The Asset versus the Transactional Model

The transactional model earns income from the customer once without no way of repeating the sale. This is detriment to your financial freedom goals. If you are going to use your business as part of your financial freedom or retirement plan, you need a way of building recurring revenue. While the transaction model is a good way to start, it is not a good place to stop. To build financial freedom with your business, you need to work diligently at creating assets surrounded by system which in turn churns income.

One of the characteristics of an asset is the ability to generate future revenue. There are various ways of capturing assets. For example in an internet business, traffic coming into the site is turned to an asset by using a customer list. This lists creates a way of generating future revenue. However, you cannot stop at the customer list, you need to also create systems.

Create a System

Even though an asset creates the potential to create future revenue, do not underestimate the value of a system as an essential part of your financial freedom goals. When an asset like a customer list is implemented with a system, the value of the asset is further enhanced. For example with the customer lists your marketing system could include sending weekly newsletters, etc.

The asset model is more sustainable over the long run.

An asset with a system is a good way of getting repeat sales. If you are going to use your business as part of your financial freedom or retirement plan, you need a way of building recurring revenue. While the transactional model is a good way to start, it is not a good place to stop. To build financial freedom with your business, you need to work diligently at creating assets surrounded by system which in turn churns income. Having assets in your business also increases the value if you choose to sell.