You are on page 1of 116

THE

PARABLE
OF THE
PIPELINE
How Anyone Can Build
A Pipeline Of
Ongoing Residual Income
In The New Economy
BR!E
HE"#E$
You Can Become the
Millionaire Next Door!
Dear Reader:
One hundred years ago, it was virtually impossible
for the average person to become a millionaire.
Take a look at these lifestyle statistics at the turn of
the 2
th
century.
!n "#, the average wage in this country was 22$
an hour. The average worker earned between %2
and %& a year, well below the poverty line at the
time. Only '( of all )mericans had graduated
from high school. *ife e+pectancy was &, years
old. Only "&( of the homes had a bathtub. There
were -, cars in the .nited /tates and only "&&
miles of paved roads. .ntil 00!,
the average )merican
family spent -( of their income on the basic
necessities of food, shelter, and clothing.
!n a word, " years ago, there were basically two
economic classes: The rich. )nd the rest. Only
one in " families was upper class or middle class.
0hich means that in "#, #( of the people in the
../. would have been classified as poor.
%iddle Class $&ill Li'ing Paychec( &o
Paychec(
1lash forward " years to 2".
The median family income today is %&,,. There
are more cars in this country than people. 2ost
families own at least two T3s. *ife e+pectancy is
l,4. Today, average people have more disposable
income5more leisure time5and more career
options than ever before.
6et most of the nation7s ,2 million families are still
living from paycheck to paycheck. Take away
e8uity in the family home, cars, and furniture, and
the average family has 9ero assets. :;RO< 0hile
family income is up, so is family debt and hours
spent working.
Whats wrong with this picture?
A)e *ou Plugged in&o &he +)ong $ys&em,
0hat7s wrong is that too many people have bought
into the wrong plan. They7re plugged into the
wrong system. )nd they lack a fundamental
understanding of how wealth is created and
accumulated.
!7m going to make a bold statement that may shock
you. =ut it is absolutely, une8uivocally true.
Ready>
The simple, unvarnished truth is that today,
becoming a millionaire is a matter of choice, not
chance!
That7s right ? today, virtually anyone earning a
middle class income can become a millionaire.
!mpossible> @ot at all. )ctually, it7s really 8uite
simple.
ii
!f you want to become a millionaire today, all you
need to do is follow these three steps:
"A .nderstand how wealth is created and
accumulated
2A Bopycat proven systems of wealth
creation
CA =e consistent over time.
That7s it ? that7s all it takes for average people to
accumulate a million dollars in assets:
.nderstanding. Bopying. )nd consistency.
What You Will Learn In This
Book
!n this book you will learn proven strategies that
average people can follow to create true financial
freedom for themselves and their families. These
strategies are simple to follow and time tested. )ny
they have created millions of millionaires over the
last 4 years<
1olks, becoming a millionaire is no longer a matter
of good fortune. Or good luck. !t7s merely a matter
of learning and following proven strategies for
wealth creation.
!n the words of the bestDselling book, The
Millionaire Next Door, EThe large maFority of
millionaires are not the descendants of the
Rockefellers or 3anderbilts. More than 80 are
or!inar" people who have accumulated their wealth
in one generation.G
Think about that ? E2ore than -( Hof
millionairesI are ordinary people.G This statistic
iii
proves what ! said earlier ? to!a", becoming a
millionaire is a matter of choice, not chance!
2y goal in writing The #arable of the #ipeline is to
teach you the strategies the wealthy have used for
centuries to create and accumulate wealth. These
strategies were once reserved for only the privileged
few. ;ven if you knew these strategies back in
"#, most likely you wouldn7t have had the cash or
the contacts to take advantage of them. That7s not
the case today.
Today, by virtue of improved technology5 an
increase in middle class wages5 and an innovative
business model ! call EeDcompoundingG5virtually
any middle class person with a high school
education or above can leverage their money, time,
and relationships to create personal and financial
freedom.
=y following the strategies outlined in this book,
you, too, can become the millionaire ne+t door.
0elcome to the neighbourhood<
6ours Truly,
=urke Jedges
iv
THE
PARABLE
OF THE
PIPELINE
v
The Parable of the Pipeline
Jow )nyone Ban =uild a Kipeline of Ongoing
Residual !ncome in the @ew ;conomy<
Bopyright 2" by =urke Jedges L /teve Krice
)ll rights reserved under !nternational and KanD
)merican copyright conventions. 0ritten
permission must be secured from the publisher to
use or reproduce any part of this book, either in
print, video, audio, or digitally via the !nternet,
e+cept for brief 8uotations in reviews and articles.
Krinted in the .nited /tates of )merica
1irst ;dition Manuary 2"
!/=@: "D-#"2,#D4D+
Kublished by !@T! Kublishing
Tampa, 1*
Bover Design: Bherry Design
*ayout: =ayou Nraphics
vi
"E"ICATION
To everyone who has the wisdom to become a
pipeline builder5and the willingness to share that
wisdom with others.
vii
AC!NO+LE"#E%ENT
Discipline, determination, focus, and patience are
the words that come to mind when ! think of Dr.
/teve Krice, who was the backbone to the successful
completion of this manuscript. /teve, you7re
e+tremely talented and relentless in seeing a proFect
through from beginning to end. ! appreciate you,
and in my eyes, you7re truly a EKricelessG partner.
!7m forever grateful to Oatherine Nlover, Kresident
of !@T! Kublishing. Oatherine is a leader
e+traordinaire, and her input and attention to the
details throughout the creation and development of
this book were invaluable.
! want to thank Donna 2orrison for the outstanding
Fob she did in creating the easyDtoDread layout.
Donna, you7re always a pleasure to work with.
) great big thanks to *i9 cherry and her creative
team for their wonderful cover design. Bherry
Design hit a home run in conveying the awesome
power of residual income.
)ny acknowledgement ! make would not be
complete without thanking everyone at team !@T!:
/andee *oren9en makes !@T! operations run like a
/wiss clockP Dee Narrand designed and oversees
five of the best websites in the industryP Bindy
Jodge not only runs the warehouse efficiently, she
does it with a smile on her face and laughter in her
voiceP Mewel Karago, B1O, is a computer e+pert and
accounting whi9 rolled into one Qwhat would we do
without you, Mewel>A.
viii
*astly, ! want to thank my father for stressing to me
when ! was a teenager that in life, pipelines are my
lifelines. Thanks for your patience and timeless
wisdom, Dad.
i+
BOO!$ B* BR!E HE"#E$
Who $tole the %merican Dream?
&ou 'ant steal $econ! with &our (oot
on (irst!
&ou, )nc*
'op"cat Mar+eting ,0,
-ea! an! .row -ich
Dream/0i1*com
+
---------------------------------------
CONTENT$
+i
FRO% THE "E$! OF BR!E
HE"#E$
Your Pipelines Are
Your Lifelines!
It7s been 24 years since my father passed away.
=ut ! can still remember our early evening chess
games like they were yesterday.
! remember helping my father set up the chess
board on the verandah of our beach house
overlooking the Kacific Ocean off the coast of
;cuador.
! remember watching the waves breaking against
the white sand beach.
! remember the fragrance of hibiscus floating on the
saltwater mist.
! remember watching the soft yellow sun sink below
the steelDgrey hori9on.
0e7d play chess until dark. 2y father would talk. !
would listen.
E@ever take anything for granted,G ! remember him
saying many times as he ga9ed at the hori9on.
"
F)om P)ince &o Paupe) in One "ay
2Ne3er ta+e an"thing for grante!*4
2y father was referring to "#4#, the year Bastro
took over Buba. Krior to the revolution, my father
was one of the richest men in Buba. )ccording to
an article in time maga9ine, my father was worth
more than %2 million Qwhich would calculate to at
least %2 million in today7s dollarsA. Je owned "2
different businesses, including cotton mills, retail
stores, a te+tile mill, a chemicalDmanufacturing
plant, and commercial real estate.
0hen Bastro took over, my parents escaped to
Mamaica with Fust the clothes on their backs. 2y
father7s businesses and bank accounts were
confiscated for what the communists called Ecrimes
against the people.G
2y father7s only EcrimeG was being successful5
and then taking that success for granted. !n
hindsight, he should have moved some of his assets
out of the country. Je took it for granted that
Bastro would never be able to overthrow the
government.
2y father was wrong. )nd it cost him his fortune.
A P)emoni&ion of Pipelines
2y father did his best to rebuild his dynasty. =ut a
bad economy and a bad heart conspired to prevent
his comeback. Je wasn7t bitter in his final days.
Je was Fust disappointed that he had run out of
time.
/o as we played chess, my father did his best to
teach me the key principles that enabled him to
amass a small fortune while he was still in his &s.
2
2y father often lectured me on the importance of
owning your own businesses. Ownership meant
independence and control. )s far as my father was
concerned, the more businesses you had, the better.
2&our pipelines are "our lifelines,4 he would say. !
took my father7s lessons to heart. ! opened my first
business when ! was only 24 years old. Today !
own several fastDgrowing businesses.
!ronically, one of my companies, ;8uibore, is a
pipeline business ? literall"! ;8uibore, installs the
underground conduit that EOld ;conomyG utility
companies use to house their gas and water
pipelines. E@ew ;conomyG telecom companies use
the conduit for their fibre optic cables, the pipelines
of the future.
%y Rich "ad. His Rich "ad
2y father was a big believer in diversification.
That7s why most of his "2 different businesses were
in different industries.
E!f you7ve only got one pipeline, then you7ve only
got one lifeline,G he7d say as he captured one of my
chess pieces. EThe more pipelines you7ve got, the
better.G
) few months ago ! came across an audio tape by
Robert Oiyosaki titled, What M" -ich Da! Taught
Me %bout )n3esting* Oiyosaki tells a brief story
about two young men who were hired to deliver
water from a lake to their village a mile away. One
of the young men used buckets to carry the water.
The other young man built a pipeline. Over the
long run, the young man who built the pipeline
fared far better than the bucket carrier.
C
Oiyosaki7s audio reminded me of the lessons my
father taught me 24 years ago. That evening ! went
home and Fotted down " pages of notes for a new
book e+plaining the parallel between pipelines and
lifelines and urging readers to diversify their
income streams by building both shortDterm and
longDterm pipelines.
! titled the book, The #arable of the #ipeline. Three
months later ! handed my publisher the manuscript
to the book you7re holding in your hands.
Building *ou) Own Pipelines
Over the years !7ve taken my father7s advice and
built several profitable pipelines. ! don7t own "2
businesses like he did. )nd !7m not worth %2
million yet.
=ut !7m working on it.
Kipelines are designed to take the worry out of
people7s lives by putting profits into their pockets.
=ut most of all, pipelines are designed to give
people personal and financial freedom and lifelong
security.
!n short, pipelines are lifelines.
2y father had his lifelines taken from him by a
dictator. )nd he never recovered. Keople in this
country are blessed ? we7ll never have our lifelines
taken from us by a dictator. Only we can take the
lifelines from ourselves.
Jow>
=y not taking the initiative to build them<
Take a lesson from my father ? don7t take it for
granted that tomorrow will be Fust the same as
today. =ecause it won7t<
The only security is the security of a pipeline.
! urge you to start building your pipelines today5so
that you7ll have your lifelines tomorrow<
&
RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
INTRO"CTION
The Parable of
the Pipeline
"-", valley in central !taly
O@B; .KO@ ) T!2; *O@N, *O@N )NO, two
ambitious young cousins named Kablo and =runo
lived side by side in a small !talian village.
The young men were best buddies.
)nd big dreamers.
They would talk endlessly about how some day,
some way, they would become the richest men in
the village. They were both bright and hard
working. )ll they needed was an opportunity.
One day that opportunity arrived. The village
decided to hire two men to carry water from a
nearby river to a cistern in the town s8uare. The Fob
went to Kablo and =runo.
;ach man grabbed two buckets and headed to the
river. =y the end of the day, they had filled the
town cistern to the brim. The village elder paid
them one penny for each bucket of water.
2This is our !ream come true!4 shouted =runo. E!
can7t believe our good fortune.G
=ut Kablo wasn7t so sure.
4
Jis back ached and his hands were blistered from
carrying the heavy buckets. Je dreaded getting up
and going to work the ne+t morning. Je vowed to
think of a better way of getting the water from the
river to the village.
Pa/lo. &he Pipeline %an
E=runo, ! have a plan,G Kablo said the ne+t morning
as they grabbed their buckets and headed for the
river. E!nstead of lugging buckets back and forth
for pennies a day, let7s build a pipeline from the
river to the village.G
=runo stopped dead in his tracks.
2% pipeline! Whoe3er hear! of such a thing?4
=runo shouted. E0e7ve got a great Fob, Kablo. !
can carry " buckets a day. )t a penny a bucket,
that7s a dollar a day< !7m rich< =y the end of the
week, ! can buy a new pair of shoes. =y the end of
the month, a cow. =y the end of si+ months, ! can
build a new hut. 0e have the best Fob in town. 0e
have weekends off and two weeks7 paid vacation
every year. 0e7re set for life< Net out of here with
your pipeline.G
=ut Kablo was not easily discouraged. Je patiently
e+plained the pipeline plan to his best friend. Kablo
would work part of the day carrying buckets and
then part of the day and weekends building his
pipeline. Je knew it would be hard work digging a
ditch in the rocky soil. =ecause he was paid by the
bucket, he knew his income would drop at first. Je
also knew it would take a year, possibly two, before
'
his pipeline would start to pay big dividends. =ut
Kablo believed in his dream, and he went to work.

Pipeline in Progress
=runo and the rest of the villagers began mocking
Kablo, calling him EKablo the Kipeline 2an.G
=runo, who was earning almost twice as much
money as Kablo, flaunted his new purchases. Je
bought a donkey outfitted with a new leather saddle,
which he kept parked outside his new twoDstory hut.
Je bought flashy clothes and fancy meals at the inn.
The villagers called him 2r. =runo, and they
cheered when he bought rounds at the tavern and
laughed loudly at his Fokes.
$mall Ac&ions E0ual Big Resul&s
0hile =runo lay in his hammock on evenings and
weekends, Kablo kept digging his pipeline. The
first few months Kablo didn7t have much to show
for his efforts. The work was hard ? even harder
than =runo7s because Kablo was working evenings
and weekends, too.
=ut Kablo kept reminding himself that tomorrow7s
dreams are built on today7s sacrifices. Day by day
he dug, an inch at a time.
2)nch b" inch its a cinch,4 he chanted to himself as
he swung his picka+ into the rocky soil. !nches
turned into one foot5then " feet5then 25
"5.
2$hort/term pain e5uals long/term gain,4 he
reminded himself as he stumbled into his humble
hut e+hausted from another day7s work. Je
,
measured his success by setting and meeting his
daily goals, knowing that, over time, the results
would far e+ceed his efforts.
EOeep your eyes on the pri9e,G he repeated over and
over as he drifted off to sleep accompanied by the
sounds of laughter from the village tavern.
26eep "our e"es on the pri1e7*4
Completed pipeline
The P)i1e
The Ta/les A)e Tu)ned
Days turned into months. One day Kablo reali9ed
his pipeline was halfway finished, which meant he
only had to walk half as far to fill up his buckets<
Kablo used the e+tra time to work on his pipeline.
The completion date was advancing faster and
faster.
During his rest breaks, Kablo watched his old friend
=runo lug buckets. =runo7s shoulders were more
stooped than ever. Je was hunched in pain, his
steps slowed by the daily grind. =runo was angry
and sullen, resenting the fact that he was doomed to
carry buckets, day in and day out, for the rest of his
life.
Je began spending less time in his hammock and
more time in the tavern. 0hen the tavern7s patrons
saw =runo coming, they7d whisper, EJere comes
=runo the =ucket 2an,G and they7d giggle when the
town drunk mimicked =runo7s stooped posture and
shuffling gait. =runo didn7t buy rounds or tell Fokes
anymore, preferring to sit alone in a dark corner
surrounded by empty bottles.
$
$
-
1inally, Kablo7s big day arrived ? the pipeline was
complete< The villagers crowded around as the
water gushed from the pipeline into the village
cistern< @ow that the village had a steady supply of
fresh water, people from the surrounding
countryside moved into the village, and it grew and
prospered.
NO YE

Once the pipeline was complete, Kablo didn7t have
to carry buckets anymore. The water flowed
whether he worked or not. !t flowed while he ate.
!t flowed while he slept. !t flowed on the weekends
while he played. The more the water flowed into
the village, the more the money flowed into Kablo7s
pockets<
Kablo the Kipeline 2an became known as Kablo the
2iracle 2aker. Koliticians lauded him for his
vision and begged him to run for mayor. =ut Kablo
understood that what he had accomplished wasn7t a
miracle. !t was merely the first stage of a big, big
dream. 6ou see, Kablo had plans that reached far
beyond his village.
#ablo planne! to buil! pipelines all o3er the worl!!

$
$
#
Rec)ui&ing His F)iend &o Help
The pipeline drove =runo the =ucket 2an out of
business, and it pained Kablo to see his old friend
begging for free drinks in the tavern. /o, Kablo
arranged a meeting with =runo.
E=runo, !7ve come here to ask you for your help.G
=runo straightened his stooped shoulders, and it
pained Kablo to see his old friend begging for free
drinks in the tavern. /o, Kablo arranged a meeting
with =runo.
E=runo, !7ve come here to ask you for your help.G
=runo straightened his stooped shoulders, and his
dark eyes narrowed to a s8uint. EDon7t mock me,G
=runo hissed.
E! haven7t come here to gloat,G said Kablo. E!7ve
come here to offer you a great business opportunity.
!t took me more than two years before my first
pipeline was complete. =ut !7ve learned a lot
during those two years< ! know what tools to use.
0here to dig. Jow to lay the pipe. ! kept notes as !
went along, and !7ve developed a system that will
allow me to build another pipeline5and then
another5and another.
E! could build a pipeline a year by myself. =ut that
would not be the best use of my time. 0hat ! plan
to do is to teach you and others how to build a
pipeline5and then have you teach others5and
have each of them teach others5until there is a
pipeline to every village in the region5then a
pipeline to every village in the country5and
eventually, a pipeline to every village in the world<
EMust think,G Kablo continued, Ewe could make a
small percentage of every gallon of water that goes
through those pipelines. The more water that flows
through the pipelines, the more money that will
"
flow into our pockets. The pipeline ) built isnt the
en! of a !ream* )ts onl" the beginning!4
=runo finally saw the =ig Kicture. Je smiled and
e+tended his callused hand to his old friend. They
shook hands5and then hugged like longDlost
friends.
Pipeline ")eams in a Buc(e&2Ca))ying +o)ld
6ears passed. Kablo and =runo had long since
retired. Their worldwide pipeline business was still
pumping millions of dollars a year into their bank
accounts. /ometimes on their trips through the
countryside, Kablo and =runo would pass young
men carrying water buckets.
The childhood friends would pull over land tell the
young men their story and offer to help them build
their own pipeline. ) few would listen and Fump at
the opportunity to start a pipeline business. =ut
sadly, most bucket carriers would hastily dismiss
the notion of a pipeline. Kablo and =runo heard the
same e+cuses over and over.
E! don7t have the time.G
E2y friend told me he knew a friend of a friend
who tried to build a pipeline and failed.G
EOnly the ones who get in early make money on
pipelines.G
E!7ve carried buckets all my life. !7ll stick with
what ! know.G
E! know some people who lost money in a pipeline
scam. @ot me.G
!t made Kablo and =runo sad that so many people
lacked vision.
=ut both men resigned themselves to the fact that
they lived in a bucketDcarrying world5and that
only a small percentage of people dared to dream
pipeline dreams.
""
PART 3
!e Li"e in a
Buc#et$Carr%ing !orld
"2
LESSON ONE
!ho Are You & a
Buc#et Carrier'
Or a Pipeline Builder'
+ho are you>5) bucket carrier> Or a pipeline
builder>
Do you get paid only when you show up and do the
work, like =runo the =ucket Barrier>
Or do you do the work once and then get paid over
and over again, like Kablo the Kipeline =uilder>
!f you7re like most people, you7re working the
bucketDcarrying plan. ! call it the ETimeDforD2oney
Trap.G 6ou know the drill:
E=runo, ! have a plan,G Kablo said the ne+t
morning as they grabbed their buckets and
headed for the river. E!nstead of lugging
buckets back and forth for pennies a day, let7s
build a pipeline from the river to the village.G
=runo stopped dead in his tracks.
2% #ipeline! Whoe3er hear! of such a
thing?!!4 =runo shouted.
RRR from The #arable of the #ipeline
"C
One hour7s work e8uals one hour7s pay.
One month7s work e8uals one month7s pay.
One year7s work e8uals one year7s pay.
$oun! familiar?
( )ime$for$Mone% )rap
The problem with bucket carrying is that the money
stops when the bucket carrying stops. 0hich means
the concept of a Esecure FobG or a Edream FobG is an
illusion. The inherent danger of carrying buckets is
that the income is temporary instead of ongoing.
!f =runo woke up one morning with a stiff back and
couldn7t get out of bed, how much money would he
earn that day> :ero<
@o work, no money<
The same goes for any bucketDcarrying Fob. Once
bucket carriers have used up their sick days and
vacation days, if they can7t continue to carry
buckets, they won7t continue to get a paycheck.
Keriod.
No Buc#ets ( No Pa%
"en&is& Can4& Ca))y Buc(e&s Anymo)e
Jere7s a realDlife e+ample. 2y previous dentist was
the best dentist !7ve ever had. /he was a complete
professional ? a great chairDside manner. Nreat
personality. Nreat technician ? every visit was
%
"&
virtually pain free. Klus, she loved what she did,
and she set her own hours Qher office was open only
three days a week so she could spend fourDday
weekends with her familyA.
/he pulled down more than %", a year
working three days a week in a Fob she loved. This
was a bucketDcarrier7s dream Fob if there every was
one.
One problem. =efore the age of &, she developed
arthritis in her hands and couldn7t work anymore.
Today she teaches at a local university earning oneD
third of the income she earned as a dentist.
Through no fault of her own, her dream Fob
disappeared.
@ow do you see why ! say there7s no such thing as a
secure bucketDcarrying Fob> Ban you see how
vulnerable bucket carriers are>
The problem with the timeDforD2oney Trap is that if
you can7t trade the time, you don7t get the money<
Kablo the Kipeline 2an recogni9ed the limitations
of bucket carrying early on ? and he set out to
create a system whereby he could continue to get
paid whether he put in more time or not.
Kablo understood that there7s no security in bucket
carrying. Je understood that a pipeline is your
lifeline.
+ha& +ould Happen &o *ou If *ou Couldn4& Pu&
in &he Time,
0hat about you ? what would you do if your
income stopped tomorrow>
"4
0hat would happen if you got laid off>5
0hat would happen if you got sick or disabled and
couldn7t carry those buckets anymore>
0hat if a medical emergency ate up your savings>
0hat if your nest egg evaporated overnight>
!f your income stopped tomorrow, how long could
you pay the mortgage>5make your car payments>
5or pay for your kid7s schooling>
/i+ months> Three months> Three weeks><<<<
*ou) Nes& Egg
8 months? 9 months? 9 wee+s?
Kicture missing
!f disaster strikes, do you have a lifeline that would
protect you and your family> Or are you gambling
that bucket carrying will continue uninterrupted for
as long as you need the income>
0hether you push a broom5push paper5or push a
profession5, you7re still trading one unit of time
for one unit of money.
0here7s the security in that>
Pipelines Pay +hile *ou Play
)s Kablo said, 2There must be a better wa"!4
1ortunately, there is.
"'
!t7s called a pipeline ? ongoing residual income ?
income that keeps coming in whether you put in the
time or not. The only way to build true security is
to do what Kablo did ? build a pipeline while you7re
still carrying buckets<
Kipelines are lifelines because they enable people to
escape the TimeDforD2oney Trap. 0hen you build
a pipeline, you do the work once, but you get paid
over and over again.
Kipelines are open 2&S,SC'4. 0hich means
pipelines can pay you while you sleep. Or while
you play. Or while you7re retired. Or while you7re
sick and disabled and can7t work. Or during
emergencies.
That7s the power of residual income.
Thats wh" ) sa" "our pipelines are "our lifelines!
Pipelines ( Lifelines
*esidual +ncome
%
%
",
LESSON TWO
!e Li"e in a
Buc#et$Carr%ing !orld
) doctor driving his fourDyearDold daughter to
daycare left his stethoscope on the car seat. The
daughter reached over and started to play with it.
E2ay daughter wants to follow in my footsteps,G
the doctor thought to himself. EThis is the proudest
moment of my life.G
The child arranged the stethoscope around her neck
and held the sensor in front of her like a
microphone.
,!elcome to McDonald-s. Ma% + ta#e %our
order'/
This cute story illustrates why we gravitate to
bucketDcarrying Fobs ? it7s called Emonkey see,
E0e7ve got a great Fob, Kablo. ! can carry "
buckets a day. )t a penny a bucket, that7s a
dollar a day. !7m rich< =y the end of the week,
! can buy a new pair of shoes. =y the end of
the month, a cow. =y the end of si+ months, !
can buy a new hut. 0e have the best Fob in
town. 0e have weekends off and two weeks7
paid vacation every year. 0e7re set for life<
Net out of here with your pipeline.G
RRR from The #arable of the #ipeline
"-
money do.G The little girl had been to 2cdonald7s
so often that she mistook the stethoscope for a
headset and copycatted the way the employees
talked to customers.
*ike the little girl, most people mistake bucket
carrying for pipeline building. 0e observe that
##( of the people carry buckets. /o we naturally
assume that bucket carrying is the only way to get
what we want in life.
Buc#et Carriers "s. Pipeline Builders

##(
35
:i3ing #a"chec+
To #a"chec+
;ngoing -esi!ual
)ncome
That7s why =runo had such a tough time
understanding the power of pipelines ? Kablo was
the first pipeline builder =runo ever knew< =runo
reFected pipelines because they were different. To
=runo, pipelines were unproven. To =runo,
pipelines were radical and risky.
The vast maFority of people think like =runo. 0e
grow up surrounded by broke bucket carriers, so we
figure that7s the way of the world. !t reminds me of
the bumper sticker ! saw recently:
,00,000 lemmings cant be wrong!
Keople think the same about bucket carrying ? ,00
million buc+et carriers cant be wrong!
Well, "es, the" can*
"#
Lemming Mentalit%
Kicture missing
Buying in&o Buc(e& Ca))ying
*et7s face it ? there are a lot more bucket carriers in
this world than there are pipeline builders. 0hy>
=ecause bucket carrying is the model that our
parents followed and the one they taught us to
follow. The bucketDcarrying model tells you
that in a bucketDcarrying world, there7s what
you have to do to get ahead:
No to school and learn how to carry buckets. 0ork
really hard. ;arn the right to carry bigger buckets.
Resign from =ucket company ) to work for =ucket
Bompany =, which lets you carry even bigger
buckets. 0ork longer hours so you can carry more
buckets. Kut the kids through bucketDcarrying
college. Bhange careers from carrying metal
buckets5to carrying plastic buckets5to carrying
digital buckets. Dream of the day you can retire
from bucket carrying. .ntil then, carry those
buckets. Barry those buckets5
0hat do all those bucket carriers earn for their
efforts>
/urprisingly little.
2
)ccording to #ara!e maga9ine7s annual E0hat
Keople ;arnG survey, the average worker in )merica
earns %2-,4 a year. /ubtract almost 2( for
ta+es, and that leaves %22,4 to live on.
*et7s face it D %22,4 takeDhome pay isn7t enough
money to cover the basic needs for a family of four.
0hich means the vast maFority of people are
desperate for more money<
Buc(e& Ca))ie)s4 A'e)age Pay

6 789.:;;
Buc(e&s on Pa)ade
/o what do bucket carriers do when they need more
money> =ecause they have a bucketDcarrying
mentality, they come up with a bucketDcarrying
solution ? if you need more money, you7ve got to
carry more buckets<
2)ll get a secon! <ob carr"ing buc+ets in the
e3enings an! wee+en!s,4 Daddy =ucket Barrier
says.
E! can go back to the bucketDcarrying Fob ! had
before the kids were born,G says 2ommy =ucket
Barrier.
EThe kids can get bucketDcarrying Fobs after school
and in the summer,G the bucketDcarrying parents
announce.
)nd that7s what they do. The result>
Today, @orth )mericans work the longest hours in
the world, even more than the workDobsessed
2"
Mapanese. !s the earnDmoreDmoneyDbyDcarryingD
moreDbuckets plan working>
!n a word, E@O<G
Jere are the cold, hard facts:
Bonsumer debt is at a record high. Jousehold
debt in the ../. has more than 8uadrupled in the
last ", years. The average household today has
#4$ of debt for every dollar of disposable
income.
The proportion of women working to support
their families more than doubled over the past
2 years, from "#( in "#- to &'( today.
2ore and more people are taking second and
third mortgages on their single biggest asset ?
their homes ? to pay bills.
Kersonal bankruptcies have increased every year
to ".&million in the year 2 ? even though the
economy is booming<
=ello/o/o/o! 0hat7s wrong with this picture>
The fallacy of Ca))ying Bigge) Buc(e&s
=ucket carriers reason that bigger buckets mean
bigger paychecks. /o bucket carriers tell
themselves that everything would be okay if they
could Fust get a Fob carrying bigger buckets.
=ucket carriers are forever wondering how much
other bucket carriers earn. The ../. =ureau of
*abor statistics keeps track of the hourly wages of
hundreds of different occupations. Jow does your
hourly wage compare to other Fobs>
22
)ssuming most people get paid for & hours a week
Qeven though they probably wor+ at least >0 hours
a wee+7 or more!? and get two weeks7 paid
vacation each year, here7s the annual income for
five of the above occupations:
Hou)ly +age
Qfrom ../. =ureau of *abor /tatisticsA
Fast-food cook ... $ 6.29
Gas station attendant ... $ 7.34
Janitor . $ 8.44
Retail Salesperson $ 9.2
Secretar! . $ .86
Roofer .. $ 3.63
"ar #ec$anic . $ 3.97
%r&ck dri'er . $ 4.(8
Fire-fi)$ter ... $ *.63
+ail carrier .. $ 6.39
,oan officer . $ 2(.(*
"o#p&ter pro)ra##er .. $ 2*.67
"$e#ical en)ineer . $ 29.44
-$!sicist .. $ 33.23
,a.!er . $ 36.49
/entist .. $ 44.4(
-$!sicians0 S&r)eons $ 49.(*
Annual Income
. "ook ... $ 30(83
2. Retail salesperson ... $ 8097(
3. +ail carrier . $ 340(9
4. ,a.!er. $ 7*0899
*. -$!sician $ (20(24
2C
@ow, if you were a cook5 or a retail salesperson5
or a mail carrier, you might look at the annual
income of a lawyer or physician and think, E0ow, if
! made that kind of money every year, !7d be
financially free< @o more lying awake at night
worrying about paying the bills<G
Buc#et Carriers- +ncome
True, the physician7s bucket is a lot bigger than a
cook7s bucket ? about " times bigger< =ut that
doesn7t mean the physician is financially
independent. Je7s Fust as dependent on his bucketD
carrying Fob as the cook or the mail carrier.
0hy> /imple ? professionals make more than the
average worker. =ut they spend more< Truth is, the
doctors or lawyers making si+ figures a year are
spending most of their income to support their
lavish lifestyles.
Must compare an average worker7s e+penses to a
professional7s:
The average worker drives a %4, used car. The
doctor or lawyer drives a %&4, *e+us.
The average worker sends their kids to free public
school. The doctor or lawyer pays for private
school.
The average worker owns a %,4, home. The
doctor or lawyer owns a %C4, home.
89!
<=!

3;8!
A'e)age
Pe)son
Lawye)4s
Income
"oc&o)4s
Income
2&
The average worker eats at Ki99a Jut once a week.
The doctor or lawyer takes the family skiing in 3ail
every year.
The average worker plays golf at a public course.
The doctor or lawyer belongs to an e+pensive
country club5 or two.
6ou get the picture.
Keople envy doctors and lawyers and accountants
because they get to carry huge buckets. True, the
physician7s bucket may be " times bigger than the
cook7s. =ut the physician spends " times more, so
they both end up in the same predicament ? living
paycheck to paycheck<
Doctor7s Doctor7s
!ncome OutDgo
Kicture missing
Buc(e&s E'en&ually ")y p
Thomas M. /tanley and 0illiam D. Danko, authors
of the bestseller The 2illionaire @e+t Door,
observed that carrying big buckets is not the same
as creating wealth. The authors came to this
reali9ation by surveying people who lived in
upscale neighborhoods, assuming that people who
drove e+pensive cars and lived in e+pensive homes
were wealthy.
OOK/< ? wrong assumption< /tanley and Danko
came to this startling conclusion about wealth
creation:
24
2Most people ha3e it all wrong about
wealth in %merica* Wealth is not the
same as income* )f "ou ma+e a goo!
income each "ear an! spen! it all, "ou
are not getting wealthier* &ou are <ust
li3ing high* Wealth is what "ou
accumulate, not what "ou spen!*
2=ow !o "ou become wealth"? =ere,
too, most people ha3e it wrong* )t is
sel!om luc+ or inheritance or a!3ance!
!egrees or e3en intelligence that enables
people to amass fortunes* Wealth is
more the result of a lifest"le of har!
wor+, perse3erance, planning, an!, most
of all, self/!iscipline*4
!n other words, buckets, no matter how big they are,
will eventually dry up. Kipelines, on the other hand,
are selfDsustaining. =ut pipelines re8uire a
sacrifice. Kipelines don7t build themselves. 6ou
have to take the time and make the effort to build
them.
E"entuall% All Buc#ets Dr% 0p
Kicture missing
A'e)age Lawye)4s "oc&o)4s Pipelines !eep
Income Income Income Pumping
A Bigge) Buc(e& +on4& $ol'e &he P)o/lem
2'
;verybody would love to increase the si9e of their
bucket. @o one7s going to turn down an annual
raise or a better Fob with more pay. !f bucket
carrying is your only source of income, they ! say
carry the biggest bucket you can. That7s only
common sense.
=ut the fact remains that carrying buckets is never
going to make you financially free. Barrying
buckets will never make your family safe and
secure ? no matter how big your buckets<
0hy>
=ecause as long as you carry buckets, you have to
show up and do the work in order to get paid. The
day you stop carrying buckets, that7s the day the
money stops coming in<
Illness o) In>u)y
Layoffs
Re&i)emen&
2an7s bucket carrier has gone from the Emillionaire
ne+t doorG to the Ebankrupt guy ne+t doorG because
he neglected to build pipelines while he was
carrying buckets. 0hen his bucket dried up, so did
his lifestyle.
EKipelines are your lifelines,G my father used to say.
)re you beginning to see why>
2,
PART 2
Your Pipelines Are
Your Lifelines



2-
LESSON THREE

)he Po1er of the Pipeline

This is the tale of two polar opposites ? a bigDtime
baseball player and a small town elementary school
teacher.
They couldn7t be more different ? one was a young
man and one was an elderly woman. One was paid
millions a year and the other never earned more
than %<,. One lived his life in the spotlight.
The other lived her life in a small town in
2assachusetts.
=ut these were only small differences compared to
the personal and financial choices each made. 6ou
see, one of the people you7re going to read about
built pipelines and retired a multiDmillionaire. The
=ut Kablo was not easily discouraged. Je
patiently e+plained his pipeline plan to his
best friend. Kablo would work part of the
day carrying buckets and then part of the day
and weekends building his pipeline.
Je knew it would be hard work digging a
ditch in the rocky soil. Je also knew it
would take a year, possibly two, before his
pipeline would start to pay big dividends.
=ut Kablo believed in his dream, and he went
to work.
RRRR from The #arable of the #ipeline
2#
other stayed a bucket carrier and, as ! write this, is
teetering on the brink of bankruptcy.
The stories are about two very different people, but
that7s not what7s important. 0hat7s important is the
choices they made and the lessons you can learn
from those choices. )fter you hear these two tales,
it should be crystal clear why building pipelines is
the only way to create true security and true
financial freedom.
Your Choices
T 1rustration T 1reedom
The Ballad of &he Ball Playe)
*et7s begin with the tale of the famous baseball
player. Over the years, this talented athlete has
made some bad choices, both personally and
financially.
Jis personal choices have led to a broken marriage,
alcohol abuse, and drug addiction. That7s bad
enough. =ut his financial choices have been Fust as
bad, for he7s also broke. !7m sure you7ve heard of
this athlete. Je7s been in the spotlight for almost 2
years now.
Jis name is Darryl /trawberry. Jis story is a
cautionary tale for what you should @OT do in
order to achieve financial freedom.
Darryl /trawberry has been playing professional
baseball for almost half of his life. The C-DyearDold
outfielder broke into the maFor leagues when he was
C
still a teenager and was immediately hailed as the
Ene+t Ted 0illiams.G
/trawberry has made a fortune during his career ?
somewhere between %2 and %4 million a year. )nd
that7s Fust from playing baseball. )dd another
couple million a year from endorsements, personal
appearances, speeches, and autograph signings, and
he7s earned %4 to %" million before his &
th
birthday.
$&)aw/e))ies "on4& Field Fo)e'e)
) guy making that kind of money ahs to be set for
life, right>
0rong.
)ccording to a local newspaper report, E/trawberry
has no income or savings to support his current
wife, Bharisse, and their three children5G
%" million and not a thing to show for it.
0hat happened>
Je spent it.
;+pensive houses. ;+pensive cars. ;+pensive
lawyers to defend his runDins with the law.
;+pensive divorce. ;+pensive drug and alcohol
rehabilitation clinics.
)s ! write this, /trawberry has been suspended from
playing baseball. 0hich means he has no income
coming in. the only thing still coming in are the
bills. )nd they come in day after day, month after
month, as steady as the rain in a monsoon.
C"
Kicture missing
=ig =igger
!ncome OutDgo
How &o Become &he %illionai)e Ne?& "oo)
The second tale has a much different ending. !t7s
the tale of a small town teacher named 2argaret
O7Donnell, and it proves that you don7t have to
carry big buckets in order to build big pipelines.
2s O7Donnell taught school for more than 4 years.
0hen she retired in her ,s, she was making around
%-,4 a year. 0hen she died at age ", she left
almost %2 million to " different charities, including
her church, schools she attended, and a =oy /cout
troop.
Jow could a woman earning less than %", a
year accumulate a small fortune> /imple. /he built
a longDterm investment pipeline by making regular
monthly investments in 8uality stocks and allowing
them to compound over time.
Building Long$)erm Pipelines
toc#s2 Bonds
+n"estments
@ ( Prosperit%!
Little +ncome Pipeline
C2
E2argaret enFoyed stocks,G said her broker, =ob
0olanske. EThe first time ! met her, she threw three
papers on my desk and said, U0hat should ! do with
these dogs>,7 referring to some stocks that weren7t
doing well.G
Over the ne+t 2 years, 2argaret7s portfolio
bloomed to include a collection of blue chip stocks,
ta+De+empt bonds, and utility stocks that she held
luntil her dealth. /he rarely touched any of her
investments, enabling her retiremnt pipeline to grow
lyear after year aafter year.
$mall $ac)ifices. Big Resul&s
@ow, in case you7re thinking that 2argaret was one
of those pennyDpinching spinsters who clipped
coupons and saved used tea bags, you7d be wrong.
/he ate out often with friends. Drove a lateDmodel
=uick. )nd fre8uently flew to ;urope to enFoy long
vacations.
/he didn7t deny herself the pleasures of life. =ut
she also showed discipline and restraint in her
spending. )nd she saved and invested each and
every month, even in retirement.
6ou see, 2argaret was the classic e+ample of a
longDterm pipeline builder. /he started saving and
investing in her early 2s. and she continued right
up until her dealth at age " Qas you7ll learn in the
coming chapters, pipelines grow higger and bigger
over timeA.
CC
#)owing *ou) Pipelines
""
*ike Kablo, pipeline builders may not have much to
show for their efforts during the first few days or
even years. =ut consistent, disciplined efforts over
time can transform small contributions into huge
dividends.
Pipelines !eep Pumping Af&e)
Buc(e&s Run ")y
@ow do you understand what ! mean when ! talk
about the power of the pipeline> Darryl /trawberry
has carried a huge bucket for years. )nd what does
he have to show for it today> @othing but bo+es of
cancelled checks<
/trawberry has had 2 years to build pipelines. !f
he had taken Fust "( of his earnings and put the
money to work by building an investment pipeline
in the stock market, he could7ve had a lifeline worth
between %2 million and %" million by now.
=ut he didn7t.
Missed Opportunit%
No Pipeline Means No residual +ncome
/trawberry assumed his big bucket would never dry
lup. 0rong assumption. =uckets don7t
automatically replenish themselves, no matter how
"
yr.
4
yr.
"
yr.
24 yr.
4 yr.
C&
big they are. That7s because the bucket carrier has
to lug the bucket to get it refilled. 0hen he stops
lugging ? either through retirement5or illness5or
inFury5or burnout ? the bucket starts drying up.
Kipelines, on the other hand, keep pumping profits
long after buckets run dry. That rule holds true for
big bucket carriers, Fust as it does for small bucket
carriers. )s ! said, it7s not the si9e of the bucket that
counts. Keople with lbig buckets tend to be big
spenders. The key to financial freedom is to adopt a
pipeline building mentality ? and then to put lyour
pipeline plan into action<
Big Bucket Model
Big 3uc#et Big expenses mall assets
The $malle) &he Buc(e&. &he Bigge) &he
Need fo) a Pipeline
;arning a lot of money doesn7t guarantee financial
independence. Only pipelines can do that. !f you
don7t adopt a pipeline strategy, your bucket will
eventually dry up<
! tell you the story of Darryl /trawberry to
e+aggerate a point ? namely, if a bucket as big as
Darryl strawberry7s can dry up, what about yours>
C4
Think about it. /trawberry lived from paycheck to
paycheck.
What about "ou?
/trawberry acted as if his bucketDcarrying days
would never end.
What about "ou?
/trawberry foolishly spent money and wasted time
lwhen he could have been using it wisely to build a
lifeline.
What about "ou?
!hat A3out You'
/ure, /trawberry made some bad choices that cost
him a lot of money. =ut his worst financial choice
was his failure to build pipelines. That7s
unforgivable< 0hat was he thinking>
2argaret O7Donnell, on the other hand, had the
wisdom to build pipelines while she was still
carrying buckets. 0hen her bucketDcarrying days
came to an end, her pipelines kept pumping and the
cash kept flowing.
I&4s *ou) Tu)n &o Choose
@ow ! ask you, which financial situation would
lyou rather be in ? Darryl /trawberry7s> Or
2argaret O7Donnell7s> !f the answer is 2argaret
O7Donnell7s, then you need to start building your
pipelines right away<
C'
Kipelines are lifelines because they7re selfD
sustaining. They may need priming from time to
time. )nd repairs. Kerhaps even rebuilding. =ut
pipelines can keep pumping profits year after year.
Your Choice
Kicture missing
,Your choices2 not chance2
determine %our destin%./
=oth Darryl strawberry and 2arget O7Donnell had
a choice. Darryl /trawberry chose buckets.
2argaret O7Donnell chose pipelines.
They made their choices.
@ow it7s your turn to choose.
C,
LE$$ON FOR
Le"erage4 )he Po1er
Behind the Pipeline
Leverage is an awesome concept ? a civili9ationD
altering concept.
!n fact, without leverage, you wouldn7t be holding
this book right now<
*et me e+plain.
!n "&&, a young Nerman entrepreneur named
Mohannes Nutenberg converted a wine press into the
world7s first commercial printing press. Je printed
"- copies of the .utenberg 0ible and sold them all
within a few days.
Nutenberg7s printing press was an immediate
success. 0ithin decades, printing presses had
sprung up all over ;urope. =y the midD"'s, there
One the pipeline was complete, Kablo
didn7t have to carry buckets anymore.
The water flowed whether he worked or
not. !t flowed while he ate. !t flowed
while he slept. !t flowed on the
weekends while he played. The more the
water flowed into the village, the more
the money flowed into Kablo7s pockets<
RRR from The #arable of the #ipeline
C-
were eight million printed books circulating in
;urope, which was " times the number of books
that had been produced during the previous
thousands of years combined<
Boo(s /y Buc(e& Ca))ie)s 'sA Pu/lishing
/y Pipeline Builde)s
The Nutenberg press shattered the booksDbyDbucketD
carriers paradigm. Krior to Nutenberg, books were
handDcopied by scribes and monks. One handD
written book could take years to produce and were
so e+pensive that only royalty could afford them.
Nutenberg changed all that. 0ith the printing press,
the printer set the movable type once5 and then
could easily produce thousands of e+act copies.
The printing press leveraged the printer7s time and
money, thereby dramatically increasing
productivity.
!n the booksDbyDbucketDcarriers model, there7s a
oneDtoDone ratio between efforts and results. One
hour7s effort produces one hour7s result. !f it took
one scribe one day to hand copy one page, then it
would have taken him " days to turn out "
pages.
Boo(s /y Hand %odel
;nter the printing
press ? the pipelineD
building model.
*et7s say it took a
"'
th
century printer
one day to
C#
/et the type for one page, so that by the end of the
day, he would have produced Fust one printer7s
proof copy.
=ut look what happened in day two:
Printing Press Model
5 hour ( 566 pages
The printer came
into work and
pressed "
copies< !n other
words, a printer
could produce in
two days what it
would have taken
the scribe " days
to produce. That is the power of leverage<
!n the pipelineDbuilding model, the ratio between
effort and result is no longer ":". 0hen we use
leverage, the effort remains the same, but the result
can be " times greater5 ", times greater5 or
even millions of times greater<
Two !inds of Le'e)ageB Time and %oney
The root word for leverage ? le3er ? comes from an
old 1rench word meaning Eto make lighter,G which
is an apt description of the power of leverage. =y
employing a lever, a big load can be made so light
that a child could easily move it.
0hen we apply the principle of leverage to time
and money, the same thing happens ? the results are
compounded.
&
1or e+ample, in the case of leveraging time, one
hour7s effort can result in " hours of production.
One week7s work can result in one year7s
production.
!n the case of leveraging money, each dollar
invested over time can compound until it grows to
many times the initial investment.
Kicture missing
7566 *esult 75 +n"estment
Classic E?amples of Le'e)age
The printing press is an e+ample of how people can
leverage their time, money, and efforts. *everage
shatters the e8uation of one unit of time for one unit
of money. *everage allows people to work smarter,
not harder, and it7s the power behind every pipeline.
Le'e)aging TimeB Jiring employees is a classic
e+ample of how people can leverage their time.
*et7s say you want to open a restaurant. !t would be
impossible for you to act as the host5 waiter5
chef5 dishwasher5 and bookDkeeper and still run
a profitable business. 6ou can only be in one place
3;;
hou)s
Resul&
3 h
)A
E
ffo)&
&"
at a time, so you fire people to perform certain
tasks.
!f you pay your "Dperson staff an average of %"
per hour, you7re paying out %" an hour in wages.
!f your restaurant takes in an average of %", per
hour in revenue, the difference after e+penses goes
into your pocket.
Le"eraging )ime
in a mall Business
Le'e)aging %oneyB ) classic e+ample of
leveraging money is investing in the stock market.
@o doubt you7ve heard of 0arren =uffett. Je7s a
living legend on 0all /treet and the second or third
richest man in the world. Je built his fortune the
oldDfashioned way ? he leveraged other people7s
money and made himself and his investors rich in
the process.
Jow rich> Bheck this out. !f you had invested %<
, in =uffett7s =erkshire Jathaway stock back in
"#'4 and left it where to grow year after year, by
"##- your investment would have been worth ?
hang on to your hat D @>, million! 0ow< Jow
would you like to own that pipeline><<
ThirtyDfive years ago, one share of =erkshire
Jathaway stock cost only %"#. =y the end of "##-,
that single share was worth about %,,. 0hich
means that you could have leveraged a %C
3;
hou)s
o) mo)e
3
hou)
&2
investment in "#'4 into %" million today<
.nbelievable<
Le"eraging 7 in
Ber#shire 8atha1a%
Kicture missing
75 million 7966
*esult toc# +n"estment
Pipelines A)e +o)&h Building
@ow do you understand the power of leverage>
=erkshire Jathaway stock is living proof that with
leverage, the results are disproportionate to the
effort<
Think about it ? how much effort would it have
taken to accumulate %C back in "#'4> Two or
three days7 work5 maybe a week7s work at the
most. Must imagine ? one the %C was invested,
you wouldn7t have to do any more work because
your pipeline was already built.
The only other work you7d have to do is check the
stock prices in the newspaper every now and then.
)sk yourself ? wouldn7t it be great if you could turn
%C into %" million without having to lift a finger>
&C
Ban you see how the wise use of leverage can
multiply a little money or a little time a thousand
times over>
Doesn7t it make sense to find a mechanism whereby
you could leverage %" into %">5 or one hour
into " hours>
0ouldn7t it be great to do the work once and let
leverage do the rest<
1olks, if you7d like to enFoy the benefits of
leverage, then you need to do what pipeline builders
such as Kablo and 0arren =uffett did ? find a
mechanism to leverage your time and money
today5 and enFoy a big reward tomorrow<
Resul&, *ou) Time
C%oney
Your Mechanism'
&&
LE$$ON FIDE
Mone% Le"erage4
)he Palm Beach Pipeline
Legend has it that one of the ancient emperors of
Bhina fell in love with a new game called Echess.G
The emperor decided to reward the game7s creator.
Je summoned the inventor to the royal palace and
announced to the court that the inventor would be
granted one wish.
E! am honored, 6our Jighness,G the inventor
muttered humbly. E2y wish is that you grant me
one grain of rice.G
2Aust one grain of rice?4 the startled emperor
asked.

E0ell, Fust one grain for the first s8uare of the
chessboard,G the inventor said. EThen doubling to
two grains for the second s8uare5 four grains for
EMust think,G Kablo continued. E0e could
make a small percentage of every gallon of
water that goes through those pipelines.
The more water that flows through the
pipelines, the more money that will flow
into our pockets. The pipeline ! built isn7t
the end of a dream. !t7s only the
beginning<G
RRR from The #arable of the #ipeline
&4
the third s8uare5 and so on until the single grain
has been doubled for the entire chess board. That is
my simple wish.G
The emperor was well pleased. E! have been given
such a wonderful game at such a cheap price,G he
thought to himself. E2y ancestors have smiled
upon me today.G
E!t is done<G the emperor cried. E=ring out the
chess board and let everyone here witness our
agreement.G
The court gathered around the chess board. )
kitchen servant produced a oneDpound bag of rice
and handed it to the inventor, who smiled as he
opened the bag.
E! suggest you return to the kitchen for a larger
bag,G the inventor said to the servant. The court
laughed loudly, mistaking his comment for sarcasm.
Then the inventor began placing the grains of rice
on the board, doubling the number of grains as he
went:
) graph missing
The onlookers laughed and nudged each other as the
first row of eight s8uares was filled5 "5 25 &5
"'5 C25 '&5 "2- grains of rice. =ut the giggles
soon gave way to gasps by the middle of the second
row, for small piles of rice soon doubled to small
bags of rice5 which doubled to mediumDsi9ed bags
of rice5 which doubled again to big bags of rice.
&'
) graph missing
=y the end of the second row, the emperor knew he
had made a huge mistake. The grains owed to the
inventor totaled C2,,'- ? an! there were B8 s5uares
remaining!
The emperor stopped the game and called in the
land7s wisest mathematicians. They tossed the
beads of their abacuses and made hasty markings on
slate boards. )fter much fussing, the
mathematicians reached a unanimous conclusion:
) grain of rice doubled for every s8uare on the '&D
s8uare chess board would calculate to ,8 million
trillion grains of rice C a 5uantit" e5ual to all the
rice in the worl! multiplie! b" ,0!
The emperor halted the demonstration and made the
inventor an offer he couldn7t refuse ? if the emperor
were released from his word, the inventor would
receive a country estate with hundreds of acres of
fertile rice fields. The inventor gladly accepted.
;veryone toasted the inventor and congratulated
him on his wisdom and cleverness. )nd he happily
retired to his estate, enFoying many, many years in
splendid comfort.
The "ou/ling Concep&B Eigh&h +onde) of &he
+o)ld
&,
The story of the emperor and the inventor teaches
us the power of the doubling concept. This concept
has been around since the first bank paid the first
wealthy merchant interest on a deposit, so it7s timeD
tested and proven.
The inventor and the emperor7s mathematicians
may have been the first people to recogni9e the
power of duplication, but they certainly weren7t the
last. Benturies later another famous mathematician
named )lbert ;instein recogni9ed the awesome
power of duplication, or Ecompounding,G as it7s
sometimes referred to, calling it Ethe eighth wonder
of the world.G
The doubling concept has become such a
cornerstone of wealth creation that ! call it Gthe
Kalm =each Kipeline,G named after the rit9y city in
1lorida where hundreds of the world7s richest heirs
own sprawling estates overlooking the )tlantic
Ocean.
The rich people in Kalm =each don7t have to work
for money. The" ma+e mone" wor+ for them!
Jow> They invest large amounts of inherited
money in pipelines that churn out huge profits year
in and year out, whether the investors work or not.
Kalm =each Kipelines are fueled by the doubling
concept, which means the lucky heirs can enFoy a
fabulous lifestyle5 while they get richer in the
process< That7s what ! call having your cake and
eating it, too.
The Rule of <8B The Rule of &he Rich
&-
To better understand how rich people get richer,
let7s take a look at EThe rule of ,2,G a mindD
boggling wealthDbuilding concept that the world7s
top investment brokers teach their rich clients. The
Rule of ,2 is a simple formula for calculating how
many years it would take for an investment to
double. Jere7s the way it works.
1or e+ample, let7s say an heiress invests %",
in a stock that pays an annual return of "( per
year. Jere7s the Rule of ,2 in action:

!f the heiress didn7t spend the profits or her
principle, the original investment of %",
would double to %2, in ,.2 years5 to
%&, in "&.& years5 to %-, in 2".'
years5 and %".' million in 2-.- years5 and on and
on. )s you can see, the longer the money is
allowed to compound, the bigger the si9e of the
pipeline.
=y leveraging the power of compounding, people
who inherit millionDdollar fortunes can live like
"ou/ling Concep& o) Rule of <8
"A Determine the annual interest rate on your investment
2A Divide the interest rate into ,2
CA The result is the number of years it takes for your
investment to double
Rule of <8 in Ac&ion
/tep ": %", original investment
/tep 2: "( annual return
/tep C: ,2 divided by " T ,.2 years
Krofit: %", would become %2, in ,.2 years
&#
royalty and still leave an even bigger fortune for
their children<
The magic of compounding is the reason that
thousands of heirs named Oennedy5 DuKont5
1irestone5 1ord5 Rockefeller5 and Netty can
continue to live a life of lu+ury without their
fortunes drying up. !n effect, their bucket never
runs dry because the pipeline keeps pumping year
after year, for decades, or in the case of the
Rothschild heirs in ;urope, for more than two
centuries<
!ids and %oney
1ortunately, pipelines built by leveraging money
aren7t reserved Fust for rich people. )verage people
can take advantage of the doubling concept, too, as
we learned from the story about 2argaret
O7Donnell, a lowDpaid school teacher who amassed
several million dollars by leveraging her money in
the stock market.
/o, how do average people leverage their money to
create a longDterm pipeline>
The best way to answer that is to tell you about a
powerful little book called 6i!s an! Mone" by
2ichael M. /earls. )ctually, the book could be titled
Keople and 2oney, because the principles outlined
by /earls apply to young and old alike.
/earls, a former power broker on 0all /treet and
father of four, recommends a simple system to teach
kids to manage their money more responsibly.
Je suggests that parents get three plastic Fars and
label Far one Espend L give,G Far two Esave,G and Far
4
three Einvest.G 0hen parents give their children
their allowance for the week, they divide the money
e8ually into the three Fars.
:ids ; Mone% %stem
$pend C #i'e $a'e In'es&
The Espend and giveG Far is for immediate spending
? bubble gum, baseball cards, etc. !t7s also money
to be used for tithing and charity.
The EsaveG Far is for spending on bigger ticket
items, such as a new BD or video game.
The EinvestG Far differs from the first two in that it7s
not for spending. ;ver. /earls calls this Far E5the
most important component, because if we don7t
have something to put away for a rainy day, the
threat of debt will always hover above our heads.G
)dults who are serious about building longDterm
investment pipelines need to start managing their
money according to a threeDFar system. =ut instead
of putting their money into Fars, they should put it
into bank and brokerage accounts.
Adults ; Mone% %stem
7 7 7
7 7 7
4"
$pend C #i'e $a'e In'es&
DMonthl" Expenses? DMa<or Expenses? D#ipelines?
Bar payment
1ood L housing
1un
;tc.
1amily vacation
Oid7s college
Remodel home
;tc.
/tocks L bonds
!R)s
Real estate
;tc.
Pay *ou)self Fi)s&E
The key to leveraging your money like rich people
do is to Epay yourself firstG by making regular
monthly contributions into investment accounts ?
and then leaving the money to compound<
The best way to fund your investment pipelines is to
take some money out of your income bucket each
month and deposit it into your pipelines.
Building a Long$)erm Pipeline
Kicture missing
How A'e)age People Become %illionai)es
Too bad we weren7t able to choose rich parents ?
then we wouldn7t have to worry about Eforced
savings plansG and automatic payroll deductions.
=ut the truth is, the vast maFority of millionaires in
this country didn7t inherit their fortunes. /tatistics
42
show that four out of five millionaires never
inherited more than %",. =ut what they did do
was copy the investment strategies of the
Rockefellers and the Oennedys.
)n a wor!, self/ma!e millionaires le3erage! their
mone" to buil! their own #alm 0each #ipelines!
Jow> =y using the Ethree Far systemG ? instead of
spending every dime they make, they put aside a big
chunk of their income in the Einvest Far,G and let it
compound year after year.
Typically, millionaires save "4( to 2( of their
gross income and invest it wisely in assetDbuilding
pipelines, such as stocks, bonds, closelyDheld
businesses, rental property, commercial real estate,
pension funds, and the like.
That7s why most millionaires don7t hit the millionD
dollar mark until they7re in their 4s or 's ? it can
take decades before compounding really kicks into
high gear. Ten thousand dollars at "( doubles to
%2, after seven years5but in 4 years it will
double seven times, which calculates to almost @,*9
million!
Po1er of Compounding
73;.;;; F 3;5 In&e)es&
6ear " , "& 2" 2- C4 &2 &#
%", 2O &O -O "'O C2O '&O ".C2
If *ou "on4& Ha'e &he %oney. +ha& "o *ou
Ha'e &o Le'e)age,
0ouldn7t it be great to be a millionaire>
6ou can, you know. )nd you don7t have to win the
lottery to do it.
4C
The 2illionaire7s Blub used to be a very e+clusive
club. 6ou had to be born into the right family. No
to the right schools.
That7s not the case anymore. Today, average people
can Foin the 2illionaire7s Blub, too. !t7s open to
anyone with the discipline to invest a regular
portion of their income and let it compound over
time.
=ut let7s face it ? not everyone has the patience to
spend & or 4 years building their retirement
pipeline. )nd not everyone has the money to build
a Kalm =each Kipeline overnight.
0ouldn7t it be great if there were a 4Dyear pipeline
plan whereby average people could create ongoing
residual income without having to invest a small
fortune>
0ell, there is a 4Dyear pipeline plan available. =est
of all, you don7t need lots of money to build this
pipeline. =ecause instead of leveraging your
money5 "ou le3erage "our time!
4&
LE$$ON $IG
)ime Le"erage4
)he People-s Pipeline

There7s an old )ppalachian e+pression that sums
up the difference between money leverage and time
leverage. !t goes like this:
There are two wa"s to get to the top of a
giant oa+ tree* &ou can sit on an acorn
an! wait* ;r "ou can climb it*
0hen people leverage their money over decades to
build pipelines, they7re choosing to sit on an acorn
and wait. ! call this the E4D6ear Kipeline Klan.G
This is what compounding is all about ? waiting
patiently while your money doubles again and again
over the years.
0hile =runo lay in his hammock on
evenings and weekends, Kablo kept
digging his pipeline. The first few months,
Kablo didn7t have much to show for his
efforts. The work was hard ? even harder
than =runo7s because Kablo was working
evenings and weekends, too.
=ut Kablo kept reminding himself that
tomorrow7s dreams are built on today7s
sacrifices. Day by day he dug, an inch at a
time.
RRRR from The #arable of the #ipeline
44
There7s no 8uestion that the 4D6ear Kipeline Klan
works. Remember how 2argaret O7Donnell7s
pipeline transformed her from a underpaid teacher
to a multiDmillionaire><<<
*ike 2argaret O7Donnell, !7m also a big believer in
building longDterm pipelines. Over the years, !7ve
leveraged a portion of my income to build EKalm
=each KipelinesG in everything from pension
funds5 to stock market accounts5 to !R)s5 to
real estate. !t7s called diversification. !t7s called
building lifelines.
<6$Year Pipeline Plan
BDs L TD=ills /ocial /ecurity
Kension 1unds &" QkA
/tocks L =onds !R)s
6our Jome Real ;state
0ut )m also a big belie3er in climbing oa+ trees!
! call climbing oak trees the E4D6ear Kipeline Klan.G
!t accomplishes the same goal as the 4D6ear
Kipeline Klan ? financial independence and security.
0ut it onl" ta+es ,0 of the time!
That7s why !7ve spent time, money, and effort in
building several fastDgrowing businesses. !nstead of
having to wait 4 years to get to the top of the tree, !
can build a business that gets me there in two to five
years.
7
7
7
7 7
7
7
7
4'
<$Year Pipeline Plan
Independen& Business Owne)
Time Le'els &he Playing Field
The beauty of time leverage is that we7ve all been
given the same amount of time. 0hich means time
levels the playing field between rich people and
average income earners. 0hether you7re Donald
trump5 or Donald the dump truck driver5
everyone has been given the same amount of time
each day.
That7s why ! call time leverage the EKeople7s
Kipeline.G Time is available in e8ual amounts to
everyone, whether they7re rich or poor5 man or
woman5 black or white5 college educated or high
school dropout5 young or old. 6ou can7t say that
about money, now can you>
Think of it this way. 0ouldn7t it be great if you and
everyone else could start every single day with
%",&& in your personal bank account> The money
would be yours and yours alone and no one could
tell you what to do with it. 6ou could spend it5
invest it5 blow it5 burn it5 give it away5
leverage it5 or waste it, knowing that the ne+t
morning, you7d wake up with another %",&& in
your account. !f everyone could start off every day
with %",&&, it would be a better, more fair world,
wouldn7t it>
=ut as we7re all well aware, that7s not the case.
0hen it comes to money, life isn7t fair. /ome
people are born with a silver spoon in their mouths.
4,
/ome with a plastic spoon. /ome with nothing but
their own thumb. 1air> 2aybe not. =ut as the
song says, EThat7s *ife.G
0e don7t all start every day with %",&& in our bank
accounts ? that7s for sure. )s for time ? that7s a
different matter. We D; all start e3er" !a" with
,,BB0 minutes in our time account Q2& hours a day
times ' minutes an hourA.
/ince we all get the same amount of time, the
difference between people who live paycheck to
paycheck and people who are financially free is
how they use their daily allotment of ",&& minutes<
Personal )ime Account
D)T;RRRRRRRRRR Bhecking )ccount D)T; RRRRRRRRR
TO RRRRRRRRRRRR Kay to: RRRRRRRRRRRRRRRRRR %RRRRRRRRR
Each day
,,BB0 minutes each !a"
1ORRRRRRRRRRRRR RRRRRRRRRRRRRRR

*ou4'e #o& %o)e Time Than *ou Thin(
/ome people put off building their pipelines
because Gright now is a bad time for me.G Nuess
what ? right now is a bad time for everybody<
0e7re all stressed. 0e7re all busy. 0e7re all
putting out fires and dealing with une+pected
emergencies. There7s a word for these bad times.
)ts calle! life!
/ome people waste their lives waiting for the
Eperfect timeG to do +, y, or 9. 0ell, they7ll die
waiting, because there7s no such thing as a perfect
time. !f someone told you he7d give you %" million
if you7d sit in a corner and knit for two hours every
4-
day for a year, you7d find the time to knit, wouldn7t
you>
!t wouldn7t matter if your son broke his arm on the
playground or your car wouldn7t start after work.
Rather than forfeit %" million, you7d find the time to
knit for two hours, perfect time or no perfect time.
Jumorist )rt =uchwald put it this way: 4Whether
its the best of times or the worst of times, its the
onl" time we got*4
/adly, most people take time for granted, especially
small amounts of time. 0e7ve been conditioned to
measure time in days and weeks and years, instead
of minutes and hours. 0e work # to 4, 2onday
through 1riday. 0e plan our lives according to a
monthly calendar. * 0e celebrate our birthdays and
anniversaries once a year.
=ut the ama9ing thing about time is how a few
minutes here and there every day can add up to
huge chunks of time< 1or e+ample, did you know
how much total time the average person spends
eating during their lifetimes> 0ould you guess a
year> Two years> The answer is si+ years< !sn7t
that ama9ing> Jere are some other short daily tasks
that ass up to huge blocks of time:
To&al Time +e $pend on $mall
"aily Tas(s "u)ing Ou) Life&ime
' years 5555... eating
4 years 5555... waiting in line
& years 5555... cleaning house
C years 5555... preparing meals
2 years 5555... trying to return phone calls
" year 55555 searching for misplaced items
- months 555... opening Funk mail
' months 555... sitting at red lights
4#
=ut my tally, that7s close to 22 years out of your
lifetime< 0hich goes to prove that "4 minutes
here5 half an hour there5 two hours there5 can
add up to huge blocks of time<
A Few Hou)s Can Tu)n in&o a Few %on&hs
Must think for a moment what we could accomplish
in our lives if we used a couple hours each evening
and on the weekends to do something purposeful,
like building a pipeline. !f you set aside two hours
each workday ? let7s say one in the morning before
work and one in the evening ? and three more hours
on both /aturday and /unday, you could add "'
hours of productive time a week to your schedule<
/i+teen hours a week over 4 weeks a year comes
to - e+tra hours a year5 which calculates to "
eightDhour days5 or three months and " days of
e+tra eightDhour workdays each year< )nd all you
had to do was set aside a couple of hours a day to
get three e+tra months of productive time each year.
)ma9ing, isn7t it>
Producti"e =ree )ime
Q2 hoursSdayA + Q4 daysA T " hoursSweek
QC hoursS/at. L /un.A T ' hoursSweek
total e+tra time: "' hoursSweek
'
Time is %oney
@ow, !7m going to let you in on a little secret ?
using free time productively is one of the keys to
why successful people have more, do more, and get
more in life< Do you think =ill Nates comes home
at 4:p.m every day and watches seven hours of
T3 like the average )merican male does>
! don7t think so5.
) recent article in the Wall $treet Aournal states that
the top "( of earners in @orth )merica work an
average of 42 hours a week, whereas those in the
bottom "( of earners work only &4 hours a week.
@ot only do the top "(Ders work longer ? the"
wor+ smarter! !n other words, they don7t trade their
time for dollars. 6ou won7t walk into a
convenience store and see 2ichael Mordan behind
the counter selling customers lottery tickets and
8uarts of beer. /uccessful people in every line of
work value their time, and they week every
opportunity to leverage their time<
+as&e No&. +an& No&
Keople often ask me why they should take the time
and effort to build pipelines when things are going
so well right at the moment. They tall me they
deserve to rela+ after a hard day at the office. They
reward themselves by learning back in the *aD:D
=oy recliner and watching T3 until bedtime.
E*ife is good,G they tell me. ENot a good Fob. Not
a few bucks in the bank. Oids are doing well in
school. @o need to rock the boat.G
That7s when ! tell them that there7s no better time to
build your pipeline than when things are going
'"
great. 0hy> =ecause when the tide turns, it may
be too late<
Than ! tell them this old Foke: ) man was on the
C
th
floor of fancy hotel overlooking Bentral Kark in
2anhattan. Je pulled back the shades and threw
open the window to enFoy the view. )s he leaned
out the window, he was startled to see a man falling
past his room.
EJow you doing>G he asked the falling man.
2(ine C so far,4 came the reply.
The point is that there are lots of bucket carriers in
this world who are doing fine ? so far. =ut they
can7t stay in a freeDfall forever. )s long as people
trade time for dollars, there7s no safety net in their
lives. 0hy> =ecause when they can7t put in the
time due to illness5 or inFury5 or layoffs, their
paychecks will stop.
1or bucket carriers, no paycheck means no security<
=inancial ecurit%
Kicture missing
No Paychec( 6 No $ecu)i&y
The Fa/le of &he An& and &he #)asshoppe)
)s ! write this, consumer confidence is high.
.nemployment is low. !ncomes are rising. Jome
sales are at record highs. Bar sales are booming.
*ots of people are fine ? so far*
'2
=ut we can7t fall into the trap of mistaking Eso farG
for Eforever.G ;verybody knows that life goes in
cycles. /o does the economy. Right now the
business cycle is nearing its 9enith. 6our personal
life cycle may be at an allDtime high, too.
=ut what goes up, must come down. )nd when
people start coming down, some of them are going
to crash into some hard realities: *ayoffs. Bareer
changes. Bredit card debt. 2edical emergencies.
@ursing home care for elderly parents.
/mart people understand that the best time to
feather their nest is while business is booming.
/mart people erect safety nets before a recession
starts, not during< That7s why ! tell people that
today is the best time to build their pipelines, not
when the economy hits the skids.
!t7s like the fable of the ant and the grasshopper.
The ant was a pipeline builder. Je spent part of his
summer days storing away grain for the coming
winder. Je enFoyed the summer, too. =ut he had
the wisdom to spend some of his time building his
pipeline.
The grasshopper, on the other hand, was a bucket
carrier. Je spent all of his money as soon as he got
it and wasted all of his time playing in the sunshine.
Je ignored the coming winter. 0hen the cold
winter came, he had no pipeline in place. )nd he
starved to death.
Pay %e NowH O) Pay %e La&e)E
Do you remember the famous advertising slogan,
EKay me now5 or pay me later>G The same goes
'C
for building pipelines. 6ou can Epay a little nowG
by investing some of your time and money to build
your pipelines today5 or you can Epay a lot laterG
by struggling to survive on a small /ocial /ecurity
check when you7re in your 's and ,s.
Must think ? if your pipelines are in place, instead of
having to pay later5 "oull get pai! later!
0hat a concept<
Pa% No1 Plan Pa% Later Plan
vs.
In'es&men&s of $mall. mon&hly social
&ime C money $ecu)i&y chec(
Time Le'e)ageB The People4s Pipeline
Remember ? time levels the playing field<
0e all DO @OT have the same amount of money to
leverage.
=ut we all DO have the same amount of time<
=y leveraging some of your leisure time wisely, you
can build a pipeline that will continue to pay for
years<
0e7re lucky to be living in an age when virtually
anyone can leverage their time to build pipelines.
That hasn7t always been the case.
)t the turn of the 2
th
century, only the very rich
had the lu+ury of leveraging their time. !n "-#, the
vast maFority of people worked " hours a day as
laborers. They were too busy trying to stay alive to
think about leverage.
/ocial /ecurity =enefits
Kay to RRRRRRRRR%RRRR
RRRRRRRRRRRRRRRRRRR
RRRRRRRR
'&
=ut today more people have more free time than
ever before in history. )nd time is the great
e8uali9er< Time enables the little guy to compete
with the big boys. Rich people don7t get &- hours a
day while poor people get "2. they both get e8ual
amounts of time ? 2& hours a day, , days a week,
C'4 days a year.
The #)ea&es& Time2Le'e)aging Tool in His&o)y
Today, pipelines are no longer the province of the
rich. )nyone with a little time5and a lot of
drive5 can leverage their time to build a Epeople7s
pipelineG in two to five years that will flow for
years ? or even decades<
!n fact, we have right at our fingertips the greatest
tikeDleveraging tool in the history of the world<
This timeDleveraging tool has created more
millionaires in less time than any other single
invention in history.
! call this ama9ing tool the EeDpipeline,G and it7s the
ultimate tool for time leverage. 6ou probably know
the eDpipeline by a different name ? a name that is
flashed across newspaper headlines and T3 screens
2& hours a day.
That name>
The !nternet.
>reatest )ime$Le"eraging
)ool in 8istor%
In&e)ne&
3;;
hou)s
3
hou)
'4
PART 3
)he 0ltimate
Pipeline
''
LE$$ON $EDEN
e$compounding4
)he 0ltimate Pipeline

p to this point, we7ve talked about how people
can leverage their time and money to build pipelines
of ongoing residual income.
The 8uestion is, 2What is the most powerful an!
pro!ucti3e pipeline in the New Econom"?4
The answer is the !nternet, a breakthrough
technology ! call Ethe eDpipeline of the @ew
;conomy.G 1olks, the !nternet is transforming the
way the world lives, works, and plays. !n a word,
the !nternet is the future ? an! the future is now!
!n this chapter !7ll show you how you can take
advantage of the greatest leveraging tool in history
? the !nternet ? to create a pipeline of ongoing
Kablo the Kipeline 2an became known as
Kablo the 2iracle 2aker. Koliticians
lauded him for his vision and begged him
to run for mayor. =ut Kablo understood
that what he had accomplished wasn7t a
miracle. !t was merely the first stage of a
big, big dream. 6ou see, Kablo had plans
that reached far beyond his village.
Kablo planned to build pipelines all over
the world<
RRRR from The #arable of the #ipeline
',
resi!ual income that "ou can buil! in two to fi3e
"ears, instea! of >0 "ears!
The In&e)ne& Re'olu&ion Is Ius& Beginning
The !nternet )ge is revolutioni9ing the world, that7s
for sure.
Mack 0elch, B;O of Neneral ;lectric, told The Wall
street Aournal that the !nternet was the greatest
change in business in his lifetime ? and 0elch was
born in "#C'<
)ndy Nrove, the Bhairman of !ntel, was even more
direct in his assessment: E!n five years, every
company will be an !nternet company ? or they
won7t be a company at all.G
I&4s a +i)ed. +i)ed +o)ld Af&e) All
0hat makes the !nternet pipeline so powerful>
0ell, think for a moment what the !nternet really is
? it7s millions of people all over the globe5 each
connected via a computer or cell phone5 able to
instantly communicate with ? or sell to each other
2&S,SC'45 all for the price of a local telephone call.
)ts min!/boggling!
The !nternet is as fast as the speed of light5 costs a
few dollars a day to use5 is always on5 has
limitless applications5 and interconnects the
world. Oh ? and " million people were wired to
the 0eb in less than half the time it took to build the
=rooklyn =ridge. =y 2C, more than one billion
people will be online5 purchasing %" trillion of
products and services via eDcommerce.
That7s not hype ? that7s a global revolution<
'-
)he +nternet
Your PC )he >lo3e
5 Billion People Online
e$commerce ( 75 )rillion ? a Year
The P)o/lem wi&h &he In&e)ne&
The !nternet is truly revolutionary ? but it7s far from
perfect.
!n fact, the !nternet has a problem. ) =!N
KRO=*;2<
The !nternet7s biggest strength is also its biggest
weakness ? it7s too big< Too crowded. * Too
confusing. Too competitive. Too hiDtech. 0here
do you shop> Jow do you buy> 0ho do you trust>
)ts o3erwhelming!
)ccording to the e+perts, eDcommerce sites are
facing three maFor challenges:
"A They need more traffic.
2A They need more sales.
CA They need more repeat business.
The In&e)ne& Needs Loyal Cus&ome)s
!n a nutshell, most eDcommerce sites are hurting for
customers ? loyal customers. =y EloyalG customers
! mean people who have a reason to buy from an
eDcommerce site week after week and month after
month, instead of once in a blue moon.
'#
0e hear a lot of talk about how many EhitsG a
website gets. =ut hits don7t bring in revenue. Jits
are like the members of walking clubs who meet
every morning at the local shopping mall. They use
the mall to e+ercise, not to shop. They have no
intention of shopping. Once their walk is over, they
Fump in their car and go shop somewhere else<
*ikewise, hits on a website are Fust people going out
for a stroll on the !nternet. Jits don7t bring in
revenue. /ales bring in revenue< )nd the truth is,
most eDcommerce sites are hurting for sales.
0hy> =ecause at most sites, shoppers have no
incentive to make weekly and monthly purchases.
!nternet users have no loyalty because most eD
commerce sites are more concerned about offering
the lowest price than they are about building longD
term relationships<
+nternet-s
Biggest
Pro3lem
Rela&ionships &o &he RescueE
0hat7s the secret to creating customer loyalty in the
!nternet )ge>
Relationships
;stablishing real, rockDsolid, longDterm
relationships with real people Qas opposed to hiDtech
relationships with EeyeballsG and EhitsGA is what
will separate the successful eDcommerce sites from
the hasDbeens.
li&&le loyal&y
,
6ou see, the hiDtech of the !nternet needs the hiD
touch of personDtoDperson relationships. )s Mohn
@aisbitt observed 2 years ago, EThe more hiDtech
we have, the more hiDtouch we need.G That7s why
today, more than ever, people seek out and need the
warmth of the human touch to counterbalance the
cold environment of dotDcoms and digits.
Think for a moment ? did you choose the last movie
you saw from a website7s banner ad> Doubtful.
2ost likely a friend or coDworker recommended the
movie. /ame goes for your favorite websites ?
most likely they were recommended by someone
you knew and trusted, as opposed to your falling for
a slick T3 commercial or clicking on a rotating
banner ad.
Truth is, wordDofDmouth recommendations have
always been the most effective form of advertising.
That7s especially true today. 6ou see, people like
dealing with people. Keople trust and value hiD
touch relationships. Don7t you> )nd relationships
solve the !nternet7s biggest problem ? a lack of
loyal customers.
That7s where you come in.
6ou recommend products and services all day,
every day, for free. )nd people shop and buy based
on your recommendations. 0ouldn7t it be great to
get paid for it>
6ou can<
=y leveraging your time and relationships, you can
create loyal customers for relationshipDdriven eD
commerce sites5while creating a pipeline of
ongoing residual income for yourself<
,"
!t7s a winSwin. The eDcommerce site gets more
loyal customers. )nd you get paid for
recommending products and services you use and
enFoy.
! call it the .ltimate Kipeline.
)nd it7s Fust waiting to be tapped5 =6 6O.<
0ltimate Pipeline
e$commerce 1ins You 1in
More lo%al customers 777 for referrals
*ou Tal(H They Tech
=asically, here7s how the .ltimate Kipeline works:
6ou and an established eDbusiness enter into an
affiliate partnership.
6our role is to EtalkG ? you direct people to the
company7s eDcommerce site. !n return for your
recommendations, the eDbi9 pays you a commission
on all the products pruchased by your referrals.
The eDcommerce company7s role is to EtechG ? they
provide the website5 take the online orders5 ship
the products5 process the credit cards5 and
handle the accounting. !n return for paying out
referral fees, the company gets loyal customers who
return to the site again and again.
)s ! said, it7s a winSwin< The company solves its
biggest problem ? lack of loyal customers. )nd you
build a pipeline of ongoing residual income.
6ou talk. They tech. !t7s simple ? brilliantly
simple<
,2
0ith the .ltimate Kipeline, you don7t need any
special skills. 6ou do what you do every day ? you
talk to people< 6ou help people cut through the
clutter of the !nternet5 and you get paid for it<
Jow much can you earn from your .ltimate
Kipeline> That7s up to you. The sky7s the limit<
The more people in your referral network, the
bigger your residual pipeline. !n fact, it7s not
uncommon for people to receive residual income
from tens of thousands of referrals5 even hundreds
of thousands of referrals<
Jow could one individual personally recommend
products to tens of thousands of people> EThat7s
impossible<G you may say.
@ot if you use the magic of compounding< )s you
will soon see, ;instein had good reason to call
compounding Ethe eighth wonder of the world.G
e2CompoundingB The l&ima&e Pipeline
Do you remember the earlier story about the
Bhinese emperor and the inventor of chess> The
inventor only wanted one grain of rice for his
compensation, but he wanted it doubled for each
s8uare on the chess board. The total ended up being
" times more rice than there was in the entire
world< The story illustrates the ama9ing power of
compounding, also known as the doubling concept.
Must imagine for a moment what would happen if
you took the concept of compounding5 and
somehow combined it with eDcommerce. The result
would be EeDcompounding.G
,C
Po1er of Compounding
a graph missing
Must think of the potential of eDcompounding ? the
e+ponential growth of compounding5 combined
with the reach and speed of the !nternet. 0O0<
0ell, that7s why ! call eDcompounding the .ltimate
Kipeline ? you get paid to compound your time and
relationships via the !nternet< Must think, with
eDcompounding, you can get the results of the Kalm
=each Kipeline without having to invest a fortune.
!nstead of leveraging your money, you leverage
your time and relationships to built your own
.ltimate Kipeline< @ow it7s time to find out how:
Le"eraging the
0ltimate Pipeline
e2compounding
e2Compounding %a&hB J3@3K ? 38 6 BOO%E
7 7 7 7
7 7 7 7
7 7 7 7
T
im
e
,&
Do you think it7s possible to find Fust one person
each month to Foin you in your new eDcompounding
business> Must one partner who7s interested in more
financial security5 more freedom5 more
recognition5 and more happiness>5 One good
person a month ? that7s all it takes.
e$compounding
MON)8 5
*ou
*ou) Pa)&ne) 3
Once you partner with that new person, you become
his or her coach. 6ou teach him how to form
affiliate partnerships with his friends and
ac8uaintances, while you partner with a second
person. /o, by the end of month two, you would
have two affiliate partnersP meanwhile, your first
partner has also brought a new person into your
affiliate network.
e$compounding
MON)8 @
*ou
*ou) Pa)&ne) 3 *ou) Pa)&ne) 8
Thei) Pa)&ne) 3
,4
@ow you have a group of four ? you and three
others, isn7t that correct> Q6ou can build your eD
compounding network faster by partnering with
more people each month, but let7s assume you take
the slow and steady course.A
Then you keep repeating the process. =y the end of
the first year, you would have personally partnered
with "2 people ? one new person each month. )nd
let7s assume that each one of them has partnered
with one new person each month, as well.
This is where the magic of compounding kicks in.
=y the end of "2 months, your network could
compound to &,#' affiliated independent business
owners<
e$compounding
MON)8 5@
6ou
3 8 L M : = < 9 N e&cA
3 8 L M : = < 9 N e&cA
To&alB M.;N= people
@ow, here7s the really e+citing part ? the
eDcommerce company pays you a percentage of the
sales volume of your entire affiliate network. !f you
have &, people buying an average of %" worth
of products each month, the total product volume is
%&, ? ) 2O@TJ< !f your eDbi9 partner pays
you "( to C( of that volume, you7d be earning
%&, to %"2, a month<
,'
e$compounding
2issing picture
@ow do you see why ! call eDcompounding the
.ltimate Kipeline> !t combines the e+ponential
growth of compounding with the convenience and
the reach of eDcommerce. * @ot only does the
.ltimate Kipeline keep pumping out profits, but,
like Kablo, you grow your pipeline by leveraging
your time, instead of your money<
No special $(ills Re0ui)ed
The beauty of eDcompounding is that you don7t need
a lot of money to get started. !t only takes months
or a few years to build, as opposed to decades. )nd
you don7t need any special skills. 6ou Fust do what
you do every day ? talk to people<
6ou help people cut through the confusion and
clutter of the !nternet ? and you get paid for it< !f
you can talk5 and point and click5 then you can
leverage your time and your relationships to build
the .ltimate Kipeline.
The .ltimate Kipeline lets us learn from the Kalm
=each Kipeline people ? we copy the concept of
compounding. =ut instead of compounding our
money, we compound our time and relationships.
)s a result, we can get the results of a Kalm =each
Kipeline at a fraction of the money ? and in a
fraction of the time<
,,
That7s why hundreds of thousands of average
people all over the world are busy building .ltimate
Kipelines ? they can enFoy the same benefits the rich
enFoy with their Kalm =each Kipelines, but instead
of having to leverage a ton on money, they leverage
their time< !nstead of having to wait 4 years to
receive the benefits of their pipeline, they can start
enFoying profits in months<
)ts a no/brainer!
@ )%pes of Le"erage
Rich People A'e)age People
Le'e)age %oney Le'e)age Time
+n"estments e$compounding
New Business %odel fo) a New %illennium
Nary Jamel, author of the bestseller :ea!ing the
-e3olution, says that in a hiDtech world, EOnly those
companies that are capable of creating industry
revolutions will prosper in the @ew ;conomy.G
Jamel argues that today, companies will compete
not in products and services but in the ability to
devise ideas for innovative businesses.
Je goes on to say that creating better business
concepts is nothing new. Jenry ford7s breakthrough
concept was to make a car that any working man
could afford. 1ord originally built one car to fit
everyone7s needs ? E6ou can have any color 2odel
T you want so long as it7s black,G was 1ord7s
response to re8uests for more variety.
7
7
7
7
7
7
7
7
7
7
7
7
%
7 7 7 7
7 7 7 7
7 7 7 7
T
im
e
,-
)lfred /loan at Neneral 2otors improved on 1ord7s
concept. Je understood that the customer is king,
and he sought ways to meet individual needs and
tastes. /loan7s nowDfamous slogan was E) car for
every purpose and purse.G =ecause of /loan7s
better business concept, N2 vaulted past 1ord.
Today N2 is the biggest revenueDproducing
company in the world.
New and Imp)o'ed %odel
*ike N2, eDcompounding is an improvement on the
original eDcommerce concept, a better way of
attracting new customers and fostering their loyalty.
;Dcompounding reminds me of The (amil" 'ircus
cartoon where fiveDyearDold Dolly e+plains to her
younger brother where butterflies come from:
E=utterflies are new and improved caterpillars,G she
says.
0ell, eDcompounding is new and improved eD
commerce< 0ithout wordDofDmouth marketing5
referral fees5 and the power of compounding,
eDcommerce would never have broken out of its
cocoon.
e2comme)ce e2compounding
vs.
=ut eDcompounding offers a new and improved way
for eDcommerce to sprout its wings and fulfill its
potential. )s a result, referralDbased !nternet
companies are flourishing while hundreds of deepD
discount eDtailers are drowning in debt.
*ots of loyal customers *acks loyal customers
,#
=ut instead of a car for every purpose and purse,
eDcompounding is a pipeline for every purpose and
purse.
6our purpose may be to earn enough money to
afford an e+traDnice Bhristmas. Or your purpose
may be to escape from a deadDend Fob and build
.ltimate Kipelines that will circle the globe.
)nd your purse may be to earn a few e+tra dollars a
month. Or your purse may be to become a
millionaire many times over.
;Dcompounding is the .ltimate Kipeline.
Jow big you build it is up to you.
!hich 0ltimate Pipeline
Do You Prefer'
2issing picture
-
LE$$ON EI#HT
"o *ou P)efe) &he
:;2*ea) Plan,H
O) &he Fi'e2*ea) Plan
Here7s an old Foke that teaches two important
lessons about pipelines:
) man named Moe worked for years in a lowDpaying
Fob he hated. =ut Moe was determined to retire rich.
/o he scrimped and saved every penny he could and
worked nights and weekends in a second Fob to fuel
his investment pipeline.
)fter 4 years, his discipline and sacrifice paid off.
Je was finally financially free<
Moe decided that now that he was , years old, he
was going to live it up< Je decided it was time to
indulge his lifeDlong dream of scuba diving all over
the world. Moe spent thousands of his hardDearned
dollars on lessons and diving e8uipment. Je flew
/adly, most bucket carriers would hastily
dismiss the notion of a pipeline. Kablo and
=runo heard the same e+cuses over and
over.
!t made Kablo and =runo sad that so many
people lacked vision.
RRRR from The Karable of the Kipeline
-"
first class to Jawaii, where he had reserved a suite
at the Rit9 Barlton.
The ne+t day he headed out to dive Jawaii7s most
beautiful reef. Jis dream had finally come true<
Je felt a sense of pride as he suited up in his
e+pensive e8uipment ? customDmade wet suit5
specially built aluminum o+ygen tanks5 NermanD
engineered underwater cameras5 waterDproof pen
and underwater pad for writing notes. Moe was
ready<
Moe savored every moment as he swam down
toward the rainbowDcolored coral reef. Je
photographed the e+otic fish as he descended. Jis
first dive was everything he had dreamed about. Je
had spent tens of thousands of dollars on his new
hobby, but it was worth every penny<
EThis was worth the wait,G Moe said to himself.
EThis is perfect<G
/uddenly, Moe was shocked to see a man swimming
" feet below him wearing only swimming trucks.
Moe furiously scribbled a message on his notepad.
Then he flippered down to the man and tapped him
on the shoulder. Moe scowled as he handed the man
the notepad with this message:
2) spent thousan!s of !ollars on scuba !i3ing
e5uipment, an! here "ou are in <ust "our swimming
suit* What gi3es?4
The man grabbed the pad and wrote, 2)m
!rowning!4
Im
Drowning!
-2
Lo&s of People A)e ")owning
The first lesson we learn from this Foke is that
things aren7t always what they seem< Moe thought
the guy was enFoying a leisurely dive. =ut the truth
was much different ? the guy was drowning<
)ppearances can be deceiving when it comes to
finances, too. Keople who wear Role+ watches and
designer clothes appear to be financially
independent ? but many of them are drowning in
debt<
0hen Thomas M. /tanley and 0illiam D. Danko, the
authors of The Millionaire Next Door, started
researching their book, they sought interviews with
people who had a net worth of a million dollars or
more. )ssuming that the richest people lived in the
most e+pensive houses, the authors surveyed people
in upscale neighborhoods across the country.
=ut the authors soon discovered that many people
living in big homes and driving e+pensive cars
hadn7t accumulated much wealth. 0hy> =ecause
they were spending their money to support lavish
lifestyles instead of putting a portion of it aside to
build pipelines.
/tanley and Danko adopted a folksy Te+as saying to
describe these megaDconsumers: E=ig Jat, @o
Battle.G The cowboy metaphor paints a pretty vivid
picture, doesn7t it>
Big 8at2 No Cattle
Kicture missing
-C
The Powe) of &he :;2*ea) Pipeline Plan
The second lesson that we learn from the diving
story involves Moe7s plan to become financially
independent. Moe7s 4Dyear pipeline plan is a classic
e+ample of the good newsSbad news scenario. *et7s
look at the good news first.
The good news about the 4Dyear pipeline plan is
that it works< /aving and investing small amounts
of money in the stock market on a monthly basis
over time is a sureDfire way for people of modest
means to become financially independent.
The key to longDterm investing is to make regular
deposits over a long period of time and then let it
compound year after year. !f people start early
enough and stick to their pipeline plan, they can
become millionaires by saving Fust %" a month<
!mpossible, you say> The following chart tells the
tale:
How &o Accumula&e 73 million /y Age =:
)ssuming a "2( annual interest rateO
/tarting
)ge
Daily
/avings
2onthly
/avings
6early
/avings
6ears !t Takes
To =uild %" 2illion
24 % C.4, % "# % ",C& & years
C4 % "".C4 % C&4 % &,"&& C years
&4 % C-.2 %","4, %"C,-,# 2 years
44 %"4'."2 %&,,&# %4',#-& " years
from The Wise )n3estor b" Neil E* Elmouchi
O Bonsidering that the stock market has averaged ""( over the last ,
years and 24( over the last decade, "2( is a fair and reasonable
rate of return.
-&
!t7s ama9ing to learn that it7s easy to become a
millionaire if you start building your longDterm
pipeline early enough. 3irtually anybody living
above the poverty line can do it<
)ll anyone needs to do is to invest %C.4, a day,
every day, in a mutual fund returning "2( interest,
and let it compound for & years. !nstant
millionaire< Q0ell, maybe not EinstantG ? but
definitely a millionaire<A
Think of it this way ? one out of three )mericans
smokes cigarettes. !n 1lorida, a pack of cigarettes
costs about %C.4,. !f every person who smoked 8uit
at age 24 and invested their cigarette money in the
market and let it compound for & years, oneDthird
of )mericans would be millionaires by the time
they turned '4<
!sn7t that ama9ing> Don7t you wish someone had
pointed that out to you when you were 24 years old>
;ven at C4 and &4, it7s still possible for the average
household to build a millionaire pipeline. =ut
people who wait until they7re 44 to start saving for
retirement are facing a steep mountain, that7s for
sure<
The Bigges& )is( Is NOT In'es&ing in &he
%a)(e&
2any people still think it7s too risky to invest in the
stock market. )nd, yes, some stocks go down. )nd
sometimes the entire market goes down, as it did in
the crash of "#2#.
=ut all of the wi9ards on 0all /treet say that over
time, investing in the stock market is the easiest and
-4
surest way to build a profitDpumping pipeline. The
facts support the e+perts: During the 2Dplus years
the @ew 6ork /tock ;+change has been in business,
stocks have averaged going up two out of every
three days. /ince 00!!, the stock market has gone
up ,"Dfold, despite nine recessions during that 44D
year span.
)ccording to Meremy /iegel7s book $toc+s for the
:ong -un, in the "#4 years from "-2 to "##,, a
dollar invested in gold would have grown to Fust
%"".",. That same dollar invested in stocks would
have compounded to %,.4 million<
3NN< 39;8
toc# Mar#et
The point is that building a 4Dyear pipeline has its
place, no doubt about it< 2ost people have several
4Dyear pipelines under construction. Their home is
one longDterm pipeline. /ocial /ecurity is yet
another. .nfortunately, all too many people stop at
these two pipelines.
Most People-s
<6$Year Pipeline Plan
/ocial /ecurity
Their Jome.
%
%
7<
%illion
73
-'
/mart people, on the other hand, continue to build
additional longDterm pipelines through investment
portfolios5 pension plans5 !R)s5 and the like.
)ll of these are great longDterm pipelines, and
they7re available to anyone with the good sense and
the discipline to build them over time.
mart People-s
<6$Year Pipeline Plan
2issing picture
"ownside &o &he :;2*ea) Plan
Okay, ! Fust told you the good news about the 4D
year pipeline plan ? virtually every working family
can build a millionDdollar pipeline if they start
saving monthly and allowing their investments to
compound over time.
=ut the bad news is that most people want to enFoy
the benefits of a pipeline today ? instead of having
to wait 25 C5 &5 or even 4 years<
! admit it ? ! want to enFoy the finer things in life
today, not half a century down the road< 6es, !
believe in building longDterm pipelines. ! have
several under construction. =ut the truth is, !7d
rather spend money than save it. ! like the things
-,
money can buy. ! e+pect you feel the same way,
too.
! enFoy a great meal in a firstDclass restaurant.
! like taking my family on ski vacations and cruises
? we7ve created some of our best memories during
vacations.
! love the smell of new car interiors.
! like driving a big 2ercedes more than a small
2a9da.
! want to use my cell phone any time of the day, not
Fust evenings and weekends when the rates are
cheaper.
)nd !7d rather spend %2 going to a hit movie as
soon as it7s out, rather than waiting three months so
! can rent it for three bucks.
Jere7s the bottom line: *ongDterm pipelines are
essential for people who want to enFoy a worryDfree
retirement. That7s why everyone should build 4D
year pipeline.
=ut let7s get real ? do you really want to wait 4
years to enFoy the benefits of a pipeline> @ot me<
!7m willing to make sacrifices to build my
retirement pipeline. =ut ! don7t want to have to live
like a monk for 4 years in order to do it<
! want to live my dreams right now, while !7m still
young and the kids are at home. ! don7t want to
wait until !7m '4 or , to start living my dreams ?
like the scuba diver in the opening story. !7m sure
you feel the same.
Ha'e *ou) Ca(e and Ea& I&. TooE
)s ! said earlier, a longDterm pipeline should be at
least one of the pipelines you build. =ut not the
only pipeline you build. Must as you shouldn7t put
all your eggs in one basket, you shouldn7t put all
your profits in one pipeline.
--
0ell, with the 4Dyear pipeline plan, you can not
only diversify your portfolio of pipelines, but you
can dream big dreams and start living them right
away, instead of when you7re in your 's or ,s.
6ou can have your cake and eat it, too<
Think about it ? wouldn7t you rather be financially
free in five years instead of 4 years> Of course
you would. 0ho wouldn7t>
That7s why ! recommend you build your 4Dyear
pipeline while you7re building your 4Dyear
pipelines<
@ )%pes of Pipelines
Long2Te)m C $ho)&2Te)m
:; yea)s 8 P : yea)s
The .ltimate Kipeline ? eDcompounding ? can be
built in two to five years, instead of 45 and it can
start pumping profits within months instead of
decades. 6ou can start building your .ltimate
Kipeline partDtime, in the evenings and weekends,
until gradually, it pumps enough profits for you to
begin building it full time<
Must think ? the .ltimate Kipeline can get you to the
top of the oak tree in a fraction of the time that it
would take a 4Dyear pipeline. )nd best of all, you
don7t have to save or invest a truckDload of money
to build your 4Dyear Kipeline< )ll you need to do is
leverage your time and your relationships<
Time L
Relationships
e$compounding
7777
7777
7777
-#
Li'e fo) TodayH Plan fo) Tomo))ow
6ears ago my father gave me some great advice.
Je said, E*ive for today, plan for tomorrow.G !7ve
never forgotten those words, and ! repeat them
regularly to my four children.
=uilding a 4Dyear pipeline while you7re building
your 4Dyear pipeline empowers you to follow my
father7s sage advice.
6ou see, the .ltimate Kipeline plan ? the 4Dyear
pipeline ? enables you to live for today because you
can start enFoying the fruits of your labor within
months< The 4Dyear pipeline plan, on the other
hand, allows you to plan for tomorrow. That7s why
! advise people to build both longDterm and shortD
term pipelines<
Pipelines Are Your Lifelines
2issing picture
/ecurity 1reedom Jappiness Bontrol

0hen my father advised me to E*ive for today, plan
for tomorrow,G what he was really saying was
EKipelines are your lifelines. /o become a pipeline
builder, not a bucket carrier.G
Nreat advice, Dad. Nreat advice.
%
% % %
#
CONCL$ION
)he Para3le of the
0ltimate Pipeline
&ear F00,, $ilicon Galle", H$%
O@B; .KO@ ) T!2; 3;R6, 3;R6
R;B;@T*6, two ambitious young cousins named
Kaul and =ruce worked side by side as middle
managers for Bistern !nternational, a multiDnational
conglomerate that owned electric and water utilities
all over the world.
The young men were best buddies.
)nd big dreamers.
They would talk about how some day, some way,
they would become totally financially free. They
were both bright and hard working. )ll they needed
was an opportunity.
One day that opportunity arrived. The company
decided to appoint the two friends as senior
managers in Ucistern7s worldwide software division.
Their monthly salary was double what it had been.
EThis is our dream come true<G shouted =ruce. E!
can7t believe our good fortune.G
=ut Kaul wasn7t so sure.
#"
)t the end of the first "Dhour day, Kaul7s back
ached and his finger tips were sore from
customi9ing software. Je was in charge of 4
employees, most of whom were uncooperative and
unmotivated. Je loathed the idea of traveling to
foreign offices for weeks at a time. Jis boss at
Bistern was moody, rude, and demanding. Kaul
dreaded getting up and going into work the ne+t
morning. Je vowed to think of a better way of
living and working.
Paul. &he Pipeline %an
E=ruce, ! have a plan,G Kaul said the ne+t morning
before they settled into their cubicles and booted up
their servers.
E!nstead of trading our time and talents answering
to a tyrant of a boss and managing unmotivated
employees in e+change for a weekly paycheck, let7s
leverage the !nternet to create residual income.
EJaving a Fob is like carrying buckets,G Kaul
continued. EOne bucket of work e8uals one bucket
of pay. =ut if the work stops because of illness or
layoffs, the paychecks stop.G
A Ao3
Time 7
5 Buc#et !or# ( 5 Buc#et Pa%
E0e need a career that will create ongoing residual
income. Residual income is like building a pipeline
? we do the work once and get paid over and over
#2
again. =ruce, we need to start thinking and acting
like pipeline builders instead of bucket carriers.
Pipeline
*esidual +ncome
E) former employee of mine is helping me build a
pipeline on the !nternet. Je calls it the .ltimate
Kipeline because it combines the power of eD
commerce with the power of compounding. The
.ltimate Kipeline is my business ? ! own it. ! work
from home. There7s no overhead. @o employees.
@o payroll. @o inventory to speak of. !t7s lean. !t7s
mean. !t7s webDbased. )nd it offers a way to create
ongoing residual income.G
0ltimate Pipeline
e$compounding
@o boss
/ecurity
1reedom
!ndependent
business owner
@o employees
@o payroll
/mall inventory
@o overhead
=ruce stopped dead in his tracks.
2% pipeline on the )nternet! Whoe3er hear! of such
a thing!4 =ruce shouted.
E0e7ve got a great Fob,G =ruce said emphatically.
EDon7t rock the boat< 0e7ve got Fob security with
great benefits.
E0e have weekends off land twoDweeks7 paid
vacation every year. 0e7re set for life< Net out of
here with your .ltimate Kipeline<G
#C
=ut Kaul was not easily discouraged. Je patiently
e+plained the .ltimate Kipeline plan to his best
friend. Kaul would work part of the day at his
salaried Fob and then use his evenings and weekends
to build a pipeline on the !nternet.
Kaul also knew it would take a year, possibly two,
before his .ltimate Kipeline would be big enough to
start pumping big profits. =ut Kaul believed in his
dream of owning his own business5 and owning
his own life. Je was determined to make it work.
$mall Ac&ions E0ual Big )esul&s
0hile =ruce sat in his *aD:D=oy recliner on
evenings and weekends, Kaul kept building his
.ltimate Kipeline.
The first few months Kaul didn7t have much to
show for his efforts. The webDbased pipeline
business was new to him. Je had to learn a new
system and teach it to others. Je talked daily to his
mentors and attended weekend trainings to improve
his businessDbuilding skills. Je read personal
growth books and listened to tapes recommended
by his mentors.
Day by day, Kaul improved his businessDbuilding
skills. Je learned how to engage people in
conversations. Jow to get people to talk about their
dreams. Jow to handle obFections gracefully. Jow
to coach people to bring out the best in them.
Nradually, he began to believe more and more in
himself5 in his opportunity5 and in his new
business partners. This was new territory for Kaul.
=ut as his knowledge and confidence grew, so did
his !nternet pipeline.
#&
Kaul kept reminding himself that tomorrow7s
dreams are built on today7s sacrifices. Day by day
he built his .ltimate Kipeline, one conversation at a
time.
2)f m" !ream is big enough, the facts !ont count,4
he chanted to himself as he picked up the phone to
call another prospect.
2$hort/term in3estment e5uals long/term rewar!s,4
he reminded himself as he set his daily and weekly
goals, knowing that, over time, the results would far
e+ceed the effort.
26eep "our e"es on the pri1e,4 he repeated over and
over as he drifted off to sleep while listening to a
training audio by a successful elDbi9 builder.
26eep "our e"es on the pri1e74
The Ta/les A)e Tu)ned
Days turned into months.
One day Kaul reali9ed that his eDpipeline was
pumping enough profits to e8ual half his monthly
salary< Kaul continued to work hard at his day Fob,
but he used his spare time even more productively.
Je knew it was only a matter of months before his
partDtime pipeline income e+ceeded the income
from his fullDtime Fob.
During his lunch breaks at Bistern, Kaul would
watch his old friend =ruce scurrying from cubicle to
cubicle. =ruce7s bucketDcarrying Fob was beginning
to take its toll. =ruce was looking more and more
stressed by a demanding boss5 unrealistic
deadlines5 and daily rumors of layoffs.
#4
On weekends, =ruce would write do9ens of
resignation letters. =ut he never mailed them. Je
had bills to pay. Je needed his paycheck too much
to 8uite. Je felt trapped. Je felt empty inside. The
waste basket in his office wasn7t empty, however. !t
was filled to the brim with wadded up resignation
letters5
Resigning f)om His Io/
1inally, Kaul7s big day arrived ? his monthly eD
pipeline check e+ceeded his monthly salary at
Bistern< Jis wife made color copies of his check
from Bistern and the check from his new eDbusiness
and framed them side by side. Jis new pipeline
partners cheered as he held up the framed checks.
Bameras flashed. )nd Kaul7s eyes glistened with
Foy.
One Da% in the =uture
6
% % %
Pipeline +ncome Ao3 +ncome
Kaul was the only worker at Bistern who wasn7t
intimidated by his boss. =ecause of his .ltimate
Kipeline, Kaul was free< That knowledge gave Kaul
confidence. Kaul handled his boss7s outbursts
calmly. Kaul s8uared his shoulders and looked right
in his boss7s eye during his tirades.
E!t7s not necessary to shout,G Kaul would say firmly.
E!7m standing right here in front of you. 0ouldn7t
you agree we7d be more effective if we discussed
this calmly>G
#'
Kaul7s coDworkers began calling him the *ion Tamer
for the way he handled his boss. =ut Kaul
understood that he wasn7t taming his boss. Kaul
was only standing up to him because he no longer
had the power to control Kaul7s life.
One evening Kaul sat down in his homeDbased
office and wrote the following letter:
Kaul felt a surge of freedom as he folded his
resignation letter and inserted it into an envelope.
Je looked forward to the future with hope and
optimism. Kaul understood that what he7d
accomplished with his !nternet pipeline was only
the first stage of a big, big dream.
6ou see, Kaul had plans that reached far beyond the
walls of Bistern !ndustries.
#aul planne! to buil! )nternet pipelines all o3er
North %merica C an! e3entuall", all o3er the worl!!
Rec)ui&ing His F)iend &o Help
Dear 2r. =oss:
! am writing to inform you that effective immediately,
! am resigning from Bistern international.
! have enFoyed my time at Bistern, but ! regret to
inform you that the company can no longer afford my
services.
6ours 1reely,
EKipeline KaulG
#,
Kaul7s webDbased business continued to flourish.
Je had never been happier5 or more fulfilled. =ut
the same couldn7t be said for his former coDworkers
at Bistern. The company was moving more and
more of their business online, which meant Kaul7s
old department was downsi9ed.
=ecause of his big salary, =ruce was the first to go.
!t pained Kaul to see =ruce begging his friends for
consulting work on their outdated KBs. /o Kaul
arranged a meeting with =ruce.
E=ruce, !7ve come to ask for your help.G
=ruce straightened his stooped shoulders, and his
dark eyes narrowed to a s8uint.
EDon7t mock me,G =ruce hissed.
E! haven7t come to gloat,G said Kaul. E!7ve come to
offer you a great business opportunity. !t took me
two years before my !nternet pipeline was pumping
enough profits for me to resign from Bistern. =ut
!7ve learned a lot since then. ! know how to build
.ltimate Kipelines. Jow to talk to people. Jow to
build teams. Jow to grow a business by growing
people. !7ve learned a proven system that will
empower me and my partners to build another
.ltimate Kipeline5 and then another5 and
another.
Pipeline Building %stem
Boo#s )apes Meetings E"ents Products >oals
#-
E! need pipeline partners,G Kaul continued. E!7ll
teach you everything ! know about building webD
based pipelines5 and ! won7t charge you one red
cent for it. )ll ! ask in return is that you learn the
system ! teach you and then teach it to others5 and
have each of them teach it to others5 until there are
.ltimate Kipelines in every city in @orth )merica5
and eventually, .ltimate Kipelines in every
household in every city in the world.
Paul
Bruce (
Others
EMust think,G Kaul continued. E0e could make a
small percentage of every online purchase that goes
through our .ltimate Kipelines. The more volume
that goes through our online pipelines, the more
money that will flow into our pockets. The
.ltimate Kipeline ! built isn7t the end of a dream.
!t7s only the beginning<G
Kaul finally saw the =ig Kicture. Je smiled and
e+tended his hand to his cousin. They shook
hands5 and then hugged like longDlost friends.
Re&u)ning &he Fa'o)
6ears passed. Kaul and =ruce had long since
retired. Their worldwide !nternet pipeline
businesses were still pumping millions of dollars a
year into their bank accounts.
The old friends had time to travel and visit e+otic
places all over the world. One day, =ruce asked
##
Kaul to meet him for lunch. Je had some e+citing
news to share.
EKaul, years ago you gave me a very special gift by
sharing a webDbased business opportunity with me.
That gift changed my life forever. !7ve been racking
my brain for years trying to think of a way to repay
the favor. That7s why ! invited you here today.
Jere7s my gift to you.G
=ruce slid an envelope toward Kaul. !nside were
two firstDclass tickets to !taly.
@ )ic#ets to +tal%
E6ou don7t have to5,G Kaul started. =ut =ruce cut
his friend short.
E*et me do the talking for right now,G said =ruce.
E;ver since we were little kids, our parents have
been telling us that our families emigrated from
!taly. 0ell, with the help of the !nternet, !7ve been
able to trace our family roots back to two cousins
who lived in a small village in central !taly.
EKaul, this is my gift to you,G =ruce continued.
E0e7re going to return to that village.
0e7re going to walk to the town s8uare where our
greatDgreatDgreatDgreat grandfathers and all of the
other villagers met to fill their buckets from the
town cistern. )nd we7re going to get down on our
knees and thank our forefathers and Nod for
Round&)ip Tic(e&
&o I&aly
Round&)ip Tic(e&
&o I&aly
"
building a pipeline of blessings that has flowed
freely into our lives.G
Coming Full Ci)cle
Kaul stared at his cousin in stunned silence. Then
he reached over and held both of =ruce7s hands
firmly in his. E! only have one re8uest,G Kaul said
8uietly. EBan you change the departure date from
ne+t week to tomorrow>G
Q Q Q
Two wee+s later7
The airport in Rome was packed. Kaul and =ruce
were returning to the states after two wonderful
weeks in !taly. They7d walked the streets of their
forefathers. )nd dined in the homes of do9ens of
longDlost relatives.
!t was the trip of a lifetime, and both men felt
renewed and reconnected by the visit. They sat side
by side in the terminal, reading copies of the same
book. ;very now and then one of the men would
lean over to his friend and point out a passage from
the book.
2Hh/h/h/h, N;! C not again4 cried a man across the
aisle. 2M" flight has been cancele! C %.%)N! )ll
ne3er get out of here!4
EThat7s our flight, too,G said Kaul motioning to the
monitor suspended above them. EBanceled. @ow
what>G
Kaul looked over to his old friend. =ruce returned
the look ? and then they Fust smiled.
E6ou thinking what !7m thinking>G grinned Kaul.
""
2:oo+s li+e we3e got to sta" another wee+!4 they
shouted in unison as they Fumped out of their seats
to high five each other.
The man across the aisle gawked at the two friends
as if they were aliens.
E0hat are you guys so happy about>G he asked
incredulously. E!7ve been stuck in this airport for
two days. ! missed my daughter7s birthday party for
the second year in a row. !7ve been in so many time
9ones during the past month that ! don7t know what
day it is. !f that7s not enough, !7m going to miss my
numbers for the year because my client got greedy
and refused to settle.G
E0e7re sorry,G said =ruce. E0e can sympathi9e.
0e used to react the same way, didn7t we Kaul>G
E/ure did,G said Kaul. E/tressed out. Tapped out.
=urned out. 0orn out. 6ou think of an Uout,7 and
we had e+perienced it. That was way back in the
preDpipeline days, right =ruce>G
E0hat do you mean, UpreDpipeline days>G asked the
stressed out stranger. E0hat7s that all about>G
E*ove to e+plain,G Kaul said happily. E=ut my fiend
and ! have to scoot over to the car rental desk. Nive
me your business card, and one of us will call you
when we get back to the states.G
The stressed stranger handed Kaul his business card.
!n e+change, Kaul handed him his book.
EJere, read this while you7re waiting for your
flight,G Kaul said. E0hen ! call you, the book will
give us something to talk about.G
Kaul patted =ruce on the back and steered him
toward the rental car desk. Je paused long enough
to read the stressed stranger7s business card.
"2
Bob Bruno, Esq
)TTOR@;6 )T *)0
329;;2$E2THE%
E=ob =runo, )ttorney )t *aw,G Kaul said. E!7d say
2r. =runo would welcome the opportunity to build
a pipeline, wouldn7t you>G
E=runo. =runo.G =ruce slowly pronounced the
name. EThe name =runo sounds awfully familiar.G
E1or some reason, =ruce, !7ve got a good feeling
about this guy =runo,G Kaul said. E/ame feeling !
had when you Foined me in the business. ! think our
new friend =runo is going to be one fine pipeline
builder<G
Kaul and =ruce glanced back at their new
ac8uaintance.
The stressedDout attorney cradled the book in his
lap. /taring intently at the cover, he mouthed the
title silently to himself.
Then, gently, like an old man opening a gift from
his favorite grandchild, =runo opened the book
called The Karable of the Kipeline ? and he began to
read5
"C
One Pipeline is +o)&h
A Thousand Paychec(sE
0e7re living in the most affluent economy in
decades. 6et millions of people are still living
from paycheck to paycheck, working longer and
longer hours Fust to stay even.
0hy> =ecause they bought into the wrong
plant. They7ve fallen for the TimeDforD2oney
Trap. 6ou know, a day7s work for a day7s pay. )
month7s work for a month7s pay. /ound familiar>
0hether you7re a %<,DaDyear dishwasher or a
%",DaDyear doctor, you7re still trading one
unit of time for one unit of money. 6ou7re still
living paycheck to paycheck. )s for EFob
securityG ? if you can7t do the work because of
layoffs5 illness5 inFury5 or retirement ? the
paychecks stop<
+he)e4s &he secu)i&y in &ha&,
Jow do you escape the TimeDforD2oney Trap>
=y building pipeline of ongoing residual income.
0ith residual income, you do the
work once and get paid over and
over again. That7s why one
pipeline is worth a thousand
paychecks. Kipelines keep
pumping day after day, year after
year, whether you7re there to the
work or not.
Now. &ha&4s secu)i&y P &)ue
financial secu)i&y
The Karable Of The Kipeline will
teach you now to build pipelines
so that you can make the leap
from earning a living today5 to
enFoying a lifestyle tomorrow<
BR!E
HE"#E$
)uthor. /peaker.
;ntrepreneur
=urke Jedges has
championed the crusade for
personal and financial
freedom for more than a
decade. Today, his seven
books have been translated
into " languages and sold
more than 2 million copies
worldwide.
=urke resides in the Tampa
=ay area with his wife and
four children.
"&