A pipeline income is money that is generated over and over again on a consistent basis from a system built one time.
One of the best examples is the Trans Alaskan Pipeline.
Built from March 1975 to May 1977 at a cost of $8 billion, this 4-foot diameter pipeline runs 800 miles from the North Slope of Alaska to Valdez, Alaska.
This pipeline crosses 3 mountain ranges and over 800 rivers and streams.
Crude oil began to flow through the Trans Alaska Pipeline on June 20, 1977. Since that time, over 15 billion barrels of oil have moved through the pipeline.
The money generated from the oil delivered by the pipeline has far exceeded the cost of construction. As long as oil is flowing through this pipeline, money is being made.
The upper and lower peninsulas of Michigan are separated by a 4-mile expanse of water. The Mackinac Bridge was built to join these two peninsulas.
It took 3 years (1954-1957) and $100 million to build the bridge. It is truly an engineering marvel considering the obstacles that were overcome during construction.
Since its completion in November 1957, the Mackinaw Bridge has generated money EVERY DAY from tolls collected from vehicles crossing the bridge. The amount of money generated by tolls far surpasses the cost of construction.
The water supply in an Italian village dries up, and the village is forced to find another water supply.
The village contracts with a company whose employees are bucket carriers.
These employees physically carry buckets of water from a river a couple miles away and dump the water into the village water tank.
The employees are paid for each bucket of water delivered. If they don't carry any buckets, they don't make any money.
One of the bucket carriers has an idea. What if he builds a pipeline from the river to the village during evenings and weekends. A pipeline could bring water to the village far more effectively than a bunch of people carrying buckets.
He could charge the village much less for the water than the bucket carrying company because the pipeline would be able to deliver a much larger volume of water in a shorter period of time.
The brilliant young man decides to build the pipeline. Of course his friends think he's a lunatic for working evenings and weekends while they are off having fun and enjoying themselves.
It takes a couple years to build the pipeline, and there are plenty of hardships and obstacles along the way. However, the day arrives when the pipeline is completed and water starts flowing to the village in large quantities.
The village tells the bucket carrying company to take a hike because water is obtained a lot cheaper via the pipeline.
The brilliant young man is no longer carrying buckets. His pipeline generates more income than toting buckets ever could.
The pipeline generates money for the bright young man even while he is asleep or away on a trip. His friends, meanwhile, are still toiling day after day hauling buckets of water and never getting ahead financially.
Robert Kiyosaki describes 4 ways people make money in society.
On the left side of the cashflow quadrant are employees and self-employed business owners. Both employees and self-employed business owners make money by trading their time. Time is money, and if you don't work you don't get paid.
On the right side of the quadrant are "B-Business" owners. A B-business is a system that is built once, but generates money on a consistent basis long after it is built.
A B-business takes a good bit of time and energy to build, but once up and running, it generates money even when the owner is not present. The owner can make money even while he sleeps.
A B-business is a pipeline income. It leverages the time and energy invested by the owner during the building stage. This results in far more money for the owner than if the owner spent that same time and energy working as an employee or a self-employed business owner trading time for money.
A pipeline income can be built through a network marketing business.
This is created when you build communities of people who use a network marketing company's products or services on a regular basis (usually monthly) and who also bring other people into the community.
It takes significant time and energy to to build such a community of people. However, after the community is built, it will cause money to flow to you long after the hard work is finished. This is because after you do the hard work getting it started, the community will grow without your constant energy and attention.
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A pipeline income makes it possible for a person to have both time and money, which according to Robert Kiyosaki is the true definition of wealth.
The combination of time and money allows people to have choices that are not available to those who trade their time for money working as employees.
Just think what you could do if you had both time and money. You could buy your parents a new car or start a charitable organization that is in line with your passion.
In short, time and money will give you the opportunity to live out your God-given purpose in a big way.
A pipeline income leverages the valuable time spent in the mandatory process of generating income. A traditional job does not leverage a persons time, but rather causes people to "spin their wheels."