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Old 12-01-2006, 06:05 PM   #5 (permalink)
Alvin
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Join Date: Nov 2006
Location: Singapore
Posts: 433
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When analyzing any systems for passive income, it helps to remember this formula I first learnt from my millionaire mentor Adam Khoo:

Income = Value x Time x Scalability

For example, I rely on my pro-blog Life Coaches Blog for passive income, but it's not really passive because I still have to work at it, but it is a lot more scalable than my full-time job because I can reach out to a larger audience.

A great passive income system would ideally be one where you can reduce the time you put in, and increase the value and scalability.

A good example is Steve, even though he still has to put in the time to write articles for his blog, his value and scalability numbers are so up the scale that the income becomes substantial relative to the time put in.
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