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August 15, 2008
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Original Article
Penny Millions Strategy© 2005 By Robert BorowskiThe saying "it takes money to make money" may be true, but have you ever considered that it could all be started from just a penny? This incredible article will show you a step-by-step strategy that you could try to make over a million dollars starting from absolutely nothing! Think of this as a fun game with zero risk but the potential to "win" over a million dollars. We were skeptical too... until we made a fortune ourselves following this simple idea. Many years ago, while I was still just a "wealth aspirant" (wishing for the wealth I have today) I discovered a neat idea while surfing the Internet. I came across a simple little idea, sort of like a game, that taught how to grow from nothing, zero, not even one cent of your own money, to over a million dollars. In fact you have to walk around public places to find a penny on the ground to start off with. After reading the concept I was intrigued to say the least, as it really seemed like a sound plan despite the fact that on the surface it seemed ridiculous. In this article I'll teach you the simple concepts. For now just suspend any skepticism or even cynicism you may have, keep an open mind and by the end of this article you might be hooked on playing the "Penny Millions" game yourself. I started working on the plan immediately and even shared the idea with my wife and our Millionaire Master Mind group (there are 7 of us in this weekly group that have been meeting now for several years). I started off with much enthusiasm but after getting to around $20 in my plan (starting from $0.01 that's a 200,000% increase!) I kind of lost steam and took a break from the game... until my wife astonished me. My wife having been inspired by my enthusiasm over this idea started her own Penny Millions game. She started off a bit slow, but she quickly blew past me. She grew her initial penny ($0.01) to over a thousand dollars ($1,000) within about 4 or 5 weeks (thats a HUGE %age increase)! At that point I realized that there was some serious potential to this plan, and not wanting to be outdone by my wife I vowed to continue from my measly $20 bucks to hit that million dollar mark. Fast-forwarding a bit, with a bit of a variation to the original plan, I did take that approximately $20 (which remember grew from a single penny I found on the ground) and within about 2 years grew a company that had around a couple million dollars of revenue! My good friend and business partner Brian never heard of this plan before I shared it with him but he did something incredible on his own that is very similar. He started his entire business empire, which grew to millions of dollars of revenue too, from only $2. He's shared this fact with people for the past couple of years, but since I know him I'm going to tell you one of his dirty secrets... he lied. He actually started with less than two bucks but in telling his story he just rounded up to a nice even number. A few months ago we were pleased to have discovered that some ingenious guy did something fundamentally similar though quite different from what I'm going to share with you here in this article. Kyle MacDonald, in the timespan of just one year traded up a single red paperclip, which is obviously next to worthless, into a house. That's right, with just 14 trades he got himself a house! Go check out his website sharing his experience at oneredpaperclip.blogspot.com Does this all sound incredible to you, maybe even unbelievable? Sure, it's outrageous, but what have you got to lose from trying it yourself? Nothing. Would you like to know how to turn a penny you find into a million dollars? Remember, you're risking none of your own money doing this, and you didn't even have to pay anything to learn this plan. Your only "cost" is the time you spend following this plan, but with the potential payoff of doing this surely must be worth it. Chances are that in elementary school your teacher might have taught you an interesting lesson about compound interest. The classical story in the lesson involves a boy going to his father on the first day of the month proposing a change to the allowance his father gives him. He suggests that his father forgoes paying him the usual allowance, instead that today the father pays him one penny, and that each day he doubles the allowance until the end of the month. The father seeing no harm in that, and being a bit of a cheapskate thinking that he'll save money on the allowance this month is happy to agree. On the next day the boy came to collect his two cents allowance, on the next day he approached his dad for the four cent allowance, next day 8 cents, next day 16 cents, and so on and so on each day. It wasn't long before the father realizes the mistake he made in agreeing to this new allowance as he ended up soon paying his son far more than usual, and soon after even had to abort breaking the agreement with his smart son. See the boy was clever knowing that if his father kept paying him just for the rest of the month that he'd get paid several millions of dollars! Here is a fun exercise: sit down with a calculator, start off with 0.01 then keep multiplying by two 31 times, and add up the amounts. In this plan you'll be figuring out how to double your money along the way. Starting from just one penny you'll surpass your million dollar goal in just 28 steps. Here, take a look!
Step 1 $0.01 The idea is very simple. To begin playing this "game" you must find a penny. Remember, you are not allowed to use any of your own money, so you must go out and find your starting funds. I like to think of the first penny as the "seed" that will grow into a majestic money tree! Go for a walk along some local streets (or even inside a mall if it is cold outside) and sooner or later you're bound to find your first penny. If you happen to find something larger than a penny, like a nickel, dime, quarter or even something larger then good for you, as you've just jumped up to a higher step. For example, if you found a nickel then you've jumped up to Step 3, working towards Step 4 of attaining $0.08. Here is a tip for you: you'll frequently find dropped change lying around entrances to convenience stores, gas stations, and a sweet spot is next to drive-thru windows of donut shops and fast food restaurants. Grab a clear glass coffee jar, or whatever container you have handy to store your "Penny Million" funds in, then drop your coin(s) into it. Once you've found your initial penny, your "seed", you are now on Step 1, having attained $0.01, and you are now working on your goal of getting to the next Step, 2, of $0.02. The easiest way to get to Step 2 is to continue walking around until you find another penny. Once you've found your second penny then you'll be on Step 2 working towards Step 3 ($0.04). Again, the simplest way to get to Step 3 is to continue walking around your neighborhood to find two more cents. Here your pursuit of wealth is good for your health; you're outdoors walking around! Remember, if you find larger coins (like a dime or a quarter) then you jump up to the appropriate higher Step. Here is another tip for you: sometimes at some grocery stores they use shopping carts that you need to deposit a quarter into the shopping cart to unlock it, but you get the quarter back if you return the cart. Sometime people are lazy and will just abandon the cart in the parking lot. Simply walk the cart back to the locking area and claim your quarter. For a while you'll probably enjoy going out for walks with your eyes scanning the ground, rejoicing over any coins you happen to find. Sooner or later you're bound to come to an interesting realization; you can't keep on doing this indefinitely. Walking the street is good to get you up the first few steps but soon it'll take way too much time to graduate to successively higher steps. Now you are going to have to start getting creative. What does rule #2 mean? All "costs" involved with your Penny Millions business dealings must be segregated and paid for directly from your Penny Millions funds. For example, printing pages from your home computer costs something (paper & ink). Driving your personal car for your Penny Millions project involves gasoline usage. Don't even think about stealing resources from your place of employment. You may make certain exceptions, such as using your home telephone, computer, or Internet as long as using these items doesn't cost you any more for the usage (i.e. don't make long distance calls). I personally wouldn't worry about the minor costs of electricity for running your computer. You may piggyback a business ride in the car to a store if you happen to be going there for personal reasons anyhow. If you need to use any personal items that incur a cost then calculate how much the total cost is and reimburse yourself from your Penny Millions funds. I'll share with you an embarrassing story of my first business transaction following this plan (not recommended for you to do, just telling you what I did). I printed up a copy of the original Penny Millions report (titled something else) from my home computer. Figuring that the local office supply store charges five cents ($0.05) per photocopy I reimbursed myself for each sheet I printed. I walked down the street and found some guy waiting at a bus stop. I sheepishly approached him and offered to sell him a report that would teach him how to turn a penny into a million dollars, for a bargain price of just 75 cents. He kind of laughed, but I think the curiosity got the better of him and he bought it from me. Now I had enough money to launch a bigger project. By the way, I grant you permission to sell this report (to a friend?) for the purpose of your Penny Millions project as long as you provide it unedited in it's entirety. Here is another tip for you: eBay along with dollar stores and garage/yard sales can be an easy way to migrate up along some of the earlier Steps of the plan. Bottom line is you need to start thinking about ways to deal your way up, from the money you currently have, striving to attain the next doubling Step. Remember that you can accomplish a doubling through several transactions; generally speaking you won't get 100% (doubling your money) on single deals. You might need to make multiple deals to get to your next milestone. It is important to keep focused on the step you are on. This brings us to our next rule: Don't worry about how to double $100,000 into $200,000 while you are still on the Step 5. Part of what this plan is designed to do is to gradually stretch the envelope of your mind to grow your business sense along the way. Right now the idea of doubling a hundred thousand dollars might boggle your mind, but when you've succeeded in doubling $25,000 to $50,000 and that to $100,000 you might be better mentally prepared for the new challenge. Now it might seem like a huge uncomfortable objective, but by the time you get there it'll simply be the next logical step for you and it won't seem like such an overwhelming task. Step by Step you'll grow in many ways preparing you to handle the next Step. This brings us to our next rule: We've already pointed out that after the first few steps it'll be impractical to continue walking along streets finding pennies trying to get to successively larger Steps. It would take an absurdly long time to get to a million dollars that way! If, for example, you were to be selling junk on eBay to double your way along the next several steps (or whatever you end up actually doing) it is inevitable that you'll find the same restriction happening; that it gets harder and harder to work your way up to the next step. You'll need to come up with new and different strategies as you graduate to higher and higher Steps. What you do to move from $100 to $200 to even $1000 certainly won't work at the bigger stages, like going from $10,000 to $20,000 to $100,000. What happens if you engage into a business deal that flops? Let's say you happen to be on Step 10 with $7.48. Pretend you bought something from a garage sale intending to sell it on eBay but accidentally broke it, or listed it on eBay but no one bought it. Now you're left with $2.19. Too bad, so sad, you've just reverted back down to Step 8 (a drop of two Steps!). You continue on from wherever you are now working towards the next Step (in this case Step 9). Here is another rule: You must do something totally different than what you normally do to earn money. For example, if your profession is a "house painter" then you can't take side projects to paint houses since this is your normal line of work and you probably came across the deal through work related interactions anyhow. However, if your line of work has nothing to do with house painting you may start a small business painting houses as part of your Penny Millions project as long as you observer rules #1 and #2 (no out of pocket expenses). You are not allowed to borrow money from yourself, friends or anyone for your Penny Millions project (but you may loan-shark the money to family members ;P ). The idea is to only use Penny Millions funds to do your business deals with. If you don't have enough money for something then you simply can't do the deal. Furthermore this plan is for you to make over a million dollars with no risk whatsoever. If you take on personal loans then you are liable for those loans and that is basically a violation of Rule #1. The only exception to getting loans is when you get to the level of playing with big bucks (tens to hundreds of thousands of dollars). If you have a corporation (an absolute must) and are doing some kind of big deal (like Real Estate) you may get a loan from a bank or an OPM deal (read my previous OPM article for ideas) as long as you do NOT personally guarantee the funds. Your only permitted risk is the Penny Millions funds you have invested in the deal. Initially keep your Penny Millions money in a glass jar, an old change purse, or even a zip-lock plastic bag. Treat the actual Penny Millions money as sacred, only using THAT money for purchases, and be sure not to mix that money up with personal money. If you need to buy something with a credit card, such as paying for eBay fees or buying something online, then be sure to immediately reimburse yourself from your Penny Millions funds. Once you've grown to $20 or so then you may open up a bank checking account (try to get an account with no fees) so that you have the convenience of using checks or even a Visa/debit card. Tip: if your bank gives you some kind of free gift for opening an account with them then see if you can sell the item they give you. No matter what Step you are currently on, if you happen to find money (a penny or even more) then be sure to pick it up and add it to your Penny Million funds. For many years I've been in the habit of expressing an affirmation of gratitude every time I find a penny or more. The statement I personally say is "I accept I accept I accept all the abundance that I get - thank you thank you thank you God", though feel free to make up your own affirmation with or without God in it. Put the coin in your pocket and briefly think a good thought about your financial prosperity, the success of your Penny Millions project, or just reflect with gratitude about the abundance of blessings and prosperity in your life already (no matter how little you may currently think you have you DO actually have at least some prosperity already - focusing on the good that you have draws more of the same into your life - conversely focusing on the perceived lack of what you don't have draws more of the same into your life too.) In the early stages you'll probably do deals that involve the bulk or all of your funds on the single deal. When dealing with small amounts of money this is fine, but when dealing with large amounts of money try to limit your financial commitments on single deals so that if the deal turns bad you limit your losses to prevent being completely wiped out. Losing 95% of $10 is certainly a setback, but won't suck nearly as much as losing $95,000 from your total of $100,000. Keep a journal of your progress. This will become something fun to look at later on and cool to share with your friends that can't believe what you've done. Get peer support from others following the Penny Millions strategy. I've created a special forum just for you to discuss ideas & strategies with each other. Be sure to share your successes and take the time to congratulate others achieving their milestone Steps. Reading and posting in this forum regularly will help keep you motivated while working on your own Penny Millions project. To get to the forums simply click on the forums link (EDIT - this sentence has been edited from the original since the forum location has changed). I personally will be participating in this forum as this is a topic that I'm quite passionate about and curious to see how people do following this plan. Education is a valuable investment into yourself and your Penny Millions project. I'm not talking about a College education (though I'm not knocking it either), what I mean is that it is ok, within reason, to buy books, courses or seminars that will teach you something useful to help you move forward faster in your Penny Millions project. Chances are you'll need to learn a few things along the way to help you to know what to do to make money, particularly at the higher stages of this game. An idea I like telling people is this: sure a $5,000 course sounds expensive, but if it teaches you how to make $5,000 a month (or even more) then isn't it really cheap? When your project grows into the tens of thousands of dollars it might be a good idea to consider forming a corporation to contain your Penny Millions project within. There may be certain benefits, like, tax benefits, and shielding yourself from possible liabilities. Remember, the Government will want a part of the action. Be sure to talk to your accountant (that you pay from your Penny Millions money) to make sure you pay what you have to, but at little as legally possible.
The original plan I read was pretty strict about this point; the money from following this plan is to be completely "hands off", you are not to take any of the money until you reached Step 28, over a million dollars, then it's all yours to do whatever you want with it. I'm sure that for most people this is actually a good idea as it removes temptation and will encourage you to become a millionaire. I however am a non-conformist. I admit to having willingly violated that rule myself, and I've refined the strategy so that you can have the best of both worlds. With the variation I'm describing here you'll be able to enjoy the fruits of your labors earlier while giving you structure to fulfill the entire plan of becoming a Millionaire. Furthermore I believe that by having these milestone rewards you will be more encouraged to keep on working the plan. For many people smaller more frequent rewards is more motivating than a huge reward at the end, but having none of it now. This way you get the small rewards along the way AND the big payday! Until you turn your seed penny into $10,000 (Step 21) you won't be paying yourself at all. What's the point? It's such small chump change anyhow. However as of Step 21 you are permitted an "allowance", paying yourself 10% for each milestone you reach (10% of the milestone value, not 10% of how much money you have). You may choose to not pay yourself if you prefer, but if you opt to forgo paying yourself that milestone's payday is over (you can't later change your mind). You may only take one "allowance" payday per milestone. So when your project grows to be over $10,000 you may take your 10% allowance ($1,000), or not. Note that if you take your allowance your balance will drop down to $9,000 and so you'll drop back down to Step #20. After you've done some other business deals eventually you'll get back up to Step #21, but since you have previously taken a "Step #21 allowance" you can't take another allowance until you reach Step #22, over $20,000. Then you may take your single "Step #22 allowance" of $2,000. When you reach Step #23 you may take a $4,000 allowance. By now you should get the idea. Here is the table showing you your permitted allowances:
Step 21 $1,000 As you can see your allowances grow pretty quickly, and I'm sure that it'll motivate you along each step to get your reward. But what happened to Step #28, don't you get a $128,000 allowance? Nope, now you get it all!!! For Step #28 you are entitled to a full $1.28 Million dollar payday! The money is all yours to do with as you wish! Enjoy!!! Now you're probably imagining how you could spend $1.28 Million dollars, but by the time you get to that stage you'll probably find that you've matured somewhat. Of course you're going to go out and blow a small fortune, but the key word is "small". Surely you'll have the wisdom to keep a good amount of the money to reinvest somehow (as you have obviously skillfully figured out how to do along the way of the plan). Perhaps some of you who've read some of my earlier books might recognize this basic concept in the other things I taught (EDIT: see Forex Freedom). Well this is the root idea of how I came up with those other inspiring strategies. I try to work in this basic concept into some of the business stuff that I do personally, and invite you to adopt this idea for yourself too. So now you know the entire plan of the Penny Millions Strategy. Go by the forum to introduce yourself as a new Penny Millions game participant, and go out for a nice long walk. P.S. I'm trying to track down the guy who wrote the original article about this concept. When I find him I'll ask him for permission to share it with you (copyright issues) and if he permits me to then I'll post it for your benefit in the forum. Maybe he'll even agree to do an interview to be shared with all of you. By the way, don't worry, you aren't missing anything from that article as I've covered all the important points here in this article for you and even added a whole bunch more. |
 
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The following is the original article I wrote a few years ago that was featured in Millionaire Gift magazine. What is currently presented as the "Penny Millions" strategy here on this website is a drastic revision of what follows here on this page. I would strongly encourage you to first read this article, as it is quite insightful and you'll be inspired with some good ideas, however I recommend that you then read the main strategy on the PennyMillions.com website which lays out a solid plan that is far better than this original article. I've included this page on the website for its' historical significance, and since it contains some good content. It really is worth the time to read this page. Enjoy!
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