Build Residual Income with Duplicable Systems (Ray Kroc, Part 4)
For the past three weeks, we’ve been learning from Ray Kroc’s success with creating the world-famous McDonald’s franchise system. In this final blog on Kroc, we learn how duplicable systems build residual income.
Ray Kroc died in 1984, thirty years after he first met Dick and Maurice McDonald. In 1961, Kroc bought out the McDonald brothers for $2.7M. When Ray Kroc died in 1984 McDonald’s was producing $758M in annual sales. What an incredible success story!
Kroc was an ordinary man. When he was introduced to McDonald’s he was 52 years old. He had zero college education, and his business experience was as a multi-mixer salesman. What Kroc did have was two things: (1) a dream and (2) a system.
A Dream and a System
In only 30 years, armed with his dream and his system, Ray Kroc went from making $25,000-a-year to having a net worth over $500 million. That’s half a BILLION dollars…in 1984! A dream and a system made an ordinary man an extraordinary businessman.
What is even more extraordinary is that, because of the system, Kroc’s story didn’t end when he died. Kroc built McDonald’s into a business that ran on a predictable system instead of running on an individual’s personality, charisma, or work ethic.
It has been 32 years since Ray Kroc passed away. Using the system, McDonald’s has grown from a $758M in revenue in 1984 to over $25B annually today. The Kroc family and family estate have continued to benefit from the dream and the system that Kroc put in place nearly 60 years ago.
Billions and Billions Served
Following Ray Kroc’s death, his wife, Joan, lived off the system for the next 19 years until she passed away in 2003. She followed her passion of giving away money to those that were less fortunate. Joan Kroc donated literally BILLIONS of dollars to a variety of charities. The next time you pass a McDonald’s sign and read their famous tagline, “Billions and Billions Served,” remember the awesome power of a duplicable system.
Duplicable Systems = Residual Income
Duplicable systems equal residual income. You do the work once and you can be paid on it for years and years to come. Not only can you be paid, you can pay it forward. Why? Because you created a system-based business with predictable results.