As in “The richest man in Babylon” and “The Wealthy Barber”, the early notion of becoming wealthy was to invest 1/10 of your earning for long-term growth. This may still hold true today. But I believe money is made rather than saved.
Then the concepts of pipelines became popular in Robert Kiyosaki’s “Rich Dad, Poor Dad”. The idea of a pipeline is a business which generates cash flow without much effort required.Most pipelines especially the physical ones, such as electricity grid, gas pipes, the Internet, cables and mobile phones, require a large capital investment and involve a huge complex system including unwanted government bodies such as the FCC. Smaller pipelines, such as a franchise (Subway, 7-Eleven), can be too laborious. Pipelines to some extent are beyond the reach of the mass.
When the Digital Economy was reborn from the ashes of the DotCom burst, Google perfected Internet Marketing invented by Overture (now part of Yahoo). With domain names and hosting costing less than $8 a month, everyone can put up a website to generate revenue with content and affiliate programs. Suddenly, pipelines can be digital and are within the reach of everybody with a desire of building one. This is what I call a digital pipeline. You may not be rich with tons of money, but you can be wealthy with constant cash flows from your pipelines.
How real is this digital pipeline? Reportedly, many folks have done very well. Business Week’s article “How top bloggers earn money” featured people earning 6~7 digits profit a year. Jeremy Schoemake published the photo of his enviable check of $132K in a month from Google.
How can you do the same? Read on in my blog series about becoming a Wealthy Netizen.