Who You Know is More Critical Than What You Have

We all need money to buy bread, to pay the mortgage and to pay our taxes. Money is definitely important. However focusing on making money can often be counter-productive; it is better to focus on the conditions needed to make money than the money itself.

Money is only one of five currencies. If you look after the other four, the money will look after itself.

The 5 Currencies

• Time
• Knowledge
• Reputation
• Contacts
• Money

Time – Time is limited but we all get the same 24 hours of new Time currency to spend each day. Time cannot be “banked,” so we have to convert it into the other 4 currencies; Knowledge, Reputation, Contacts, and Money.

Knowledge – We convert our Time to Knowledge when we acquire new skills, absorb new facts, and apply those new ideas in a different context. Coming from a different perspective on-board is another example of acquiring the Knowledge that is essential for business success.

Reputation – Online, each of us is only as good as his or her reputation. Your reputation takes a lot of hard work to acquire and is very simple to lose. Nobody will employ or buy from anyone whose reputation is less than pristine.

Contacts – Gradually, people will add you to their email white list, will talk to you, and will ask for your opinions or for your help.

Money – Some of your contacts will offer to pay you in cash. Everyone will pay you by contributing to your improving Reputation, but we do need Money to pay the bills.

Time

No matter what you do or where you live, you get 24 hours a day to invest in yourself and your business. You cannot save this time: In paid employment, you trade your time directly for money, but if you are self-employed, direct payment for your time is not always possible. When no direct Time/Money trade is possible, you can still use your Time profitably to increase your reserves of Knowledge, Reputation, and Contacts.

Many of us fail to use our time wisely – We spend hours watching TV or randomly browsing the Internet. Chill-out time is important, but we need to make a conscious decision to chill out rather than wasting too much of our precious 24 hours on non-productive activities.

Understand your body and when you are at your most efficient. Many people are at their most efficient early in the morning and could benefit by starting work two hours earlier in the day. I get up at 4 am most days because I am a morning person and do my best writing before 9 am.

Knowledge

Knowledge has two components; acquiring it and passing it on. Both are equally important.

Knowledge includes information and being able to apply that information in different situations. It also encompasses any new perspectives you acquire or skills that you learn.

We all have a unique body of knowledge, unique perspectives, and unique skill sets because we have all had different experiences, met different people, and led different lives. We owe it to humanity to pass on our unique knowledge before we die to prevent it from being lost forever. It is only the passing on of Knowledge from one generation to the next that has allowed humans to progress.

Reputation

How others perceive you is important whether you work online or in the real world.

In the real world, nobody will employ tradespeople who are seen as dishonest or shifty. Sometimes we make judgments based on body language or tone of voice when we talk to someone on the phone.

Online, we rarely see or hear the people we meet, so your Reputation depends on your actions and what others say about you.

You can build your Reputation by being helpful to people. This might be by sharing your Knowledge, offering insight or just talking to others. Your website is one way to build your Reputation, but few people are going to visit that until you have established yourself as legal, decent, and honest.

You can grow your Reputation by spending Time in Google G+ communities or in an industry-specific forum. You need to approach the community in the spirit of giving; if you share your Knowledge freely, other community members will see you in a positive light.

Contacts

In the real world, Contacts are the people you meet and those who have heard of you. The same applies online; your contacts are the people in your G+ community and those who read your posts in the community.

Never, ever ask for anything in any community; always give of your Time and Knowledge without asking for any compensation. This might sound like an unproductive use of your Time, but believe me, your Reputation and your Contact list will grow.

Your Contacts are all the people you help. They pay you in different ways; all will speak highly of you, improving your Reputation, some will share their own Knowledge, others will share their Contacts and a few will offer you Money to do a job for them.

Money

If you have nurtured the other four currencies, the Money will come without you doing anything else. You really do not have to do anything more than keep your eyes open.

Most people are very fair and want to pay you back for the favors you do for them. Everyone would rather pay someone they know to do a job they need doing than a stranger, so don’t be a stranger. Talk to people you have not spoken to for a while; remind them that you are still around and still looking to help them.

Full Circle

By investing Time in growing and spreading your Knowledge, you have grown your Reputation, developed Contacts and earned Money. You have done all this without thinking about Money at all.

The 5 Currencies and Me

I learned all this through experience. I was made redundant in 2010 and set about learning how to make an income online.

I am a teacher, so I can write. I joined an article writing site (InfoBarrel.com) that pays you by embedding Adsense ads in your articles. I earned a few dollars, but I spent hours in the forum, learning from others and sharing my own knowledge.

I joined up with a few other InfoBarrel writers for a project and learned about the 5 Currencies from another writer (Andrew Walton). I was also offered paid writing jobs by other active forum members; some of these were short term but others have been ongoing for the past three years.

Every job I have had over the past three years has come about because of the way I have shared my Knowledge and grown my Reputation and Contact list.

Every paid job originated in a forum discussion.

Where Do You Start?

Start by adopting a spirit of giving. Find a Google G+ community or a forum of like-minded people.

Learn and share everything you have freely and without expectation of any reward. You can call this “paying it forward.” It is counter-intuitive at first but it works.

As you check your community each day, even every few hours, you just need to keep your eye open for people who are offering paid jobs.

Conclusion

It is very tempting to obsess about Money, especially when you have bills coming in that you are struggling to pay. Thinking about finances affects your thinking and behavior and actually makes it less likely that you will be offered paid jobs.

People are more likely to give jobs to people they know, like, and trust. Using your Time to grow and spread your Knowledge will build your Reputation and Contact list. This list of people who trust you will be the source of every dollar you earn.

You may have heard the phrase “The money is in the list.”

Even if you have no website, the money is in your contact list.