risk is inversely related to control. If you have less control means risk goes up in your investment. Rich Dad advised Robert to learn three things if he wanted to to be rich like Rich Dad in the B and I quadrants. The three things to learn are:

• Selling (control income).

• Real estate investing (control debt).

• Technical investing (control markets).

All fund managers advice people to diversify in a portfolio of stocks, bonds and Mutual funds. For those without a sound financial education, they would think this is sound advice. However, the fund manager is still putting your money in one asset class which is paper asset. The four basic asset classes that Robert invests in are 1) Business 2) Real estate 3) Paper assets 4) Commodities. The more you learn and know about these asset classes, the more control you have, your risk will be lowered.

Different class of people focus at different places of the Income Statement and Balance Sheet. The poor focus on expense. The middle-class focus on liabilities. The rich focus on assets. The rich don’t work for money, they make their money work hard for them. Applying the three laws of compensation will allow a person to enjoy infinite Return On Investment, leading to tremendous wealth.

I agree with Robert that we need two types of school. One suited for those who wish to be in the E and S quadrant and the other for the B and I quadrant. In Singapore, some efforts are made to encourage entrepreneurship; some courses related to it have been established like “School of Entrepreneurs”. However this is not in the main stream curriculum that leads to the degree program. Hence, I doubt what Robert proposed will not be seen here for a long time till the USA has a break-through in their education system.